Barbie Survival Case
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Transcript of Barbie Survival Case
COMPANY OVERVIEW● Company: Barbie is a fashion doll manufactured by Mattel, Inc. and
launched in March 1959. She will turn 56 this year. Sales for the iconic doll slumped 21% in the latest quarter from a year ago.
● Community: Mattel currently benefits from the Frozen craze through a partnership made with Disney, but will soon lose that merchandising agreement to Hasbro. Some analysts predict the Frozen line will contribute over $500 million to Mattel’s sales this year, so the lost contract is huge.
● Consumers: The popularity of tablets, smartphones, and games amongst kids is taking market share from Barbie dolls + girls are turning to stronger and edgier characters.
KEY CHALLENGES
● Kids perceive the doll as old and classic
● Kids are spending more on tech
● Girls are getting bored of Barbie at a younger age (6-12)
● Barbie is being cannibalized by other dolls such as Monster High,
American Girl and Frozen
COMPETITION1. Variety of options to spend time - TV, Internet etc.
2. Technology - Shift to tablets, smartphones, games
COMPETITION1. 20% of parents told the NRF that they bought last Christmas a
Frozen doll for their daughters, compared with just 16.8% who said they purchase something Barbie-related
2. Monster High dolls are "cannibalizing" Barbie sales as girls opt for the edgier toys
3. Girls from 6 to 9 are opting for American Girl Doll4. Barbie faces competition from other up and coming dolls such as
Bratz dolls and Lammilly.
BRAND STRATEGYShift Barbie from classic old to edgy tech
Our doll will be able to interact with today’s techsavvy young user through robotics and artificial intelligence
PRODUCT
1959 Young girls - 3 to 12 yrs
Pop IconTeen Fashion Model
Early 2015 Collector’s Item
Omnipresent55+ yrs oldObsolete
The Interactive BarbieGirls’ BFF
Young Girls - 3 to 12 yrsEdgy, Cool, Smart & Fun
PRODUCTInspiration in 1959 Inspiration in 2015
➔ Nuance/ IVONA/Google Technologies for speech recognition
➔ Child filter - Google SafeSearch
➔ Integration with apps, games
SYNERGIES AND PROPOSED IMPROVISATIONS - Phase I
➔ Impeccable quality and durability - Barbie Brand➔ Technology partners and Licenses➔ Flexible design➔ Language
◆ Tone◆ Variety
➔ GPS functionality for tracking➔ Technical glitches - make the platform more robust
PRODUCT
PLACE● Barbie will be now controlled through easy to use apps
available for mobile, ipad and tablets.
● Re- designed softwares and website to allow girls to create a Barbie Avatar
with which they feel more identified with and reinforce new brand experience● Demos will be available in-stores for girls and parents to experience
PLACE
PRICE
● Will use price skimming strategy - Tech Barbie will cost $70.00 - this is higher than regular Barbie $12.99 and Frozen Barbie $17.99 but is still cheaper than a collection Barbie.
● App to control Barbie will come for free with the purchase● App will offer a $5 dollar upgrade that will include “Homework Mode”
PROMOTION
● Partnership with a big studio to create a movie featuring new Barbie and positioning her like a girls real best friend (like Ted but for little girls)
● Barbie trucks outside schools with free demos of the product● In-store events● Commercials during young girls TV shows
KEY DATES
● Movie premieres on theatres December 2015.
● Product Launches on the same week.
● Barbie trucks & commercials run 3 weeks before product launch.
KPI
● Interaction rate on apps and social media accounts.
● Active user base on mobile, apps and website.
● Market share on girls 6-12 years old.
● Sales not only for the new Barbie. Variations in sales of the other Barbie dolls.
COSTS
● Copyright and Patent Licensing Costs○ Expected: 35 million USD
● Product Improvement○ 5-10 million USD
● Marketing Costs○ Promotion and Branding campaign:
■ 100 million USD
APPENDIX
IN THE FUTURE:
● Tech Barbie would be able to walk controlled through the app
● Tech Barbie will be able to take photographs and videos - useful for parents to monitor
their kids when playing
● Tech Barbie in “Homework mode” introduced in schools as way to learn
● Partner with schools to offer Music Video Contests with special awards
● Product Placement (Universal, Paramount and Sony - family movies) 10m
● App Marketing (kid games) 7m
● In-Video Advertising Stream (Youtube,Netflix and Hulu) 13m
COSTS