project 1 toy industry analysis

1

Analysis of Toy Industry and JAKKS Pacific Inc.

Prepared for:

Professor Marchese

Professor Reynolds

Professor Wright

Professor Fox

Professor Penrod

Prepared by:

Wade Huston

Aaron McClellan

Jerid Dissauer

Kevin Powell

Casey Wakefield

Ohio University

February 14, 2016

To: Professor Wright, Professor Marchese, Professor Fox, Professor Reynolds, and Professor Penrod

From: MID 001 Team 6 - Wade Huston, Aaron McClellan, Kevin Powell, Jerid Dissauer, Casey Wakefield

Date: February 14, 2016

Subject: Analysis of the global toy industry, specifically JAKKS Pacific Inc and how they as a company can begin to be more competitive with other top toy manufacturers

As requested by Copeland Associates, we have produced a report that analyzes the toy industry on a global scale. This analysis is created with an industry overview, company analysis, and competitor analysis. Through extensive research, we have identified three key success factors that are necessary for toy companies to remain competitive in this challenging industry.

The three key success factors are: 1. Integrate toys with the entertainment industry2. Market products to China’s domestic consumers 3. Create more product lines for girls

The research conducted to draw these key success factors came from numerous databases provided by the Ohio University library and other online news sources. These sources were periodicals, financial statements, government publications, industry reports, country reports, company websites, and more. We have developed a comprehensive understanding of the industry and, more particularly, JAKKS Pacific Inc. Based on the key success factors and where JAKKS Pacific Inc stands in comparison to the competition, we have created recommendations aimed to help the company better compete.

The three recommendations are:4. Create a TV series based on the film Batman vs. Superman: Dawn of Justice5. Market baby and infant toys through Meisheng Culture joint venture6. Create more girl specific product lines

If JAKKS Pacific Inc can successfully incorporate our recommendations into their business strategy, they should become more competitive with companies such as Hasbro and Mattel. We have appreciated the opportunity to learn about this industry and to develop the necessary skills to construct a report such as this one. We are more than happy to assist in the answering of any questions that regard this report, the industry, or any other matter relevant to this topic.

Sincerely,

MID 001 Team 6

Wade Huston, Aaron McClellan, Kevin Powell, Jerid Dissauer, Casey Wakefield

3

Executive Summary

This report analyzes the global toy industry, the top toy manufacturers, and the methods they use to be successful. The toy industry did over $150 billion in sales as of 2014, but when subtracting for video games, the number is just over $92 billion. Video games pose more of a threat to the toy industry as they remove the need for physical objects as entertainment and move everything to a digital format. For this reason, video games will not be included in this report unless specified.

The two main types of toys are traditional and electronically integrated. Traditional toys are non-electronic objects such as, but not limited to, dolls, action figures, plush, construction blocks, etc. Electronically integrated toys are ones require battery power, electronic charge, are able to interact with phone apps or other electronic devices, etc. Traditional toys make up 76% of the market and electronically integrated toys make up the remaining 24%. Toys provide entertainment for children and adults, but tend to be marketed towards and for children between the ages of 0-14. Toys also aid in the development of physical and cognitive abilities in children. Some toys are created for educational benefits, some for pure entertainment, but most can justifiably fit into both categories.

The toy manufacturers analyzed in this report are, Mattel Inc, Hasbro Inc, and JAKKS Pacific Inc. These are in order of total sales, to which Mattel did over $6 billion, Hasbro did $4 billion, and JAKKS Pacific did just over $800 million. All three companies are American companies that were established in the 1900’s. Mattel has led the world in total sales in the industry for several decades. They continue to do so, however, Hasbro has recently made strategic moves to take large portions of Mattel’s market share. Some of these moves have come recently as Hasbro secures large licensing deals with companies such as Disney and 451 Media Group. JAKKS Pacific struggles to compete on an international scale. 80% of their sales come from within the United States.

We Identify three key success factors in this report that are essential to the success of toy companies. These have been drawn from analyzing what is already being done by successful companies and by identifying opportunities.

The first key success factor is to integrate toy products with the entertainment industry. This is achieved with the establishment of licensing deals with top entertainment companies and by toy manufacturers investing their own money into the creation of movies and TV shows. This method is proven to be successful as 30% of sales in the toy industry come from licensed products. Companies such as LEGO saw revenue rise 25% after releasing the LEGO Movie in 2012. Companies are recognizing the growing profitability of licensing as the amount of licensed products has risen 9% in the past year worldwide. The strategy is successful because children identify with their toy much better when they can visually see it interacting in a “real” world.

The second key success factor is to market to China’s domestic consumers. This is a key success factor because the Chinese toy market is expected to grow 35% by 2019. This is due to a growing middle class and increased urbanization. People in the country are moving closer to retailers and internet access for online retailing is expanding. Median income is rising 4.3% annually, thus giving consumers more buying power.

The third key success factor is to release more girl appealing product lines. Most companies focus on both girls and boys, but have more boy specific product lines in their portfolio. Companies such as LEGO and Hasbro have found success in not only releasing more girl appealing product lines, but also by creating them in toy segments that are predominantly dominated by boys.

Our recommendations for JAKKS Pacific aim to make them more competitive on an international scale. Our first recommendation is for JAKKS Pacific to create a TV show based off of the film Batman vs. Superman: Dawn of Justice. JAKKS Pacific has already secured the licensing rights to the movie, but if they could create a TV show for the characters, they could potentially sell to fans of the movie for a longer period of time. If JAKKS Pacific is unable to create their own show, they could look to partner with Nickelodeon or marvel in the pursuit of creating this show. Hasbro already owns a production company which gives them the capability of creating their own shows such as my little pony. The strategy has proven to be successful and if done correctly, JAKKS Pacific could see sales increase significantly.

4

Executive Summary

Our second recommendation is to market baby and infant toys in China through their already established joint venture with Chinese company, Meisheng Culture & Entertainment Corp. The subsidiary of the joint venture is located in Shanghai, China, the largest city in the country with over 24 million people. The Chinese government is looking to loosen their one child per family policy in an effort to grow their aging population. With this, the baby and infant toy segments are expected to grow 34% nationally to a market value of $741 million. This gives JAKKS Pacific a great opportunity to market their baby and infant toys through the joint venture in the city of Shanghai.

Recommendation number three is to launch more girl appealing product lines. JAKKS Pacific has 14 product lines specified for girls compared to 20 lines specified for boys. Girl toys accounted for about 30% of total sales and contributed over $1 billion of Mattel’s total sales in 2014. The entire industry is also seeing this happen. LEGO saw their sales from their girls division rise to 25% after the launch of girl appealing product line and contributed to their highest amount of sales the company has ever seen. JAKKS Pacific would need to invest more in research and development to create a successful line of products, but if done correctly, they could increase their sales significantly. Also, along with research and development, JAKKS Pacific would need to be able to recognize popular characters/trends in girls.

5

Table of Contents

Executive Summary………………………………………………………………………..…………………………………2

Introduction…......................………………………………………………………………………………………….………6

Industry Analysis………………………………………………………………........………………………………….……..7

Company Analysis……………………………………………………………………………………………..........……......8

Competitor Analysis…………………………………………………………………………………………………….........11

KSF #1: Integrating Toys with the Entertainment Industry……………………………………………………….……...13

KSF #2: Market Products to China’s Growing Middle Class………………………………………………………..……15

KSF #3: Creating More Product Line For Girls………………………………………………………………….…..........17

Key Success Factor Decision Matrix………………………………………………………………………….............…..19

Recommendations……………………………………………………………………………………………….............….20

Recommendation #1: Create a TV show based on the film Batman vs. Superman: Dawn of Justice….…...……...20

Recommendation #2: Market Baby & Infant toys through Meisheng Culture Joint Venture……………..................21

Recommendation #3: Create more girl specific product lines………………………………….……….......................21

Conclusion……………………………………………………………………………………………..…………..…............22

Appendix………………………………………………………...…………………………………................………………23

References……………………………………………………………………………………………………….…..............36

6

Table of Contents

Figure 1: Key Success Factor Matrix …………………………………………………………..………….....………...6

Figure 2: Sales Of Toys By Region…………………………………………….…………..……………………………7

Figure 3: Net Sales By Region Jakks …………………………………………………………………………….…….9

Figure 4: Jakks Financials………………………………….……………………….……………………………….....10

Figure 5: Net Earnings Jakks Hasbro Mattel …………………………………………………………….……..….12

Figure 6 Return On Equity Jakks Hasbro Mattel ……………………………………......……………..…………..12

Figure 7: Inventory Turnover Jakks Hasbro Mattel ..…………………………………....…………………………12..Figure 8: Debt Ratio Jakks Hasbro Mattel ……………….……………………………….....……………………….12

Figure 9: Licensing Sales By Segment ……………………………………………………………………………….13

Figure 10 Top Selling Toys of 2014 in US ……………………………………………………………………………13

Figure 11 Projected Toy Sales Through 2019………..................................................................................…..15

Figure 12: Projected Increase in China’s Middle Class ………………………………………………..……………15

Figure 13: Projected Toy Segment Growth Through 2019 …………………………………..……….…………….16

Figure 14: Before And After Release Lego Friends ……………………………………………………..…………..17

Figure 15: Share of Hasbro's Revenue by Division ……………………………………………………...………….17

Figure 16: Barbie Fashionista …………………………………………………………………….............................18

Figure 17: Barbie Projected Sales ……………………………………………………………………......................18

Figure 18: Key Success Factor Matrix ………………………………………………………………...............…….19

Figure 19: Key Success Factor Matrix ……………………………………………………………………................22

7

Introduction Industry Analysis

Company Analysis

Competitor Analysis

Key Success Factors Recommendations Conclusion

IntroductionThis report analyzes the toy industry on a global scale and the methods the most competitive companies use to be successful. The report will then analyze the specific company, JAKKS Pacific Inc. The toy industry is one that has been around for centuries as children have always needed objects with which to interact with in order to provide not only entertainment, but physical and cognitive development as well. The toy industry is very difficult to find success in as there are thousands to millions of different products, most of which rely on trends that work in their favor. Companies, such as most within the United States, utilize services like Toy Retail Sales Tracking to test toy products and gage their potential on the market. Most toy products have a short life cycle of less than two years before they are no longer profitable. Some companies have been able to have product lines that stand the test of time such as Mattel Inc, LEGO, and Hasbro. They all have their “cash cow” products, such as Mattel’s Barbie, LEGO’s Star Wars, and Hasbro’s GI Joe. What these companies also have, along with many other successful manufacturers, are a wide array of products that appeal to not only children of all ages, but to adults as well.

