...Daniels Fund Ethics Initiative University of New Mexico http://danielsethics.mgt.unm.edu Mattel Responds to Ethical Challenges INTRODUCTION Mattel, Inc. is a global leader in designing and manufacturing toys and family products. Well-known for brands such as Barbie, Fisher-Price, Disney, Hot Wheels, Matchbox, Tyco, Cabbage Patch Kids, and board games, the company boasts nearly $5.9 billion in annual revenue. Headquartered in El Segundo, California, with offices across the world, Mattel markets its products in over 150 nations. It all started in a California garage workshop when Ruth and Elliot Handler and Matt Matson founded Mattel in 1945. The company started out making picture frames, but the founders soon recognized the profitability of the toy industry and switched their emphasis to toys. Mattel became a publicly owned company in 1960, with sales exceeding $100 million by 1965. Over the next forty years, Mattel went on to become the world’s largest toy company in terms of revenue. In spite of its overall success, Mattel has had its share of losses over its history. During the mid to late 1990s, Mattel lost millions to declining sales and bad business acquisitions. In January 1997, Jill Barad took over as Mattel’s CEO. Barad’s management-style was characterized as strict and her tenure at the helm proved challenging for many employees. While Barad had been successful in building the Barbie brand to $2 billion by the end of the 20th century, growth slowed in the early 21st...
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...Kimberly Tucker, Chris Salt, Ashley Solomon Case 7: Mattel: Overcoming Marketing and Manufacturing Challenges 11/01/2010 Marketing Management 6800 Section 004 The Problem: The problem surrounding Mattel Inc., one of the world’s largest toy companies, is their mismanagement of international subcontractors and vendors and the production of certain toys (the manufacturing process), as well as their inability to adapt their marketing strategy or product to the constantly changing “demographic and socioeconomic trends” (Ferrell, et. all 466). This is supported by Mattel’s legal battle with Carter Bryant and MGA, their forced recall of certain toys that were manufactured overseas, and the increasing rate at which traditional toys are becoming less appealing to today’s young audience. Essentially, Mattel’s mismanagement and oversight lead to violations in terms of ethical and social responsibilities and safety standards. Issues Relevant to the Problem: Mattel’s problem of mismanagement can be divided into several issues that need to be considered: legal issues, international supply chain issues, and an increase in technology-based toys. In regards to legal issues, Mattel has been involved in prolonged litigation with Carter Bryant and MGA over a breach of an employment contract and copyright infringement. Due to Mattel’s poor management of its overseas manufacturers, in which unauthorized subcontractors and third-party suppliers were hired and unsafe materials used, several...
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...Executive Summary Mattel, Inc is the world’s largest toy manufacturer product line includes such household names as Fisher-Price, Matchbox and of course Barbie dolls. The company was founded in 1945 and has grown remarkably since with global revenue approaching $6 billion per annum and counting on 31,000 employees to fulfill the toy needs of millions of children. Mattel began their initial Corporate Social Responsibility program when the idea was still in its infancy for many companies back in 1997; they released their first GRI (Global Reporting Initiative) in 2003 and have done so annually since. In the summer of 2007 the company went through a social responsibility media nightmare after the revelations that various toys in their product line exceeded the safety levels for lead which resulted in the recall of over 18,000,000 products. At the time it was a huge story that naturally impacted the company in a negative way but if there is a silver lining it would be that the company has subsequently fully revamped their testing and auditing processes for all manufacturing. The company’s more robust position in 2011 demonstrates that huge business mistakes can be overcome if lessons are learned, which appears to be the case for Mattel. Introduction Mattel, Inc. was founded in 1945 by Ruth and Elliot Handler and Matt Matson. The company had its headquarter in El Segundo, California and was well-known in the world as the leader in the design, manufacture, and marketing of family...
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...Unit 4 Mattel’s China Experience Case Study Analysis MT460 Management Policy and Strategy Professor: Dr. Margery Mayer Date: June 18, 2011 In 1944, based in California, Ruth and Elliot Handler founded Mattel after World War II. In the 1950’s, Mattel start advertising on Mickey Mouse Club with their core product being Barbie. Barbie was named after their daughter Barbara’s nickname. In the 1960, Mattel became publicly owned and in 1965, their sales top $100 million the company now qualified as a Fortune 500 company. Mattel is engaged in designing, manufacturing, and marketing of toys and family products across the world. The company's key global brands include Barbie, Hot Wheels, American Girl, and Fisher-Price. The company operates in the Americas, Asia Pacific, and Europe. It is headquartered in El Segundo, California and employs 27,000 people. (xplosivestocks.com) The start or recovery from damage done to the well-known brand due to recalls. After paying $40 million dollars in recalls for more than 19 million toys in China, Mattel was in a crisis. Their stock was dropping, lawsuits, media attacks, lost sales, and increased expense of litigation cost. Mattel was now suffering from a tarnished brand name and customer loyalty. Mattel’s challenges included convincing parents that child safety and product safety is more important that revenue, form an alliance with Chinese suppliers and the government to create honorable quality control solutions, improve...
