« Business Wars

Encore: Hasbro vs Mattel | Resurrection Joe | 4

2020-12-30

It’s the early 1980s and things are not looking good for Hasbro. The company hasn’t had a hit since Hungry Hungry Hippos; its founding CEO Merrill Hassenfeld has just died; now Star Wars dolls have just about gobbled up the entire action figure market. Hasbro needs to deliver a toy capable of taking on the Star Wars dolls, or else the company risks losing its only source of stable income, the family pencil factory.

But Hasbro’s not the only toymaker plotting to take on Star Wars. Three thousand miles away in Los Angeles, Mattel’s also preparing an assault on the action figure market. A line of fantastical action figures called The Masters of the Universe.

This episode originally aired on April 1, 2019.

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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Quandary it's early nineteen, eighty one and inside Hasbro offices in Pataque. It Rhode Island. Two men are waiting nervously in the corridor outside the company's auditorium inside Yo Stephen hashing felled is revealing new product ideas, and these two executives are due to pitch their latest concept any moment now, or of the two looks up at his tall broad shouldered colleague, Is this a good idea? I mean this isn't just any old toy. It's got emotional baggage. Larger man shrugs, as he puts on a green army jacket. Then, I hear the sound of Henry Film patriotic anthem, Americans we coming inside the auditorium. Well, it's too late! Now, that's my cue. Don't forget this. the large man takes a steel pot helmet from his colleague and pulls it down over his head. So at all
like muscle in these long lost brother. screw you and with that the man of the helmet an army march, into the auditorium. He stopped The lectern stands to attention the lights or dimmed, but he can do about make out Hassen felt map of curly, hair and big glasses. He saluted ceo and starts the pitch coming, the enemy has surrounded but we shall never surrender we shall fight but We are to win this war commander we're going to a hero, our real american hero, we're going to need? he who theatricals over he hands the presentation to his fellow Hasbro executives, who explained why company should resurrect Gee. I Joe.
Jos been missing in action, since seventy eight following is ill fated phase is a superhero. Since then the toymakers Kanner has captured all the action figure market with its star wars, dolls, but the has Brodie reckons it's time to strike back Ronald Reagan, just entered the White House and patriotism back in vogue. Also, there be a new star wars movie and nineteen. Eighty two now their chance to make inroads before star wars, fever returns the team This is for their see. Yo reaction has been felled, doesn't pull punches in these meetings, and today is no exception, are not approved, you have no hook star wars has a hook. It's got a movie giving you a two out of ten ouch in synthetic world. Anything below aid is unacceptable. One of the executives leaps to his feet,
You keep saying role the business growled the business, but then you Jack, every idea. We have you keep this up. I'm quitting has fell leaned back in his chair, he's torn gee. I jus hold a special place in his heart. His father help in do the groundbreaking toy, but He doesn't want to let sentimentality cloudy decision. Fine, you, two weeks to craft a pitch worth my time. The team is surprised. By their stay of execution, but now I really on the only guy two weeks to say gee I do on the internet. You can be anyone. Some people use them to become who they wish they were, but what happens when their little lies harm? Other people
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make believe with its accounts, while has broken, go to survive the seventies now, it's the early, eighties and Mattel's back on track. It shaken off its books. Cooking. Cattle and plugged into the new video game. Craze its home video games cancelled the in television is deliver. Hundreds of millions of dollars and sales every year has road. Stephen has failed, can only watch with envy. Hasbro can afford get and video games so he's hunting, a toy that can revive is companies fortunes. This is episode for resurrection. Joe. the Hasbro Boys team is back in front a passion filled after two weeks scrambled to redo their botched Viejo pitch. They know today's they're fine chance to revive the company's iconic soldier doll. Hasn't settled in his chair and see.
Those for them to start the team. In the light. But today there are no theatrical just advertising cheap job or call sly projector. You're right, we don't have a movie, we something better. He clicks to the first slide. A market of a Georgi Comic We ve got a marvel comic. It will tell The story of July, Joe and elite peacekeeping force that defends the world from the terrorist group. Cobra we're going Give marble the entire gee I Joe add budget, so they can promote the comic using animated TV at the comic, Those commercials will reach way more kids in star wars, because kids can only see star wars when it's in theatres. That's our hook the team waste perhaps entails response, but he says nothing, so they turn out the lights.
