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 MATTELS BARBIE MGAS BRATZ ANALYSIS MATTELS 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 Americans spends $400 per child per year on toys. 500 US World Toy Industry[except USA] 400
USA Toy Industry IN $ 67% 33% 300

200
100 0

OUT SIDE US
AVERAGE SPENDING/CHILD/YEAR

SIZE OF THE US TOY INDUSTRY

SIZE OF THE US TOY INDUSTRY IN BILLION $
20.6 20.5 20.4 20.3 20.2 20.1 20 19.9 19.8 19.7 1998 20.5 20.4 20.3

19.8 1999 2000 2001 YEAR 2002 2003

SIZE OF THE US TOY INDUSTRY IN BILLION $

SIGNIFICANT SEGMENTS
TOY SEGMENT
1}INFANT/PRESCHOOL TOYS 2} ARTS & CRAFTS 3} MODELS & ACCESSORIES 4} DOLLS & ACCESSORIES

MAJOR PLAYERS
LEAPFROG ENTERTAINMENT MATTEL HASBRO MGA ENTERTAINMENT MATTEL LEGO

TOP BRANDS
LEAP PAD & LEAP PAD BOKS MAGNA DOODLE & PIXTER ZOIDS KIDS LINE BRATZ BARBIE BIONICLE

5} BUILDING & CONSTRUCTION SET 6} GAMES & PUZZLES

KONAMI

YU GI OH!

7} LEARNING & EXPLORATION

8} &ENTERTAINMENT

DATA NOT AVAILABLE

KID DESIGNS INC.

DATA NOT AVAILABLE

BARBIE KARAOKE MACHINE

MATTELS 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 peoples 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

KIDS 21%

BABY BOOMERS 27%

TWEENS 12% GENERATION X 7%

TEENS 13%

GENERATION Y 20%

PURCHASING POWER OF THE AMERICAN TWEEN VIS-A`-VIS THE OTHER AGE GROUP
IN BILLION $ / ANNUM IN $/ ANNUM / PERSON

TOY SPENDING IN THE US

2000 ----TOY SPENDING IN BILLION US $ 1990

AGE IN YEARS(OF THE US KIDS)

MATTELS 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) cant just rely on Barbies
-CHRISTOPHER PALMERI,a senior correspondent Business Week.

THANKING YOU
IS THEIR ANY QUESTION

MATTELS BUSINESS UNITS

Mattel Inc.
Mega Brands Barbie Hot Wheels
Power Wheels Rescue Heroes Character Brands (e.g. Dora, the explorer) Little People

American Girls Collection American Girl Today Magazine Girls of many lands Angelina Ballerina American Girl

Mattel Brands Business Unit (Lifestyle Brands for kids of All Ages)

Fisher-Price Brand Business Unit (Infant and Preschool Toys)

American Girls Brand Business Unit (Products For Girls In the Age Group 312 Years)

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.