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Mattel Barbie Presentation

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Mattel Barbie Presentation

  1. 1. Integrated Strategic Marketing Plan Cheryl Booker Chris Chen Trisha McNamara Robyn Moss Kelsey Yu
  2. 2. Table of Contents Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix
  3. 3. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Executive Summary  Mattel’s domestic sales are on the decline and the company is looking to increase business activity in international markets in order to foster growth.  Latin America is a target market with enormous potential where Mattel is currently leading its competitors.  Asia is another high potential market; however, Mattel faces more competition there than in Latin America.  A major trend is that traditional toys are increasingly becoming coupled with digital content for a ‘seamless’ experience.  Our objectives are to achieve worldwide revenue growth of 9% by 2013; in particular, with 4% growth domestically and 12% growth internationally. Furthermore, consistent with our focus on globalizing Mattel, we are striving to have revenue from international markets exceed domestic revenue by 2015.  Our strategy/recommendation is to showcase a Barbie ‘Pop-Up Experience’ that integrates a comprehensive digital marketing strategy. Starting in Los Angeles, New York, Milan and Tokyo, our long-term goal is to expand coverage to high-potential developing markets.
  4. 4. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Traditional Toy and Game Industry  Global Industry Size: $79.7 Billion1  Mattel’s global market share (2011) = 12.4%1  Stagnant growth-rate in U.S.  Toys, dolls and games are discretionary items • Commensurate with disposable income  China produces over 60% of the world’s toys1  Commoditization • New Definition of Toy Company; (more like video game publisher)  Full-Cycle Toy Experience  Toy users want integrated experience with digital/online interaction  Age Compression  Children are maturing faster; ‘growing out of toy phase’ sooner
  5. 5. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Traditional Toy and Game Industry  Trends  Expansion into Asia and, especially, Latin America • In Latin America, Mattel has highest market share1 • In India and China, demand for branded ‘western’ toys are on the rise1  Dolls (Barbie & American Girl)  Licensing From Motion Picture Industry (i.e. Pixar, Disney) • i.e. Cars 1 & 2, Toy Story, Wreck-it-Ralph  Legal/Regulatory Issues  Recalls • Mattel: i.e. Fisher-Price & Barbie • Hasbro: i.e. Easy-Bake Oven  Consumer Products Safety Improvement Act (CPSIA) (2008)2 • Prohibits unsafe lead levels, choking hazards & other illness causing chemicals
  6. 6. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Competition (Traditional Toys & Games) Company Metrics Strengths / Weaknesses Strategies Market Share: 8.46% Strengths -Iconic Brands -International Presence Weaknesses -Limited Category Focus (Games & puzzles and action figures) -Reliance on manufacturing in the Far East Strategies -Increase market share by strengthening core brands through movies and TV shows -Grow share in construction category with Kre-O -Increase focus overseas -Undergo brand consolidation to reduce the number of global brands and focus on key properties Market Share: 5.64% Strengths -Strong Brand Image -Educational / Play Value Weaknesses -High Price Tag -Single Category Focus Strategies -Explore girls construction line with LEGO Friends -Launch localized or event product versions Market Share: 3.15% Strengths -Rich in content -Video Games Exposure Weaknesses -Low international sales -One category focus Strategies -Diversify away from Japan -Increase production for Power Rangers merchandise
  7. 7. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Barbie remains #1 girls brand in the world1 5.4 Bn 5.9 Bn 6.3 Bn 2009 2010 2011 • Mattel’s most iconic powerhouse brand • #1 girls brand in the world • #1 fashion doll, since 1959 Most iconic toy brands Manufacturing cost advantage Global Network and Scale Source: Mattel 2011 annual report Mattel Global Revenue Barbie Worldwide Gross Sales Growth -3% +7% +12% 2009 2010 2011 • Brands include Barbie, Hot Wheels, American Girl, Monster High, and Fisher-Price • Record profits in 2011 of $6.3 billion, total profit $769 million2 • 48% of gross sales occurred from Mattel’s international divisions • Marketing restructured to include North America Division and Global Brand Teams to better manager brands on a global scale Core Competencies
