The document provides a SWOT analysis and overview of the marketing strategies of Mattel Inc., a major toy company. It discusses Mattel's strengths such as its brand name and distribution channels. Weaknesses include lack of long-term customer contracts and product differentiation issues. Opportunities include globalization and new leadership. Threats include intense competition and shifting customer preferences. The document also analyzes Mattel using Porter's Five Forces model and a PEST analysis. It provides recommendations such as diversifying products and entering new markets.

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The Mattel Company
Introduction
The Mattel Company, which is one of the major toy manufacturing, designing, and
marketing companies for a majority of family products and toys, has been able to face various
challenges, has its weaknesses, opportunities as well as threats to its operations. The Mattel
Company, started by Elliot Handler and Harold “Matt” Matson, in the year 1945 has been able to
operate in a changing world, where there is tough competition, among other issues affecting the
markets and the global economies (Cincotta et al., 2007, 3). In this section, the major focus shall
be the analysis of the various threats, weaknesses, strengths as well as opportunities available
for, or within the Mattel Company.
SWOT analysis of the Mattel Company
Mattel Inc. has readily available and accessible resources. The company also has various
distribution channels. Mattel Inc. has also established a great brand name, which has had a good
reputation among its customers. The company has a good relationship with its business
stakeholders, which includes the customers, suppliers, producers and even the employees. Mattel

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has a diversification of its products. The company has adopted the low-cost manufacturing
techniques, which have enabled the company to have more revenue returns and produce using
low capital. Other major sources of strengths for the Mattel Inc. are the good public relations, as
well as the availability of the economies of scale for the company (Mattel Inc., 2013, 37).
Mattel Inc., just like any other business organization, it has its weaknesses. One of the
major weaknesses for the Mattel Inc. is the lack of long-term contracts between the company and
the customers. Mattel has the challenges of disputes with other companies and even states, such
as the Bratz, and the Chinese government. Mattel Inc. has also failed to predict the purchases,
causing financial fluctuations within the company. Mattel Inc has failed to differentiate the
products, “teens’ and the “tweens” (Jordi, 2015, Para 5). Mattel Inc does not satisfy its retail
distributors because of underproduction. Licensing dome of the products becomes a major
problem because of the protection of the children’s rights and privacy. There is intense
competition from companies which produce cheap products of low quality, which act as
substitutes for the Mattel Inc. products, hence weakening the company (Vincent, c. 2008, 1).
Poor leadership, which is strict, like the leadership of CEO Barad, who was tough and strict,
causing a decline in the revenue returns for the company.
Mattel Inc. is presented with various opportunities. Some of the major opportunities for
Mattel Inc. include the availability of internet marketing. Globalization has helped Mattel
intensify its production in all parts of the world (Value Line Inc., 2017, Para 3). Mattel Inc. can
relocate its production plants from one point to the other, creating better storage and
transportation facilities for the company. Collaboration with companies which focus on creating
similar and related products intensifies the financial returns for the Mattel Inc. Good leadership

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is an opportunity for the company, such as the leadership of CEO Robert Eckert, who replaced
Barad.
There are various issues, which threaten the existence and the development of Mattel
Company. Some of the threats include the collapse of major markets and the deterioration of
various economies. Fluctuation of currencies like the Venezuela Bolivar and the Chinese Yuan
are also major threats for the Mattel Inc. given that Venezuela and China are major operating
grounds for the company. Increased cases of Mattel Inc. of recalling some of its products due to
various factors is a major threat to the company (Harrison, 2010, 94). Loss of interest in the
children, as they lack leisure time, and they even turn to the internet and online gaming
activities, is a major threat to Mattel. The shift in preferences by the various clients is also a
major blow to Mattel since many children prefer the internet to playing with dolls in the modern
world (Cincotta et al., 2007, 20). Easy market entry by the related companies is a major threat to
the operations of Mattel Inc. The other major blow to Mattel is the bankruptcy declaration by a
majority of its sellers and suppliers, and so, they cannot continue the business operations with
Mattel Inc.
The Porter’s Five Forces Model
The Porter’s Five Forces Model is quite important to the Mattel Inc. The model focuses
on five major issues, which include the entry barriers to the market, rivalry in the market, the
threat of substitutes, buyer bargaining power as well as the supplier bargaining powers (Indiatsy
et al., 2014, 78). There is an intense rivalry in the production of dolls, especially between the
Bratz Company and Mattel Inc. which threatens the company operations. The economy has been
open for a long period, and so, it is easy for other companies to venture into the production of

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products, related to the ones produced by Mattel Inc. The buyers have a major bargaining power,
which is based on the availability of other activities, which can create a similar satisfaction, such
as the availability of the internet, and other related products. There are issues, such as the ones
directed to Mattel Company by its suppliers, who want an increase in their revenues and even the
demand to recover their spent money (Cafferky, 2005, 8). The major threat to Mattel Inc. is the
availability of rival products, which act as substitutes, especially the ones made by the Bratz
Company.
PEST analysis for the Mattel Company
The PEST Analysis is a major point of reference for many companies, which puts into
consideration the political factors, economic factors, the social as well as the technological
factors (Ho, 2014, 6479). Mattel Inc. has put into consideration all the political factors, by
establishing a major connection between the company operations, and respecting the local as
well as the international laws. The company has also put into consideration all the economic
factors, by ensuring that it produces highly competitive products, such as the Barbie and the
American Girl dolls. The company also respects the rights and privacy of its employees, as well
as its customers. The social factors also play a major role in Mattel’s Plan, where the company
has sponsored various social activities such as the Mattel’s Children Foundation, Mattel’s
Children Hospital (UCLA) at Los Angeles, as well as the Mattel’s Volunteers; Happy to Help
Program. Mattel has also considered the technological factors, by putting into consideration all
the technological safety of its clients, as well as in its production processes (Abdullah &
Shamsher, 2011, 4).

