Mattel 2003 Annual Report Download - page 5

For infants, we’ve combined our expertise with recently conducted, in-home "reality research" to
develop a platform where babies learn through everyday experiences. It’s called experiential learn-
ing. The result is a new infant toy line – Laugh and LearnTM – that encourages learning through fun
and familiar everyday play.
The next learning introduction is InteracTVTM, which enables preschool and grade-school children to
interact and learn with their favorite characters from popular TV shows, using their own TVs and
DVD players. This breakthrough system transforms watching television from a passive activity to a
proactive pursuit.
A clear opportunity for improvement in leading with kids exists in our fashion doll business. For
45 years, the Barbie®brand has been and continues to be the worldwide leader in this profitable
category. More than a doll, Barbie®is the strongest girls brand in the world. With $3.6 billion in
retail sales worldwide, the Barbie®brand boasts the #1 girls Web site with 31 million visits per
month and, according to Forbes, is the #1 girls global entertainment property.
Recently, however, we have seen an unprecedented level of competition in the girls category. To
regain our momentum in the doll category, this year we are going to do things differently. First, we
have new leadership in the Girls area that has brought new energy and sparked new thinking to
the team. Second, we are going to do fewer things better by using a different approach to product
development and marketing. The new mantra for Barbie®is not about a multitude of different dolls,
but instead focuses on a strategy based on storytelling, enhanced with technology and
age-appropriate aspiration.
With the success of the Barbie®entertainment series, we’ve learned that when we combine the
Barbie®brand with storytelling or content, girls become more engaged with the brand and in turn,
connect with the product. For 2004, we have re-established the brand into content-rich worlds,
which we call the “Worlds of” strategy. First, we write engaging stories for girls, then create dolls
and toys to play out these stories. Second, we tell these stories through value-added content like
movies, books, magazines and music.
The “Worlds of” approach not only provides enhanced play value for girls, but also provides a
platform for a broader scope of product that complements the story, giving girls more and more
reasons to buy deeper into the brand.
Turning to boys, our Wheels strategy is twofold: one, create a set of wheels for every guy, no matter
what age; and two, empower boys with toys that promote age-appropriate activities. Through the
Matchbox®, Hot Wheels®and Tyco®R/C brands, it is our goal to connect with the consumer at
every stage and create toys that are not only fun, but also encourage hand-eye coordination,
physical dexterity and cognitive abilities.
Mattel participates in the entertainment arena from both ends of the entertainment continuum.
On one side, our own power brands – Barbie ®, My SceneTM, Hot Wheels®, Matchbox®,
Little People®and Rescue Heroes®–provide an extensive cast of characters that allows us to
create some of the most popular children’s entertainment programming of our own, which in turn
immerses kids deeper into the brand experience. On the other side is the “toyetic” know-how to
create toys for the best children’s licensed entertainment programming in the business, including
Harry PotterTM, BatmanTM, Yu-Gi-Oh!TM, Dora the ExplorerTM, Sesame Street®and many more.
More than a doll,
Barbie®is the
strongest girls brand in
the world.
With $3.6 billion in
retail sales worldwide,
the Barbie®brand
boasts the
#1 girls Web site
with 31 million visits
per month and,
according to Forbes,
is the #1 girls global
entertainment property.