  8. 8. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Reasonably Priced Product, Aggressive Promotion Product Annual Promotions • 2012: Global Campaign: “See What Happens when you play with Barbie” • 2011: Ken’s 50th anniversary campaign “Ken Campaign – Will Barbie Take Him Back?” Ongoing Promotions • Barbie Collector • Barbie “I Can Be” line of careers • Barbie “Fashionistas” line of dolls, accessories, and digital content Pricing Promotions3 Place • Wal-Mart, Toys “R” Us, and Target accounted for 38% of worldwide net sales in 20113 • Barbie available at boutique toy stores, Mattel’s online store, and numerous other retailers Digital Content Online games and appsDolls and accessories Full Length animated movies Apparel and other toys• Barbie brand exists in 45 different consumer product categories • Products range from digital content to girls apparel and Barbie branded toys1 • Barbie dolls range from $6.99 to $49.99, most priced between $10.99 and $19.992
  9. 9. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Customers Platinum Gold Iron Lead Domestic Sales of Barbie +8% PRIMARY MARKET Direct to Retailers - Freestanding Toy Stores - Chain Stores - Department Stores - Other Retail Outlets - Wholesalers SECONDARY MARKET 11 Small Retail Outlet - American Girl Place & Stores - Online Website International sales of Barbie +14% PRIMARY MARKET - Direct to Retailers/Wholesalers SECONDARY MARKET - Agents & Distributors - Online Website DOMESTIC INTERNATIONAL $1,657 51% $991 30% $384 12% $228 7% International Gross Sales (M) Europe Latin America Asia Pacific Other $3,581 52% $3,260 48% Gross Sales (M) Domestic Int $1,200 18% $700 10% $500 7%$884 13% $3,557 52% 48% Sales from Top Ten Retailers Walmart Toys R US Target Ten Largest Customers, Net of Top 3 Other TRENDS & TERMS WITH CUSTOMERS SEASONALITY - Sales dominate in 3r & 4th Qtr - Risks of over/under production PREFERENCE for BRAND EQUITY - Trademarks, Copyrights, & Patents - 3rd Party Licensing agreements CONTRACT TERMS - Commitments (purchase and service agreements) - Terms of delivery (within 3mo order placement) - Cancellations until shipment date - Just-in-time inventory Freestanding Toy Stores Chain Stores Department Stores Other Retail Outlets Wholesalers American Girl Place Online Website
  10. 10. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Consumers MOTHERS (for Girls, ages 3-6) - Purchases made by Mothers at Retail Establishments - Barbie’s differentiating attributes- nastoligic, classic, girly, and fun. CONSUMER NEEDS - Price-sensitive. - Interests - popular children's characters & 3rd party designs. - Expect a seamless experience; prefer toys with backstories CHILDREN (Girls, ages 3-6) - Fickle in Nature - Play preferences CONSUMER NEEDS - Product appropriate for age. - Expect a seamless experience; prefer toys with backstories ADULTS (Women, age 40+) - Doll Collectors - Outlets: Websites, Online Digital Media CONSUMER NEEDS - Fashion-oriented, collection-focused - Not a core focus for Mattel CURRENT SOLUTIONS MATTEL’s SOLUTIONS IN PLACE - Product line extensions fit for age. - Pricing strategy - balances profit & mass market. - Fisher-Price's Play Laboratory-provides psychological studies on play preferences - Separate collector’s website for adults. OTHER COMPANY SOLUTIONS - Specialty or limited edition products that don’t compete with retailer’s products sold on direct to consumer on web - Online customer service tools TOY INDUSTRY BUSINESS TRENDS - More Powerful Gaming Machines - Growth in Mass Media Related Products - Rising Game Console Development Costs - Brand Line Extensions INDUSTRY OPPORTUNITIES - Educational Toys - Online Gaming - Alternate Channels - Higher-Priced Toys KEY CHALLENGES - Toys have short life cycles - Children outgrowing traditional toys at younger ages - New toys have high failure rates - Increasing use of sophisticated technology in toys - Toy manufacturers must develop an internet strategy that doesn't create channel conflict with retailers. CONSUMER CHALLENGES TERTIARY SECONDARY PRIMARY
