This document analyzes the situation of Mattel, a toy company headquartered in California that sells toys globally through mass retailers and toy stores. It discusses Mattel's product lines, international presence, pricing strategy, and promotional activities. It also performs a SWOT and external analysis, and identifies Mattel's flat sales growth compared to competitors as a problem. Three solutions are proposed: continuing to strengthen Barbie through new campaigns and stores; expanding internationally; and launching a new marketing campaign educating parents on the benefits of toys. The decision is to combine these strategies to strengthen Mattel's brands, enter new markets, and revamp advertising.

2. Situation Analysis

3. Full lines of toys for various ages both educational and traditionalBarbieFisher-PriceAmerican GirlHot WheelsTyco ToysWalt DisneyProduct

4. PlaceHeadquartered in El Segundo, CaliforniaOffices in 36 different countriesSold in155 NationsMass retailersToy stores

5. PriceCompetitive for some brandsBarbieHotwheelsLess competitive for someAmerican Girls

6. PromotionTelevisionPrint (children’s magazines)Licensing brand integration (Disney)In store displaysWebsiteCatalog for American Girl

7. Internal StructureStrong with new CEOSuccessful acquisitionsBringing more design in house VolunteerismGift Matching

8. SWOT

9. Strengths

10. Weaknesses

11. Opportunities

12. Threats

13. External AnalysisPolitical/LegalLead paint rules and analysisImporting tariffsLaws regulating advertising to childrencountries that ban products because of the potential ideas they promoteSocial/CulturalParents tight on money choose off brands and knockoffs of Mattel toys insteadEmphasis on educational toysPeople are concerned with businesses being socially responsible-good for Mattel

14. External AnalysisEconomicfamilies sometimes skip more toys for their children-they go to dollar generalDemographicChildren getting older younger and younger, and using internet toys and social networking to playTechnologicalCheaper and better working electronic componentsNew abilitiesMind controlBetter manufacturingSupply chain control

15. Competitive AnalysisPopularity of Bratz dollsVery competitive marketplaceVery affected by advertising done and where constantly changingShort product life cycle

16. Problem

17. Mattel is experiencing flat sales growth in their various product lines compared to competitors.

18. Solutions

19. 1Continue Barbie Style Campaign with designersBarbie PR PartiesContinue “Barbie I can Be…” dollsEliminate Barbie Mini B line of Bratz knockoffsCreate Barbie Flagship stores in the USBase off of ShanghaiUnique architectureEventsMerchandiseTravel DestinationsExclusive LinesNew Barbie Campaign

20. Go AbroadConduct Market ResearchDesign and alter products to the marketExpand Toy line InternationallyPartner with Toy distributorsDecrease Shipping cost

21. New Marketing CampaignFocus on Educating Parents about:Benefits of Kids playing with toysHow Parents can play with kidsStrengthens:Perceived Value of toysBrand loyaltyDifferentiation from competition

22. Decision

23. Combination StrategyStrengthens the overall Mattel brand bringing new life and reinvention to mature products via:Strengthening the individual brands (solution one)Entering into emerging markets (solution two) Revamping advertising to promote benefits of their products to parents (solution 3)