Having felt at the back of the room are those tears. welling up in his eyes. Finally, he speaks I wish my father was alive. To see this I'm going to the cemetery. To tell him gee I Jos, back and with that has impelled leaves the room but has rose, not the only toy maker plotting to take on star wars. Three thousand miles away in LOS Angeles Matter I was also preparing an assault on the action figure market for Mattel aging star wars, isn't just about money. It's about pride to. in nineteen? Seventy seven, the company turned down the rights to star wars. Half a in dollars to make toys for a no name movie from a little known director like a really dumb idea. Back then
Companies been ruling that decision ever set, but now Mattel thinks It has a star wars killer, a line of phantom local action figures called them. Sisters of the universe, but matter wants to be sure about its new idea before starting production and that's why it's invited toys are us to its Ella headquarters for a preview. As the toys US buyer watches, Mattel vice President Mark This introduces the figures lined up on the meeting rooms table. Each one is locked in a ready to fight pose he grabs improbably muscular barbarian with blonde hair, hey man he's the hero in the most powerful man in the universe, next Alice Ground, the Blueskins beef cake with a skull face, Andrews Hood and there Is he man's arch enemy? The evil skeleton. Now let me show you what makes him really special after placing
two figures knows too knows on the table. He pulls He man's right arm, causing the figures torso swivel round, then Ellison. let's go and how he man snaps into place in his clenched fist, slams into skeletal singing the evil one flying. That's the point patch scheduled, though not for this next Ellis and the buyer, a pocket sized comic book two weeks, this comic didn't exist, but after their first tour Buyer complained. There was nothing to explain the characters Mattel quickly created. This illustrated guide. We figure will come of what these comics, which will tell the masters of the universe story. The buyer looks puzzled. thought. You said these words for five year olds: well, five year olds, don't read what use is a comic alice. Fields a surge of panic. Toys are us care, reject masters of the universe, the two big of a chain, so he improvising
I forgot to mention the animated tv show. The man for Toys are us, leaves happy, but now my I've got a tv show to make it teams. The cartoons studio, The animated series won't be ready for almost two years until then demands going to have to battle gee, I Joe without tv, backup. in early nineteen, eighty two Hasbro admit rival action figures, arrive in stores and Of the new lines, so fast Mattel's so bound figures gross almost forty million dollars that year double what the company expected. But there are no match for Hasbro July Joe, what the hell but the tie and Marvel Comic it ranks in fifty million dollars, but then in sick timber nineteen. Eighty three Mattel's, he mankind, soon hits the air
and dies have the power boosted. I see a tv show mass. Of the universe. Sales rocket pass. The hundred million dollars a year mark Hasbro quickly, follow, suit and launches a tv show to promote its latest bed for toys, supremacy but even those that Toy Giants Duke it out for kids, eyeballs Mattel hitting the skids, and that's because tells video game? Dream has become a nightmare the early eighties. U S! Video game boom has just gone bust. A bust by massive discounting by over exuberant retailers, who ordered way more video games than consumers want it now home. video game sales are in freefall, plunging from
three billion dollars a year business to a puny. Hundred million dollar business, the crew ash pushes almost every company involved in video games to the edge of ruin and is one of them. His players and video games tell is among those hit hardest. in nineteen. Eighty three, the company's videogame operations deliver more than four hundred million dollars in losses. It's a lost big enough to push Mattel to the verge of bankruptcy, but it's far from the only toy maker to get burned by the video game crash its April nineteen. Eighty four in Springfield Massachusetts. The Milton Bradley Company is in trouble, but companies, been around for close to one hundred and twenty five years, making top board games like life, candy land and battleship, but then last year it launched its first Home Video Game Council, it sank,
the resulting losses of left Milton Bradley Vulnerable Predator conglomerates are circling, sucking up its stock and preparing Hoss takeover bids in his would paneled office and Bradley Chairman James Shea and his marketing chief debating how to fend off the corporate vultures. We ve got to protect the company not bear the idea of us ending up part of some faceless conglomerate like that that british one Hansen gas there Bricks run clothes stores and who knows what else? probably don't even now. I think we need start buying back our stock, but that make us more vulnerable, it would drain our cash reserves yoke If I take this short shea hits the Speaker phone book.