  11. 11. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Strengths •Global leader/ largest market share •Strong brand equity •Economies of scale •Diverse product portfolio •Expansive global network Opportunities • Expansion to emerging markets •Expanding portfolio of digital content •Develop new brand franchises •Innovation in new toys Weaknesses •Reliance on 3 buyers (Wal-Mart, Toys “R” Us, Target) •Decreased consumer spending •Small digital portfolio Threats •Changing tastes •Continued recession •Supply chain failure •Competition & counterfeit •Disney entering toy market Strong Brand, Changing Toy Industry Strategies to maximize strengths/opportunities • Leverage Barbie brand equity to expand in new product categories • Leverage economies of scale to grow international sales Strategies to mitigate weaknesses/threats • To combat changing tastes of children, create more seamless experience with the Barbie brand by introducing digital content and new products • Bolster brand promotion in international markets to increase sales and discourage counterfeits
  12. 12. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Recommendations – Summary 2013 Marketing Campaigns 1. Enhance Barbie website and digital content to facilitate more seamless experience with brand Develop online games that feature new Barbie backstories to guide product development and promotion Content: Educational, engaging backstories that introduce new Barbie characters Monetization: Free to play, virtual goods and expansion packs, in-store promotions Platform: Casual Online Gaming Benchmarks: Minecraft, Sims 3, Unfinished Swan, Second Life Demographics: Bridge Barbie consumer age gap with digital content (age 11 to 18) 2. Launch Barbie Pop-Up Experience Open temporary, free-standing Barbie Pop-Up Experience in 4 cities: Los Angeles, Tokyo, Milan, New York Program: Promote 2-3 limited edition Barbie characters that are featured in the interactive virtual reality simulations, party room, dress up station, photo booths, café Themed Content: Barbie Makes a Difference theme (February 2013), Barbie Sees the World theme (June 2013), I Can Be Barbie theme (October 2013), Holiday Traditions with Barbie (December 2013) 2014 – 2016 Marketing Initiatives Consider launching permanent stores in successful locations. Further develop digital content Refocus efforts to establish a classical Barbie brand Use successful characters from online games to develop massive multiplayer online games
  13. 13. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix The Barbie Pop Up Experience will fully engage consumers and generate buzz Housed in a local convention center/exhibition center, the average facility size is 720,000 square feet of exhibition space to include: Interactive virtual reality simulations, featuring 2-3 limited edition Barbie characters that available for purchase on site only Dance Party room Dress up station Photo booths Café Celebrity Endorsers: Katy Perry Gangnam Style The Kardashians Selena Gomez Barbie “Makes a Difference” Barbie “Sees the World” Barbie “I Can Be” Barbie “Holiday Traditions” Los Angeles Tokyo Milan New York City
  14. 14. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix The Barbie Pop Up Experience captures audience worldwide over Year 1 Debuts in Los Angeles JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC Moves to Tokyo Moves to Milan Moves to New York Phase 1 Barbie “Makes a Difference” Phase 2 Barbie “Sees the World” Phase 3 Barbie “I Can Be” Phase 4 Barbie “Holiday” Heavy-up in LA Heavy-up in Tokyo Heavy-up in Milan Heavy-up in NYC National Ads National Ads National Ads Media Spend to include TV, Radio, Print, Digital
  15. 15. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix In the long-term, the Barbie Pop Up Experience will expand to travel the world U.S.A  Asia  Europe South America  Australia World Cup Fashion Week Earth Day Women’s History Month Christmas Fashion Week Earth Day
  16. 16. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Pavilion Promotes Interactive Gaming Pavilion: Sensibility Interactive Gaming Technology Gaming WebsiteCelebrity Endorsers
  17. 17. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Recommendations – Value Chain Materials Supplier Manufacturing Third Party Retailer Consumer Barbie Store Distributor American Girl Stores Mattel Toy Stores & Online
