Introduction
Mattel, a US Toy manufacturing company, is the subject of this case study. The company’s marketing experience is being studied and analyzed specifically in regard to its challenges in term of competition with MGA, Hot Wheels, and sub-cidery company Fisher-Price, and their failure with Barbie’s marketing and sales.
The case also focusing on Mattel’s strategic changes and the impact of the management style on main business results, especially when comparing 2 different eras of CEO’s whereas the first had a strong positive impact on staff discipline companying decreased business results, and the 2ndd has a long term business strategy which showed great positive business results.
SWOT analysis (SWOT Matrix)
Internal
Strengths Weaknesses
1. Market Position is very high, and big brand name as one of the largest toy company in the world.
2. Diverse line of products in its portfolio, owning brands like include Fisher Price,
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Good advertising and branding through TVCs, online presence and print ads 1. Barbie
2. toxic toys
3. Merchandising Deals
4. Tech Offerings
5. Management in Flux and incompatible managers
6. Involved in a lot of controversies like toxic toys which hurt the brand image
7. Fake products easily available in the market leading to loss of revenue
External
Opportunities Threats
1. Cost Cutting through streamlining of the manufacturing base. There is a potential to tap into comic and movie franchises
2. Licensing in terms of acquiring the toy rights to characters from hit TV shows and films
1. Emerging Markets like India, China and Russia
2. Reaching out by organizing contests on existing franchises
3. Can utilize holograms or whatever makes imitation not easy 1. Digital Gaming (like Video and Internet games)
2. Hasbro and other competitors (Bandai, Toys, Bandai, and McFarlane toys)
3. Cartoon channels
4. Outdoor games
Possible strategic initiatives that Mattel could pursue to continue its growth
1. Place Mix & Price in the Marketing of
A SWOT analysis looks at a company’s strengths, weaknesses, opportunities and threats. The following is a SWOT analysis of Petco, a well known company that provides the common products that pet owners would need. Taking a deeper look into how they got started, what their strengths, weaknesses, opportunities and threats are in the prosperous market place that has a high demand for pet products in today’s culture that are reliable and inexpensive.
Premium brand name, proven management team, lower costs/ higher margins, diverse workforce, higher consumer demand. I think these are definitely likely to change simply cause who knows how long you can maintain a low cost, high margin company. Anything can happen.
products, have attracted a lot of customers throughout the world. The company has a huge
- Intangible resources: With its strong presence in market place, Goodwill enjoys a reputation as the leader in the used merchandise division.
company and the industry is based on trends that are constantly changing to the next big hit. The
Net income increased from $93 million in 1984 to $445 million in 1987, so Disney increased its net income more than four times after Eisner’s takeover in the first four years. Much of this incredible success is due to Eisner’s tough leadership, brand management and his corporate strategies. He not only brought the company back on track, but also made sure, that Disney did not loose its sight in his own corporate values (quality, creativity, entrepreneurship and teamwork) (1, p. 4). Much of Disney’s success in the first four years under Eisner was due to the strategies of simultaneously “managing creativity” and keeping an eye on costs due to well-defined financial objectives (1, p.4). What’s more, Disney
In the past, the toy business was just an annex of the publishing industry. Little effort was invested in toys which were not even mentioned strategic plans. Now the toy industry is the second-highest profit maker in Marvel, generating over $20 billion in sales in 2003. The toy business is very promising in the future. However its percentage in revenue will still remain stable or slightly decrease, just as publishing will do, because licensing has such a strong possibility for growth. In addition, while the toy industry competition is too fierce to permit further achievements.
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The problem surrounding Mattel Inc. is their mismanagement of international subcontractors and vendors and the production of certain toys (the manufacturing process), as well as their inability to adapt their marketing strategy or product to the constantly changing “demographic and socioeconomic trends.” This is supported by Mattel’s legal battle with Carter Bryant and MGA, their forced recall of certain toys that were manufactured overseas, and the increasing rate at which traditional toys are becoming less appealing to today’s young audience. Essentially, Mattel’s mismanagement and oversight lead to violations in terms of ethical and social responsibilities and safety standards.
Hasbro conducts business within the Toy, Game and Doll Manufacturing industry. They have strong, brand portfolio that they utilize in a wide variety of entertainment mediums. Hasbro categorizes their brands into four categories which they call their brand architecture: franchise, partner, gaming mega, and challenger brands. Their franchise brands are owned by them and they currently make most of their revenue from these brands. However, their partner brands are quickly becoming more important to their business as a majority the company’s growth recently has come from new ones. In addition to the brand architecture, they report the financial performance of their brands by grouping them into four different categories: boys, girls, games, and preschool. Boys and games has been a majority of their business mostly, but that is beginning to change recently as their girl brands are beginning to grow. (10K and Hasbro quarterly reports).Hasbro is a global company that has sales around the world. They report their sales in four segments: US/ Canada, International, Entertainment and Licensing, and Global Operations. The International segment is further segmented into Europe, Latin America, and Asia/Pacific, where they directly operate (10K). Within these segments and brands, it is difficult to identify which toys and games are their core items because they have almost 2,700 individual products that they currently sell in addition to their non-toy items, digital games,
1. About Disney Difference and how it will affect the company’s corporate, competitive, and function strategies.
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Conclusion: The entry of Toys “R” Us would shake the traditional Japanese toy business, however the cracks appearing in the retail structure points towards the need for transformation in the Japanese market. Hence Toys “R” Us potentially is a good prospect for the Japanese markets.