Mattel vs Hasbro
Mattel:
History:
Mattel was founded in 1945 by Matt Matson and Elliot and Ruth Handler as a picture frame manufacturing company. The name Mattel was derived from a combination of the two names, Matt and Elliot. They operated out of a garage in Southern California. Handler then recognized an opportunity and began to manufacture dollhouse furniture with scrap material from the picture frame business. Matson quickly sold out to the Handlers who then changed the focus of the business to toys. In 1955 Mattel changed the way toy companies advertise. Up until this point, toy manufacturers relied on retailers to showcase and sell their
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They also currently have the licensing rights to Warner Brothers – including Harry Potter, Batman, Superman, and Looney Tunes – as well as the Disney Princesses and Sesame Street. Mattel divides their operating segments on a geographic basis between Domestic and International. The Domestic segment is then divided into 3 categories:
1. Mattel Girls and Boys Brands, US. This includes the Barbie line, Polly Pocket, Hot Wheels, WWE, etc.
2. Fisher Price Brands, US. This includes the Fisher Price brand, Dora the Explorer, Power Wheels, etc.
3. American Girl Brands. Including the American Girl Doll brand and Bitty Baby.
The International segment sells products from all categories except for American Girl Doll brands. They are not available overseas.
Internationalization:
Mattel prides itself on their ability to bring play to children around the world. International business represents more than 50% of gross revenues for many of their key brands. To grow these markets, they concentrate on investing in infrastructure, building brand awareness, and establishing their brands as the “aspirational” brands in the market. Currently they market 80% of their products globally. Only 20% are geared to individual country markets. When they launch a new global product, it is done simultaneously in many countries. For example,
Sales in Asia could help combat Mattel’s plateauing market in the United States. The company seemed like it was in a strong position.
It’s not news that Sony is a global company or that (25%) of all Play Station profits’ for the past seven years came from Sony to Japan. After all that’s what international marketing and the global economy are all about, companies like Sega, Nintendo, Microsoft, X-Box doing business around the world. The global economy now reaches every corner of the United States. Current interest in international marketing can be explained by changing competitive structures coupled with shifts in demand characteristics in markets throughout the world. With the increasing globalization of markets, companies find they are unavoidably enmeshed with foreign customers, competitors and suppliers. A significant portion of all products made in the United
An alternative strategy is for Mattel to expand into the technology market and add-on/re-innovate their existing product lines. Mattel has made many of the same products since it was established, with the exception of picture frames and doll furniture, which were short lived products. Barbie has changed a little bit, but other than that, the products have remained unaltered. In order to have a competitive advantage, Mattel needs to grow with the market. As of
Mattel, Inc has the vision of being the world’s premier toy brand, for the present and the future. It currently sells products in over 150 nations. The company was founded in 1945 by Harold Matson and Elliot Handler. It has gone to be 30,000 employees strong working in 43 countries. Mattel, Inc includes a number of toy brands such as Barbie, Fisher Price, Hot Wheels, American Girl, Tyco, and others. In 2008, the company was recognized by FORTUNE magazine as one of the “100 Best Companies to Work For”.
If you could market for any brand in the world, what would it be and why? (Please keep answer succinct; 2-5 sentences)
second largest toy market. A “category killer” that enjoyed phenomenal success in the United States
Mattel is a global toy company that has been around since 1949. They are the company that introduced Barbie and Hot Wheels to the world as well as many others toys. Mattel has license agreements with Walt Disney and Nickelodeon. In
Of the five, Disney is perhaps the most famous because generations of children have grown up with its cartoon characters.
Audience. It may appear that Disney’s target audience is primarily children, but with its vast assets Disney’s products reach the full spectrum of audiences from preschoolers to adults. Disney products include television programs, books, magazines, musical recordings and movies (David, 2013). Disney Channels Worldwide is comprised of 94 kid and family entertainment channels available in 169 countries (David, 2013) ABC Family is a mixture of TV series and movies targeted towards young adults and families. SOAPnet owns character driven “soapy drama” from daytime and primetime soaps to reality shows and movies, targeted at women and adults. Hyperion publishes fiction and nonfiction titles for adults (David, 2013). Radio Disney is available in more than 40 U.S. markets and on satellite radio, mobile apps and the web (David, 2013). Disney’s Consumer Products segment includes worldwide licenses, manufacturers and retailers who design and sell a variety of products based on Disney characters. These products include character merchandise and publications licensing, books, magazines and the Disney Store (Hellman, 2013). The impact of having this diversified group of outlets is shown by its large earning shares.
• • • • • • • Name – Coleco Industries Time – the end of 1980s Industry – toys Market - USA Market share – the fifth-largest manufacturer in the USA Head quarter - West HartFord, Connecticut Production line – Cabbage Patch Kids
Through studying the entire retail toy industry, we have been able to understand the complexity of the industry in which Toys "R" Us operates. Upon completion of the analysis, we realized that the industry is growing stably,
LEGO, like most companies in the toy industry are fighting to stay profitable in this
There are many barriers to new organizations in the toy industry, making the threat of new entrants low. Lego and other big toy companies like Mattel benefit from economies of scale. An economy of scale is achieved by lower costs through large volume production (Textbook glossary). Economies of scale can occur in many departments within the organization including production, marketing, research and development, and finance. Some manufacturing of Lego products was shifted to Central Europe and Mexico in order to benefit from lower wages and to shorten product supply chains (p. 13 of case). The management of Lego additionally holds expertise on production, distribution and customer needs; which are absent in a new organization. To enter the toy sector a potential entrant needs to calculate the start of production at a level that will give a competitive position and production costs lower than the market.
toy or children's entertainment market Lego remains the brand of choice in the field of construction toys despite
A global brands are brands that are recognized throughout much of the world. Companies that are a global brand tend to be known to identify the relative attractiveness of their market and find ways to make themselves distinctive. · These global brands conduct themselves with an attitude and usually have researched and studied in each country in which they are considering entering. When companies become a global brand they tend to have the brand name of a product that has worldwide recognition. A global brand has the advantage of economies of scale in terms of production, recognition, and packaging. Through this paper we will take a further look into three very different global brands that has dominated the world we know today. They are as followed Disney Inc., Fed Ex and bank of America. Each in very different markets but have all successfully gone global.