The contents of this report include an industry analysis, a competitor analysis of Hasbro and Mattel Inc, a company analysis of JAKKS Pacific Inc, three key success factors for the industry, and our recommendations on what JAKKS can do to be more competitive. Our key success factors are to integrate toy products with the entertainment industry, market products to China’s domestic consumers, and to release more product lines for girls, especially in toy segments that are traditionally dominated by boys. Our decision matrix below weighs the importance of each key success factor and how well each company does of executing them.

The results from our decision matrix give Hasbro a narrow lead over Mattel. The two companies do in fact compete very closely in multiple areas of the industry. JAKKS Pacific struggles to compete on an international scale but do well in the United States. Our report dives deeper into these companies, the key success factors, and the recommendations we have for JAKKS to become a more competitive company.

Figure 1

8


Company Analysis

Competitor Analysis


Industry AnalysisThere are two main types of toys; traditional and electronically integrated. On a global scale, traditional toys accounted for 76.5% of the market value (Marketline, 2015). Traditional toys include, but are not limited to, dolls, action figures, toy animals, stuffed toys, models and crafts, and puzzles. Toys that are battery operated or need to be charged in order to function are considered electronic toys, such as remote control cars, toy airplanes, and toy boats. Understanding what types of toys are being produced effects marketing strategies by being able to market the right toys to their target audience.

Global toy and game sales were $152 billion USD in 2014 when including video games. For the rest of this report, unless specified otherwise, we will discount video games while still including electronically integrated toys and games. The toy and game industry without video games did total sales of $92 billion in 2014. Western Europe leads with 25% of global toy sales, followed by the USA at 25%, Asia Pacific 23%, Latin America 10%, Eastern Europe 6%, Middle East and Africa at 5%, and the rest of the world at 5%. The total industry is expected to grow an average of 2.1% per year with an estimated value of $96 billion by 2019.

The top six competitors in the worldwide toy industry by 2014 revenue are: Mattel, Inc. $6 billion, Namco Bandai $4.9 billion, The LEGO Group $4.6 billion, Hasbro, Inc. $4.2 billion, Brandstätter Group $0.84 billion, and JAKKS Pacific $0.81 billion (Toy Industry Association, 2014).

The top five companies had the following percent of market share in 2014: Mattel Inc 11.7%, Hasbro Inc 8%, LEGO Group 7.5%, BANDAI NAMCO Group 2%, Takara Tomy Co Ltd 1.9%, and for the sake of the report, Jakks Pacific is at 0.8% (euromonitor, 2015).

The leading toy retailers for 2014 were Amazon, Inc., Ludendo SA, Toys “R” Us, Inc., and Wal-Mart, Inc, (Marketline 2015), and each company has a presence in nearly every country around the world.

Future Prospects: There are many untapped opportunities around the world for toy industry growth, and predictions suggest that the market value will grow 14% between 2014 and 2019. This prediction is based off of many factors. Firstly, the global population is growing at an annual rate of 1.13% which amounts to nearly 80 million people. Currently, the global population of children aged 0-14 years old is about 1.92 billion, 25% of the total population. This number is projected to grow 0.7% in the next four years globally but in some regions it will grow much faster. For example, India’s, China’s, and Nigeria’s total 0-14 year old populations are expected to make up 29%, 18%, and 43% of the total country population by 2020 respectively (euromonitor, 2015).

Toys and games are heavily dependent on the disposable income levels of individuals and how much they generally spend on toys per year. Globally, disposable incomes are expected to rise 7.9% from $23,050 to $25,039 per household by the year 2020 (euromonitor, 2015).

25%

25%23%

6%5%

6%10%

Sales of Toys By Region

Western Europe United States Asia Pacific

Eastern Europe Middle East and Africa Other Countries

Latin AmericaFigure 2

9


Company Analysis

Competitor Analysis


JAKKS Pacific, Inc.

JAKKS Pacific, Inc. is a leading multi-brand toy and leisure company that has designed, developed, produced, and marketed toys worldwide to kids and adults since 1995 (Jakks, 2015). JAKKS has found its way to become a top five toy company in the United States. This success has come from the company’s strategic spread of their earnings over all four quarters, not just the holiday season, which is where most competitors’ earnings come from. Jakks also finds themselves climbing the ladder in the toy industry by continually coming up with unique products, strategic acquisitions, and license agreements (Jakks, 2015). Although JAKKS likes to keep a focus on traditional toys and play habits, they have came up with strategies to integrate classic and popular brands, appealing to consumers of all ages (Jakks, 2015). JAKKS also continues to understand the benefits of maintaining their relationships with key licensors and retailers as they are growing into a billion dollar, powerhouse toy company.

According to Jakks.com, they continue to join forces with multiple philanthropic organizations to serve the needs of underprivileged children and pets. These companies share the same vision as JKKS by distributing millions of JAKKS products every year to people in need. Hollygrove has been a key partner to JAKKS by assuring children throughout California have an ideal childhood by giving them Christmas gifts and Halloween costumes. JAKKS has also partnered with “Camp Ronald McDonald for Good Times,“ their mission is “to provide a cost-free, medically supported camping experience for kids with cancer and their families (Jakks, 2015).” JAKKS continues to make positive contributions to the camp as they provide a safe and enjoyable experience for these children in need. Other key partnerships to JAKKS include The Girls & Boys Club, Big Brother Big Sister, Feed the Children, Operation Smile, Toys R’ Us Children’s Fund (Jakks, 2015).d

Licensing continues to play an important role in the toy industry when it involves coming out with new appealing toys to consumers. JAKKS continues to use licensing deals with popular brands to incorporate popular characters into their products. JAKKS licensing agreement with Warner Bros gives them the right to make toys based on the upcoming Batman vs. Superman: Dawn of Justice movie which is hitting the big screens on March 25, 2016. Their toy product line is then following their footsteps, and launching in stores in the spring of 2016. This will include “action figures and vehicles, accessories, games, wagons and more” (DC Comic Movies, 2015).

In September 2015, JAKKS signed a global license agreement with World Wrestling Entertainment (WWE) coming out with a new product line in 2016. (Pro Wrestling, 2015). These licensed products will include seasonal costumes, radio controlled vehicles, and action figures (for the Asia Pacific) (Pro Wrestling, 2015). However, Mattel will retain most of the rights to WWE, which is the case for most of JAKKS license deals with popular brands and big name companies. Hasbro has the majority right to Disney Princesses including Frozen (CNBC,2014). “Toymakers Hasbro Inc and Mattel Inc are the biggest licensees of “Star Wars” products (Reuters, 2016).” However, JAKKS has the majority right to produce Teenage Mutant Ninja Turtle products due to their licensed agreement with Nickelodeon (Business Wire, 2014). JAKKS also claimed the rights to producing Minion toys based off the Universal Picture’s film Despicable Me (Kidscreen, 2015).

JAKKS Analysis

Key Partnerships

Licensing Deals

JAKKS and NantWorks LLC agreed on a three year contract extension with joint venture DreamPlay Toys LLC. “NantWorks’ technology lets users link a physical toy to video content, animation and interactive games on a smartphone or tablet. The iD Browser app enable users to point to a DreamPay toy or image to activate content on a smartphone or tablet device screen and essentially “bring the toy to life” (Biz Journals, 2015).”

Joint Ventures

10


Company Analysis

Competitor Analysis


JAKKS Pacific, Inc.

Management Information TechnologyJAKKS Pacific and information systems company NantWorks LLC have renewed their contract with DreamPlay Toys LLC until September 2018 to help stabilize their marketing strategies. With the joint venture between JAKKS Pacific and DreamPlay Toys LLC, NantWorks LLC provides the technology behind developing, marketing, and selling toys and related consumer products through NantWorks proprietary iD recognition software (BusinessWire, 2015).

ManagementCurrently JAKKS Pacific has an executive team consisting of three individuals. They are Stephen Berman (President and CEO), Joel Bennett (Vice President and CFO), and Jack McGrath (COO).

Coming from the personal fitness products and services industry, Berman co-founded JAKKS Pacific in 1995. In 2001, the CEO was awarded the Ernst & Young Entrepreneur of the Year. The CEO has led JAKKS Pacific to where they are today.

Joel Bennett was appointed CFO of JAKKS Pacific in 1995 when the company was founded. Bennett emerged from the entertainment industry coming from companies such as Time Warner Company Entertainment, L.P. and Walt Disney Company as well as holding an executive position in TTI Technologies, Inc. With Bennett’s previous experience with executive positions with three major companies, he gives JAKKS an advantage when it comes to financials.

COO, Jack McGrath, is the only executive with previous experience in the toy industry. He has worked for toy giant Mattel as an International Marketer. McGrath’s 16 year experience with the toy industry (especially from a major competitor) contributes knowledge gained only from other competitors.

Source: JAKKS Pacific, 2014

Marketing

JAKKS Struggles in Sales Globally

JAKKS Pacific currently has the Giochi Preziosi Group as the head marketing and distribution company in the European market (Reuters, 2011). Along with ties to ad agencies, JAKKS is reaching out to other outlets of advertising. Angie Mansfield of Socialnomics.net says that “social media brings in almost twice as much as many marketing leads as trade shows, telemarketing, or direct mail”. JAKKS has explored these options and now utilize online strategies via social media (i.e. Facebook and Twitter), Youtube, DIGG, and blogging websites (Mansfield, 2013) to capture majority of their customers.

The US makes up most of the sales for JAKKS Pacific. In 2014, JAKKS generated revenue of $653.49 million, where 80.67% of that came from the US (Mergent, 2014). The top retailers in the US would be Wal-Mart, Target, and Toys “R” US who combined make up 47.4% of net sales. All other retailers make up less than 10% of sales for JAKKS (JAKKS 10-K, 2014). Outside of the US, Europe is next in the amount of sales for JAKKS making up about 8% of the sales (Mergent, 2014). Following Europe, specific locations make up the rest. They include places like Canada and Hong Kong.

