Funko Inc. 2020

Abstract

With their motto, “everyone is a fan of something”, Funko has changed the toy manufactured collectibles category with its introduction of their Pop! Vinyl figure line in 2010. This attracted a broader audience to the world of collecting. From a small company producing nostalgia-based bobble-heads in 1998, Funko is now a public company, and the go-to designer and manufacturer for licensed pop culture merchandise. In 2019 they had 795 million USD in sales, 804 active licenses, more than 3000 SKUs, entered multiple product categories, and was available in more than 25,000 locations worldwide. However, after years of growing 22-38%, they hit an unexpected halt when they were down 8% in the fourth quarter of 2019 and felt the full effect of the pandemic during the last weeks of the first quarter of 2020. This case explores (1) how the Pop! phenomenon became viral through customer engagement, (2) the biggest factor in Funko’s success, (3) how Funko implemented this marketing strategy, (4) the causes of the slowdown in sales, and (5) how the CEO, Brian Mariotti plans to move forward. This case also brings some insight into the world of collecting, nostalgia, pop culture, and the unique market that Funko has created which makes it difficult to compare with any other toy or manufactured collectible company. Funko is a fun and great case study, as its large number of licenses and products will definitely resonate with most students and teachers.

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