Essay Case Study: Mattel's Brand

Fisher-Price is a children’s toy company, who is owned by the parent company, Mattel. In 2015, Fisher-Price posted annual worldwide sales of $1.85 billion, which was up 7% over the prior year. (Mattel, 2016) With Fisher-Price being a leader in the global toy market, there is a significant opportunity and pressure to unveil and produce new and innovative toys throughout the year, especially in the fourth quarter, which encompasses the holiday season.

Constantly reinventing and differentiating their products from competitors drives Mattel. Barbie has now become a princess herself to reintroduce her to young girls who are already familiar with Disney Princesses (Orr, 2009). Making Barbie a “Princess” increased sales of the Barbie line by two percent in 2006 (Orr, 2009). In 2001, the overtly sexual Bratz Dolls, created by MGA Entertainment, posed a big threat to Barbie and Mattel (Orr, 2009). To distinguish Barbie from Bratz

Mattel, the world’s largest toys company, had been faced with some rough challenges due to some safety scandals revolving toy design and manufacturing in China. During August 2007 Mattel was forced to extremely recall toys due to loose magnets and excess lead found in some of the Mattel toys that posed immediate danger to the children that played with them. “Mattel voluntarily recalled 1.5 million Chinese made, Fisher-Price product, after the company learned that they contained too much lead.” A second recall of Mattel’s most popular items such as Barbie, Batman, Polly Pocket and Doggie Daycare play sets. The items contained small magnets that could fall out of the toy and be swallowed by young children.

Mattel, the largest toy company based on revenues, is the manufacturer of Barbie, Hot Wheels, Matchbox cars and board games. Barbie dolls (Mattel’s flagship brand) were introduced in 1959. With these dolls attracting 7 to 12 year old girls, different varieties of Barbie dolls were released into the toy market. Mattel dominated the toy market till the late 1990s. But in 2001, when MGM’s Bratz dolls were introduced, the realistic look of these dolls attracted girls and they started abandoning Barbie dolls. Now Barbie faces stiff competition not only from Bratz but from Mattel’s own American Girl. Between 2001 and 2004, Barbie sales fell by 27.5% due to stiff competition from Bratz. MGM

Memories of playing with Barbie and her dream house or racing Hot Wheel cars are most often thought about when reflecting on your childhood. Have you ever stopped to think, where those toys were made, or if the company making them is ethical? Most consumers do not however the leaders at Mattel do. Mattel’s leaders know they have an ethical and social responsibility to their customers. Their goal is to produce toys that are not only safe but also made at ethically run production facilities.

Mattel is a leading company in the toy industry created in 1945, which owns a number of iconic toys and renowned brands. Mattel differentiate between core and non-core products, manufacturing its core products in-house and outsourcing non-core products. And core products include Barbie, Hot Wheels products, selective Disney and Fisher Price lines, while non-core products tended to be promotional items, or toys with short life cycles. Currently, Mattel wholly owned manufacturing facilities in China, Malaysia, Indonesia, Mexico, and Italy. It also has a subsidiary—VOA, which manages its outsourced production.

The future of the Star brands are hard to estimate, as these have a short history so far. Mattel acts well in the pre­school market, thanks to Fisher Price (acquired in 1993, and also HIT was aquired in 2011).3 Looking on the brands above, a change can be detected on the brand developement appeared in the last years. Before 2000 toys used to spring from entertainment (Batman, Simpsons, etc.). Nowadays (as the example of Max Steel represents it) entertainment is made to supports the toys.1 This new communication approach was also applied on Barbie dolls from 2003, when the sales decreased significantly: animation film was created with the character of Barbie and its friends. Focusing on Barbie brand its major elements of its brand equity can be presented the following way:

Mattel is a leading company in the toy industry created in 1945, which owns a number of iconic toys and renowned brands. Mattel differentiate between core and non-core products, manufacturing its core products in-house and outsourcing non-core products. And core products include Barbie, Hot Wheels products, selective Disney and Fisher Price lines, while non-core products tended to be promotional items, or toys with short life cycles. Currently, Mattel wholly owned manufacturing facilities in China, Malaysia, Indonesia, Mexico, and Italy. It also has a subsidiary—VOA, which manages its outsourced production.

Besides toys, the company has a wide range of products and services including games, video games, apparel and theme parks - LEGOLAND amusement parks.

The toys industry is very massive. And with time is getting very competitive. Toys in general are important when it comes to growing up and learning things. With toys kids start to learn new things and develop interests from a very young age. There are so many types of toys available in the market like dolls, electronic toys, non-electronic toys and board games. Globally there has been a

MarketLine estimates specialist store sales accounted for 60% of overall industry revenues at almost $1.5 billion. Market growth is expected to remain at almost 9% through 2016 bringing the market to over $3.6 billion. The Indian toy industry is characterized by fragmentation, with growth slowed by the small scale of domestic producers lacking in innovation and less resources to invest in equipment, technology and advertising. Smart Research Insights predicts growth will become stronger due to urbanization, an expanding consumer base and rising income levels. Top players in the Indian toy industry include Hamleys, Funskool India, Hanung Toys & Textiles, Mattel Toys and Ok Play India.

Herbert Hoover once said “children are our most valuable natural resource.” This is becoming less true as the changes of today’s society become less natural and more vulnerable as children become more reliant on technology. We do not live in a country where children develop their own forms of play, but instead they turn to a multitude of different devices to find entertainment.

In fact, the target market should want the offering because it is kid friendly which will engage their children. In addition, the target audience should want Acme’s offerings because they offer complete safety to children because they are wooden made rather than plastic made, which sometimes contain harmful chemicals and toxins (Eco Toys, 2015). Above all, the target market should want Acme’s new offerings because they are durable and last longer which can save the money spent buying toys frequently because they are plastic made.

Now we are providing high quality to domestic and international markets, we need to add new features to our toys and meet the customers’ expectations. As we all know parents focus on their children’s educations. According to experts’ reports, PC based games can cause physical health, creativity, attention, social interaction and motivation problems. With this reason we should produce new educational toys to continue to compete with computer-based games for preschool age children.

In 1998 Mattel acquired the well-established company American Girl Dolls. “American Girl bucked retail trends, expanding its brick-and-mortar footprint while still achieving incredibly high online sales numbers—the highest in the brand’s history. New store economics are strong, nearly doubling the revenue in a given market and bringing in between 50-60% new customers to the brand” (Mattel Toys). American Girl Dolls is in the top 4 doll franchises in the world.