Unites States 81%

Eurpoe 8%

Canada4%

Hong Kong <1%

Other 7%

Net Sales By Region

Unites States Eurpoe Canada Hong Kong Other

Figure 3

11


Company Analysis

Competitor Analysis


JAKKS Pacific, Inc.

Financial EvaluationBased on JAKKS performance in 2014, they started to see a large growth in almost all of their financial aspects. Net sales for traditional toys and games hit $408.4 million which increased 27.4% from 2013’s $320.6 million in sales. This is primarily due to the success of growing sales in dolls and action figures from Frozen, Nintendo Plush, and Star Wars. Net sales of role play, seasonal, and novelties in 2014 hit $401.6 million which increased 28.6% from 2013’s $312.4 million is sales. This success is due to the sales of dress-up and roleplay items from Frozen, Princess and Fairies, along with the decrease in selling price for Marvel superhero costumes. JAKKS’ cost of goods sold increased $97.1 million in 2014 to reach a total of $574.2 million. This was driven by improved product costing and more secure price points in line with the larger volume of sales and smaller license shortfalls. JAKKS’ Return on Assets (ROA) increased from (17.68)% in 2012 to 4.25% in 2014 which shows that JAKKS is utilizing the money they have invested into their assets more effectively to create a larger Net Income. Referring to the chart, JAKKS has been exploiting their investments ineffectively based on the negative Net Income in 2012 and 2013. JAKKS’ has even larger growth in Return on Equity (ROE) which tells shareholders that there are signs of growth in the company.

Year 2012

2013

2014

Net Sales (Millions)

666.7 632.9 810.1

COGS (Millions) 468.8 477.1 574.2

Gross Profit (Millions)

197.9 155.7 235.8

Return on Assets

(17.68)%

(10.73)%

4.25%

Return on Equity

(34.79)%

(30.29)%

14.67%

Net Profit Margin

(15.75)%

(0.85)% 74.17%

Debt Ratio 79.99% 66.95% 2.66%

Net Income(Millions)

(104.8) (53.9) 21.5

Figure 4

12


Company Analysis

Competitor Analysis


Competitor Analysis

Direct Competitors: Mattel Overview

Licensing Agreements: Mattel

Acquisitions: Mattel

Licensing Agreements: Hasbro

Joint Ventures: Hasbro

Direct Competitors: Hasbro Overview

Mattel does not participate in joint ventures as much as JAKKS and Hasbro, however Mattel does succeed in acquisitions. One of Mattel’s biggest acquisitions would be the purchase of Mega Brands. Mega Brands was acquired April 2015 for $454.9 million. The purchase of Mega Brands helped Mattel expand their company by being able to have a arts and craft and building set toys segment. (Mattel 10-K)

One of Hasbro’s main joint ventures would be with Discovery Communications Inc. This joint venture aims to attract family and children to Discovery Communications television channel Discovery Family. Some of the programs on this channel are derived from some of Hasbro’s toys, such as Transformers and G.I. Joe. At first this joint venture was 50/50, but in September 2014 Discovery purchased an additional 10% of the joint venture from Hasbro, giving them more rights to make the final decisions in the joint venture (Discovery.com).

Licensing deals plays a big role for Hasbro. Some of the biggest licensing deals Hasbro has are with Disney, and Nickelodeon. Some of the toys would be Star Wars toys, coming from the Disney licensing agreements, and also Teenage Mutant Ninja Turtles coming from the Nickelodeon deal. Another licensing deal that Hasbro has acquired the majority right to make toys of Disney Princess (Adweek, 2015d) that was previously a deal between Disney and Mattel. Having these licensing agreements is extremely helpful to Hasbro. In 2014, Hasbro had $1.3 billion of revenue from Disney products they made (New York Times, 2015).

Mattel is highly involved in making licensing agreements with companies in order to have the right to make toys after their TV show, movie, etc. Two of the biggest licensing deals that Mattel has made would be the agreements with Disney and Time Warner Inc. (Warner Bros). As stated before, Mattel has taken a big hit by losing the majority of the licensing agreement of to make Disney Princesses to Hasbro (Adweek, 2015).

Mattel was founded in 1945 out of a garage. by the 1950’s Mattel grew to be worth $5 million. By 1960 the company had grown it was starting to get attention from Disney and many other entertainment companies looking to sponsor them. Since then Mattel has grown to be the largest toy manufacturer today.

Hasbro was founded in 1926 as Hassenfeld Brothers where they were in the industry of fabrics remnants. it was in the 1940’s where they then started to make toys such as Mr. Potato Head. In 1980 the the founders split up and the company then went by Hasbro. Since the start of the company, Hasbro has grown to be the 2nd largest toy manufacturer globally (Hoover's Online, 2015).

13


Company Analysis

Competitor Analysis


Competitor Analysis

Net Income: Of the three companies Mattel has the largest Net Income, due to it s huge amounts of sells that it has. Up until 2014 Jakks Pacific has had losses the prior two year but was able to turn that around by increasing sales. Jakks credits this increase to certain strategies they took, such as acquisitions, licensing deals and also expanding international sales. (Jakks Pacific 10-K)

Return On Equity: Due to the loss of income in 2012 and 2013 the ROA was negative but once Jakks starting making income the ROA change drastically, but still is only a fraction of Mattel andHasbro.

Inventory Turnover: Of the three companies Jakks has the highest inventory turnover. Jakks is able to succeed in this by having have efficient inventory management team that works to have more orders to be delivered immediately rather than at a later date. (Jakks Pacific 10-K)

Debt Ratio: Of the past two years Jakks has had the highest amount of total debt. Although all companies are increasing in debt by nearly the same amount. This shows that all companies are continually borrowing money in hope for their company to succeed.

Financials

-2

0

2

4

6

8

10

Net Earning /Loss 2012-2014

2012 2013 2014

Net I

ncom

e(Lo

ss

(Bill

ions

) JAKKS

MATTEL HASBRO

Figure 5

0123456789

10

Inventory Turnover

2012 2013 2014

JAKKS MATTEL HASBRO

Figure 7

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00% Debt Ratio

Debt Ratio 2013 Debt Ratio 2014

JAKKS MATTEL HASBRO

Figure 8

-40-30-20-10

010203040

Return On Equity

2012 2013 2014

JAKKS

MATTEL HASBRO

Figure 6

14


Company Analysis

Competitor Analysis


Key Success Factor #1: Integrating Toys with the Entertainment Industry

Toy companies that are able to integrate toy product lines into entertainment formats such as television and film create value for the customer by enabling the product to be more than just a toy. The largest toy manufacturers achieve this integration in two main ways, through licensing agreements with entertainment companies and by developing movies and toys featuring their toy products. According to Sandra Calvert, “Newer marketing approaches have led to online advertising and to so-called stealth marketing techniques, such as embedding products in the program content in films, online, and in video games.”

Licensing AgreementsAccording to the Licensing Industry Merchandising Association (LIMA), the Licensing Industry made $241.5 billion in retail sales in 2014, $107.2 billion of which was from entertainment and merchandising licensing deals. LIMA states that $26.9 billion (25.1%) of the $107.2 billion in retail sales was from toys alone. This number is significant when compared to the total global revenue of the toy industry, which is $92.2 billion worldwide (Marketline, 2015), proving that licensing with the entertainment industry contributes to 32% of the global toy industry’s revenue.

The largest toy companies are competing over who can land the next big licensing deal with popular entertainment companies. Hasbro has an estimated 25-30% of its business invested in licensing deals with Disney, (CNBC, 2014), which is $1.3 billion of Hasbro’s total $4.3 billion revenue in 2014 (The New York Times, 2015). In 2013, Playmates toys saw an increase in sales from $2.4 million in 2012 to $48 million after the third quarter due to the reboot of the Teenage Mutant Ninja Turtles series, through a licensing agreement with Nickelodeon (Hong Kong Exchange News, 2013). The success of the TMNT reboot in correlation with the release of related toys led to

The chart to the right of the top 10 best-selling toys of 2014 in the U.S. demonstrates how licensing products is very successful. Numbers 1,2, and 10 are three licensed products with the company with license ownership in the parenthesis. The other top toys in the chart were created by the toy manufacturers themselves, a successful strategy that is further explained on the next page.

In order for toy companies to remain successful in their licensing deals, they need to maintain strategic relationships with entertainment companies. In September 2014, Disney declined to renew their contract with Mattel for Disney Princesses passing on the deal to Hasbro (AdWeek, 2015). During that holiday season for Mattel, profits fell 59% to $149.9 million, and sales dropped 6% to $1.9 billion (The Wall Street Journal, 2015). The decline in sales and profit forced Mattel CEO, Bryan Stockton, to resign in January of 2015 (AdWeek, 2015). Mattel has also announced they are projected to cut another $250-300 billion in annual costs (The Wall Street Journal, 2015).

Strategic Relationships

Figure 9

Figure 10

15


Company Analysis

Competitor Analysis


Key Success Factor #1: Integrating Toys with the Entertainment Industry

While toy companies are finding success acquiring merchandising rights to characters from popular movies and tv shows through licensing deals, toy companies are also making deals with entertainment companies to turn their products into movies, TV shows, video games, and apps. This brings a storyline to the toy and allows children to engage deeper into the product. According to Stephen Davis, Hasbro’s chief content officer, “Storytelling is really central to everything Hasbro does.”

In 2010, HUB TV released My Little Pony: Friendship is Magic. This series is an animated TV show based off of Hasbro’s product line My Little Pony, and specifically targets girls ages 6-12. Hasbro has a 40% ownership in HUB TV and is one of the producers for the show, giving them input in the storyline (Shareholder, 2011). Hasbro's 2011 revenue was a record $4.29 billion in 2011 (Reuters, 2015). By 2014, after three successful seasons, IMBD gave the show a 7.8/10 rating and TV.com gave it a 9.2/10 rating. That same year, Hasbro’s revenue grew 7% and girls toy sales grew 21% (Reuters, 2015). According to Apple, there has been multiple My Little Pony apps released that tie into the TV show. In 2013, Hasbro released the first Equestria Girls movie, which is a spinoff of the TV series. Hasbro continues to make sequels and has released 144 dolls associated with the movie (MLP Database, 2015).

