Misfit mattel


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Misfit mattel

  1. 1. Simone RobersonCase 22 page C141
  2. 2. Background Ruth and Elliot Handler and Harold Matson founded Mattel in 1945. Robert Eckert- chief executive and chairman of Mattel (2007). Gained its significance in the toy industry due to the introduction of the Barbie doll. In 2006 Mattel became the largest toy maker with revenue of $5.65 billion, owning brands such as:  Barbie  Hot Wheels  American Girl  Fisher-Price
  3. 3.  In 1977 the United States banned the use of lead paint in toys due to harmful effects on child development. In early July 2007 lead paint was discovered on some Fisher-Price toys made by Mattel. On August 1, 2007 Mattel issued the largest toy recall in its history. Two weeks later further recalls of 9.5 million more toys in U.S. and 11 million in foreign countries. Some recalls were due to hazardous magnets found in the toys. 3rd recall was on September 4, 2007
  4. 4.  Risking the health of children Net Income Negative media 700 coverage 600 Frustrated customers 500 400 Declining market share 300 200 Net Income Flat sales on core toys 100 Lost in net income from 0 2007 to 2008 due to:  Less supply = Less purchasing  The cost of testing toys  Lawsuits
  5. 5.  Due to the lead paint oversight in China Mattel decided to change their production strategy.  Over 85% of all recalls came from imported products. To protect the companies core brands Mattel switched to producing their own products rather than outsourcing to other manufacturers. Mattel mixed totally owned and third-party manufacturing for its products. Mattel moved manufacturing out of the United States and into other countries like China, Indonesia, Thailand, Malaysia and Mexico where contractors follow Mattel’s specific guidelines.
  6. 6. S trengths W eaknesses Strong off-shoring and Outsourcing to a local outsourcing strategy manufacturer would be Branding success i/e less costly. Barbie Dependency on retailers Weakening bargaining strategies with retailers.
  7. 7. O pportunities T hreats Direct-mail catalog and Recalls, lawsuits and Website to reduce the accusations hindered company’s dependence their reputation on retailers. Slow growth of traditional Created larger plants to toy market and rise in produce toys more video game market efficiently. Imitation Barbie dolls Mattel partnered with Hasbro, JAKKS Pacific or Oasys Mobile to extend other major competitors their market (March 2005)
  8. 8. SOURCES http://moneycentral.msn.com/investor/invsub/result s/statemnt.aspx?symbol=MAT http://www.filination.com/blog/2009/03/27/product- manufacturing-safety-in-china-mattel-toys-recall- business-crisis/ http://www.wikinvest.com/stock/Mattel_%28MAT%2 9 http://www.yournewfragrance.com/Mattel- s/2461.htm