James Shea Senior dreams, it Stephen House and fell from Hasbro. we'll keep you I just wanted to. Let you know what with everything That's going on for you that that, if you need it, night. Well, I'm here now Well, thank you Stephen. I let you know shake cuts. The call in pools of fate can you believe that state Hash and fell wanting to be our white knight. Do you think he is Hasbro was over a couple years back, but Milton Thirdly, situation only gets worse. after realizing. He can't save the company from a takeover shit swell his pride and calls Hassen fell, and bells delighted and relieved he hoped is white offer would pay off, but until this moment he no way of knowing. If the plan would work Hasbro by
Milton Bradley it's a d: but instantly allows has brought a leap, Frog Mattel and become the world's biggest toy company, but hasn't It's not the only one making deals in July. Nineteen eighty four Mattel secures a lifesaving deal. A too million dollar cash in fusion from attack of Wall Street financiers, bankruptcy, averted, Mattel goes back to basics it offline. judge, troubled video game division in a fire, sale and refocuses on toys and the Good NEWS His Mattel's toys are thriving, Masters of the universe. Figures are selling like crazy and barbies bigger than ever before, these back in the limelight thanks to an overhaul of her business model. Instead of concentrating on selling closed for the doll tell us now encouraging girls to by multiple dolls, by releasing themed barbies with exclusive outfits.
Now there are multiple types of barbies from shoulder: padded this woman Barbie to fashion genes Barbie with her pink MO hair sweater in Blue Denham Barbie, ads are also tuning into the rising status of women in the workplace and so dizzy little bud rose, got greedy eyes on barbies bumper profits. It secretly working on a doll for the MTV age. She's called jam, she's got bushy pink hair and France, a rock band called the the gems even got a bunch of rock rivals, called the misfits we're going. Give Hasbro Doll the perfect storyline for a tv, Khartoum, Hasbro reckons gems, going to blind side Mattel when she day abuse Toy fair in February nineteen, eighty six. But what, company doesn't know, is
Mattel is already on to its secret plan b, We d hustle of family life goes at such a pace that every now and then like when my daughter brings home something she's made at school. I'm remind slow down and take the time to think about what really matters in life. Why we do what we who, every day what life like for her and her brother, when they're all grown up this time marches on you don't make sense why people get life insurance, especially term coverage, which is surprisingly affordable. Why not pay a bit each month to protect the ones you love if you're, asking yourself this question may be thinking choosing ladder ladder makes it impressively fast and easy to get covered. You just. A few minutes and a phone or laptop to apply ladders Algorithms work in real time, so you'll find out instantly. If your approved there are no here, fees and you can cancel at any time and since
I've insurance costs more as you age, now's the time to cross it off your list. So in your best rate today and get your family covered with ladder good, a ladder, life dot com, slash, be W, that's l, a deed ye are life dot com, slash, be w ladder, life dot, com, Slash be W. Blood ties is the hit. Fiction, podcast the tells the story of the ritual and family and the fate of the family company that made them well beyond their wildest dreams. When MIKE, And Eleanor Ritual and find out that their parents had been killed, a devastating plane crash, they learned some horrible secrets about their fathers business as siblings. They must decide between honouring the legacy, their father, built or risking at all. For the truth, upon casts name blood ties, one of its favourite shows of twenty,
And now it has been nominated for best fiction. Podcast, the Wall Street Journal said it's the kind of character, driven story that fits right in with the true crime. Many series, typical of wandering blood ties, has all the trimmings of a premium television drama wrapped up in a powerful podcast. You can listen to all of it without ads by subscribe, into wandering plus in the wandering. Blood ties is also available wherever you're listening right now wondering feel the story. Its October nineteen. Eighty five, Barbie Marketing director GEO Barsad is holding a strategy meeting with her team Murat is arising Start Mattel, an executive within I for trends, moving star looks and a will. Power, that's making her assent up the ranks unstoppable. Suddenly her pager starts buzzing.
