The Success Of The Barbie Doll

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In 2007, global toy sales were $71.96 billion USD with approximately 900 companies competing for market share. The industry was dominated by a few major players, such as Mattel, Hasbro, LEGO and RC2. Mattel and Hasbro’s sales alone accounted for over 12% of global sales. By 2007, most toy production occurred in China. So much in fact, that nearly 85% of all toys sold in North America were imported from China. Mattel was the industry leader up until very recently and witnessed many successes in terms of its products and globalization.
Much of Mattel 's success comes from its strong branding. From the 1959 introduction of the Barbie Doll® to the introduction of Hot Wheels® in 1968, Mattel was destined to be an industry leader. Barbie® was a …show more content…

One of the major contributions to Mattel’s success was that they owned and operated the facilities that produced its main toys. These main toys, also called core products, were toys from Mattel’s most popular and successful brands, such as Barbie and Hot Wheels. The other products, which made up roughly half of Mattel’s revenues included products with a short life cycle, such as character products from Disney movies. Even though running their own factories cost Mattel more money, it gives them more control of the quality of their products and the working environment. Mattel had contracts with thirty seven manufacturers in China to produce their non-core products and each manufacturer needed to meet and uphold Mattel’s safety rules and regulations. Mattel provided chosen manufacturers with the finances to tool the factories in order to produce its products and three, sometimes more, small batch runs were conducted. Once factories were set up and it was proven that everything was in working order, they ran a pilot test of 1,000 units. If the toys complied with company and international standards, production in large quantities would begin. These external manufacturers needed to have any of the supplies or raw materials they were going to use purchased from a list of certified Mattel suppliers or tested for compliance if purchased from a vendor that was not certified. Another key to Mattel 's success

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