Marketing Plan

Latin Girl Appendix: I. COMPANY DESCRIPTION

II. BUSINESS MISION

III. MARKETING OBJECTIVE

IV. COMPETITIVE ADVANTAGE

V. SITUATIO ANALYSES

6 Forces

SWOT Analysis

VI. MARKETING STRATEGY

Target Market

Marketing Mix

Product

Place/ Distribution

Promotion

Price

VII. BRANDING

VII. IMPLEMENTATION

Marketing Research

Summary

VIII. BIBLIOGRAPHY

Group Integrands:

Juana Vargas

Andrea Osorio

Alex Evertsz

Miguel Gusman

Santiago Lopez

Sebastian Rodriguez

I. Company Description

Mattel, Inc. (NYSE: MAT), the largest

toy corporation in the world, em-

ploying over 32,000 people, designs,

manufactures, markets, and retails a

variety of toys, games, and entertain-

ment products. Through direct and

indirect sales channels, consumers

around the world enjoy Mattel’s vari-

ous brand name toys as well as

goods produced through their nu-

merous licensing contracts. With

global headquarters in El Segundo,

California, Mattel differentiates its

international products from those

marketed domestically by adapting

to the tastes and preferences of the

demographic due to geographic vari-

ation. Thus, the company remains

competitive through the strength of

its existing core product lines and

ability to innovate and change in a

dynamic market. The many brands

contained under the Mattel umbrella

create an impressive portfolio. The

company is split into three separate-

ly managed segments, Mattel Girls &

Boys Brands, Fisher‐Price Brands,

and American Girl Brands, each with

their own collection of subsidiary

brands, joint ventures, and licensing

agreements.

II. Business Mission

“Learn while we smile to grow up

laughing”

This product is means to put smiles

on the girls’ faces, to create happy

memories for each future woman.

Mattel makes its decisions based on

the purpose of improvement.

III. Marketing Objectives

The marketing objective is to estab-

lish “Latin Girl” as a recognize bran

in the market of girl toys. Aiming to

become one of the bestselling toy

brands in Colombia. In order to

achieve this objective, the costumer

must start perceiving The Latin Girl

doll and services as a unique and ex-

iting experience that no other bran

can offer.

Objective Metric:

To catch the 15% of the “Latin

Girl” potential costumers in Co-

lombia by November 31 of

2014.

To position the brand “Latin

Girl” in the main cities of Co-

lombia (Medellin, Bogota, Cali,

Barranquilla, Cartagena) as the pre-

fer doll for the girls from 4 to 9 year,

by November 31 of 2016.

IV. Competitive advantage

The “Latin Girl” brand arrives to

Colombia with a total new idea

that has never been seen before in

this country. It is the possibility

that the girls have to personalize

their own doll and actually look

like them and have the same

clothes of their dolls. In addition,

this brand came with the idea of

opening a specialty store for the

girls and their dolls where they

will have the opportunity to have a

total new, unique and exiting expe-

rience with the dolls that no other

brand can offer it here in Colom-

bia.

V. Situation Analysis

6 Forces:

Technological:

Technological developments facili-

tated our products entering the

country in a faster and more eco-

-nomical way. We currently have

ground, flying and sea lanes to dis-

tribute our products. Technology

also has helped us to present our

products in a more simple and ef-

fective way (social networking, ad-

vertising, etc.)

Environmental:

Mattel is committed to minimizing

our impact on the environment as

well as to protecting the health

and safety of our employees and

the communities in which we op-

erate. We have developed world-

wide Environmental Health &

Safety (EHS) standards intended

to support responsible manage-

ment of the environment and the

health and safety of our employ-

ees, customers and neighbors.

Mattel is also committed to imple-

menting policies and procedures

that help to ensure our operations

are conducted in compliance with

applicable laws, regulations and

standards.

Political-legal:

At Mattel, we are serious about

safety and quality and are very

concerned about how consumers

use our products.

Our product safety policies are

based on our core value of protect-

ing our consumers from unforeseen

harm. We set global standards on

health and safety exposures at or

more stringent than legal limits.

Mattel products are designed and

manufactured to meet or exceed all

applicable safety standards from

around the world. Rarely do we re-

ceive a safety report regarding a

product, since much of the work and

care is done during the design and

manufacturing stages. But when we

do receive a safety report, we have a

companywide system in place to im-

mediately respond to the situation.

