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Karen Robson and Stefanie Beninger wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
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In 2015, almost 60 years after being introduced to the market, the Mattel Inc.’s Barbie doll was one of the world’s most iconic toys. However, both the industry landscape and consumer preferences were changing, and Barbie was yet again in the spotlight as consumers criticized the toy for providing a narrow and unrealistic vision of how women should look, how they should dress, and the careers they should pursue. Sales and public perception of the doll were both on the downswing.2 Was there a place for Barbie in 2015, or was this the end of the line for the iconic doll? What could Mattel do to turn things around?
MATTEL INC.
In 2015, Mattel was the world’s second largest toys and games manufacturer. The company had three main brand portfolios: Fisher-Price, American Girl, and Mattel brands.3 Fisher-Price included popular brands such as Power Wheels, Winnie the Pooh, Sesame Street, Dora the Explorer, and Barney. The American Girl brand line included American Girl Today and The American Girls Collection. Mattel brands included Barbie as well as related doll clothing, accessories, homes, cars, and other lifestyle elements.
The Birth of an Icon
In 1944, wife and husband Ruth and Elliot Handler, along with Harold “Matt” Matson, decided to start a new enterprise that they called Mattel, a portmanteau of Matt and Elliot.4 When Mattel first began operating in 1945, the company sold mostly picture frames; later, it added dollhouse furniture made from picture frame scraps. When Matson left Mattel in 1945, the Handlers decided to focus primarily on toys.5
Barbie Grows Up
Over the years, Barbie dolls were sold wearing various outfits, each of which reflected her career at the, time. By 2015, Barbie had been sold representing more than 150 careers (see Exhibit 1).18 Before long, other dolls joined Barbie in the product line. On March 11, 1961, the Ken Carson doll — named after Ruth Handler’s son, Ken — was introduced to the market.19 Barbie’s friend, Midge, followed in 1963; her younger sister, Skipper, in 1965; and her friend, Christie (the first non-Caucasian doll in the Barbie line), in 1968.20 Mattel acquired the rights to the competitor Bild Lilli doll in 1964 and stopped production of Bild Lilli.21
By the late 1980s, Barbie had become a $1 billion brand.22 By the 1990s, sales reached a rate of two dolls every second,23 and in the 2000s, annual sales were more than $3.6 billion.24 By 2009, Barbie merchandise represented more than 25 per cent of the U.S. market share in dolls and accessories.25 As her sales and appeal grew, Barbie became more than just a doll — she became a cultural icon, with a brand encompassing everything from dolls and accessories to animated aerobics videos to Barbie look-alike competitions for women.26
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