Page 34 - Ty Warner Case Study

Future

While the Beanie Babies fad that made Ty Warner a billionaire has faded, Ty
Inc. continues to produce the stuffed creatures and pen the whimsical quatrains
that accompany each toy. In fact, the product line has expanded in recent years,
and now includes Beanie Boo's, Monstaz and the popular Beanie Ballz.
Warner's most valuable holding, however, is the New York Four Seasons. He
turned down a $900 million offer in November 2012 for the property, which at
roughly $2.4 million per room would have been one of the richest in the city's
history. Warner also owns several other hotels, resorts and golf clubs through
Ty Warner Hotels and Resorts.

Hotel. Cannot use the same marketing strategies as with Beanie Babies, totally
different set of consumers, competition, needs and demands. Why did it take so
long to sell the hotel initially

So what of the future?

Product extension has already been undertaken:

- cartoons, films etc.

However, this will come under pressure and value may decline. Furthermore,
new ‘hot toys’ will appear, to challenge and possibly cause the downfall of
beanies.

Diversification

Diversification has already begun into hotels and resorts however, the same
strategies may not be viable.

Beanies are a cash rich company which imparts certain advantages to its future
development.

Ty

Ty Warner’s attention has moved into other areas from plush toys. He has
certain advantages as sole owner of a private company.