Demographic:

DANE says that Colombia actually

has 16 million children approxi-

mately that are part of the Tweens

(ages from 4 to 12) , in which 10% of

the total Colombian people are girls

under 10 years old, which are our

target market. These girls nowadays

have stronger influences in the pur-

chasing decisions and also have one

the greats average of consume of the

country.

Economic:

Even the experts said that the reces-

sion that the Eurozone had been

been having the last couple of year al-

ready finished and the United States

are having a moderate growth in their

economy. The developing economies

will still leading the global growth.

Considering the above and the low and

controlled level of inflation that the

country is having these days, around

1,91% in march 2013. The experts

from the “Banco de la Republica” took

the decision to the decrease the “ Tasa

de interes” from 4% to 3,25% in order

stimulate the costumer purchase and

which will directly affect the Colombi-

an economy in a positive way. The ex-

perts forecast that the Colombian PIB

would expand around 4% by the end

of 2013. This in other words means

that the Colombian economy will be

stable and with a favourable forecast,

based in actual global situation.

SWOT Analysis:

Strengths:

Mattel’s marketing abilities and

relationship.

Established brands with strong

reputation and desirable names

for many brands.

Diverse product lines appealing to

Arrange of ages and both genders.

Well trained employee to design and

develop new toys and with the best

standards of quality for the kids.

One of the leading toy manufactur-

ing companies in the world.

The strong supply chain that Mattel

has.

Efficient top management with near-

ly 30,000 employees.

Strong financial gaining.

Adding or rotating of some outstand-

ing leaders to the executive team.

Excellent innovation in advertising,

marketing and retail executions.

Future growth where the employees

will have the opportunity to reach

their full potential.

Good publicity after lead paint scare.

Low–cost manufacturing techniques

Mattel’s access to distribution chan-

nels.

Cash on hand (financial resource).

Weaknesses:

High variation in seasonal demand

for products forces company to have

excess cash on hand, suffer fluctuat-

ing revenues, have difficulty predict-

ing the optimal number of a product

to produce.

Being such a big company in some

cases makes difficult to have the to-

tal control over the

Mattel’s international business opera-

tions.

Products face competition from

cheaper substitutes.

Weak online presence.

Involve in a lot of controversies like

toxic toys which hurt the brand im-

age

Fake products easily available in

the market leading to loss of reve-

nue.

Concentrated distribution channels

result in volume purchases that

lower margins, leave company vul-

nerable to the demand of certain

retailers.

Some products are contingent on

the availability of licensing agree-

ments.

Poor licensing agreements for up-

coming on the availability of licens-

ing agreements.

Poor licensing agreements for up-

coming movies.

Products face competition from

higher and lower quality substi-

tutes.

No binding long-term contracts

with retailers.

Low EBITDA margins than compet-

itors firms.

Opportunities:

Relocation of products facilities.

Development of new products

as the Latin Girl Doll.

Investment in web retailing oppor-

tunities.

Development of specialty stores.

Innovation of new toys and prod-

ucts with changing technology.

Create a strong online presence to

connect with customers.

US dollar is weakening which will

allow emerging markets and expan-

sion abroad.

Product and services expansion.

Reaching out by organizing contest

on existing franchises.

Can put holograms or something

similar so that imitation is not easy.

More international growth.

Products and services expansion.

Room for growth of international

sales.

New advertising opportunities on

the internet.

Acquisitions of companies or prod-

ucts that compliment the existing

line or target a new age group.

Threads:

Age compression.

Shifting consumer taste and prod-

ucts preferences, further erosion of

the flagship.

Decline in children’s leisure time.

Easy entry by competing firms.

Cartoons channels.

Cheaper technology.

Economics low-down causing

exchange rate fluctuations.

Imitations that are cheaper.

Video games and new technolo-

gies.

Competition.

Highly discretionary products.

Falling costumer spending and

deterioration of the economic

health of costumer countries.

Production of private-label toys

by Mattel’s retail costumers.

Changing trade relations be-

tween USA and its international

trading partners.

