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

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