mattel – made in china
TRANSCRIPT
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MATTEL TOYS
Made in ChinaCase Study Analysis
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Mattel products
Outsource production to Asia.
Wholly owned, tightly controlled factories in
China, Indonesia, Thailand and Mexico.
High quality
High safety standards
Huge product line
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Mattel in china Since 2007Manufacturing and subcontracting.
65% of Mattel toys made in China
5 Production units.
37 principal contract manufacturer.
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Corporate social
responsibility
The true goal behind these Corporate Social
Responsibility (CSR) campaigns is to improve the
image of the company.
A recent study by the Natural Marketing Institute
(NMI), almost 90% of the U.S. population state
that it is important for companies to not just be
profitable, but to be mindful of their impact on theenvironment and society.
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Corporate social
responsibility Societal Marketing Concept
Good working condition for the workers.
Importance given to Product safety.
Supplies & Raw materiel is checked in contractors
factory.
Mattel again test them on receiving the product from
the contractors.
Separate test facility for this in Shenzhen.
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Lee der industrial company
cheung Shu-hung and Xie Yu-guangfounded in
Foshan city, Guangdong province, China.
From 1993exclusive contract supplier to Mattel.
In 20072500 workers in 3 plants. Annual sales26 millions.
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Problems in china
Like the CPSC(Consumer Product Safety commission)
in USA , the Chinese government didnt have an
effective enforcement system to check the quality ofthe products manufactured in China
Due to the huge competition in the Chinese markets for
foreign contracts, contractors resort to reducing the
quality of the products
The bad perception of Chinese toys in USA and Europe
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Product recalls
During the year 2000-06, nearly 30-43% of the
products in US were recalled due to different
reasons(safety , design , hazard materials)
People loose faith in the company.
From 1991- 2006, Mattel total of 6 product, which
cost the company a loss of appox. $107 million.
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Companies problems to
product recall
Mass communication to the public
Reverse distribution logistics
Writing-off the value of the defective goods
Paying compensation to the customers
Affects the reputation of the Company
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Problem with Lee Der In 2007, Fisher toy made by Lee Der was recalled
Due to lead content in the paint.
Recall of 1million shipped to US and half million
to Europe.
Dongxing New Energy Co. regular supplier of
paint to Lee Der. Shortage of yellow paint made
them to borrow from a third party through internet.
This had lead content higher than the standard
mentioned by CPSC.
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What happened?Mattel stopped accepting any shipment from Lee
Der.
Lee Der left with $16 million of toys.On 9thAugust, Chinas Administration of quality
banned Lee Der from exporting.
Evacuated one factory to sell equipmentraise
cash. Cheung Shu-hung committed suicide on 13th
August 2007.
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Importance of CSR
CSR is very important if the company wishes to go
Globally.
Building up the image of the company is very
important in this age of social marketing
Examplesweatshop condition in Indonesian
factory of PUMA and Chinese factory of NIKE
These created a bad image of the company. And they
immediately address the problem to loose image
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THANK YOU