BARBIE VS. BRATZ

COMPETITION IN THE TWEEN

GIRL MARKET

TEAM MEMBERS

ABANTI SANYAL ABHISHEK ROY AMIT KUMAR

SAHAY A.V.K. CHAITANYA DHRITIMAN

BHATACHARYA S.P.PARHI VAIBHAV SINGH

CONTENTS

GLOBAL TOY MARKET US TOY INDUSTRY MATTEL’S BARBIE MGA’S BRATZ ANALYSIS MATTEL’S RESPONSE

GLOBAL TOY MARKET

Was worth $60 billion as per 2003 estimates.

Mattel and Hasbro were the world leaders .

Other top players were Bandai and Sanrio from Japan Lego from Denmark

Wal-Mart ,Toys “R” US were the leading toy retailers.

US TOY INDUSTRY

The US toy industry originated in 1903 . An average American family was spending $20 on

entertainment and recreation in 1903. Now an average American’s spends $400 per child per

year on toys.

SIZE OF THE US TOY INDUSTRY

SIGNIFICANT SEGMENTSTOY SEGMENT MAJOR PLAYERS TOP BRANDS

1}INFANT/PRESCHOOL TOYS

LEAPFROG ENTERTAINMENT

LEAP PAD & LEAP PAD BOKS

2} ARTS & CRAFTS MATTEL MAGNA DOODLE & PIXTER

3} MODELS & ACCESSORIES

HASBRO ZOIDS KIDS LINE

4} DOLLS & ACCESSORIES MGA ENTERTAINMENT MATTEL

BRATZBARBIE

5} BUILDING & CONSTRUCTION SET

LEGO BIONICLE

6} GAMES & PUZZLES KONAMI YU – GI – OH!

7} LEARNING & EXPLORATION

DATA NOT AVAILABLE DATA NOT AVAILABLE

8} &ENTERTAINMENT KID DESIGNS INC. BARBIE KARAOKE MACHINE

MATTEL’S BARBIE Launched -1945,in Southern California. Incorporated -1948 (Hawthorme, California). Major Byers.

Wal-Mart ,Toys “R” US, Target (50% of Max Sales)

Birth of BARBIE – 1959. 1st Tele – Marketing – 1960. Dec 06,2001 – 90% market share. Barbie conveyed positive reflections

of society and feminity – Roll Model.

PROBLEMS OF MATTEL Over production of Barbie. Doll collectors felt that

Mattel treated them with contempt.

Unsuccessful acquisition Feminists accusation

Young girls went crazy, became anorexic

Mattel Inc.: Summing up the Second Quarter 2003 Financial Results.

MGA AND BRATZ Bratz introduced -June 2001, by MGA . It became the top selling fashion doll by October 2002

[constituted 65% of MGA sales]. Won people’s choice award in 2002,along with 5 of the

top 10 positions in the fashion doll category. “BRATZ HAS DONE A GREAT JOB IN KEEPING GIRLS

PLAYING WITH DOLLS AT AN OLDER AGE”

-AMANDA HEARNDEN ,

Barbie's Brand Manager.

ANALYSIS “BRATZ achieved something MATTEL had been trying to do for years

i.e. getting Tweens to play with dolls”.

HOW ? A better understanding of taste & preference of Target

Market & a product design to suit that market. The phenomenon that MGA observed & took advantage of

Were:- AGE COMPRESSION:- Kids judge their physical standards in

comparison with adult standards at a very early age. Emergence Of TWEEN GIRLS Market:- A market that

consists of girls who are from the age group of 8 to 14.

[It is to be mentioned here that emergence of the new segment was the result of AGE COMPRESSION itself.]

HOW AMERICAN GIRL TWEENS SAW THEMSELVES AS A RESULT OF AGE

COMPRESSON.

“I LIKE THE WAY I LOOK”

APPROXIMATE SIZE OF THE US TWEEN MARKET VIS-A`-VIS OTHER DEMOGRAPHIC SEGMENTS

PURCHASING POWER OF THE AMERICAN TWEEN VIS-A`-VIS THE OTHER AGE GROUP

IN

BILLION $ / ANNUM

IN

$/ ANNUM / PERSON

TOY SPENDING IN THE US

TOY SPENDING IN BILLION

US $

AGE IN YEARS(OF THE US KIDS)

2000

----- 1990

MATTEL’S RESPONSE

Re organization of business units on 20th February 2003.

Mattel came up with BARBIE RAPUNZEL in 2002.

Mattel came out with ‘MY SCENE’ Barbie in 2003 which costs $ 13.99.

Offered 2 for 1- still unable to catch the market.

Mattel launches “FLAVAS”. Line of HIP-HOP fashion dolls. Designed to appeal to older girls.

“BARBIE CAN ONLY GO SO FAR”-Eckert, Chairman & CEO

MATTEL

“It (Mattel) can’t just rely on Barbies”-CHRISTOPHER PALMERI,a senior correspondent Business

Week.

IS THEIR ANY QUESTION

?

MATTEL’S BUSINESS UNITS

Mattel Inc.

Fisher-PriceBrand Business

Unit (Infant and Pre-

school Toys)

Mattel BrandsBusiness Unit

(Lifestyle Brands for kids

of All Ages)

American GirlsBrand

Business Unit (Products For

Girls In the Age Group 3-

12 Years)

Mega BrandsBarbieHot Wheels

Power WheelsRescue Heroes

Character Brands(e.g. Dora, the explorer)

Little People

American GirlsCollectionAmerican Girl TodayMagazineGirls of many landsAngelina BallerinaAmerican Girl

Mattel Inc. Summing up the Second Quarter 2003 Financial Results

Worldwide net sales down 4%. Domestic gross sales down by 15% and

international gross sales up 11%. Worldwide gross sales for core brands:

Barbie down 8%; Hot Wheels down 16%; core Fisher-Price down 3% and American Girl brands down 3%.

Operating income down 6%. Earnings per share, excluding charges,

reduced to $0.07 compared to the prior year.