Developing Movies and Shows Featuring Their Own Products

Developing Movies and Shows Featuring Their Own ProductsIn 2014, the LEGO Company created a story that they turned into a movie. The story involves a normal LEGO construction worker who is recruited to stop an evil tyrant with his plan to destroy the LEGO community. The movie had box office sales of $469.2 million with 41.5% of those sales coming from all countries other than the US (Box Office Mojo, 2016). With this movie, LEGO was strategically able to manufacture an associated line of LEGOS with characters from the movie after the movie had been released. With this plan, LEGO Company saw their revenue spike 13% from $3.695 billion in 2013 to $4.175 billion in 2014 (Trangbæk, 2015). LEGO’s growth in all of its operating regions increased by double digits. Overall, the net income of the company rose 15% and the operating profit increased 16% (Trangbæk, 2015). This has also given LEGO the need to create more factories to manufacture in regions where they saw a spike in sales. For example, LEGO noticed that sales grew over 50% in China after the release of the movie (Trangbæk, 2014). They then started the construction of a new factory, new retail stores, and new offices in various parts of China to supply the entire Asia region.

Toy companies integrating with the entertainment industry allows toy consumers to stay engaged in products by bringing these toys to life. This also allows customers to remain loyal to the specific toy company. With technology advancing, kids are not as interested in just “playing” with a toy. However, with kid’s favorite toys appearing in movies, TV shows, video games, and apps; kids are able to relate to the toys because they have a personality.

Conclusion

16


Company Analysis

Competitor Analysis


Key Success Factor #2: Market Products to China’s Domestic Consumer

Currently, China’s total population is estimated to be 1.3 billion people, 18% (240 million) of which are ages 0-14 (Passport, 2015). With China’s aging population, the country is looking to loosen its one child per couple policy in order to grow its younger population (CNNMoney, 2015). This presents a tremendous opportunity for toy manufacturers to increase sales in the country. Marketing to this Chinese demographic can be further justified by the growth of China’s middle class households from 113.8 million households to a projected 124.3 million by the year 2024 (euromonitor 2015), a 9% increase. The growth of the middle class can be attributed to increasing urbanization efforts initiated by the Chinese government, with the goal of rebalancing the chinese economy towards domestic consumption and modernization (Passport, 2014). With this change, the average median income per household is expected to increase from $10,471 (2015) to a projected $13,376 by the year 2020 (Passport, 2015). As of 2016, the average Chinese households only spent $36 in 2016 on traditional toys and games, however, that number has grown 50% since 2010. Euromonitor estimates that toy and game expenditures will eventually reach $44 by the year 2019. The U.S. average household spends $346 annually on toys and games for comparison. When factoring the shear size of China’s middle class population, they alone are a possible $5.38 billion toy and game industry. When considering the entire traditional toy and game industry of China, the industry is valued at $9.4 billion. The number of urban households is expected to grow from 250 million (2015) to 293 million by the year 2019 (Euromonitor, 2015).

Why Increase Efforts to Enter the Chinese Market?

China’s Consumer TrendsWith the growing middle class in China, parents are starting to become financially stable enough to be more selective in their toy purchases. As stated in KSF number one, LEGO has seen a significant increase in sales in the past couple of years in the East Asian region, especially China. With growing disposable income, Shaun Reign, author of “The End of Cheap China”, states that "You have toys, such as Lego, that are doing very well. They're cheap enough that they're accessible for low-income Chinese. But they're expensive enough to get prestige." (Sigalos, 2015). This change in economic state and psychology of China has led to the increase in purchasing of traditional Toys. However, there is another segment of toys growing much faster in the country.

Videogames are becoming extremely popular, whether it be through smartphones, tablets, or game consoles. The video game segment alone did $2.8 billion in sales in 2015 and is expected to increase 57% to $4.4 billion by the year 2019 (Euromonitor, 2015). The percentage of households in China with Smartphones is 53% as of 2015, expecting to grow to 72% by the year 2020. This gives app based video games a terrific opportunity to grow. 30% of the population are considered video game users and 87% of that population are 20 years old or older. These consumer demographics give top toy and game companies a variety of target markets to gain revenue from.

Brazil Russia United Kingdom

China South Korea0

6

12

18

4.8 4.3

10.4 12.1

45.9

4.6

11

18.5

4.6

Total Sales from Toy and Game Industry 2014-2019 in Billions USD

2014 2019 Projection Figure 11

Figure 12

17


Company Analysis

Competitor Analysis


Key Success Factor #2: Market Products to China’s Domestic Consumer

Consumer Trends (Continued) Top Traditional Toy and Game Manufacturer in China

An industry that top Chinese toy companies are capitalizing on in the country is the increase in animation film popularity. In 2014, the animation industry did over $15.2 billion in sales. This number has grown from the year prior by 14.8% and is expected to continue to grow. This can be seen from the data of decreasing popularity of domestic TV cartoons, which is down 32% according to researchandmarkets.com. This drop in TV show popularity is attributed to the increase of internet accessibility (3%), smartphones (11%), and desired quality of shows in China (Research and Marketing, 2015). Global Animation Industry and Chinese Report, 2015, found that over half of the market value of the Chinese animation industry was produced from the sales of animation related toys, proving that this is a sizeable market.

Three toy segments are expected to see significant increases in sales by 2019 (China Toys Market, 2015): Construction toys to grow sales by 56% to $138.6 million, baby & infant toys to grow 34% to $749 million, and outdoor & sports toys to grow 58% to $824 million. Construction toys are expected to grow due to the perceived educational benefit to children that develops critical thinking, baby & infant toys are expected to grow with the increase in Chinese population. Outdoor & sports toys are expected to grow as parents seek to get their children more active and to relieve the stress from academics (Euromonitor, 2015).

The top manufacturer of traditional toys and games is Guangdong Alpha Animation & Culture Co Ltd, a Chinese company. They own 5.5% of the traditional toys and games market share and did $369 million in sales (corporate information, 2015) with $65 million net profit (euromonitor, 2015). Alpha Animation should be regarded as the benchmark for non-video game toy manufacturers in China for multiple reasons. Alpha Animation has made a strategic decision since its founding in 1993 to market their toys through animated television shows they create themselves or through acquisitions. In 2015 Alpha Animations acquired U17.com, a comic and anime website with over seven million users, for $140 million (PR Newswire, 2015). Alpha Animations has also made efforts to spread their successful TV shows and related toys to international markets such as the U.S. This is demonstrated in a joint venture between Alpha Animation and Hasbro for $15 million. This joint venture will give Alpha Animation rights to sell their toys through Hasbro in the U.S. that are based off of the hit Chinese animation show coming to the U.S. called Blazing Teens. The TV show has done over $457 million in sales since its premier in 2005 (China Daily, 2012).

Competition between multinational companies and domestic is very competitive in China for the toy industry. Appendix E shows the distributed market share of different multinational and domestic companies. Domestic companies are able to stay competitive with the multinationals for many reasons, one of the larger ones being that chinese give less importance to brand name than do other countries. According to a survey done by the Chinese toy and juvenile products association, 47% of toy consumers did not give importance to brand name. 78% said they value quality and safety more than anything else. This is what gives domestic companies with low brand recognition a competitive edge in the industry. As the population continues to grow its middle class and access to internet for information, brand recognition will build and soon become a greater preference. This is shown by the recent success of LEGO, which was mentioned earlier.

Multinational Vs. Domestic

Action Figures a

nd Accesso

ries

Arts and Crafts

Baby & In

fant (0-36 m

onths)

Constructi

on Toys

Dressing-U

p and Role Play

Games and Puzzl

es

Outdoor and Sports

Toys 0

200400600800

1,0001,2001,4001,600

Toy Segment growth 2014-2019

2014 2019

Mill

ions

USD

Figure 13

18


Company Analysis

Competitor Analysis


Key Success Factor #3: Creating More Product Lines For GirlsThere is speculation that gender neutrality is the way to go when producing toys. Our research says differently. Hasbro’s CEO and President, Brian Goldner, stated how excited they are as a company to develop dolls from Disney Princess and Frozen franchises. “Our strategic thought leadership and innovation has led to the steady growth of our girls business over the past several years demonstrating that we have a true understanding of girls globally and how today’s girls want to play” (Duffy, 2014). We believe there is an opportunity to strategically recognize girls interests when creating toys.

Hasbro Recognizes Girls as a Target MarketIn the last 15 years, Hasbro has revived brands such as My Little Pony and Furby after approximately 10 years of absence. During 2013, Hasbro’s revenue from their girls division rose 26% (Townsend, 2014). However, the boys division declined 22% (Townsend, 2014). This offset created an overall boost of 4% and contributed to the first time ever in Hasbro history of $1 billion revenue (Townsend, 2014). Because of all of this, Hasbro is launching new items targeted to, but not limited to, girls. They are launching items such as Nerf Rebelle which consists of an archery set that appeals to girl because of the recent successful movie and book, The Hunger Games, which depicts a girl protagonist who is a professional with a bow and arrow (Townsend, 2014). Hasbro’s continuous improvement of the brand My Little Pony over the past 10 years has generated revenue that increased over $700 million from the girl division to reach over a grand total of $1 billion (Duffy, 2014).

Revenue

Operating Profit

Net Profit

0.000 1.000 2.000 3.000 4.000 5.000

3.030

1.057

0.776

4.040

1.373

0.969

Before and After Release of LEGO Friends in Billions USD

2012 2011 Figure 14

In addition to Hasbro launching toys targeted to girls, LEGO launched a line that also targets girls: LEGO Friends. Lego Friends resembles girl LEGO figures that live in either castle-like structures or on a farm. In the first year of production, 2012, LEGO Friends was 4th best selling line behind other popular lines including Star Wars, Ninjago, and LEGO City (Wieners, 2014). With the development of LEGO Friends, the company reached the best financial results in the entire company history. Revenue rose 25% to a grand total of $4.04 billion in 2012 (Wieners, 2014). LEGOS operating profit rose 40% from $1.057 billion in 2011 to $1.373 billion in 2012 as well as their net profit from $776 million in 2011 to $969 million in 2012 (Wieners, 2014). LEGOS return on equity was 66.7, compared to 2011’s return on equity 66.8.

