Mattel Loses Disney Princess' Franchise to Hasbro



Case Code : CLMM122
Publication date : 2016
Subject : Marketing Management
Industry : Toy Industry
Organization :Mattel, Disney, Hasbro
Length : 4 pages
Teaching Note : Not Available


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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

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.


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


On September 24, 2014, US-based toy and board game company, Hasbro Inc. (Hasbro), declared that it had secured the Disney Princess franchise, along with the license to manufacture Disney’s ‘Frozen’ dolls. With this announcement, the partnership between another toy maker, US-based Mattel Inc. (Mattel), and the entertainment giant, The Walt Disney Company (Disney), came to an end. Mattel had been associated with Disney since 1955 and had been manufacturing Disney Princess line of dolls since 1996. On Hasbro getting the license, Gene Del Vecchio, a former executive at advertising agency Ogilvy & Mather, said, “Disney Princess was probably the greatest coup that Hasbro has had in the last three decades.” (Refer to Table I for more about Hasbro)...

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

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