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Video: Small Business in Action Discussion Questions
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Father of the Bratz
This video can be found on the Student DVD.

Summary: This BusinessWeek TV segment on your Student DVD features Isaac Larian, an Iranian immigrant who founded the firm, MGA Entertainment, which manufactures fashion dolls for young girls. Larian has a tenacious drive and loves a challenge. His chief competitor is Mattel and its famous Barbie doll collection.

Larian's emphasis on autonomy and creativity has led many of Mattel's designers to leave the company to go work for MGA Entertainment. This has enhanced the company's ability to develop and produce the line of dolls called the "Bratz" collection.

The Bratz doll is the first doll ever to substantially cut into Barbie's market. Largely due to the success of the Bratz dolls, MGA Entertainment went from a small company to one grossing hundreds of millions of dollars. The dolls are considered the "anti-Barbie" and feature modern fashions that the target market, younger girls, find attractive. MGA prides itself on continuously reinventing the product and pushing brand extensions such as consumer electronics for young girls.

Currently, MGA and Mattel are locked in a legal battle concerning the designers who left Mattel for MGA. Moreover, it appears that the dominant market share commanded by Mattel is now under direct fire from MGA Entertainment.

Discussion Questions
  1. Which type of market segmentation does MGA Entertainment use? Why?
  2. If MGA Entertainment were to differentiate its product line by introducing new products directed at different market segments, what characteristics would be of interest as it developed its marketing plan?
  3. What is one method Larian could use to differentiate his Bratz dolls from Mattel's Barbie dolls?







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