LEGO Expands Their Products to Target Girls as Consumers

Figure 15

19


Company Analysis

Competitor Analysis


Key Success Factor #3: Creating More Product Lines For Girls

Mattel and DC SuperHero Girls

Along with DC’s SuperHero Girls, Mattel is also launching a new line of Barbie, Barbie Fashionista, in hopes to make Barbie number one again. Mattel announced that they want to bring Barbie back as a role model, despite past Barbie appearances wearing thick high heels and mini skirts while maintaining an almost impossible skinny figure (Li, 2016). With Barbie Fashionista, three new body types have been introduced: petite, curvy, and tall (Li, 2016). Barbie will also have a diverse selection of seven skin tones, 22 eye colors, and 24 hairstyles. Releasing this line of Barbies will “allow girls to find a doll that speaks to them” (Li, 2016).

Mattel has always been recognized as the leading toy company when it comes to making products targeting girls due to their success with Barbie. However, Hasbro’s Frozen dolls have surpassed Barbie in popularity which results in Barbie’s revenue to continuously decline (Bloomberg, 2015). Mattel needed to find a way to recover from the steady decline in Barbie, so they came out with the product line DC’s SuperHero Girls, which are expected to hit the stores in spring 2016 (Truitt, 2015). This new line of toys is supposed to help make up the 16% loss that Barbie caused the company in 2014 (Vakharia, 2015).

Announcement of New Line of Barbie

2013 2014 Project with Fasionista Line

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

Barbie Sales and Projected Sales

Figure 16

Figure 11: The annual sales of Barbies in the years 2013 and 2014 were provided by Mattel Annual Report 2014. The projected sales were then calculated by taking the sales in each year divided by average selling price of Barbie ($30) giving the number of how many Barbies were sold. The average number of Barbies sold (36.871 milion) was then multiplied by the new selling price of the Fashionista dolls ($9.99). Taking the product of that and then adding it to 2014’s sales gives the projected sales with the new Fashionista dolls of $1.36 billion.

The ability to market to girls, while maintaining progressive values, gives any company a competitive advantage over others. Companies who have experienced increases in revenue after marketing to girls, such as Hasbro and LEGO, have set the tone to produce more toys appealing to girls. As Mattel’s Barbie sales have declined over recent years, they announced a new line of Barbie dolls that appeals to a wider spectrum of girls. We estimated an increase of $368 million on top of their sales of Barbie already. If toy companies wish to see an increase in revenue, they need to utilize this success factor.

Conclusion

Figure 17

20


Company Analysis

Competitor Analysis


Key Success Factor Decision Matrix

The decision matrix is weighted 1-5 and considers the three companies from the company and competitor analysis. The key success factors are in order of how they were introduced in the report. Integrating toys with the entertainment industry was the most heavily weighted with 45%. This number was decided due to the importance licensing and the entertainment industry have on the toy industry. As of 2014, licensing made up 30% of overall sales in the global toy industry. Companies are competing with one another to secure licensing deals with blockbuster films and TV series due to the high amount of profits they all bring. Hasbro received a 5 in this key success factor due to their recent licensing agreement with Disney along with their many more license agreements with companies such as Michael Bay’s 451 Media Group. Mattel received a 3.5 after considering them losing a majority of their licensing agreements with Disney and the current slump in Barbie sales. They still have many lucrative licensing deals that keep them competitive, however, Hasbro beats them out in this area. JAKKS Pacific received a 2. They have licensing deals with Nickelodeon, Disney, Marvel and more but have yet to land any significant deals to raise their sales and profit margin to a competitive level with Hasbro and Mattel.

In marketing products to China’s domestic market, we weighed it at a 25%. The market is not currently as large and significant in the global toy industry as it is projected to be in the years to come, however, its potential outweighs that of any other market. Mattel ranked first with a rating of 4.

This is due to their strong presence in the Chinese toy market, ranking fourth in overall market share. Hasbro received a 3 for placing seventh in overall Chinese market share. Hasbro is utilizing their licensing deals in the Chinese market by selling products such as toy Transformers that have performed well in the country. JAKKS Pacific received a 1 in this key success factor due to their very low presence in the chinese market. They do not rank in the top forty list for market share and they currently show few signs of a strategy to seize more of the market. They do have licensed products that are popular in China such as Teenage Mutant Ninja Turtles and have committed to a joint venture with a Chinese animation company called Meisheng Culture & Creative Corp in 2014. The next couple of years will determine the success of those two factors.

Figure 18

21


Company Analysis

Competitor Analysis


Key Success Factor Matrix (Continued)

The results from our decision matrix give Hasbro a very narrow lead over Mattel. This is accurate to our research and how experts in the industry say the two companies are performing. Hasbro has recognized the importance of licensing and has committed over two thirds of their company’s funds towards it. They have recently finalized strategic partnerships with companies such as Disney and more for the coming years, which are expected to have large pay offs. JAKKS Pacific still fails to compare to Hasbro and Mattel in most areas, however, they have many opportunities to grow. Some of those opportunities are highlighted in our recommendations.

The final key success factor is creating more product lines for girls and is weighed at 30%. Mattel received the highest score of 5 thanks to their numerous female geared product lines, namely Barbie. Despite the drop in sales of Barbie in the past few years, the product line continues to do over $1 billion in sales annually. Mattel is now releasing a new product line called Fashionista, as mentioned in key success factor 3, in an effort to compensate for decline in Barbie and other product lines. JAKKS Pacific placed in third with a score of 3. They have a large portfolio of girl product lines that perform decently well for them. We believe JAKKS has room for improvement in this area as they only have 14 girl products compared to their 20 boy products.

Recommendations for JAKKS Pacific, Inc.

JAKKS Pacific is highly anticipating the release of the Batman vs Superman: Dawn of Justice movie on March 25, 2016 because of their new toy line coming out in spring 2016 with the majority relating to the movie (DC Comic Movies, 2015). JAKKS Pacific has a prime opportunity in front of them due to the large fan base for Marvel’s Batman and Superman. What sets other toy companies (Mattel, Hasbro, and LEGO) ahead of JAKKS is that they all create a storyline behind their licensed toys through multiple movies, TV Series, apps, and video games (refer to KSF #1). JAKKS Pacific is off to a positive start by making a strong product line going along with the release of the Batman vs Superman movie, but they need to go beyond that to be a true competitor in the toy industry. JAKKS could look into signing a deal with a popular TV network such as Nickelodeon, Cartoon Network, or even Netflix to create a TV series based off the new movie. JAKKS Pacific already has a licensing deal with Nickelodeon for the Teenage Mutant Ninja Turtles series (Hong Kong Exchange News, 2013) which already gives them a head start on the process for finding a network to produce the series. An excellent example of a toy company successfully creating a storyline for their products is Hasbro and their hit TV series My Little Pony: Friendship is Magic on Discovery Kids previously known as the Hub Network (Reuters, 2015).

In 2009, Hasbro invested $300 million into Hub TV, now known as Discovery Kids, for 50% ownership in the network so they can create TV shows based off of some of their most popular toys. They are expected to spend approximately spend $80 million per year on channel-related expenses. Hasbro COO David D. R. Hargreaves expected sales to hit $300 million from the network itself (Deadline, 2011). By 2010, Hasbro released their hit TV series My Little Pony: Friendship is Magic and produced three successful seasons through 2014. By 2011, Hasbro’s revenue was $4.29 billion which was a company record. In 2014, revenue grew 7% and sales for girl toys grew 21%, because of their most successful girl product My Little Pony (Reuters, 2015). Hasbro exceeded Hargreaves’ 2009 expectations. Based off of this information and Hasbro’s continuous success, JAKKS Pacific should pursue the idea of creating a TV series going off the new Batman vs Superman: Dawn of Justice movie.

Create a TV series based on the Batman vs. Superman: Dawn of Justice film

22


Company Analysis

Competitor Analysis


Recommendations (Continued)

In 2014, JAKKS Pacific committed to a joint venture with and Meisheng Culture, a Chinese production and entertainment group. The joint venture gave 51% ownership to JAKKS and will allow them to sell licenced and unlicensed toys to customers of Meisheng Culture. The joint venture includes a subsidiary in Shanghai, China which is the largest city in China with 24.4 million people (Ni, 2014). When factoring in that the average Chinese household spends $36 on toys and games annually, this region is at minimum a $288 million market. With increasing urbanization, increasing disposable incomes, and anticipated annual household expenditures on toys by 2019 of $44, this market size could grow to $381 million in the next few years. Since the population of 0-14 year olds in China is on the rise with the government’s loosening of their one child policy, baby and infant toy sales are expected to increase by 34% to $741 million by 2019 nation wide. When factoring the birth rate of China into the size of Shanghai, the city is likely to add over 192,000 newborns to the city’s population per year. When multiplying the number of newborns by the average cost of a JAKKS baby or Infant toy, which is about $20 (JAKKS, 2016), the market value is around $3.8 million. If JAKKS could hypothetically capture this entire market, they could have a gross profit of $1.1 million and net profit of over $300,000 (SEC, 2014).

Market Baby & Infant Toys Through Meisheng Culture Joint Venture

After analyzing other companies in the toy industry, we have decided that one key recommendation for JAKKS Pacific is to create more products that attract girls. JAKKS Pacific has a good start on this, however the selection of girl products is miniscule in comparison to boys. The need to create more toys that attract girls is crucial and may be even controversial with today’s social equality. However, this is very important to capitalize on because girls make up between 30%-50% of total revenue in major companies like Hasbro. Even if girls contribute at minimum 30% of revenue, a 30% increase is an impactful increase. It is important to have product lines specifically for girls that align with their interests, however, companies have seen success when creating girl appealing product lines in toy segments that are traditionally dominated by boys.

