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Sep 15
2008

Louis Marx & Co - An Overview

Posted by Joschik in TrainsOtherFigures and Toy SoldiersCarsAction Figures

Joschik

Marx LogoLouis Marx was an experienced businessman with the mind of child; his ability to see into the minds of children around the world guided his toy creations and advertising efforts. Marx Toys became the "largest toy manufacturer in the world" and is now by far one of the most recognized, respected and popular names among today's antique toy collectors.

The founder of the company, Louis Marx, was born in Brooklyn, NY, in 1896. At the age of sixteen, Marx began working for F. J. Strauss Company, a toy manufacturer that produced items for Abraham & Strauss Department Stores. His energy and enthusiasm helped him to become a manager by the time he was twenty.


Company start

In 1919, Marx had a falling out with Strauss. Deciding that it was time to venture out on his own, he established Louis Marx & Co., and set up office at 200 Fifth Avenue, in New York City. Marx started his company with virtually nothing. He had no money, machinery, products, patents, or customers, but what he lacked in resources, he more than made up for in seemingly endless energy and determination. He wasted no time and started contracting with manufacturers to produce toys that he designed.

marx_merrymakers

Originally produced in 1931 and selling for 91 cents, the Merry Makers is a Four Mouse Band surrounding an upright piano. One mouse rocks back and forth while playing the piano, the other beats a drum, and a third dances beside the piano.

His brother David decided to join him a couple of years later. Louis had the business, designing, and marketing skills, and David was the man behind the operations. The two of them together would grow to be the world's largest toy manufacturer. A significant factor, which contributed to this success came from two policies set in place from the beginning, "Give the customer more toy for less money" and "Quality is not negotiable". By 1921, they were able to start independently producing toys from their own designs.


Marketing

Louis Marx was not only a genius at designing toys, but also at marketing them. By offering quality at the lowest price possible, Marx became very popular with toy buyers, and he had virtually no need for salesman or advertising. This popularity caused rapid growth, and by the 1930's, despite the Great Depression, he built three new plants.

marx_1930_catalogue

The 1930 Trade Catalogue

The first and largest was in Erie, Pennsylvania, the second, which produced toy trains, was in Girard, Pennsylvania, and the third, which produced toy cars, was in Glendale, West Virginia. Marx also started to produce and distribute toys in England from 1937.  Marx continued to enjoy steady growth until the start of World War II, when the factories converted for the war effort.

amos_n_andy_toy_taxi_cab_patent_illustration_400

marx_amos_andy

Here a patent drawing of the Amos 'N' Andy Fresh Air Taxi as well as the real thing

After the war, Marx came back as the world's largest manufacturer of toys, producing mechanical toys, model trains, toy guns, cars, ride-ons, play sets, and doll houses.

The Toy King

The company grew even stronger into the "Golden Era" of the 1950's. By 1955, Marx produced over 20% of all the toys sold in the U.S., and had factories in ten different countries, including Japan, with divisions such as Linemar. Marx pioneered the use of Hong Kong factories and also distributed toys produced by manufacturers in Germany, including those from Distler. This may have been pushed upon by toy makers of war damaged countries needing a strong re-start and presence in the US. With sales totaling more than $30 million, and over 5,000 different products they were easily the largest toy manufacturer in the world.

louis_marx_on_tim_magazine

Marx's success story even made the cover of the December 12, 1955 issue of Time Magazine, where Louis Marx was named ‘The Toy King'. It was there he boasted about his annual advertising budget of $312.00, something he took pride in.

Marx's marketing strategies included mass production and mass marketing through chain stores, reproducing new toys from basic components and repackaging existing products using television or movie tie-ins. Up until 1959, Marx had resisted the use of a newfangled invention called television to promote his products.  After reconsidering, he decided to go after the TV market in a big way.  His plan was to reach 27 million kids with a massive television ad campaign of toy commercials over a three-month period, strategically placed during the summer holidays.  Exposure to this blitz was estimated to exceed one billion (see some of the ads in the Video Section).  This exposure prompted Marx to create a company mascot, known to many as Magic Marxie. This campaign helped to make Marx even more of a household name. Marx was also good to acquire licenses to produce popular toys such as Disney and The Man from U.N.C.L.E.

marx_iron_man_400

Here a Marvel Iron Man. Others like Hulk, Spider-Man, Captain America, and Thor were also produced with a small number being painted

Marx was also good at getting companies to use its products for advertising

marx_hess_van_from_67

In 1964 Marx produced the first Hess Truck as a B Mack tanker truck

The Post Louis Marx Period

In 1976 Louis Marx sold his company to Quaker Oats for $52 million. Just three years later, Quaker turned around and sold the company to the UK's Dunbee-Combex, who managed to keep the business afloat until they filed for bankruptcy in 1980.

marx_pamphlet_page_2_400

A later catalogue

American Plastic Equipment of Florida resurrected the Marx name by acquiring the company's assets in 1982, and intellectual rights in 1988. By that time, the value of Marx toys and play sets had skyrocketed in the collector markets, which in turn triggered a demand for the toys to be reissued. In 1995, a new entity, Marx Toy Corporation, was formed in Sebring, Ohio. The legacy continues as the new company has begun manufacturing from molds built by Marx as well as other prominent toy companies of the past, hoping to revive some of the earlier magic of Marx. Louis Marx died in 1982 at the age of 85, however his memory long remains in what he has left us.

marx_mobile_400_01
This Marx Mobile came nicely futuristic

The UK

Louis Marx started production in the UK in 1931 making toy trains. The original factory was in Dudley. After WW2 (the Dudley factory was taken over for vital war production.) the Company moved to a new site at Swansea Industrial Estate .The Estate had been opened in 1945 by King George VI and Queen Elizabeth as part of the Governments attempt to re vitalise South Wales. Louis Marx and Co Limited took possession of their new factory at Ystrad Road, Swansea Industrial Estate, Fforestfach, West Glamorgan in September 1948.

marx_dalek

Here a typical UK product, the Dalek

In 1967, the UK Company was bought by Dunbee Cobex and continued to produce Marx toys under the name of Louis Marx and Company Limited until 1976. It was at this time that Dunbee Cobex Marx, as it was known, took over the US Company from Quaker Oates and continued to produce toys until February 1980. Huge losses in the USA forced in the receiver in the UK and the Swansea factory was finally closed on the 2nd January 1981. Several attempts were made to keep the company going in the UK but on the 11th August 1992 Louis Marx and Company Limited was finally dissolved.


Comments (1)Add Comment
The Toy King
written by Marx3railer, October 24, 2008
Louis Marx has definetly touched my life and I hope to pass on the joys of collecting to my Grandson. We actually play with alot of his famous Litho trains, and have enjoyed many fun and bonding hours watching these sturdy and reliable old trains go round and round.
Thanks Louis Marx.

Gerald
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