Mattel, the renowned toy company, is on a mission to revitalize its Fisher-Price and American Girl brands, taking inspiration from the success of its iconic Barbie franchise. Under the leadership of CEO Ynon Kreiz, Mattel has implemented a turnaround plan that has led to a significant increase in share price and the revival of major brands like Barbie. Kreiz believes that Barbie serves as a blueprint for the company’s strategy of making beloved franchises relevant to consumers across multiple segments.
One of Mattel’s notable achievements is the “Barbie” film, directed by Greta Gerwig and nominated for eight Oscars. The movie tapped into the cultural significance of the Barbie brand, generating nearly $1.5 billion at the global box office. It also resulted in around $150 million in related toy and consumer product sales. The success of “Barbie” demonstrates Mattel’s ability to create an ecosystem of true franchise flywheel by extending brands to various experiences, products, and opportunities.
Following in Barbie’s footsteps, Mattel aims to replicate this success with its Fisher-Price and American Girl brands, which have faced significant sales declines in recent years. Activist investor Barington Capital has expressed concerns that these brands are detracting from Mattel’s success in other segments. However, Mattel remains committed to revitalizing Fisher-Price and American Girl and sees value in continued investment.
American Girl, known for its iconic dolls, has faced challenges due to changing consumer purchasing habits and the emergence of cheaper alternatives. Mattel acknowledges that the brand’s weaknesses were not product-driven but rather related to its commercial strategy. To revive American Girl, Mattel plans to focus on flagship stores, product innovation, and expanded licensed entertainment, including partnerships with Disney princesses and a film project with Paramount.
Similarly, Mattel is revamping its Fisher-Price brand by introducing innovative products and tailoring them to meet the preferences of millennial parents. The company is also expanding the brand through strategic partnerships, such as relaunching Barney with an animated series and developing a film based on the Thomas & Friends franchise.
Overall, Mattel aims to leverage the success of Barbie to revitalize its Fisher-Price and American Girl brands. By extending these brands to new experiences, products, and opportunities, Mattel hopes to create an ecosystem of true franchise flywheel and drive growth in the toy industry. With a focus on innovation, strategic partnerships, and understanding consumer preferences, Mattel is determined to make its timeless brands timely once again.