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Strategic Marketing for the Mattel Company
Mattel Inc. has been able to adopt various marketing strategies, which ensure that, it sells
its products to a majority of the people all over the world. Mattel Inc. has incorporated parents in
the matters of marketing for the company’s products, especially via the online platforms. The
company protects the rights and the privacy of children, which gives the parents and the
guardians’ confidence. Mattel Inc. has adopted ethical business operations, where, it has
conducted audits in all its business premises to ensure that there were no cases of child labor or
forced labor. Mattel has created a good name for its company, by showing authenticity and
legality. Mattel’s independent audit council ensures that there is a guarantee of human safety and
the protection of human rights in all business joints related to Mattel Inc. The Global
Manufacturing Principles of 1997 aims to show favor to businesses which protect human rights
and ensure that its employees are secure and do not get forced to work. Mattel Inc. has also
ensured that its associates adhere to various stipulated laws within the company. All stakeholders
must adhere to the laws wage policies, working schedules, consideration of bylaws and other
local laws, as well as the creation of safety and protection measures for all its employees (Palmer
et al., c. 2010, 5).
Mattel Inc. has also created responsibility for all its stakeholders in the business
operations and also promotes and improves the capacities of its employees. Mattel’s stakeholders
must portray the ability to uphold and even promote the principles of Mattel Company and
operate within the stipulated laws of the state as well as the international laws. The partners also
adhere to the Mattel’s Global Manufacturing Principles, enabling Mattel to have access to the
business records and even allow basic inspections of its operations by Mattel Inc. officials.
Mattel Inc. has helped the society by creating the Mattel Children’s Foundation of 1978, the

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Mattel Children’s Hospital at the University of California, Los Angeles (UCLA), Family
Learning Program, as well as the promotion of gift kits for the UCLA facility. Mattel Inc. has
also focused on the creation and the sustenance of the Mattel Volunteers: Happy to Help
program as well as adherence to the various laws. The company has also been able to promote
human rights and protection of its employees, by observing the minimum wages, working hours
among other factors (Cincotta et al., 2007, 8).
Marketing Strategy of Mattel Company
Marketing strategies are the plans which are set and used by the companies and other
businesses to ensure they get the highest number of customers, making profits as well as
ensuring that it adheres to the various factors of the markets. Marketing strategies also include all
the business set goals and objectives, whose major aim is to increase the level of revenue returns
and increase the competitive business advantage in the market (Kanagal, 2015, 3).
Mattel Inc. has diversified its products, which make it possible for the business to create
more profits and increase the number of clients. Mattel Inc. has adopted rapid and fast changes to
its production and marketing of its products for marketing and production purposes, such as in
the Barbie doll, Mattel Inc. changed to produce another doll, for the younger girls, who looked
younger and tendered, due to pressure from Bratz Company. Mattel Inc. wanted to sustain
market competitiveness and ensure that it recovered the 15% revenue decline in the sales of the
Barbie doll due to competition from the Bratz Company and losses made during CEO Barad’s
rule.

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Mattel Inc. has put into consideration various factors, such as the political factors, the
economic factors, the social and the technological factors. Other factors of importance include
the legal and environmental factors. Mattel Inc. has adopted the customized target strategies,
where the products produced, such as the Barbie doll and the American Girl doll, are made
specifically for young girls. Mattel Inc. keeps a good track of the customer needs and desires,
which is ensured via the differentiated strategy, where each group of clients has their products,
with a certain characteristic. The 3C’s strategy has been important to Mattel Inc. Giving major
importance to the customers, competitors and the corporation. Mattel Inc. Ensures customer
satisfaction is attained, by producing high-quality products and even the products which meet the
demand of the customers. Mattel Inc. keeps its operations ahead of its competitors, in all the
business operations. Setting itself within the set national and international rules and regulations,
Mattel has found it easy to deal and operate with various authorities all over the world (Thorne et
al., c. 2010, 374).
Recommendations for the Future Marketing Strategy
For Mattel Inc. to ensure that it protects its business and marketing position, given that
there are various challenges within the market, there are various factors to put into consideration.
Some of the factors to put into consideration include the development of a real-life marketing
strategy, where there is the application of marketing common-sense, staying ahead of the
competitor and ensuring that products produced reflect on the needs of the customers. Another
recommendation, which applies to the marketing strategy, is the adoption of the market
protection mechanisms, better product diversification, development of products which move with
time, as well as ensuring that there is the development of the products with higher demand, such

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as the Barbie doll and the American girl. The company should also try t venture in other markets,
such as the African continent, where the people have not yet developed into the internet era.
There should be intensification, diversification, integration as well as the categorization of all
products developed by the company.
Conclusion
Mattel Inc. Is one of the major companies in the world, and so, it needs to adopt various
strategies to ensure it keeps itself within the guidelines of the global market. However, the
company should not forget to put into consideration the various factors which have kept it
moving. Customer satisfaction, operations within the set laws as well as the production of high-
quality products should never escape the plans of the company. However, getting new and more
clients, the company needs to venture into other markets, such as the African and the Asian
continent, where children have not been affected by the internet and ensure that it sells its
products from there. Mattel Inc. can also ensure that it promotes good societal relations, and even
lower the prices of its products.

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