When Hasbro launched their archery set based off the popular film, The Hunger Games, they attracted girls because of the protagonist role that is played by a girl that is skilled with a bow and arrow. On the flip side, it attracted boys as well simply because of boys attractiveness towards weapons. LEGO announced their new line of products targeted for girls that features girl characteristics such as girl characters and colors that normally appeal more to girls (pink and purple). This launch also is not limited to girls. It allows for boys (who primarily buy LEGOS) to wander into other LEGO segments. Both companies saw an increase in revenue after the launch of each product (pages 13 & 14). Since companies already have the mindset of directing toys to specific genders (including JAKKS Pacific), JAKKS Pacific needs to put more effort into creating more products for girls.

Launch More Girl Appealing Product-Lines

23


Company Analysis

Competitor Analysis


Conclusion

In order to be a successful company in the toy industry, businesses must implement a strategy that sets them apart from their competitors. After diving deep into JAKKS Pacific, Inc., they have failed to prove themselves in past years as a top contender in the toy industry compared to other companies such as Mattel, Hasbro, and LEGO. By conducting a company analysis on JAKKS Pacific, a competitor analysis, and an analysis on the industry as a whole, we believe that we have come up with three key success factors that if followed by JAKKS Pacific, they can become one of the best toy companies in the world.

Our first key success factor, Integrating Toys with the Entertainment Industry, allows toy companies to create a storyline behind their product by linking it to a movie, TV series, app, etc. This is also extremely beneficial with continuous advancement in technology. Our second key success factor, Market Products to China’s Domestic Market, gives a toy company the opportunity to take advantage of the growing population in China’s middle class, which is projected to increase 9% by 2024, and focus on marketing products to that specific demographic.Our third key success factor, Creating More Product Lines for Girls, allows companies to understand why it is important to market products to both genders and how it has proven to increase sales.

Although JAKKS Pacific has struggled to be a top competitor in the toy industry in past years, they are starting to show signs of improvement by increase in sales, revenue, return on equity, etc. They are acquiring more license deals with major companies, releasing new product lines, and continuing to stay consistent in making sales throughout all four quarters. We believe if they consider our recommendations based off our key success factors, they can find themselves as a top competitor in the toy industry worldwide.

Figure 11

Figure 19

24

Appendix A (PESTLE)

25

Appendix B (Porters Five Forces)

26

Appendix C (Barbie Sales and Projected Sales

The annual sales of Barbies in the years 2013 and 2014 were provided by Mattel Annual Report 2014. The projected sales were then calculated by taking the sales in each year divided by normal selling price of Barbie ($30) giving the number of how many Barbies were sold. The average number of Barbies sold (36.871 milion) was then multiplied by the new selling price of the Fashionista dolls ($9.99). Taking the product of that and then adding it to 2014’s sales gives the projected sales with the new Fashionista dolls.

2013 2014 Project with Fasionista Line$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

Barbie Sales and Projected Sales

27

Appendix D (Total Toy and Game Industry Sales)

The graph above shows the total sales in 2014 of proven profitable markets and of markets that are considered to be emerging. In choosing China as our location for Key Success Factor #2, we considered all of the emerging markets in the world, as well as all other countries that showed signs of profitability for the toy industry. The graph above shows the current toy market size based on sales in the countries shown and the future 2019 projections from euromonitor (euromonitor, 2015). Brazil was not chosen due to it’s low growth projection, its current political issues, inflation and unemployment are on the rise, and national GDP is expected to decrease by 2%, putting them just below 6% growth (Ordoñez, 2015). Another note we used to rule out Brazil s the presence of the Zika Virus in the country. The Center for Disease Control and Prevention has placed the disease into the level one category, the highest protocol taken for contagious diseases (CDC, 2016). Russia only has a projected growth of 6.5% and faces too many economic sanctions to be a reliable market for foreign, especially American, investors. The United Kingdom was ruled out mainly for its slow toy market growth. South Korea has a low growth projection and a low population of 0-14 year olds when compared to China. China is predicted to see the toy market size increase 35%, they have a growing middle class, and other top toy manufacturers, such as LEGO, have found much success in the country in the past couple of years.

Brazil Russia United Kingdom China South Korea0369

121518

4.8 4.3

10.412.1

4

5.9

4.6

11

18.5

4.6

Total Sales from Toy and Game Industry 2014-2019 in Billions USD

2014 2019 Projection

28

Appendix E (Share of Chinese Market)

The chart above shows the market share of the top Chinese toy manufacturers. Guangdong Alpha Animation leads all manufacturers with 5.5% of the market, which reflects sales of $369 million in 2014. LEGO has decided to recently construct more manufacturing facilities in the area to accommodate their growing number of customers. Mattel and Hasbro do well in the country due to their licensed products that higher middle class and upper middle class consumers prefer. The majority of the population, however, are not primarily concerned with licensed products, as mentioned in Key Success factor #2. This is what gives national companies a slight competitive advantage over multinational companies. The rest of the market share is distributed among hundreds of smaller toy manufacturers.

Guang

dong

Alph

a Anim

ation

& C

ulture

Co L

td

Shang

hai Y

aoji P

laying

Card

s Co L

td

LEGO G

roup

Mattel

Inc

Ningbo

Three A

Grou

p Co L

td

Guang

dong

Qun

xing T

oys J

oint-S

tock C

o Ltd

Hasbro

Inc

-1%

%

1%

2%

3%

4%

5%

6%

7%

Share of Chinese Market from Top Companies

2929

Appendix F (SWOT)

3030

Appendix G (Business Model Canvas)

31

Appendix Common Size Financials Jakks Pacific Balance Sheet

Common Size Balance Sheet Jakks Pacific Inc. 2014 2013 2012

Current assets

Cash and cash equivalents 12.73% 26.02% 34.12%Marketable securities

0.04% 0.05% 0.04%Accounts receivable,

41.75% 22.50% 19.01%Inventory, net

14.03% 10.40% 10.76%Income tax receivable

4.27% 5.34% 4.33%Deferred income taxes

0.60% 0.88% 1.27%Prepaid expenses and other 4.47% 6.15% 3.66%Total current assets

77.89% 71.34% 73.19%Property and equipment

Office furniture and equipment

2.57% 3.18% 2.57%Molds and tooling

15.55% 17.36% 13.25%Leasehold improvements 0.94% 1.09% 1.27%Total

19.06% 21.64% 17.09%Less accumulated depreciation and amortization

17.09% 19.17% -14.23%Property and equipment, net

1.98% 2.47% 2.85%Intangibles

8.71% 12.77% 12.09%Other long term assets

1.85% 1.37% 0.83%Investment in DreamPlay LLC

1.25% 1.56% 1.26%Goodwill, net

7.92% 9.98% 8.80%Trademarks, net

0.41% 0.51% 0.42%Total assets

561,782 449,844 554,825

Current liabilities

Accounts payable

9.99% 5.62% 6.81%Accrued expenses

15.48% 15.36% 11.48%Reserve for sales returns and allowances

4.36% 6.97% 6.20%Income taxes payable

4.23% 4.62% 2.33%Short term debt

0.00% 8.47% 12.74%Total current liabilities

34.06% 41.04% 39.56%Convertible senior notes, net 38.27% 22.23% 17.11%Other liabilities


0.44% 0.58% 0.84%Deferred income taxes

1.06% 1.54% 1.83%Total liabilities

74.17% 66.95% 62.65%Stockholders' equity

Treasury stock

-4.27% 0.00% 0.00%Additional paid-in capital

35.97% 44.61% 36.51%Retained Earnings

-4.74% -10.70% 1.59%Accumulated other comprehensive loss

-1.22% -0.86% -0.76%Total JAKKS Pacific, Inc.'s stockholders' equity

25.74% 33.05% 37.35%Non-controlling interests

0.09% 0.00% 0.00%Total stockholders' equity

25.83% 33.05% 37.35%Total liabilities and stockholders' equity

$561,782 $449,844 $554,825

32

Comon Size Balance Sheet Hasbro Inc.