  18. 18. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Recommendations – Target Markets CONSUMER CONSUMER NEEDS PROPOSAL FULFILLS CONSUMER NEEDS PRIMARY MOTHERS (for Girls, ages 3- 18) - Purchases made by Mothers at Retail Establishments - Barbie’s differentiating attributes- nostalgic, classic, girly, and fun. - Price-sensitive - Interests - popular children's characters & 3rd party designs - Expect a seamless experience; prefer toys with backstories - Prefer toys that withstand age compression - Pop-up store generates buzz for Barbie’s with specific backstories that warrant higher price points & appeal to growing middle class - Digital gaming provides easy integration with 3rd party content providers - Digital Gaming results in seamless product engagement with extensible content. - Educational and family-focused back-stories contribute to longer toy-life cycles and stronger play preferences. SECONDARY CHILDREN (Girls, ages 3-6) - Fickle in Nature - Play preferences - Product appropriate for age - Expect a seamless experience; prefer toys with backstories - Barbie's voice conveyed through gaming and thematic backstories. - Pop-up store promotes premier Barbie’s with educational and family-focused backstories. - Digital Games provide a robust outlet that engages children in multiple stories for greater lengths of time. - Seamless digital and physical play experience. TERTIARY GAMING GIRLS (Girls, ages 7- 18) - Desire continuity in digital and physical toys - Interest in physics-based simulation games - Interactive game play - Seamless experience - Pop-up store features virtual reality simulations and reinforces online interactive gaming experience. - Pop-up store generates product buzz for online platform. - Interactive solutions engage girls for longer periods of time. - Digital gaming fulfills demographic gap. QUATERNARY ADULTS (Women, age 40+) - Doll Collectors - Outlets: Websites, Online Digital Media - Fashion-oriented, collection- focused - Not a core focus for Mattel - Pop-up store provides exclusive product offerings that appeals to collectors
  19. 19. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Marketing Goals Barbie Sales Growth Goals 8% 5% 4% 4% 4% 5% 14% 10% 12% 15% 15% 15% 12% 8% 8% 9% 9% 10% 2011 2012 2013 2014 2015 2016 Domestic International Total Growth 2013 2014 - 2016 Profitability Achieve 12% profit margin Achieve 12-13% profit margin Gross Sales International markets • 12% sales growth • $1.3 billion Domestic • 4% sales growth • $1.6 billion International markets • 15% annual sales growth • International sales to exceed Domestic sales in 2015 • 2014: $1.5 billion, 2015: $1.7 billion, 2016: $2.0 billion Domestic • 4% sales growth 2014, 4% in 2015, 5% in 2016 • 2014: $1.6 billion, 2015: $1.7 billion, 2016: $1.8 billion Market Share 17% US market share Grow US market share to 20%; Grow share in international markets 2013 Marketing Budget $344 million (12% of sales)
  20. 20. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Marketing Strategies Strategy 2013 Budget Allocation PRODUCT • Digital Gaming - Develop online games that feature new Barbie backstories to guide product development and promotion • 2013: Develop Casual Online Games – easy to access online content with few barriers to entry • 2014 – 2016: Once digital content portfolio gains traction, develop Massive Multiplayer Online Games – establish network effects within the game space $30 million PRICING Revenue Generators • Pop-Up Experience: Limited edition Barbie with extensive backstories warrant higher price point (+$20 per doll) will be sold at the Pop-Up Experience • Digital Gaming: Virtual goods and expansion packs will provide sources of revenue Cost Savings • Focus on developing digital content and online games will end up being a long term cost savings as it will reduce investment on product development focused on adding technology in gizmos such as “talking” Barbies $5 million (consumer promotions and discounts) PLACE • Regular retail channels will be utilized with the Pop-Up Experience serving as both a public relations vehicle and an additional temporary retail outlet • Pop-Up Experience will occur in 4 cities: Los Angeles, Tokyo, Milan, New York (digitally and fashion focused) $12 million ($3 million per Pop-Up Experience) PROMOTION • Thematic Pop-Up Experience generates “Cultural Noise”–Barbie Makes a Difference theme (February 2013), Barbie Sees the World theme (June 2013), I Can Be Barbie theme (October 2013), Holiday Traditions with Barbie (December 2013) • Gaming coupons, TV ads, Barbie Facebook page, direct mail, Barbie twitter flashes, Barbie website to promote Barbie backstories and Barbie Pop-Up Experience, celebrity partnerships $297 million ($100 million TV, $10 million print & direct mail, $10 million Digital/ social, $1 million radio, $10 million celebrity partnerships)
