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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.