Mattel is the world's largest toy company with over $6 billion in annual revenue and 28,000 employees. It has been making toys for over 70 years and owns brands like Barbie, Hot Wheels, Fisher-Price, and Monster High. While it faces challenges like falling sales, it is addressing these through acquisitions, innovative new products, global expansion, and strengthening its portfolio of entertainment-based properties. Mattel differentiates itself through a commitment to responsible manufacturing and play-based philanthropy.

1. LAUREN CHUMAN *KATRINA VALDEZ*JOHN VINIEGRA
IBM 402

2. The Market
• Present
• Currently #1 in toy sales
• Rise in revenue and profits from
last year
• Growth compared to competitors
• Litigation
• Layoffs
• Potential
• Stabilize revenue/profit in off-
season
• Boost staff morale after layoffs
• “Monster High”
• Embrace/continue new methods
& practice

3. Size & Characteristics
• Making toys for over 70
years
• #1 toy manufacturer
• Barbie
• Hot Wheels
• Fisher-Price
• Monster High
• ~28,000 employees
• #388 on Fortune 500
• Reputation

4. Buying Habits & Motives
• Recent acquisition of
HIT Entertainment
to strengthen
foothold in children’s
market
• Thomas and Friends
• Bob The Builder
• Barney

5. State of PLC
• Mature Stage
• Across the board in the European and
United States toy markets have
witnessed falling sales revenue,
impacted by economic crisis and
structural adjustments of the toy
market
• Mattel looks to age-defying and re-
inventing their products

6. Characteristics
• Bold and willing to take risks
• Innovative and modern
• Widely diverse and cultured
• Social Cultural
• Sensitive to social concerns about children’s right
whether domestically or internationally
• African American, Hispanic & Asian Barbie
• Senator, Nurse, Astronaut, Fashion Model Barbie
• Adaptable
• Educational/ promotes kindness

7. Classification
• Educational
• Kid friendly

8. Channels of Distribution
• Retailers
• Discount and free standing toy
stores
• Chain stores
• Department stores
• Limited extent, wholesalers
• 3 largest customers (37% of
worldwide consolidated net sales
• Wal-Mart $1.2 $Billion
• Toys “R” Us 0.7 $Billion
• Target $0.5 Billion
• Internationally
• Directly to retailers and
wholesalers in most European,
Latin American, and Asian
countries
• Australia and New Zealand
through agents and distributors
• Online

9. POSITION OF THE
ORGANIZATION IN
ITS ENVIRONMENT
• Differentiation
• Leader whom emphasizes playing responsibly
• Global Manufacturing principles
• Committed to creating safe high quality and
innovative toys in a responsible and ethical
matter
• Global Citizenship Report
• Share their goals and progress in achieving
them
• Power of Play
• Play is not a luxury it’s a necessity

10. Philanthropy Programs
• Responsibility as a corporate citizen
• 40% children do not have access to
play
• 2% pre-tax donates each year
• Stick to values
• Play with Passion, Play Together,
Play Fair and Play to Grow
• Created Mattel Children’s
Foundation
• Partnerships
• Playworks, Mattel's Children Hospital
at UCLA, Special Olympics
• Recognition
• 100 Best Corporate Citizens
• World’s Most Ethical companies

11. Competition• Traditional Toy Market
• Children getting old faster
phenomenon
• Mattel’s ability to satisfy
• Behind in electronic and
educational toys
• Popularity of electronic and
interactive toys gives competition
an advantage
• Securing entertainment
properties and renewing
licenses
• Competes domestically and
internationally
• Market always at risk from
other large and small
manufacture, marketers
and sellers

12. Technological
• Computer Cool School awarded in 2008
• Mattel Digital Network
• In response to children’s exposure to technology
and online services
• Apps
• Apptivity
• Online games
• Free videos
• Toy shop
• Access to official websites of their core brands
• Websites that insure parents and children's privacy
• Parents consent needed
• Involved in every transaction
http://www.fisher-price.com/fp.aspx?st=10&e=ccslanding COMPUTER
http://www.youtube.com/watch?v=f25OKngu5Yw HOTWHEELS APPTIVITY

13. Legal
• Operates in a highly regulated environment in the
U.S. and International markets
• Regulated products and importation and exportation of
products

14. FINANCIAL
POSITION
• The Bumpy road
• In 1yr net loss of $431 M
acquisition of The Learning
Company 1999-2000
• 2007 recall cost them $2.3 M
• Now over $6 Billion in annual revenue
• Steady strong gross margins 2009-
present
• Controls 16% of the $20 Billion U.S.
toy market
• Stock price increased 32%,
Shareholder return was 37%
• Barbie sales down
• Highly seasonal
• International segment grew 4%
accounting for 44% of gross sales in
2012 (Europe, Latin America, Asia
Pacific)

15. Licensing Agreements
• Third party permits to utilize the trademark, characteristics, or
inventions of the license in products sold
• Significant product lines to Mattel’s business and operations

16. PRODUCT LINES
AFFILIATED
ORGANIZATIONS
• Large portfolio of brands and
products
• Grouped into 3 categorized
• Mattel Girls and Boys Brand
• Fisher-Price Brands
• American Girl Brands
• Acquisitions and partnerships with
other companies has contributed to
Mattel’s success
• HIT entertainment most recently
• Fisher-Price World Largest in the
infant industry

17. • North American Segment
Mattel Girls & Boys Brands
• To support growth for 2013
• Global Campaign for Barbie
• Monster High televised entertainment/
episodes/ movies
• Tent pole events for Disney for film and
television
• Hot Wheels
• Campaign “World's Best Driver”
• Introducing new product lines
• Matchbox 60th Anniversary campaign
• Product offerings around Big Boots line of
vehicles and figure

18. • Entertainment business include
innovative products for new films
• DC comics, Man of Steel
• Dream Works, Turbo
• Disney’s, Planes
• Product extensions
• Disney’s/ Pixar
• WWE Wrestling
• Max Steel TV Series
• New products
• Games and Puzzles
• Girl Tech Line innovative offerings

19. • Fisher Price
• Joy of Learning Campaign
• Microsites that feature popular
apps, episodes and games
supporting infant Laugh & Learn
Line as well as parenting articles,
• The International Segment
• Same goals that are developed in the
North American Market although
some are developed or adapted in
accordance

20. American Girl Segment
• Sold primarily in the U.S
• Line of historical dolls,
books, and accessories as
well as My American Girl
and Bitty Baby brands
• Publishes best selling
Advice & Activity books
• Award winning American
Girl Magazine

21. Strength of Competitors
• Hasbro, Jakks
Pacific, Lego
• Competitor’s
quarterly
growth
compared to
Mattel
• Hasbro &
Hollywood

22. Repositioning
• “Creating the Future of Play”
• Computer Engineer Barbie
• Fisher Price’s iXL
• Hot Wheels R/C
• American Girl “Girl of the
Year”
• Disney, Pixar, WWE, Thomas
And Friends

23. Philosophy & Logo
• Proactive
• Company-wide logo only
changed once (1969)

24. The End