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NEW BUSINESS PITCH
Today and Tomorrow
NAME BRAND PITCH TYPE
Media
MARKET DATE
October 27 , 2016
The Data You Need to Win This Pitch
DESCRIPTIONMattel is conducting a media agency review.
The company reported total advertising and promotion expenses of about $718 million last year, according to its latest annual report. Of that total, an estimated $150 million is earmarked for ad spending.
Publicis Groupe’s Starcom is the current incumbent for media planning and WPP’s Mindshare is the incumbent for media buying.Mattel has retained MediaLink to assist with the review process.
Word of the review comes at the same time that Mattel confirmed a multiyear deal with content creator Tongal to develop and produce content for brands such as American Girl, Barbie, Thomas & Friends and Hot Wheels.
Mattel seeks agency for $150 Million Media Account
thU.S.
Client Profile / Market
Mattel, Inc. designs, manufactures, and markets a range of toy products worldwide. The company operates in three segments: North America, International, and American Girl. It offers dolls and accessories, vehicles and play sets, and games and puzzles under the Mattel Girls & Boys brands, including Barbie, Monster High, Disney Classics, Ever After High, Little Mommy, Polly Pocket, Hot Wheels, Matchbox, CARS, Disney Planes, BOOMco, Radica, Toy Story, Max Steel, WWE Wrestling, and Batman. The company also provides its products under the Fisher-Price brands, such as Fisher-Price, Little People, BabyGear, Laugh & Learn, Imaginext, Thomas & Friends, Dora the Explorer, Mickey Mouse Clubhouse, Disney Jake, the Never Land Pirates, and Power Wheels. In addition, it offers its products under the American Girl brands comprising My American Girl, Bitty Baby, Grace Thomas, and the 2015 Girl of the Year doll; and construction, and arts and crafts brands, such as MEGA BLOKS, RoseArt, and Board Dud.
COMPANY BACKGROUND
MAIN COMPETITORS
2015 Sales (mil)
2015 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
5,700.00
31,000
-
6,552
-26%
-5%
FINANCIAL OVERVIEW- Source: AccessConfidential.com -
Ms. Bisma AnsariSenior Vice President, Marketing
Ms. Catherine Balsam-Schwaber
Chief Content Officer
DECISION MAKERS by
bansari@megabrands.comcatherine.balsam-schwaber
@mattel.com
U.S. Toys Industry
2015 U.S. REVENUE
$19.45B- Statista.com -
2015 GROWTH
6.7%- NPD Group -
Source: The NPD Group, Inc / Retail Tracking ServiceThe lists do not include items that are exclusive to specific retailers.
GROWTH JAN-SEP 2016
6%- NPD Group -
TOP SELLING TRADITIONAL TOY ITEMS** IN 2015Ranked on Dollars
RANK ITEM MANUFACTURER
1 Shopkins12 Pack Asst Moose Toys
2 Paw Patrol Basic Vehicle W/Pup Asst Spin Master
3 Hot Wheels Car Basic Asst Mattel
4 Shopkins2 Pack Moose Toys
5 Barbie Dream House Mattel
6 Teenage Mutant Ninja Turtles Fig Asst Playmates Toys
7 Minecraft Mini Figures Asst Mattel
8 Star Wars Sphero App Controlled BB-8 Sphero
Performance by segment
ALL DOLLARS SHOWN IN BILLIONS
ANNUAL 2015 / $ 19.48
Action Figures & Accessories $ 1.44
Arts & Crafts $ 1.00
Building Sets $ 2.04
Dolls $ 2.59
Games & Puzzles $ 1.62
Infant / Toddler / Preschool Toys $ 3.07
Youth Electronics $ 0.60
Outdoor & Sports Toys $ 3.59
Plush
Vehicles
All Other Toys
$ 1.00
$ 1.42
$ 1.12
ANNUAL 2015 U.S. TOY INDUSTRY PERFORMANCE
DOLLAR % CHANGE
Games / Puzzles 10.8 %
Vehicles 9.7 %
Building Sets 9.4 %
Outdoor & Sports Toys 8.8 %
Action Figures & Acc 8.7 %
Dolls 8.4 %
Infant / Toddler / Preschool Toys 5.7 %
All Other Toys 4.3 %
Plush
Arts & Crafts
Youth Electronics
1.6 %
- 4.3 %
- 4.9 %
SUPER - CATEGORY
The lists do not include items that are exclusive to specific retailers.
