Case Study of a Concept Brand: Driving Results in the Real and Virtual Worlds

Which came first, the book or the doll? For Pleasant Rowland, the former elementary school teacher who created the American Girl brand, the story always came first. Every American Girl doll has her own story closely linked with America’s story and every story is told in a book before the doll hits the retail shelf or catalog page.

American Girl President Ellen Brothers told LSB Brandworks University 2008 that American Girl’s first feature film, “Kit Kittredge,” starring Abigail Breslin, who was nominated for an Oscar for her lead role in “Little Miss Sunshine,” represents a verification of everything the brand has stood for over more than two decades. “American Girl has become an entertainment brand,” she said.

“We are a value-based, vision driven company,” Brothers said. “It’s how we go about our business model. It’s what makes us different. It’s why we have virtually no competitors.”

Brothers told her audience that “American Girl was of the first to recognize the tweens market (age 7-12) with high quality and we have remained true to our original mission to celebrate girls. We know more about girls than any company in the world. Parents trust us to do right by their daughters.”

The brand originated because Rowland was unable to find suitable dolls to buy for her nieces, so she created her own concept. Each doll is based on a period of American history and has a compelling story associated with that time. She comes with a complete array of clothing and accessories.

Today, American Girl has sales of $450 million and is a division of Mattel. But it wasn’t always that way. Rowland was rejected by every retailer she approached to stock her new concept doll. It turned out to be a blessing in disguise because Rowland determined to market her brand via catalog.

“Catalog turned out to be the perfect way to tell a complex story about American history,” Brothers said. “We could have as many words as we wanted. We could talk to mom; we could talk to the girl. It turned out to be one of the first steps in forging emotional connections.”

The brand lives by four principles, Brothers explained, all aimed at building and maintaining that emotional connection.

“First, our success is based on our ability to stay true to our core audience. We define ourselves as being in the girl business. Our competitors don’t have the discipline or the cash flow to stick with it and compete. We exist in the mother-daughter intersection. We’re cool enough for girls and quality enough for mom to pay $90 for a doll. We speak with the voice of a favorite aunt, trustworthy and understanding, but not mom.”

Second, is the principle of story over stuff. The book comes first. The books are displayed in the windows of every retail location – the most valuable real estate in retailing – even though they are the lowest revenue generator in the store. “It’s because we’re about intellectual property.” Brothers said. “We think of it as chocolate cake with vitamins. We work hard at getting the balance right, not too much chocolate, not too many vitamins.”

Third, “American Girl provides meaningful experiences for moms and girls. We are much more than a collection of toys. You can go into one of our stores and spend hundreds of dollars and walk out with nothing. The typical visit is two hours, not 20 minutes.” Visitors drive hundreds of miles to experience in-store events and historical vignettes. They eat at a restaurant where dolls are welcome. They celebrate birthdays – their own and their dolls’. Most importantly, “Girls and moms spend quality time and create lasting memories.”

Fourth, the company maintains ironclad proprietary control over every aspect of the brand. “We control the channel,” Brothers said. “You can’t buy them elsewhere. We want to control the high level of quality and service. We don’t third-party anything.”

Even the movies have been controlled to the last detail of script, casting and historical accuracy by the American Girl team, Brothers said.

Today, American Girl is one of the top 25 catalogers and one of the top 10 juvenile publishers in the U.S. The brand has also opened three flagship retail experiences – they can hardly be called stores – in New York, Chicago and Los Angeles and is in the process of opening several smaller boutiques. There have been three made-for-TV movies and now a feature film.

Not surprisingly, the retailers who rejected American Girl 25 years ago have come begging, Brothers said, but they all get the same answer, a firm “no thanks.”

Brothers joined American Girl in 1995 and was named president of the company in 2000. Brothers was selected as one of Target Marketing magazine’s “200 Most Influential Direct Marketers” for three years in a row.