Abstract

The case focuses on how US-based toy maker Mattel lost the license for manufacturing the lucrative Disney Princess line, which it had been doing since 1996, to Hasbro. It discusses Mattel’s focus on reviving the plunging fortunes of its flagship Barbie doll, and promoting its own princess themed dolls and how this led to Disney withdrawing the license from Mattel and approaching Hasbro to revamp and launch a new Princess line. In the process, Mattel also lost the license to produce Disney’s Frozen line of toys and accessories.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Merchandize licensing and its importance in driving sales
• Managing licensing partnerships
• Brand cannibalization
• Internal competition due to growing portfolio

Keywords

Mattel , Barbie , Toy industry , Disney Princess, Hasbro , Cannibalization , Brand Decline, Value Proposition , Market failure , Licensing, Merchandising, Competition