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...and threats that Mattel faces as it looks ahead? SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and for identifying both the Opportunities open to you and the Threats you face. The SWOT analysis below is to understand the areas of improvement for Mattel while analysing its strengths. Also, to maximize the opportunities it has and minimize the threats. SWOT for Mattel Strengths Still a market leader- although it is true that the competition has increased over the years for Mattel, the current market capital is 8.67B. The question about whether they will bw able to retain this position or not, however, is debatable. Strong brand equity – Building brand equity requires significant effort. Mattel has both single brand and multi brand identity. (Phillips, 2003) Loyal customer base – Mattel has been in the market since the 1950’s. They have a large and loyal customer base. (Warner, Aug 5, 1996) Wide range of products - Mattel believes its products are among the most widely recognized toy products in the world. Mattel’s portfolio of brands and products are grouped in the following categories: Mattel Girls & Boys Brands - Including Batman , and Kung Fu Panda products, and games and puzzles. Fisher-Price Brands — Collectively Core Fisher-Price, Fisher-Price Friend and Power Wheels. American Girl Brands —including Just Like You, the historical collection, and Bitty Baby. Strong distribution line – Mattel is believed to have...
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...Mattel Recalls 2007 Communication Implications for Quality Control, Outsourcing, and Consumer Relations [ABSTRACT] In August 2007, America's largest toy manufacturer announced the first of what would become five recalls involving 21 million toys—most of which were manufactured in China. This case study and teaching note examine a corporate response to a global crisis and consider the unique communications challenges facing a corporation that operates in an international, crosscultural arena. The teaching note critiques the response’s suitability to the level and impact of the crisis and recommends alternatives. It illustrates that communicators should be cognizant of their international stakeholders and should proactively manage global issues of public concern such as outsourcing and product safety. An example would be that to avert future recalls, Mattel should work closely with its Chinese suppliers and government agencies to implement realistic quality control solutions for which it can be held accountable. The company must reassure stakeholders that outsourcing to China does not mean sacrificing quality. Regaining consumer confidence and controlling the dissemination of product safety information requires strong corporate communicators who can delicately and deliberately balance complex relationships. Table of Contents I. Case Study 1. Overview 2. Company History 2.1 Beginnings 2.2 Reorganization as Mattel, Inc. 2.3 Products 2.4 Accolades for Ethics 2.5 Financial Performance...
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...(US, Canada & American Girl) $7.1B Fisher-Price Core Entertainment Other Girls $7.1B Europe Wheels 2013 Gross Sales by Brand Source: Mattel 2013 10-K 2013 Gross Sales by Region 2013 Financials At-A-Glance $7,117.8 $2.58 $7,052.6 12 $6,841.1 11 $2.22 $2.18 13 11 12 13 Gross Sales Source: Mattel 2013 10-K Gross Sales History (in millions) Gross Margin Operating Margin Earnings per Share Total Shareholder Return (TSR) (For the Year Ending December 31, 2013) Mattel, Inc. S&P Source: Thomson Reuters 1 Year 34% 32% 3 Year 28% 16% 5 Year 29% 18% 10 Year 13% 7% 2013 Annual Report MATTEL, INC. For nearly seventy years, Mattel has been inspiring imaginations, fueling the innovative spirit and creating the future of play for millions of children around the world. Today, Mattel, Inc. and its family of companies comprise the world’s largest toy company with a strong portfolio of brands and toys that children and their parents have cherished for generations. Our portfolio includes some of the most iconic toys of all time, from Barbie® and Hot Wheels®, to American Girl®, Fisher-Price® and Thomas & Friends®. Parents trust Mattel to deliver hours of fun for their children, and our shareholders trust us to bring long-term value to their investment. Mattel led the toy industry with $7.1 billion in gross sales in 2013, and had more than $900 million in net income, nearly 30,000 employees in offices across 40...