Content Driving Growth
Movie related content in total outperformed the market in 2015,
growing by
- NPD Group -
Star Wars was the number-one absolute dollar growth contributor to three of the
super-categories: Action Figures, Vehicles, and All Other Toys.
9.4%
Star-Wars became the number one property of the year (2015) with over
- NPD Group -
$700MIn sales
Consumers are Looking for Experiences and Family Time
“The trend in games is definitely one to watch, and it will continue to flourish as
families look for more together time”
Juli Lennett, senior vice president, U.S. toys industry analyst, The NPD Group
U.S. TOYS SUPERCATEGORY PERFORMANCEDOLLAR CHANGE, JANUARY-SEPTEMBER 2016
Outdoor & Sports Toys + 9%
Dolls + 12%
Games & Puzzles + 16%
Action Figures & Acc + 12%
Infant / Toddler / Preschool Toys + 3%
Plush + 5%
Vehicles + 1%
All Other Toys 1 1%
Arts & Crafts
Building Sets
Youth Electronics
- 2%
- 1%
- 9%
“I believe some of this explosion in Outdoor & Sports toys is a result of
millennials seeking a healthier, outdoor lifestyle for their kids”
Juli Lennett, senior vice president, U.S. toys industry analyst, The NPD Group
$0 $50 $100 $150 $200($50)
Fast Food industry in numbersStats: Mattel
$5.7B
Revenues 2015(millions)
% change
-5%
International Markets Breakdown
Latin America$711M
Europe$1,388B
$369M
Net Income 2015(millions)
59%
41%
U.S
International Markets
Asia$58.7M
Fast Food industry in numbersMattel’s Business Segments
BOYS & GIRLS WHEELS ENTERTAINMENT
Fast Food industry in numbersRebuilding their Reputation
Since Jan. 1 2016, Mattel lost the Disney Princess license to rival Hasbro.Disney Princess generated gross sales for $455M in 2015
Mattel’s three largest customers in 2015 were Walmart ($1B), Toys R Us ($0.6B), Target ($0.5B).
Together they generated
37% of worldwide consolidated sales.
BARBIE’S SHRINKING MARKET SHARE
Barbie’s share of the global dolls and accessories market has been decliningevery year since 2009, according to data from research firm Euromonitor.
Mattel Innovations
Mattel spent $217.8MOn product design & developement in 2015
In March 2016, Mattel created a new division called Mattel Creations.
The goal is to drive premium content across multiple platforms including theatrical, television and digital.
The company has set Mattel’s Chief Content Officer, Catherine Balsam-Schwaber, to head the cross-portfolio strategy with longtime creative executive Christopher Keenan named SVP, Content Development & Production.
PERFORMANCE
Barbie Monster High Hot Wheels
BRINGING TOYS TO LIFE
Mattel announced partnership betweenIsraeli-founded mobile ad startup,
StartApp
Under the multi-year agreement, StartApp will become Mattel’s premier licensee to create digital
stickers, emojis, wallpapers, gifs, mobile app themes, avatars, memes, and related apps for a
number of Mattel’s global consumer brands.
Barbie Makeover
90% of new mothers are Millennials
Goldman Sachs
Advertising Expenses in 2015
$717.9M
“Generation-X parents were often content to have their girls play with a
doll as long as it was merely entertaining. Mattel found that
millennials, however, were fixated on giving their children toys that had
purpose and meaning.”
Mattel, maker of the Barbie doll, added curvy, petite and tall dolls to try to address an issue it may have connecting with young girls.
