The recommendations are to launch a Barbie "Pop-Up Experience" in 4 cities starting in 2013, and expand digitally. The pop-up will have interactive simulations and limited edition dolls to generate buzz. A gaming website will develop online games featuring Barbie backstories to facilitate a seamless brand experience and engage a broader age range. The goals are 9% total growth by 2013, with international growth outpacing domestic to have international revenues exceed domestic by 2015.
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
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. 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. 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. 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,
$10 million celebrity
partnerships)
21. Executive Summary Situation Analysis Expanded SWOT Recommendations Implementation Risks Appendix
Barbie to achieve 9% revenue growth in 2013
Actual Estimated
2011 2012 2013 2014 2015 2016
Barbie Revenue …………………………………..bbb2,491,229 2,669,069 2,869,602 3,128,792 3,420,011 3,764,628
Domestic ………………………………………….. bbb1,425,656 1,496,939 1,556,817 1,619,089 1,683,853 1,768,046
International ………………………………….. bbb1,065,572 1,172,130 1,312,785 1,509,703 1,736,158 1,996,582
Cost of Goods Sold (50%) …………………….. 1,245,614 1,334,534 1,434,801 1,564,396 1,710,006 1,882,314
Gross Profit …………………………………………b 1,245,614 1,334,534 1,434,801 1,564,396 1,710,006 1,882,314
Advertising and promotion expenses ….b 279,018 293,598 344,352 375,455 410,401 451,755
SG&A (22%) ……………………………………………..b 548,070 587,195 631,312 688,334 752,403 828,218
Operating Income …………………………… 418,526 453,742 459,136 500,607 547,202 602,340
Interest expense (approx 1.2%) …………. 29,895 32,029 34,435 37,546 41,040 45,176
Interest (income) (approx 0.14%) ………. (3,488) (3,737) (4,017) (4,380) (4,788) (5,270)
Income before taxes ………………………… 392,119 425,450 428,719 467,442 510,950 562,435
Provision for income taxes (2.8%) ……… 69,754 74,734 80,349 87,606 95,760 105,410
Net Income ………………………………………..b 322,365$ 350,716$ 348,370$ 379,835$ 415,189$ 457,026$
For the Year
Projected
BARBIE INCOME STATEMENT
(in thousands)
1
22. 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)
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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