mattel inc. presentation - khushboo bharati
TRANSCRIPT
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MATTEL Inc.
Presented by:
KHUSBOO BHARATI PUSPHPDEV RAI GIIB – 2008-10
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PROFILE• In 1945, Ruth Handler, Elliot Handler and Harold “Matt” Masson launched
Mattel out of a garage workshop in Southern California.
• Mattel, Inc. is a worldwide leader in the design, manufacture and marketing of children's toys. With headquarters in El Segundo, California.
• In 1997, Mattel merged with Tyco, the third largest toy company in the world, resulting in the Sesame Street License.
• World’s Largest Toy Company Mattel toy lines include: Barbie, Hot Wheels, Harry Potter, American Girls and Fisher-Price.
• Toys are produced in company-owned manufacturing facilities in China, Indonesia, Malaysia, Mexico, Thailand, as well as through independent contractors located in United States, Europe, Mexico, the Far East and Australia.
• Mattel has offices and facilities in 34 countries and sells its products in more than 140 nations throughout the world.
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MATTEL HISTORY
• 1959 with the introduction of Barbie.
• 1968 introduction of Hot Wheels miniature model cars.
• 1987 to1992 Barbie make-over.
• Developing accessories other than their core products.
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MATTEL’S BUSINESS UNITS
Mattel Inc.
Fisher-PriceBrand Business
Unit (Infant and Pre-
school Toys)
Mattel BrandsBusiness Unit
(Lifestyle Brands for kids
of All Ages)
American GirlsBrand
Business Unit (Products For
Girls In the Age Group 3-
12 Years)
Mega BrandsBarbieHot Wheels
Power WheelsRescue Heroes
Character Brands(e.g. Dora, the explorer)
Little People
American GirlsCollectionAmerican Girl TodayMagazineGirls of many landsAngelina BallerinaAmerican Girl
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Strategic Marketing Management
• It is a system designed to help management both precipitate and make strategic decisions, as well as create strategic visions.
• A strategic decision would involve creation, change or retention of a strategy.
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Strategic Decisions taken at Mattel
• Appointment of Robert Eckert as President and CEO. - Sold off the Learning Company. - Improved Inventory Control. - Developing more toys in house. - Increase in the use of focus groups. - New Packaging practices. - Improving relations with retailers.
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• Barbie: - Developed a more modern version of barbie.
- With features which more accurately reflect a natural female body.
- More in-style cloths.
- Introduction of ‘tweens’ (for a little older age group)..
- launched a website.
• Hot wheels: - Included replica cars from racing circuits.
- Introduced X-treem wheel spots lines.
- Introduced story and character based packing.
- Introduced various promotions.
• International Sale: - Mattel entered into a global marketing alliance with Bandai
Company.
- They combined and released ROBO wheels.
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Risks:• Physical and mechanical.• Flammability.• Chemical properties.• Electrical properties.• Hygiene.• Radioactivity.
Responsibilities:
• Children’s rights.• Communicating with parents.• Quality control.
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Mattel’s Response - Corporate social responsibility.
- CPSC toy safety standards.
- Children’s Advertising Review Unit.
- Global Manufacturing Principles.
- Environmental health and safety standards.
- Charity.
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Evidence of strength
- Commitment to responsibilities: June 8
Mattel is first alerted to possible lead paint contamination.
June 9
The CPSC deadline for Mattel to report the problem.
June 10
CPSC deadline passes; Mattel fails to act.
July 26
Mattel files full recall report with CPSC.
Aug. 14
Mattel voluntarily recalls 17.4 mill products with loose magnets.
Sept. 4
Mattel voluntarily recalls 850,000 toys with lead paint.
Oct. 25
Mattel voluntary recalls Go Diego Go! Rescue Boats coated in paint containing hazardous levels of lead.
Nov. 6
Mattel voluntarily recalls 155,000 toys manufactured in Mexico because of choking hazards.
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Strengths:
- Stringent inspection - 3 point security check.- Avoiding conflicts.
Weaknesses:
– Denial tactic - shifted blame to China – Diminishing tactic - said media and government overly
magnified the crisis.
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Opportunities For Mattel
• Demand for new interactive and entertainment - oriented products.
• Venture into Web-based games.
• Capitalizing on children’s toy safety issue -producing new product lines from safer materials.
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Threats Faced by Mattel
• Global shift from traditional toys.• Revamps for recession – dollar decline.• Ungainly acquisitions and mergers in future.• Decline in Barbie sales.• Increasing competition.• Expensive supply chain model.• Lapse of safety- standards.
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Strengths• History that it has behind their company.
• An Integrated focus on the customer
- market research
- releasing new products annually.
• Follows a code of ethics.
• Contributes to the communities in which it operates,
particularly to causes benefiting children.
• Mega Brands– Barbie, Hot Wheels & American Girls.
• Mergers and Licensing with other established brands
like Disney, Fisher Price, Nascar & Microsoft.
• Increament in service level from 50% to 90% due to
improved information systems and warehouse facilities.
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• International success
- Product availability has been improved in specific market due to collaborative efforts with international firms, specifically Bandai Co. of Japan.
- Cater products to each market’s taste and maintains high flexibility and low costs by simplifying packaging strategies.
- Global marketing strategy.
Weaknesses• Management struggles and uncertainty.
• Unprofitable mergers and acquisitions.
• Slipping popularity of their core product, Barbie.
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VS
• The Pleasant company, maker of American dolls, was acquired by Mattel in 1998.
• Financially, American Girl is much more popular and profitable than Barbie these days.
• This isn’t a situation where the more ‘valuable’ system wins – it’s more like a situation where the more ‘valuable’ system is taken advantage of.
• The identity of Mattel is just more powerful than the identity American Girl.
• of American Girl.
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Problem / Decision Statement
• To regain market position.
• Problems breaking into foreign markets due to cultural barriers.
• Adapting their products with the constant changing of society.
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Strategy Alternatives
1. Maintain the course of action that it is currently taking.
2. Expand into the technology market.
3. To add-on to and re-innovate their existing product lines.
4. To strengthen its advertising efforts in their main product lines.
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Recommendations
Strategies 2 & 3: Expand into the technology market & Add-on and Re-innovate Their
Product Lines.
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Implementation Issues • Costs.
• Past Failures.
• Customizing to Foreign Markets.
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Revamping Barbie
International sales of Barbie in the latest quarter fell by 3%.
Strategies to be implemented :
• You Are Not Bratz.
• Barbie And The Electronic World.
• A Perfect Miniature World.
• Stop The Pink and Purple.
• Resculpt.
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S
THANK YOU