SHE SHOULD RUN PARTNERSHIP
She Should Run is a nonpartisan group that works to get more women interested in running
for public office. So, this year, instead of just presenting girls
with an elegantly coiffed doll in a White House-worthy power suit, the dolls’ packaging
will come with a prompt to download a worksheet co-created with She Should Run that’s meant to get parents and kids talking
about leadership.
The worksheet asks girls to circle words that describe them as a leader, with choices such
as “brave” and “fearless.” And it has a fill-in-the-blank speech where girls can write
about what they would do if they were president — a clear bid to push the buttons of
the purpose-driven millennial parent.
MILLENNIALMOMS
QUICK DEFINITION:Millennial Moms
Millennial Moms are primarily interested in beauty, fashion,
home decor and health. We’ve excluded Mattel fans in order to better highlight the differences between Mattel’s current fans and the consumers buying the competition.
47%
30%
60%
0
90%
13-17
• • •
• • •
18-24 25-34 35-44 45-54 55-64
100%FEMALE
46%MARRIED
100%WITH
CHILDREN
BEAUTY & WELLNESS
177.1
HOME DECORATORS & DIYs
157.9
FASHIONLOVERS
168.7
HEALTHCONSCIOUS
145.0
80%
Millennial Moms
Compare the Millennial MomDemographic with Mattel’s Audience
Mattel audience overlaps with our Millennial Mom
demographic by 80% in top interests,
including:
Beauty & Wellness, Fashion, Health and
Home & Garden
MILLENNIAL MOMS:BEAUTY & WELLNESS
Mattel’s audience over indexes as Beauty & Wellness Aware
(166.0)
Like Millennial Moms, they are enthusiastic about cosmetics
(cosmetic connoisseurs 186.1) and physical activities (Active &
Fit 154.7)
Health & Fitness apps collect very high popularity points
(172.5)
COSMETICSCONNOISSEURS
186.1ACTIVE & FIT
151.3
BEAUTY & WELLNESSAWARE177.1
CLICK HERE TO SEE TOP HEALTH & FITNESS APPS
HEALTH &FITNESS APPS
152.9
Mattel’s AUDIENCE CROSSOVERS
MILLENNIAL MOMS:FASHION
Mattel’s audience is interested in fashion
(Fashion Lovers 148.6).
Compared to Millennial Moms, they are more likely to be Fashion Enthusiasts
(166.6)and accessories addicted
(188.2)
CLICK HERE TO SEE THEIR FAVORITE FASHION BRANDS
APPAREL RETAILSTORES
FASHION LOVERS168.9
POPULARITY
CLICK HERE TO SEE THEIR FAVORITE RETAIL STORES
CLASSIC FIT
186.3
Mattel’s AUDIENCE CROSSOVERS
POPULARITY165.3 POPULARITY
Mattel’s audience over indexes as Home Decorators
& DIY (155.5).
They are highly engaged in gardening activities (170.0) and many of them shop on
Minted Marketplace (190.7).
Like Millennial Moms they enjoying reading Home &
Garden Magazines (159.7)
MILLENNIAL MOMS:HOME & GARDEN
HOME DECORATORS& DIYs
157.9POPULARITY
MINTEDMARKETPLACE
189.1POPULARITY
HOME &GARDEN MAGAZINES
139.4POPULARITY
CLICK HERE TO SEE THEIR FAVORITE HOME RELATED
MAGAZINES
Mattel’s AUDIENCE CROSSOVERS
Health is one of the subjects gathering more interest
among Mattel’s audience (166.8)
Millennial Moms, on the other hand, don’t follow
Health-related websites as much, scoring just 109.0 in
popularity points
MILLENNIAL MOMS:HEALTH
HEALTHCONSCIOUS145.0
HEALTHWEBSITES
152.4
• • • • • •
TOP HEALTH WEBSITES
KNOW MORE
BABY GAGA
Mattel’s AUDIENCE CROSSOVERS
CONSUMER INSIGHTS SUITE
Discover more about Mattel’s consumers
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