McDonald's deal feeds on popularity of Bratz dolls.

Many doll manufacturers have tried and failed to boot Barbie off her pedestal since she first made the scene 43 years ago.

She may still be holding her own, but not with the same crowd she's used to hanging out with.

Cultural shifts in tastes and rude have narrowed the marketing age range for the 1950's icon to between three and six, as "tweenies" (girls typically between 7 and 13) find more appeal in dolls, toys and accessories with it sassier edge.

And no toy company understands this phenomenon--industry experts call it "age compression"--better than West Hills-based MGA Entertainment, creator and licensor of the Bratz, a lineup of dolls with poofy hair and penchants for bell bottom jeans, floppy hats, glittery miniskirts and chunky platform shoes.

And as of May 2, the toy line will get huge exposure as McDonald's begins fussing small versions of Bratz dolls and accessories into Happy Meals, the latest in a line of co-branding efforts for MGA that includes a deal with Colgate-Palmolive Co.

Unlike the blonde bombshell with princess poise, the Bratz, which first hit retail shelves in 2001, are an MTV-inspired crew of ethnic and urban coolsville: They wear cropped shirts and halter tops; they hang in "chill out" rooms instead of canopy beds, and in lieu of the pink convertible, they drive the Bratz Mobile, which doubles as a real-working FM radio.

"Up until Bratz dolls were first introduced in 2001, most people who tried to get into the fashion doll business basically took a Barbie figure and changed her hair and makeup, but really didn't tweak the form," said John Taylor, an analyst with Portland-based Arcadia Investment Corp., which follows toy and game trends. "What MGA has done is kind of take a piece of MTV and bolt it on to a doll, and they came up with a whole new look that was much more sassy, much more appealing to this new mindset of young girls."

In 2001 (the first full year of Bratz sales) MGA revenues nearly doubled from $110 million in 2000 to $200 million, and more than doubled again in 2002 to $500 million. Revenues for 2003 are projected to hit $1 billion.

"That kind of revenue growth is really up in the ethersphere of the toy industry," said Taylor.

MGA founder and Chief Executive Isaac Larian, isn't exactly kicking himself: he predicted Barbie was falling out of fashion years ago with certain age groups, even if retailers back then begged to differ.

"U.S. retailers told me Bratz wouldn't be that popular," said Larian. "They said 'in 43 years no one has been able to beat Barbie."

Mail-order beginnings

Larian launched the company as a mail-order girl business in 1979. The focus shifted into the consumer electronics field briefly, but then turned toward family entertainment products after securing rights to become the first U.S. licensor for Nintendo handheld LCD games in 1987

MGA's first doll, Singing Bouncing Baby, was introduced in 1997. The company sold one million of the dolls that first year and earned the Toy Industry Association's Family Fun Toy of the year award.

"We have really been growing steadily since we made the switch in our focus from electronics to family entertainment products," said Larian.

But clearly, Bratz rule: the six girl dolls, a new line of Bratz Boyz dolls, and Bratz accessories can be found on the shelves of every major toy retailer across the country. The dolls sell for about $14.99 in most locations, and prices vary for the accessory and toy line.

The Bratz shoe and apparel line is expected out by summer. Larian recently signed agreements with Colgate to license a new Bratz toothbrush and toothpaste line. Bratz, the cartoon will air on cable this fall and MGA is currently in negotiation with an undisclosed studio to produce the first Bratz movie, due out next spring.

MGA also manufactures and distributes a line of hand-held games, musical instruments and other toys, and is a licensor for Spiderman, Hello Kitty and Power Rangers toys and accessories. And the company recently gained licensing rights for the upcoming move "The Hulk."

By no means are the experts predicting the demise of Barbie. Nonetheless, the unprecedented success, of the Bratz dolls has forced Barbie's maker. El Segundo-based Mattel Inc., to rethink her image: the company recently introduced My Scene Barbie and Friends, featuring a much funkier Barbie and a collection of hip-hop inspired outfits and accessories. She also retails for $14.99.

Still, the competition remains stiff: Bratz won the toy association's People's Choice Toy of the Year Award for 2(101, and, in 2002, the Bratz Salon 'N' Spa play set took the association's Family Fun toy of the Year award.

The proliferation of what Larian refers to as Matell's "Bratz knock-offs," is a concern, but for now he says the sure-fire way to retain their place in the market is to keep it real, and keep it fresh.

"Our biggest challenge right now is to keep up with what is new and what is interesting to the age group we are targeting," said Larian. "We could go to court, but that's not our plan. Besides, we know young consumers are smart. They are loyal to originality. They remember the firsts."