2014 2013 2012Current assets

Cash and cash equivalents

19.71% 15.50% 19.64%Accounts receivable

24.15% 24.84% 23.81%Inventories

7.49% 7.92% 7.31%Prepaid expenses and other current assets

8.64% 8.08% 7.22%Total current assets

60.00% 56.34% 57.99%Property, plant and equipment, net

5.24% 5.37% 5.33%Other assets

Goodwill

13.09% 13.50% 10.98%Other intangibles, net

7.16% 8.54% 9.63%Other

14.51% 16.25% 16.07%Total other assets

34.76% 38.29% 36.69%Total assets

4,532,142 4,402,267 4325387

Current liabilities

Short-term borrowings5.57% 0.19% 5.19%

Current portion of long-term debt

0.00% 9.73% 0.00%Accounts payable

4.69% 4.52% 3.23%Accrued liabilities


23.72% 30.97% 22.20%Long-term debt

34.42% 21.80% 32.28%Other liabilities

8.58% 7.98% 10.66%Total liabilities

66.72% 60.75% 65.15%Redeemable Noncontrolling Interests

0.94% 1.03% 0.00%Shareholders' equity

0.00% 0.00% 0.00%Common stock

2.31% 2.38% 2.42%Additional paid-in capital

17.79% 16.68% 15.16%Retained earnings

80.10% 77.96% 77.55%Accumulated other comprehensive loss

-2.11% -0.78% -1.67%Treasury stock

-65.75% -58.03% -58.62%Total shareholders' equity

32.34% 38.22% 34.85%Total liabilities and shareholders' equity

$4,532,142 $4,402,267 4,325,387

3232

Appendix

33

Appendix: Common Size Financials Mattel Balance Sheet

Common Size Balance Sheet Mattel Inc

2014 2013 2012Current Assets

Cash and equivalents

14.45% 16.14% 20.47%Accounts receivable

16.26% 19.57% 18.80%Inventories

8.36% 8.83% 7.13%Prepaid expenses and other current assets

8.32% 7.92% 8.11%Total current assets

47.40% 52.46% 54.50%Noncurrent Assets

0.00% 0.00% 0.00%Property, plant, and equipment, net

10.98% 10.24% 9.09%Goodwill

20.74% 16.82% 16.56%Other noncurrent assets

20.89% 20.48% 19.86%Total Assets

6,722,046 6,439,626 6526785

Current Liabilities

Short-term borrowings

0.07% 0.15%Current Portion of Long Term Debt

0.00% 6.13%Accounts payable

6.40% 5.83% 5.90%Accrued liabilities



16.20% 16.27% 26.29%Noncurrent Liabilities

0.00% 0.00% 0.00%Long-term debt

31.24% 24.85% 16.85%Other noncurrent liabilities

8.69% 8.40% 9.86%Total noncurrent liabilities

39.93% 33.24% 26.72%Stockholders' Equity

0.00% 0.00% 0.00%Common stock

6.57% 6.85% 6.76%Additional paid-in capital

26.29% 27.71% 26.47%Treasury stock

-37.69% -38.03% -32.98%Retained earnings

57.96% 60.85% 53.86%Accumulated other comprehensive loss

-9.25% -6.89% -7.12%Total stockholders' equity

43.87% 50.50% 46.99%Total Liabilities and Stockholders' Equity

$6,722,046 $6,439,626 6526785

34

Appendix: Common Size Income Statement, Jakks Pacific

Common Size Net Income Sheet Jakks Pacfic Inc. 2014 2013 2012

Net Sales

$810,060 $632,925 $666,762 Cost of sales

70.89% 75.4% 70.31%Gross profit

29.11% 24.6% 29.69%Selling, general and administrative expenses

25.24% 31.6% 31.67%Income (loss) from operations

3.87% -7.0% -1.98%Profit from joint ventures

0.00% 0.0% 0.45%Change in fair value of business combination liability

0.73% 0.9% 0.00%Equity in net income (loss) of joint venture

0.04% -0.5% 0.02%Interest income

0.01% 0.1% 0.10%Interest expense

-1.54% -1.6% -1.38%Income (loss) before provision for income taxes

3.11% -8.1% -2.80%Provision for income taxes

0.46% 0.4% 12.92%Net income (loss)

2.66% -8.5% -15.72%

35

Appendix: Common Size Income Statement Hasbro

Common Size Income Statement Hasbro Inc.

2014 2013 2012Net Sales

$4,277,207 $4,082,157 $4,088,983 Cost of sales

39.71% 40.98% 40.89%Royalties

7.14% 8.30% 7.39%Product development

5.20% 5.09% 4.92%Advertising

9.83% 9.75% 10.33%Amortization of intangibles

1.23% 1.92% 1.24%Program production cost amortization

1.10% 1.17% 1.02%Selling, distribution and administration

20.94% 21.35% 20.72%Total expenses

85.15% 88.56% 86.51%Operating profit

14.85% 11.44% 13.49%Non-operating (income) expense

0.00% 0.00%Interest expense

2.18% 2.59% 2.23%Interest income

-0.09% -0.12% -0.15%Other expense, net

0.14% 0.36% 0.33%Total non-operating expense, net

2.23% 2.82% 2.41%Earnings before income taxes

12.62% 8.62% 11.09%Income taxes

2.96% 1.66% 2.87%Net Income

9.66% 6.96% 8.22%

36

Appendix: Common Size Financials Income Statement Mattel

Common Size Income Statement Mattel Inc

2014 2013 2012Net Sales

$6,023,819 $6,484,892 $6,420,881 Cost of sales

50.18% 46.35% 46.90%Gross Profit

49.82% 53.65% 53.10%Advertising and promotion expenses

12.17% 11.57% 11.18%Other selling and administrative expenses

26.79% 24.06% 26.01%Operating Income

10.85% 18.01% 15.90%Interest expense

1.32% 1.21% 1.38%Interest (income)

-0.12% -0.09% -0.11%Other non-operating (income), net

-0.08% -0.06% -0.09%Income Before Income Taxes

9.74% 16.95% 14.72%Provision for income taxes

1.46% 3.01% 2.63%Net Income

8.28% 13.94% 12.09%

37

References

Box Office Mojo. (2 February 2016). The LEGO Movie. Retrieved February 2, 2016, fromhttp://www.boxofficemojo.com/movies/?id=lego.htm

Bonetto, L. (2015, April). Marketing to Kids. Retrieved January 18, 2016, from http://academic.mintel.com/

BusinessWire. (10 September 2015). JAKKS Pacific and NantWorks Announce Continuation ofDreamPlay Toys Joint Venture. Retrieved February 8, 2016, from

http://www.businesswire.com/news/home/20150910005433/en/

Business Wire. (11 November, 2014). Jakks Pacific and Meisheng Culture & Creative Corp FormJoint Venture to Bring Jakks Products to China. Retrieved January 28, 2016, from

http://www.businesswire.com/news/home/20141111005336/en/JAKKS-Pacific®-Meisheng-Culture-Creative-Corp-Form

Corporate Information. (February, 2015). Guangdong Alpha Animation & Culture Ltd. Retrieved February 6,

2016, from https://www.corporateinformation.com/Company-Snapshot.aspx?cusip=C156HK0J0

Duffy, Julie. (24 September 2014). Hasbro Announces New Strategic MerchandisingRelationship with Disney Consumer Products for Disney Princess and Frozen Properties Beginning

in 2016. Retrieved February 2, 2016, fromhttp://investor.hasbro.com/releasedetail.cfm?releaseid=872386

Deutsche Bank. (14 October 2015). 3Q Preview: Wechat Eco-System Thriving. Retrieved February 6, 2016, from

http://www.niuniuwang.cn/wp-content/uploads/2015/10/ .pdf腾讯控股Drislane, P. (2008, March). Marketing Toys in a Digital Age. Retrieved January 17, 2016, from

http://www.warc.com

Dulaney, Chelsey. (September 24, 2014). Hasbro to partner with Disney to make princess, ‘frozen’ dolls.Retrieved January 26, 2016, from http://www.marketwatch.com/story/hasbro-to-partner-with-

disney-to-make-princess-frozen-dolls-2014-09-24

Euromonitor International. (2014). Traditional Toys and Games. Retrieved February 1, 2016,from portal.euromonitor.comEuromonitor International. (10 July 2015). Tencent Holdings Ltd Toys and Games (China).Retrieved February 6, 2016, from portal.euromonitor.comEuromonitor International. (2015). Percentage of Households with Access Broadband Internet.Retrieved February 9, 2016, from portal.euromonitor.com

http://www.boxofficemojo.com/movies/?id=lego.htm

http://academic.mintel.com/

http://www.businesswire.com/news/home/20150910005433/en/

http://www.businesswire.com/news/home/20141111005336/en/JAKKS-Pacific%C2%AE-Meisheng-Culture-Creative-Corp-Form

http://www.businesswire.com/news/home/20141111005336/en/JAKKS-Pacific%C2%AE-Meisheng-Culture-Creative-Corp-Form

https://www.corporateinformation.com/Company-Snapshot.aspx?cusip=C156HK0J0

https://www.corporateinformation.com/Company-Snapshot.aspx?cusip=C156HK0J0

http://investor.hasbro.com/releasedetail.cfm?releaseid=872386

http://www.niuniuwang.cn/wp-content/uploads/2015/10/%E8%85%BE%E8%AE%AF%E6%8E%A7%E8%82%A1.pdf

http://www.warc.com/

38

References

Euromonitor International. (29 January, 2016). China’s Consumer Spending Will Slow Further in2016 but Strengths Remain. Retrieved February 1, 2016, from portal.euromonitor.comEuromonitor International. (10 July 2015). Guangdong Alpha Animation & Culture Co Ltd inToys and Games (China). Retrieved February 1, 2016, from portal.euromonitor.com

Euromonitor International. (10 July 2015). Tencent Holdings Ltd Toys and Games (China).Retrieved February 6, 2016, from portal.euromonitor.comEuromonitor International. (10 July 2015). Toys and Games in China. Retrieved February 1,2016, from portal.euromonitor.com

Euromonitor International. (2015). Average Household Size. Retrieved February 6, 2016, fromportal.euromonitor.com

Euromonitor International. (10 July 2015). Toys and Games in China. Retrieved February 1, 2016, fromportal.euromonitor.comEuromonitor International. (10 July 2015). Traditional Toys and Games in China. Retrieved February 1,

2016, fromportal.euromonitor.comEuromonitor International. (2015). Birth Rates. Retrieved February 8, 2016, from

portal.euromonitor.comEuromonitor International. (10 July 2015). Toys and Games in China. Retrieved February 1, 2016, fromportal.euromonitor.com

Euromonitor International. (2015). Disposable Income. Retrieved February 10, 2016, from portal.euromonitor.com

Feng, Coco. (12 August 2015). China’s Leading Animation Company Alpha Shells Out US $140m to Buy No 1

Online Comic Book Site. Retrieved February 6, 2016 from: http://www.scmp.com/tech/enterprises/article/1848894/chinas-leading-animation-company-alpha-shells-out-us140m-buy-top

Global Briefing. ( August 2015). Toys and Games:Global Trend Developments and Prospects. Retrieved January 26, 2016,

from http://www.portal.euromonitor.com.proxy.library.ohiou.edu/portal/analysis/tab#

Golovko, Mykola. (24 November 2015). Deepening Recession in Brazil Weighs on Toy Sales. Retrieved February 9, 2016, from portal.euromonitor.com

Gustafsson, Katarina. (25 February 2015). Lego Movie Helps Full-Year Revenue Growth BeatRivals. Retrieved February 1, 2016, from

http://www.bloomberg.com/news/articles/2015-02-25/lego-movie-helps-toymaker-s-full-year-sales-growth-beat-rivals

http://www.scmp.com/tech/enterprises/article/1848894/chinas-leading-animation-company-alpha-shells-out-us140m-buy-top



http://www.portal.euromonitor.com.proxy.library.ohiou.edu/portal/analysis/tab



39

ReferencesHaider, Z. (2015, June). Toy & Craft Supplies Wholesaling in The US. Retrieved January 18, 2016, http://ibisworld.com/

JAKKS Pacific. (2014). JAKKS Management Team. Retrieved February 8, 2016, fromhttp://jakks.com/jakks-management-team.html

Jing, Shi. (1 June 2014). Research Divines The Economics of Life. Retrieved February 7, 2016, fromhttp://europe.chinadaily.com.cn/life/2014-06/01/content_17556604.htm