VI. Marketing Strategy

Target Market:

We will focus on girls from 4 to 9

years old with middle and high soci-

oeconomically level, meaning that

we will use the concentrated target-

ing strategy. This way, we concen-

trate more on understanding the

needs, motives and satisfactions of

our target market. For this reason,

we will also be able to develop and

maintain a highly specialized mar-

keting mix. We are sure that we will

gain more profits by concentrating

our resources and meeting the

needs of our niche market.

The difficulty lies in choosing our

niche market carefully, and It can-

not be too small because we are ful-

ly aware of the fact that it is possi-

ble that our company might suffer

negative consequences if our seg-

ment shrinks due to environmental

changes.

Marketing Mix:

Product:

“Latin girl” is a line of dolls pro-

duced by Mattel for girls from 4 to

7 years, where they will be protag-

onists of a new story. With their

dolls they can enjoy a miniature re-

al world, having the opportunity to

access to our entire range services

that "represent the individuality

and diversity of today's Latin girls".

Categories:

Additions to existing product line:

“Latin Girl” is a new product that

supplement the Girl line of Mattel.

Ansoff:

It is defined as diversification be-

cause it is a new product in a new

market, unknown by the Colombi-

an people.

Packaging:

The material that we choice for our

packing is cardboard because is an

economic and useful material and is

going to have the following charac-

teristics:

The dimensions of the box are:

length 30 cm, width 22cm, depth

60 cm.

Is ecofriendly material.

Protect the product.

The color we select for the box

is purple because this color is

associated with creativity, luxu-

ry and power. There are surveys

that indicate that it is the favor-

ite color of 75% of

PRESENT PRODUCT

NEW PROD-

UCT

PRESENT MARKET

MARKET PENETRA-

TION

PRODUCT DEVELOP-

MENT

NEW MAR-KET

MARKET DE-VELOPMENT

DIVERSIFICA-

TION

children before adolescence. The

purple represents the magic and

mystery. We decided to used The

bright purple for the logo because is

ideal for women. It is also well suit-

ed to promote items aimed at chil-

dren. The light purple produces

nostalgic romantic feelings.

The “Latin Girl” logo and Mat-

tel’s logo.

Political-legal aspects.

BCG:

Our product is question mark be-cause in this field we has an attrac-tive growth market but the compa-ny has not yet achieved a relevant position and have share few time with the market.

Place/distribution:

The Latin Girl doll as it is Mattel’s

product, the main distributor of it

will be Mattel Colombian S.A. Which

will perform its own marketing

channel functions( logistic, transac-

tional and facilitation) by this, it

means that is in charge of the pro-

motion and physical distribution to

the final places where the toy will

be sell in: from supermarkets, Auto

service stores to department and

specialty stores.

However, the specialty stores that

are one of the new

things that make this toy innovative

will be performed in alliance with

Divercity that is a thematic park for

kids from 3 to 13 year old where we

envision having an indoor store

where girls will have an extraordi-

nary experiences playing with their

Latin Girl Doll. Such as doll

hair salon, dining, photos,

shopping and much more. As

part of the program, all the al-

liance partner members will

be well prepared and train to

promote an excellent experi-

ence with the Latin Girl brand.

Also, the other part of the dis-

tribution channel will be the crea-

tion of a web site and an applica-

tion, in which girls will have the op-

portunity to buy and personalise

their own

Market growth rate

HighLow

Star

? LatinGirl

Cow

Dog

HighLow

Market share dominance

dolls in all the different ways they

could imagine, and then ship it to

their home. By adopting this online

model store the company is aiming

to increase sells because of the

great rate of growth that these

online stores have been experi-

menting in last few years. By the

way, the adoption of this model will

facilitate the work for the actual re-

tail model.

Promotion:

Advertising:

Latin Girl as a new brand of Mattel’s

company has to use a strong adver-

tising campaign to reach the actual

market. Pioneering Advertising is

the perfect strategy to stimulate the

demand of this new product catego-

ry. Here we are going to explain

Mattel creative decisions in adver-

tising:

Advertising Campaign:

Name: Latin Girl

Slogan: Lear while we smile to grow

up laughing

Theme: Dolls

Advertising Objective: Latin Girl

wants to reach tweens between the

ages of 7 and 4 years old, cover all

national territory with the launch of

this new product campaign in less

than two weeks and convince par-

ent to buy these product for their

HOW?

