Mattel Case
MATTEL CASE
I. OVERVIEW
Mattel was founded in 1945 by Elliot and Ruth Handler. The couple started out making furniture to sell out of their garage. This business was a success, but they wanted a new business approach to remain competitive in the fast-changing world.
So, they turned to making toys, and Mattel became the world’s largest toy company, with a revenue of $5.8 billion and a net income of $684 million in 2010.
Recently, the company commissioned Chinese companies to produce some of its toys. These Chinese-made toys were suspected of containing harmful aspects for children such as magnets which could be swallowed by children, hazardous lead paint, and plastic ignition key that kids can sit on or fall.
II. STRATEGIC ANALYSIS
Value proposition
The company designs, manufactures, markets and distributes a wide variety of toy and game products to entertain children as well as adults all over the world.
Marketing mix
Product: The company 's products include several toy lines, such as Barbie dolls, clothing, and accessories; Hot Wheels toy cars; See-and-Say toys; American Girl collection of dolls and books; Warner Brothers toys; Fisher-Price toys, … It also produces toys related to Disney and Sesame Street characters as well as games such as Scrabble and UNO. Mattel is now getting more into the video/DVD market.
Price: Mattel maintains low costs. Toys are affordable for the majority.
Place: Mattel sells its product in over 150 countries.
Promotion: Mattel offers store coupons and markets its toys through magazine and televison avertissements. Moreover, it has recently created websites for its products (like Barbie.com). There are even Barbie’s facebook pages, and Barbie has also started a blog and a Twitter account.
SWOT
Strength
Mattel is a well known and reputable company, and the brand is very popular among customers.
Mattel thinks of way to design and manufacture its products with a focus on
I. OVERVIEW
Mattel was founded in 1945 by Elliot and Ruth Handler. The couple started out making furniture to sell out of their garage. This business was a success, but they wanted a new business approach to remain competitive in the fast-changing world.
So, they turned to making toys, and Mattel became the world’s largest toy company, with a revenue of $5.8 billion and a net income of $684 million in 2010.
Recently, the company commissioned Chinese companies to produce some of its toys. These Chinese-made toys were suspected of containing harmful aspects for children such as magnets which could be swallowed by children, hazardous lead paint, and plastic ignition key that kids can sit on or fall.
II. STRATEGIC ANALYSIS
Value proposition
The company designs, manufactures, markets and distributes a wide variety of toy and game products to entertain children as well as adults all over the world.
Marketing mix
Product: The company 's products include several toy lines, such as Barbie dolls, clothing, and accessories; Hot Wheels toy cars; See-and-Say toys; American Girl collection of dolls and books; Warner Brothers toys; Fisher-Price toys, … It also produces toys related to Disney and Sesame Street characters as well as games such as Scrabble and UNO. Mattel is now getting more into the video/DVD market.
Price: Mattel maintains low costs. Toys are affordable for the majority.
Place: Mattel sells its product in over 150 countries.
Promotion: Mattel offers store coupons and markets its toys through magazine and televison avertissements. Moreover, it has recently created websites for its products (like Barbie.com). There are even Barbie’s facebook pages, and Barbie has also started a blog and a Twitter account.
SWOT
Strength
Mattel is a well known and reputable company, and the brand is very popular among customers.
Mattel thinks of way to design and manufacture its products with a focus on