Maria glances, at the message it sprung her boss, Barbie Chief Judy shackled The message reads: drop everything urgent meeting in my office. I have to go broad puts on her bubblegum pink, shall suit jacket and heads to Shackelford Corner Office when she arrives the rest Barbie's. Top team is already there Shackelford brings ever. going up to speed additive up. Ass rose, going to launch a fashion doll called jam at toy fear. It's going to be around STAR Doll, Maraud breaks into broad smile. We gotta. star Barbie in the works weaken fast track. It get it ready to show a toy fair, that's what I'm thinking but but more than that. I want rock star Barbie in stores before jam. Let's make it like Hasbro copying us plan in place Mattel moves like lightning normally takes eighteen months for a time
way to go from prototype to store shelf, but bird on by the threat from Hasbro Mattel delivers pop star barbie to market in just five months. In March nineteen. Eighty six, he'd singer, Barbie and her banned the rockers arrive in stores, complete with big hair instruments and microphones and here tv advertising two months later jam follows with her own barrage of tv ads It's too too late, though Mattel's They strike derails gems bid for started by the end of the year, gems, already headed for the way Are they now file? Not that has run
chief Stephen hasnt belts, giving up on fighting barbie and Nineteen, eighty eight, he hits on a new attack strategy a few years earlier. Hasbro bought the rights to a British Dolokhov Cindy. She might lack barbies California glamour since her debut in nineteen, sixty eight Cindy It's been a serious challenge to Barbie in the UK and now. hush, impelled wants to user to defeat BAR in all markets outside North America, but First she needs, a bit of plastic surgery Hasbro orders and make over there if Cynthia more angular face suntan, a nose, job, all pink packaging, more fashionable clothes, and even a smile The time has brows designers are done Cindy looks a lot more like Mattel's material girl, and
That's got Mattel Snowy Haired, CEO John Amman, worried he's. He's growing barbie sales outside the. U S is critical to Mattel's future now the transformation of Cindy is poised to torpedo that plan. So when Toy Fair comes around in February nineteen. Eighty nine Amman invites and fell to his Manhattan, hotel, sweet, for a one to one as well. and felt enters the sweet, the two rivals I each other wearily soon fell, looks thinner than airmen remembers. But it's not like the two crossed paths often stay thanks for coming, please take a c nice sweet, So what's this all about, I want I'll talk to you about sending Hassen fell, folds his arms. What about heard, no luck but pink packaging, its indistinguishable from Barbie I
wants you to go ahead with her ass. He is Cindy's an original she's, no bar. A clone admiral was afraid. Hasn t would react like this Stephen I'm trying to settle this amicably law, the Cindy is going ahead. No one tells me what to do least of all you. think this meeting is over making a mistake. Stephen has thou glances at Amazon, and then watch out. Fine thanks, Averment no more, MR nice guy. He calls Mattel's lawyers and ordered them to strangle Cindy with red tape. Bury her in lawsuits. That's bring. as Hasbro Start shipping. The new Cindy across Europe, Mattel turning these strike in country. Your country, Mattel files, accusations of copyright, infringement counterfeiting and unfair competition in some countries, it even persuade
customs officials to impound Cindy shipments, but as the lawsuits pile up, has brows attentions or elsewhere. it may? Nineteen, eighty nine and Hassen Feldman rushed to a New York City Hospital. He might be the acclaimed ass of a fortune, five hundred company, but he's bent his life, fearing that his career would be destroyed. Sexuality ever became public fears, It only deepened after he was I note with HIV with effective HIV Treatments still years away, the diagnosis feels like a death sentence and despite his boyfriends, please Stephen Hassen filled refuses to tell his family for Alan Stew, younger brother and Hasbro international boss. The truth only becomes clear. He sees the precaution sign outside the hospital room.
Yet even now on his death bed, has been filled, won't open up. Instead, He wants to hear how talks to get the right to produce cabbage patch dolls are going out and leaves the hospital hoping that tomorrow, he and his brother will talk, but that tomorrow never comes. that night hasn't filled slips into a coma. A month later, the man who took I wrote to the very top of the toy industry dies on the next episode. Alan some felled steps uneasily into his brother shoes, war breaks out over scrabble and a resurgence. Mattel makes a marriage proposal from wondering this is episode for of Hasbro versus Mattel, for business wars.
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Transcript generated on 2020-12-30.