Television:

( Discovery Kids, Disney Channel, Dis-

ney XD, Diney Junior, Cartoon Net-

work, Nickelodeon, Boomerang)

Aprox. Cost: 20 sec commercial $32

milions pesos.

Outdoor Media:

(C. Comercial Santafe, C. Comercial El

Tesoro, C. Comercial Oviedo).

Magazines:

(Pepeganga Magazine, Shoping Malls

Magazines, ExitoMaganize, Jumbo

Magazine).

Internet:

(Mattel’s Oficial web page, Facebook,

Twitter)

Public Relations:

It is important to evaluate the atti-

tudes, issues and the acceptance that

the public is going to have with this

new product entering to the market so

we can minimize the negative image

that could be created over time. The

Public Relation Department of Mattel

must be in charge of making custom-

ers believe that this product in some

way is different from others and that

this new toy will make more kids hap-

pier and connected to their nationality

roots (Latinos). Publicity and Product

Placement is essential to develop this

promotional strategy.

Sales Promotion:

Is the perfect tool to incentive the imme-

diate purchase from customers. The

idea with Latin Girl is when customers

purchase the Doll they will received a

discount coupon to buy the exactly same

cloths as the doll is wearing. This sales

strategy is focusing on maintaining loyal

customers by getting Latin Girls Dolls

with excellent discounts and persuading

competitor’s customers by showing

them the exclusivity of this product.

Personal Selling:

Is a good tool for sales agents because

you can get directly the feedback from

customers and try to change the opin-

ions and decisions from buyers in the

moment of the purchase. A good sales

agent must have adequate information

about the product he is selling and must

be aware about the need and wants

that’s customers have; For Latin Girl the

fundamental information that buyers

must know are the attributes and bene-

fits that Mattel’s new doll is offering.

Price:

Price objective:

We choice profit oriented because the

main objective is to increase the profit

with each product that we sale.

Prince Strategy:

The strategy that we are going to use is

Skimming because the idea is to enter

with high prices to generate a differen-

tiation making costumers see the

product as a high value product and

with the passage of time when people

know our product we are going to de-

crease the price .

Estimate Coste:

Fixed cost: 35000

variable cost: each worker cost 10 us

(it changes depending on the demand)

total cost: 55000

average total cost: 45000

Determine the Demand:

We expect to sell around 50.000 dolls in

Colombia the first year in which the

“Latin Girl” was launched.

Analyze the competition:

Price Fixation:

our prices is a costumer perceived val-

ue oriented because we wanted the

costumer to create an exclusive and

high quality perception of the Latin

Girl brand.

Final Price:

The price of the doll will vary be-

tween 110.000 ( cheapest) and

230.000 (most expensive) COP.

Product cheapest Most expensive

Barbie 24000 COP 99900 COP

Monster high 60000 COP 100000 COP Bratz 49000 COP 95000 COP Baby 39900 COP 119000 COP Latin girl 110000 COP 230000 COP

Offcorss is a clothing store with

prestige which will ensure us that

the doll’s and the girl’s clothes will

be of excellent quality.

The idea is to differentiate our prod-

uct from other products, by achiev-

ing brand equity, by making sure

that our brand has high awareness,

indicates quality and establishes

brand loyalty among customers. We

will use the good reputation and

name of Mattel and Offcorss while

introducing this new product. Mattel

is well known

VII. Implementation

Marketing Research:

Definition of Marketing Research:

Marketing research is a process of

planning, collecting, and analyzing

data relevant to a marketing deci-

sion. Marketing research is the func-

tion that’s links consumers, custom-

ers, and public to the marketer

through information. Marketing re-

search has 3 main roles: Descriptive

(gathering and presenting factual

statement), Diagnostic (explaining

data, such as determination the im-

pact on sales of a change in the de-

sign of the package) and Predictive

(address “what if” questions).

VII. Branding

Latin doll is a manufacturer’s brand

because it is designed and created by

Mattel. The retailer will not own the

brand at any moment. Although the

doll will be for sale in every e xito, e x-

ito however will never own the

brand “Latin Doll”. We want to en-

sure rapid delivery of the product

and by keeping our brand a manu-

facturer’s brand, we can ensure this

rapid delivery. This strategy is also

interesting and favorable for the

dealer itself, because in case that the

doll is not accepted by the public, the

dealer has less chance of losing its

customers. Another advantage is

that this strategy will allow us to

build strong customer loyalties

through heavy advertising.