  21. 21. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Barbie to achieve 9% revenue growth in 2013 Actual Estimated 2011 2012 2013 2014 2015 2016 Barbie Revenue …………………………………..bbb2,491,229 2,669,069 2,869,602 3,128,792 3,420,011 3,764,628 Domestic ………………………………………….. bbb1,425,656 1,496,939 1,556,817 1,619,089 1,683,853 1,768,046 International ………………………………….. bbb1,065,572 1,172,130 1,312,785 1,509,703 1,736,158 1,996,582 Cost of Goods Sold (50%) …………………….. 1,245,614 1,334,534 1,434,801 1,564,396 1,710,006 1,882,314 Gross Profit …………………………………………b 1,245,614 1,334,534 1,434,801 1,564,396 1,710,006 1,882,314 Advertising and promotion expenses ….b 279,018 293,598 344,352 375,455 410,401 451,755 SG&A (22%) ……………………………………………..b 548,070 587,195 631,312 688,334 752,403 828,218 Operating Income …………………………… 418,526 453,742 459,136 500,607 547,202 602,340 Interest expense (approx 1.2%) …………. 29,895 32,029 34,435 37,546 41,040 45,176 Interest (income) (approx 0.14%) ………. (3,488) (3,737) (4,017) (4,380) (4,788) (5,270) Income before taxes ………………………… 392,119 425,450 428,719 467,442 510,950 562,435 Provision for income taxes (2.8%) ……… 69,754 74,734 80,349 87,606 95,760 105,410 Net Income ………………………………………..b 322,365$ 350,716$ 348,370$ 379,835$ 415,189$ 457,026$ For the Year Projected BARBIE INCOME STATEMENT (in thousands) 1
  22. 22. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Risks Monitoring and Measuring Ongoing • Dedicated Barbie marketing team will meet at least monthly and evaluate usage levels of online games and performance of advertising, promotions, and Barbie Pop-Up Experience on sales • Metrics: Pay per click, impressions, monthly sales revenue by region Quarterly • Dedicated Barbie marketing team to present results to senior management • Metrics: Net Marketing Contribution, overall Marketing ROI, Barbie Pop-Up Store ROI (based on increase in sales), Awareness and Consumer Usage of digital content and online games, social media mentions and impressions Contingency Plans Exceeding Our Goals • If capacity is reached at our Barbie Pop-Up Experiences • If demand exceeds supply for Barbie dolls and other consumer products • Plan: If needed, change admission model to charge for entry to Pop-Up Experience; If needed, maintain back up suppliers to scale up manufacturing capacity Missing our Goals • If our online games fail to appeal to our consumers • If we fail to reach sales goals for 2013 • Plan: Alter backstories in online games as needed based on focus group feedback and popularity of characters on website; Institute sales promotions and increase advertising (utilizing up to 13% of sales for Marketing spend would be acceptable)
  23. 23. Appendix
  24. 24. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Perceptual Map of Traditional Toys & Games CAGR: Compound Annual Growth Rate is the forecasted average growth rate between 2010-2015 Dolls and accessories was the second largest category, accounting for 11% of traditional toy sales in 2010. Slower growth was a result of the availability of cheaper dolls and figures.
  25. 25. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Perceptual Map of Girl’s Toys Quality HIGH LOW Price HIGH American Girl Barbie Lego Friends Harumika Baby Alive
  26. 26. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Current Value Chain Components Materials Supplier Manufacturing Third Party Retailer Consumer • China • Indonesia • Thailand • Malaysia • Mexico • Various locations in Asia-Pacific region • Product dependent – for Barbie the consumer is: 1.) Girls, 4-6 2.) Collectors Mattel Toy Stores & Online Distributor • Wal-Mart • Toys R Us • Target • Smaller, boutique shops American Girl Stores • Proprietary Information
  27. 27. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Toy and Game Industry Set to Grow Abroad Country 2011-16 CAGR % India 22% Turkey 13.5% China 13.2% Brazil 12.2% Thailand 12.1% South Korea 11% Romania 10.9% Russia 9.4% Ukraine 8.4% Singapore 7.6% +22% +13.5% +13.2% +12.2% +12.1% IBIS World report estimates that revenue in the toy industry in the United States will increase at an average annual rate of 0.2% from 2012 to 2017, with a 1.5% rise in 2013.