Li, Shan. (28 January 2016). Barbie Breaks The Mold With Ethnically Diverse Dolls. RetrievedFebruary 7, 2016, from

http://www.latimes.com/business/la-fi-mattel-barbie-20160128-story.html

Lieberman, David. (28 July 2015). ‘Frozen’ A Mixed Blessing For Licensed Merchandise As Business Changes. Retrieved

February 2, 2016 from: http://deadline.com/2015/07/frozen-licensed-merchandise-sales-lima-1201485900/

Lipson, Alison. (2015, October). Character Merchandising-US-October 2015. Mintel. Retrieved January 15, 2016, from

http://academic.mintel.com.proxy.library.ohiou.edu/display/716808/

Mansfield, Angie. (31 May 2013). Toy Makers Investing in Social Media. Retrieved February 8,2016, from http://www.socialnomics.net/2013/05/31/toy-makers-investing-in-social-media/

Mattel. (2016). Mattel History. Retrieved February 9, 2016, fromhttp://corporate.mattel.com/about-us/history/

Mattel (April 30, 2014). Mattel completes acquisition of MEGA Brands. Retrieved January 26, 2016, fromhttp://news.mattel.com/news/mattel-completes-acquisition-of-mega-brands

Mergent Online. (2014). Hasbro Inc. Retrieved February 2, 2016, Mergentonline.com

Mergent Online (2014) Mattel Inc. Retrieved February 2, 2016, Mergentonline.com

Mergent Online. (2014). Jakks Pacific Inc. Retrieved February 2, 2016, Mergentonline.com

Mintel. (2014, April). Traditional toys and games. Retrieved January 24 2016 from http:// academic.mintel.com/

Moreno. (2015 August). Star Wars Maini to Escalate US Toy Imports. Retrieved January 25, 2016, fromBusiness Source Complete

Ni, Wu. (27 February 2014). Shanghai’s Permanent Population Exceeds 24 Million. Retrieved February 8,2016, from http://www.chinadaily.com.cn/china/2014-02/27/content_17311272.htm

Passport. (2015, July 9). Toy and Games in the US. Retrieved January 26, 2016, from http://www.portal.euromonitor.com/

http://ibisworld.com/

http://jakks.com/jakks-management-team.html

http://europe.chinadaily.com.cn/life/2014-06/01/content_17556604.htm

http://www.latimes.com/business/la-fi-mattel-barbie-20160128-story.html

http://deadline.com/2015/07/frozen-licensed-merchandise-sales-lima-1201485900/

http://deadline.com/2015/07/frozen-licensed-merchandise-sales-lima-1201485900/

http://academic.mintel.com.proxy.library.ohiou.edu/display/716808/

http://www.socialnomics.net/2013/05/31/toy-makers-investing-in-social-media/

http://corporate.mattel.com/about-us/history/

http://www.chinadaily.com.cn/china/2014-

http://www.chinadaily.com.cn/china/2014-02/27/content_17311272.htm

http://www.chinadaily.com.cn/china/2014-02/27/content_17311272.htm

http://www.portal.euromonitor.com/

40

References

Passport. (2015, August 25). Toy and Games in Japan. Retrieved January 26, 2016, from http://www.portal.euromonitor.com/

Passport. (2015, July 10). Toy and Games in China. Retrieved January 26, 2016, from http://www.portal.euromonitor.com/

Passport. (2015, September 14). Toy and Games in the United Kingdom. Retrieved January 26, 2016, fromhttp://www.portal.euromonitor.com/

Passport. (2015, July 29). Toy and Games in France. Retrieved January 26, 2016, from http://www.portal.euromonitor.com/Playmates Toys Limited. (31 October 2013). Positive Profit Alert. Retrieved February 2, 2016,from http://www.hkexnews.hk/listedco/listconews/sehk/2013/1031/LTN20131031391.pdf

PR Newswire. (10 November, 2015). Global and China Animation Industry Report, 2015. Retrieved February 7, 2016, fromhttp://www.prnewswire.com/news-releases/global-and-china-animation-industry-report-2015-300176390.htmlPR Newswire. (12 August 2015). Alpha Acquires U17.com in Biggest Acquisition deal in Chinese Animation History.Retrieved February 6, 2016, from http://www.prnewswire.com/news-releases/alpha-acquires-u17com-in-biggest-acquisition-deal-in-chinese-animation-history-521549881.html

Research and Markets. (November 2015). Global Animation Industry and Chinese Report, 2015. RetrievedFebruary 7, 2016 from http://www.researchandmarkets.com/reports/3455821/global-animation-industry-and- chinese-report-2015

Reuters. (3 February 2011). JAKKS Pacific Announces Appointment of the Giochi PreziosiGroup as Major European Partner for MONSUNO Toy Line. Retrieved February 8, 2016, from http://uk.reuters.com/article/idUS163398+03-Feb-2011+BW20110203

Securities and Exchange Commission. (31 December 2014). Form 10-K. Retrieved February 9, 2016, fromhttp://www.sec.gov/Archives/edgar/data/1009829/000115752315000949/a51055556.htmSigalos, MacKenzie. (15 January, 2015). Toy Story: What Toy Sales Tell Us About China’s Future. RetrievedFebruary 1, 2016 from http://money.cnn.com/2015/01/21/news/economy/toys-china-consumers/

Sinclair, Christopher. (2015). Mattel 2014 Annual Report. Retrieved February 8, 2016, fromhttp://files.shareholder.com/downloads/MAT/0x0x820303/68C602DD-88F3-47F8-ABB5-46635E8495D8/Mattel_-_Bookmarked_2014_Annual_Report_Final_.PDFTansel, Utku. (22 July, 2015). Toy Licensing: Which Markets to Target? Retrieved February 1,2016, from http://www.globaltoynews.com/2015/07/toy-licensing-which-markets-to-target.html





http://www.hkexnews.hk/listedco/listconews/sehk/2013/1031/LTN20131031391.pdf

http://www.hkexnews.hk/listedco/listconews/sehk/2013/1031/LTN20131031391.pdf

http://www.prnewswire.com/news-releases/global-and-china-animation-industry-report-2015-300176390.html

http://www.researchandmarkets.com/reports/3455821/global-animation-industry-and-

http://uk.reuters.com/article/idUS163398+03-Feb-2011+BW20110203

http://money.cnn.com/2015/01/21/news/economy/toys-china-consumers/

http://money.cnn.com/2015/01/21/news/economy/toys-china-consumers/

http://files.shareholder.com/downloads/MAT/0x0x820303/68C602DD-88F3-47F8-ABB5-46635E8495D8/Mattel_-_Bookmarked_2014_Annual_Report_Final_.PDF

http://files.shareholder.com/downloads/MAT/0x0x820303/68C602DD-88F3-47F8-ABB5-46635E8495D8/Mattel_-_Bookmarked_2014_Annual_Report_Final_.PDF

41

References

Townsend, Matt. (27 February 2014). At Hasbro, Girls Become a Big Market. RetrievedFebruary 2, 2016, fromhttp://www.bloomberg.com/bw/articles/2014-02-27/at-hasbro-girls-toys-become-a-big-market

Toy Industry Association. (2015). Preserving the Environment. Retrieved January 26, 2016, fromhttp://www.toyassociation.org

Trangbæk, Roar Rude. (25 February 2015). Global Growth Ensures Strong 2014 Result for theLEGO Group. Retrieved February 1, 2016, from http://www.lego.com/en-us/aboutus/news-room/2015/february/lego-group-2014-annual-results

Trangbæk, Roar Rude. (4 September 2014). Global LEGO Sales Up 15 Percent in First Half of2014. Retrieved February 1, 2016, from http://www.lego.com/en-us/aboutus/news-room/2014/september/interim-result-2014

UBM Advanstar. (22 January 2015). US Licensed Toy Products Increase 7%. Retrieved February 1, 2016, fromhttp://www.licensemag.com/license-global/us-licensed-toy-sales-

United States Securities and Exchange Commission's. (31 December 2014). Jakks Pacific Inc Form 10-k.Retrieved February 1, 2016, from http://www.sec.gov/Archives/edgar/data/1009829/000115752315000949/a51055556.htm

United States Securities and Exchange Commission's. (31 December 2014). Hasbro Inc Form 10-k. RetrievedFebruary 1, 2016, from http://www.sec.gov/Archives/edgar/data/46080/000119312515064946/d873185d10k.htm

United States Securities and Exchange Commission's. (31 December 2014). Mattel Inc Form 10-k. RetrievedFebruary 1, 2016, from http://www.sec.gov/Archives/edgar/data/63276/000119312515062193/d813832d10k.htm

Vakharia, Sneha. (17 October 2015). After 59 Years, Mattel Gets It Right: The New Barbie Ad IsAwesome. Retrieved February 7, 2016, from http://www.catchnews.com/culture-news/after-59-years-mattel-gets-it-right-the-new-barbie-ad-is-awesome-1445076134.html

WARC. (2011). American Industry Overview: Games and Toys. Retrieved January 19, 2016, from http://www.warc.com/

Wieners, Brad. (22 February 2013). For Lego, Pink Is the New Black. Retrieved February 7,2016, fromhttp://www.bloomberg.com/bw/articles/2013-02-22/for-lego-pink-is-the-new-black

Worldometers. (13 February 2016). Current World Population. Retrieved February 9, 2016, fromhttp://www.worldometers.info/world-population/

http://www.bloomberg.com/bw/articles/2014-02-27/at-hasbro-girls-toys-become-a-big-market

http://www.toyassociation.org/

http://www.lego.com/en-us/aboutus/news-room/2015/february/lego-group-2014-annual-results

http://www.lego.com/en-us/aboutus/news-room/2014/september/interim-result-2014

http://www.licensemag.com/license-global/us-licensed-toy-sales-

http://www.sec.gov/Archives/edgar/data/63276/000119312515062193/d813832d10k.htm

http://www.catchnews.com/culture-news/after-59-years-mattel-gets-it-right-the-new-barbie-ad-is-awesome-1445076134.html

http://www.catchnews.com/culture-news/after-59-years-mattel-gets-it-right-the-new-barbie-ad-is-awesome-1445076134.html

http://www.warc.com/

http://www.bloomberg.com/bw/articles/2013-02-22/for-lego-pink-is-the-new-black

http://www.worldometers.info/world-population/

project 1 toy industry analysis

Documents