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New Heritage Doll Company

New Heritage Doll Company is projecting increased revenue and profits through 2013. The doll category faces challenges from age compression and competition from large producers. New Heritage was founded in 1985 and has grown to $245M in revenue and $27M in operating profits by 2009 across three divisions: production, retailing, and licensing. The production division manufactures 75% of dolls for the retailing division and 25% for other private labels, targeting girls ages 3 to 12 with baby dolls priced from $15-150 depending on quality and features.

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206 views2 pages

New Heritage Doll Company

New Heritage Doll Company is projecting increased revenue and profits through 2013. The doll category faces challenges from age compression and competition from large producers. New Heritage was founded in 1985 and has grown to $245M in revenue and $27M in operating profits by 2009 across three divisions: production, retailing, and licensing. The production division manufactures 75% of dolls for the retailing division and 25% for other private labels, targeting girls ages 3 to 12 with baby dolls priced from $15-150 depending on quality and features.

Uploaded by

P3 Powers
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NEW HERITAGE DOLL COMPANY: CAPITAL BUDGETING

Emily Harris Vice President of New Heritage Doll Companys product


division

The Toy and Game Industry


- Revenue:
o 2008 - $42M
o 2013 - projected to increase by 4.6% to $52.5B
- Segments:
a. Video games
b. Traditional toys and games
seasonal
largest selling season winter holiday period
Sales
o 2008 - $3.1B
o 2013 projected to grow by 3% per year to $3.6B
a. Infant preschool toys
b. Dolls
c. Outdoor and sports toys
d. Other toys and games arts and crafts, plush toys, action
figures, vehicles and youth electronics

The Doll Category


- Included large, soft and mini dolls, doll clothing and other accessories
- Age compression -> the tendency of younger children to acquire dolls
that had traditionally been designed for older girls reduced growth in
the baby-doll segment
- Vigorous competition
-> large producers targeted similar demographics
-> marketed their dolls through the same media

New Heritage Dolls


- Founded in 1985 by Ingrid Beckwith, a retired psychologist with child
development specialization
- 2009 -> grown to 450 employees
-> $245M revenue
-> $27M Operating Profit
- Three divisions:
a. Production
b. Retailing
- $190M revenue for 2009
- $ 4.8M of operating profit
1. Online website
2. Mail-order paper catalog
3. Network of retail stores
c. Licensing
- $24.5M revenue for 2009
- $14.5M operating profit

New Heritages Production Division


- largest division thru total assets
- Sales:
o 75% for the retailing division
o 25% private label goods manufactured for other firms
- target market: 3-12 years old
- Types of Dolls:
a. Baby dolls
1. Low-end
- $15-$30
- for younger girls in earlier stages of development
- has a birth certificate and a short personal history
2. Heirloom-quality dolls and access
- $75-$150
- appeal to older girls and to convey a sense of cultural and family
tradition among grandmothers, mothers and daughters
3. High-end dolls based on fictional celebrities
- Targeted the tween (8-12 yrs old)
- $75 - $150

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