  28. 28. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Potential areas of impact to the value chain1 U.S. Government Regulations • Consumer Product Safety Act • Federal Hazardous Substances Act • Flammable Fabrics Act • Food, Drug, and Cosmetics Act • Federal Trade Commission Act • The Children’s Television Act of 1990 • Federal Trade Commission • Federal Communications Commission • Children’s Online Privacy Protection Act of 1998 International Issues • Tax rate fluctuation • Tariff restrictions • Import/Export regulations • Civil unrest / political developments • Natural disaster • Investigations for hazardous waste Supply and manufacturing takes place primarily in Asia with some factories in Mexico
  29. 29. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Barbie Consumer Decision Journey Trigger Loyalty Loop Post purchase experience Active evaluation 1 Initial Consideration • Fun online games with appealing backstories keep girls engaged with Barbie 2 Active evaluation • Attract mom with high quality, educational Barbie backstories and in-store coupons Developing a portfolio of online games with evolving storylines will keep girls engaged. Barbie Pop-Up Experience will provide brand awareness and buzz while providing a unique retail experience and platform to launch new products. 3 Moment of Purchase • Barbie Pop-Up Experience will provide exciting experience with total control of brand experience at point of purchase 4 Post purchase experience • Evolving backstories reinforced by interactive online games will keep girls engaged with Barbie brand and keep them aware of new ways to experience the Barbie brand 5 Loyalty Loop • Focus onInitial Consideration Moment of Purchase
  30. 30. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix The first free-standing Barbie Store in Shanghai closed in March 20111 What worked • Commitment to the brand throughout the store • Fashion focus to attract wide demographics • Café in-house to prolong the experience What learned • Localize to culture of the city • Mitigate the unknowns through research • Increase brand awareness and hype before entering the retail space
  31. 31. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix The Barbie Pop Up Experience could be nationally expanded in the U.S., if desired Debuts in Los Angeles APR MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE Moves to Chicago Moves to New York Phase 1 Barbie “Fairies” Earth Day Phase 2 Barbie “I Can Be” Back to School Phase 3 Barbie “Fashion” NYC Fashion Week Phase 4 Barbie Int’l TBD (by region) Promotes 2-3 limited edition Barbie characters that are featured in the interactive virtual reality simulations, party room, dress up station, photo booths, café
  32. 32. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Monetization & Platforms Monetization Schemes Monetization: F2F & Virtual Goods. F2P (Free to Play) – Establish large user base/network effects Virtual Goods - Customer clothing accessories and dream house components - Stronger Asian propensity to purchase virtual goods Platforms Long term Platform Proposal: Casual, MMO (massively multiplayer online game) - Casual On-line Gaming – easy to access online content. Few barriers to entry. - MMO – establish network effects within the game space.
  33. 33. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix Benchmarking Digital Games Minecraft Second Life Sims 3 Manufacturer: Notch Monetization: P2P Platform: PC Downloadable Content User-base: 25M users Demographics: 20% under age 15, 43% age 15- 21, 21% age 22-30 Financials: $80M in Revenue Picture: Shadowmarch Castle from Ted Williams’ Book, user generated content Relevance to Barbie Games Ideas: • Ability to share 3rd party stories • Expand Barbie’s Backstory • Sharing user generated content • Demographic aligned with Barbie’s demographic age gap. Manufacturer: Linden Lab Monetization: F2P, virtual goods, premium subscriptions Platform: PC Downloadable Content Type: Casual MMO User-base: 470K monthly unique users Demographics: 50% ages 24-44, with near gender parity Financials: GDP of US$567M Relevance to Barbie Games Ideas: • Monetization scheme • User generated content • Successful sale of virtual goods and services • Demographic aligned with Barbie’s demographic age gap. Manufacturer: Electronic Arts Monetization: P2P with Expansion packs, stuff packs, the Sims 3 store and third-party custom content. Platform: PC, Downloadable Content Also on: Nintendo DS, Wii, PlayStation 3, PlayStation Portable, Xbox 360, Apple iOS App Store, Nintendo 3DS Financials: Sold Over 2.81M units @ $39.99/game Relevance to Barbie Games Ideas: • Platform Roll Outs • Package Expansions • Family Friendly Content – Career and Economic Life Lessons • Sim’s Virtual Store
  34. 34. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix The Barbie Pop Up Experience can learn from the success of the Harry Potter Exhibition Over 200 props from the film Guest appearances by set designers, costume designers, actors  Interactive games to engage with the brand Gift shop with merchandise and exclusive offers at the end

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