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...Mattel Case Study Travis Horbulyk 100119910 February 9th, 2012 Problems: * Decrease in market share * Damage to their brand image Issues: * Unable to keep up with changing technology * Children not playing with toys as much as they use to * Battered reputation due to the safety of their toys SWOT Analysis: * Strengths * Brand Name * Strong customer base * Excellent variety of products for both boys and girls * Mattel has been in the fore front of the toy industry for 6o years * Strong online privacy policy * Controls fate of Barbie’s main competitor, Bratz. * Has excellent Global Manufacturing Principles * Weaknesses * Battered brand image over recent series of recalls * Losing control of their products and company image due to the outsourcing of their manufacturing to third party overseas manufacturers * They have little pricing power due to heavy reliance on Wal-Mart and Target * Keeping children’s interest when they are growing into the tween demographic. * Opportunities * Online and Video Game Market * Barbie retail store * Social Media * Create new alliances with other companies to help market products * Changing focus from traditional toys (Barbies/Hot Wheels) to electronic toys * Moving production from china back to the United States or a more sustainable country * Threats * Decreasing demand...
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...surrounding Mattel Inc., one of the world’s largest toy companies, is their mismanagement of international subcontractors and vendors and the production of certain toys (the manufacturing process), as well as their inability to adapt their marketing strategy or product to the constantly changing “demographic and socioeconomic trends” (Ferrell, et. all 466). This is supported by Mattel’s legal battle with Carter Bryant and MGA, their forced recall of certain toys that were manufactured overseas, and the increasing rate at which traditional toys are becoming less appealing to today’s young audience. Essentially, Mattel’s mismanagement and oversight lead to violations in terms of ethical and social responsibilities and safety standards. Issues Relevant to the Problem: Mattel’s problem of mismanagement can be divided into several issues that need to be considered: legal issues, international supply chain issues, and an increase in technology-based toys. In regards to legal issues, Mattel has been involved in prolonged litigation with Carter Bryant and MGA over a breach of an employment contract and copyright infringement. Due to Mattel’s poor management of its overseas manufacturers, in which unauthorized subcontractors and third-party suppliers were hired and unsafe materials used, several toy products were recalled. Advances in technology and changes in socioeconomic and demographic trends have created marketing, privacy, and product development issues for Mattel. Analysis...
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...MATTEL VS HASBRO/BARBIE VS BABY ALIVE Abstract: The two highest toy companies, Mattel and Hasbro have various dolls that every little dreams of having. In this paper, I will compare and contrast the “old school” Barbie to the “new reality” Baby Alive and how both companies address the 4 P’s of Marketing. Barbie, America’s top and favorite doll of dolls for years is continuing to grow strong as a play toy or as a collection item. Barbie was launched in 1959 and has since been the famous in the United States. Barbie was started by a couple while watching their daughter play with a paper doll. Barbie has been about fun, fashion and friends, but in 2004 the company kept those qualities along with evolving girls wants today. The younger girls today want fairy and imagination, older girls want authentic fashion and real-world experience. Fairy’s, DVD’s/music videos and tween dolls. (Crews, 2004) Today, Barbie has much competition with Bratz dollz and Baby Alive along with many other dolls in the market. Baby Alive is the new, innovative, life-like doll for today’s society and children who like to play and feel they are caring for real-life babies. Mattel will need to become stronger and more assertive with their objectives and marketing techniques to stay ahead of Hasbro, Inc. Hasbro, Inc is right in the mainframe with Mattel in the toy industry. Both companies have strong marketing skills, knowledge and strategies to help with their own marketing shares. Mattel’s...
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...woman, who lives in a world of pink, where she owns a dream house in Malibu. Every day, she wears high-heels to work, and even runs a fashion chain under her name. For many, she was the influential icon of American culture in the late 20th century. Until now, I dare say that her image is still very potent worldwide. Who is she? Never before has she ever starred in a Hollywood movie or performed at a famous fashion show. Surprisingly, she never exists in real life and she is literally a toy. Yes, it can hardly be any other toy but Barbie. Nowadays, girls can be seen wearing Barbie clothing, using Barbie perfume, carrying Barbie backpacks, and sleeping in Barbie pajamas, not to mention cosmetics, sneakers etc. (Morgenson 1991, 66). Mattel, Inc., the mother company of Barbie, should feel proud of her. Because on average, an American girl has ten Barbie dolls, a British or Italian girl may own seven, while five is the number of Barbie that a German or French girl has. It was Mattel’s purpose and will when introducing Barbie that she would become a lifestyle, a fashion statement, a way of life, something sacred more than just a doll. And in fact, she did! This plastic doll is worth being considered a legend, which can represent many statuses in the society regardless of gender, skin colour or classes, thus remaining attractive to different girls’ generations since its year of birth. Barbie...