The individual branding strategy will

be used to target different segments

of the toy market. We have opted for

this strategy because every toy is dif-

ferent from another. And also, since

we want to differentiate the “Latin

Girl” as a unique doll, it is better not

to link it to other dolls.

We will also be participating in co-

branding, complementary branding

to be more exact because the clothes

for the doll and the girls themselves

Identify and formulate the problem/

opportunity:

Mattel biggest problem at the mo-

ment is battling with strong adver-

tisings, selling strategies, commer-

cialization and distribution of prod-

ucts and most important the crea-

tion of new toys with high technolo-

gy, more eco-friendly by competi-

tors. Brands everyday are position-

ing on the market and this could be

a big problem, but in the other hand

this also can be an opportunity for

resolving or backing troubles that’s

this company may have in the 4PS

(Price,Promotion,Place,Product). Is

important to determinate what in-

formation is needed and how the in-

formation can be acquire efficiently

and effectively.

Example:

Mattel’s biggets competiros are:

Hasbro, Inc, Lego A/S, and Jakks

pasific Inc. What kind of information

the need about competitors: Price,

Quality, Design, strategies for posi-

tioning a brand, etc.

Plan the research design and gather

Primary Data:

Our plan is to recollect information

in an specific market environment

in which social, demographic, econo

mic, socio cultural, political and legal,

and technological factors are influence

in our investigation, due to the lack of

founds that we have, we are planning

to recollect Primary Data in which we

have to interact with people to obtain

facts, opinions, and attitudes in a easy,

inexpensive, and fast way. One of the

ways of gathering data that we are go-

ing to implement is interviews and

record seven to ten girls from a kin-

dergarten of Medellin “Pepe Grillo”.

Specify the sampling procedures:

In order to make our marketing re-

search we have selected a sample

group from which we would gather

primary data that will be useful for de-

fining our marketing mix.

Convenience sample:

From the potential buyers of Mattel,

we are going to select a group of girls

between 4 to 7 year old which we are

going to collect information about

their opinions, behaviors and attitudes

from the actual products that are be-

ing sold in the market today. All of this

to find out which are the preferences

needs and wants of the costumers.

Collecting the data:

In this step we are going to collect

information by taking interviews of a

group of girls from Medellin – Co-

lombia in order to analyze the pur-

chase behavior of these groups.

Analyze the data:

When we have collected the primary

information, then we can draw con-

clusions of which products the girls

want and which kind of products the

parents would buy .

Prepare and present the report:

Using the gathered information to

start defining the marketing mix

(product, price, place and promo-

tion), we present the report with the

best tools at our disposal: the actuals

Latin girls in a video, we can observe

in the video that the little girls wants,

are the actual “Latin girl” goals.

Follow up:

After launching our product on the

market, we will analyze the post pur-

chasing behavior, which would be

how the girls answer to the new

product, what are the improvements

that should be made so that together

the girls and us, a team get “Latin

girl” to be best doll for every little

Latin girl.

Summary:

“Latin Girl” will continuously look

toward to become the hottest new

product in the toy industry. And will

always be looking to expand its line.

With partners like Offcorss, which

will make sure that the “Latin Girl”

clothes are always fashionable and

from excellent quality and divercity,

which is in charge of the playground

being exactly the way the girls imag-

ine and want it, we will make the

“Latin Girl” experience an unforget-

table one. We will also make the ef-

fort to acquire more and more cli-

ents each year. And with the sales

targets that we have set, we want to

make the brand big. We hope that

over the next few years, “Latin Girl”

will generate enough money to

make expansion to other South-

American countries possible.

VIII. Bibliography

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de-la-empresa.html

http://es.wikipedia.org/wiki/Mattel

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as+competitivas+de+mattel&source=bl&ots=o74A5do

1-

p&sig=NnXEIBpi1n7kM3sQToNa08tS5SI&hl=es&sa=X&

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SeniorSeminars/harknessconsulting2008/pdfs/

Mattel.pdf

http://www.banrep.gov.co/es/node/31835

http://www.dane.gov.co/