Page 13 - Ty Warner Case Study

McDonalds & TY

In 1991, Ty launched a product line called "Annual Collectible Bears." These
sold well and established Ty as a successful plush manufacturer. That year Ty
also began his international expansion into England, Canada and Europe.

By 1992, Ty's retailer catalog featured several dozen animals but Ty was
focusing on a new product line. He envisioned a small inexpensive plush that

would appeal to children who could buy them with their pocket money and
carry them around in their pockets or book-bags.

This vision lead to the introduction of the original 9 Beanie Babies in 1993. The
Beanie Babies began appearing in stores in early 1994. Initial sales were slow,
but when Ty announced the first Beanie Baby retirements, a collecting frenzy

ensued that lasted almost a decade. Beanie Babies are undoubtedly the most
publicized and widespread toy fad in American history.

In 1997, Ty partnered with McDonalds to participate in a Happy Meal
promotion. The promotion was a tremendous success. Enthusiastic collectors
mobbed McDonalds restaurants to acquire the 12 new Ty Teenie Beanie Babies.
McDonalds had ordered 100 million of them and they sold out quickly.

These McDonald's Teenies go back to 1993 when 12 Ty Teenie Beanies were
made as part of a promotion with the McDonald's Burger Chain.

McDonalds had subsequent USA promotions featuring
Teenie Beanie Babies in