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...strapped and operating on shoestring budgets, Nancy Maclean’s team at Mattel gets all the resources she needs. Maclean and her team have developed a very effective program to monitor, manage and prevent Returned Goods. Their work has resulted in a reduction in Mattel’s cost of defective returns by over 50% over the last 5 years. For a large company like Mattel, with brands like Barbie, American Girl, Hot Wheels and Fisher Price, any reduction in product return costs can add up to a significant impact in profitability. Maclean, the Director of Warranty Returns and Analysis, has kindly outlined some of her key elements to successful Reverse Logistics at Mattel. The company and her team have to be very creative about their solutions to handle product returns, since there is a wide range of products; some very low tech inexpensive items such as a Hot Wheels car, some higher tech electronics items such as the Uno Attack electronic card shooter and some very expensive products such as hand painted collectors edition Barbie dolls. Her key elements are outlined below and there are some great lessons, tactics and best practices for all reverse logistics teams. Reliable Data Collection – When a customer wishes to return a Mattel product, they often take the products back to the retailer where they purchased the units. Since it is often too expensive to have all returned products shipped back to the company for analysis, Mattel works with the retailers to either: 1. Provide them with a credit...
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...Mattel, Inc: The Lead Paint Recall Ron Montalto tossed the newspaper onto a growing pile. The Sept 22, 2007 Wall Street Journal headline read “Mattel Seeks to Placate China With Apology.” The headlines in the stack of papers told the story: Mattel Announces Third Toy Recall – CNN Money (Sept 5, 2007) Mattel Does Damage Control After New Recall - Wall Street Journal (Aug 15, 2007) Owner of Chinese Toy Factory Commits Suicide – New York Times (Aug 14, 2007) Lead Paint Prompts Mattel to Recall 967,000 Toys– New York Times (Aug 2, 2007) The worldwide news coverage had been intense. Robert Eckert, Mattel’s CEO, had led the news on both morning and evening TV broadcasts, staring directly into the camera and apologizing for Mattel’s failure, while promising to take immediate steps to improve quality. Mattel had also launched a recall website that received millions of visitors and was later referred to as a model of excellence (see Exhibit 1). Corporate communication experts had given Mattel and Eckert high marks for the handling of the crisis. Yet Montalto, a long-term Mattel China veteran, still couldn’t grasp how it had all come to this. Ironically, the bottom paper in the stack headlined “Toymaking in China, Mattel’s Way” heralded Mattel’s decades of success operating in China and was published just days before the initial recall (New York Times July 26, 2007 – see Exhibit 2 for full press list and links). Montalto reflected on key sourcing decisions made nearly...
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...children consisting of harmful chemicals. To save their market image the major toy industries took this matter seriously and recalled their products. This turned into a great opportunity for toy industrialists to manufacture toys which were environment friendly as well as for safe for children. “Robert von Goeben” took full advantage of this market scenario and established Green Toys Inc. In partnership with “Laurie Hyman”. The founders of Green Toys look after the different segments of the industry. Robert von Goeben responsible for production side of the business and Hyman as a marketing expert looked after the marketing of the products and consumer retention. This essay is about the strategies implemented by the Green Toys Inc. in order to create, diversify and sustain their market share in the toy market. There are several key methods responsible for excelling in the world toy industry. However, three factors play a vital role in the success of a toy company. The most important one is to target a particular segment of society and to retain it to create a consumer base. In 2010 Mattel successfully implemented this method and was able to increase sales of its brand “Barbie” by marketing it as a fashion statement which amused many youngsters. Relaunching is also a method to increase the sales enormously of a toy product. In Asian toy market Namco Bandai was able to capture a big market share by improving and relaunching some of its major products such as “Gundam”, “Digimon”...
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...Mattel Case Study Mattel Case Study Travis Horbulyk 100119910 February 9th, 2012 Problems: * Decrease in market share * Damage to their brand image Issues: * Unable to keep up with changing technology * Children not playing with toys as much as they use to * Battered reputation due to the safety of their toys SWOT Analysis: * Strengths * Brand Name * Strong customer base * Excellent variety of products for both boys and girls * Mattel has been in the fore front of the toy industry for 6o years * Strong online privacy policy * Controls fate of Barbie’s main competitor, Bratz. * Has excellent Global Manufacturing Principles * Weaknesses * Battered brand image over recent series of recalls * Losing control of their products and company image due to the outsourcing of their manufacturing to third party overseas manufacturers * They have little pricing power due to heavy reliance on Wal-Mart and Target * Keeping children’s interest when they are growing into the tween demographic. * Opportunities * Online and Video Game Market * Barbie retail store * Social Media * Create new alliances with other companies to help market products * Changing focus from traditional toys (Barbies/Hot Wheels) to electronic toys * Moving production from china back to the United States or a more sustainable country * Threats ...
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