Barbie Round 2

8/8/2019 Barbie Round 2

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ITM Business School, Navi Mumbai

www.itm.edu

MATTELS

1


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About company

1945 ,a garage workshop was the beginning of MatteL 1st product : picture

frames, doll house furniture out of picture frame scraps

Switched to toys due to a patented music box,burp gun, mouse guitar

After strong penetration by 1950 after suggestion of Ruth launch of three

dimensional doll was done to target young girls that was non other ,it was Barbie


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Time line

1960 : within fortunes list of 500 companies

1964 : opening of first international sales office in Switzerland as headquarters

for worldwide market

1968 :introduction of hot wheels

Acquisitions of non toy companies as BARNUM and BAILEY CIRCUS,CIRCUS

WORLD,TURCO,METAFRAME ,RADNITZ PROD.

1970 : entered into electronics, release of gaming platformINTELLEVISION


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1984 : introduction of He man master of universe to capture boyssegment

1987 :maximized core brand and identified core potential and made

accessories l

ine of hot wheels and Barb

ie

1988 : Mattel associated with the Walt Disney company and nowproducts on Disney characters

1993 merging with fisher price

1999 : merging with the Learning company made Mattel ,the secondlargest consumer software company in the world


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CORE PRODUCTS

1. Barbie

2. American girls

3. hot wheels

4. Fisher- price


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PROD NO .1 BARBIE First baby doll sported open toed shoes , a pony

tell,sunglasses,earrings,and zebra stripped bathing suit

Intense demand at retail stores

Barbie sells accounts more than 5

0% sales

Best selling fashion doll in global markets

100 Barbie dolls /2 sec

New target market :girls of older age

Strategy adopted : be anything

From atheletes to computer experts to dreamer


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Make over of Barbie :

1. realm of young girl clothing

2. Smaller chest, larger waist, soft hairstyle reflecting natural femalebody

3. To recapture more customer base and to attract older girls to theBarbie product line ,Barbie line was expanded into computer withBarbie theme


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Product no . 2 American girls

98 pleasant company was acquired ,makers of American girl collectionof historical dolls, book accessories

Sales were through catalogs

Mattel extended base to major chain store like wall-mart and target

Positioning : wholesome and educational image

Target category :g

irls not ha

ving t

iny wa

ist, full upper body l

ikepopular doll

Objective : to replace the feminist view of Barbie as symbol ofAmerica's obsession with unattaible beauty


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Product no 3 hot wheels

Target segment : boys (age 5 15 )

Positioning strategy : avatar of almost every racing circuits in theworlds NASCAR ,F1 , NhRA,CART,AMA

Result: immense popularity ,collects used to have more than 41 hot-wheels cars

Promotional Campaign : hot wheels highway 35 world race

Peel and win sticker with a chance to win 50,000 prizes


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Product no 4.Fisher price

An umbrella brand for all Mattel's infants and pre schools lines acquiredin 93

Brand image : as a trusted brand by parents, appears on everything

from children

s software to eyewear and books to b

icycles

Power wheels ,rescue heroes, rock a- stack, little people are products

Positioning strategies : keeping pace with the interests of todaysfamilies through innovative learning toys and award winning baby gear


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CSR

Responsibilities towards various stakeholders,customers,employees,inverstors,suppliers and community

Mattels demonstrates commitment to economic,legal,ethical and

philanthrop

ic respons

ibilities

Children's social concerns and children's were always kept in mind

Employee rights and safety in manufacturing area


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Different legal system and cultural expections were kept in mind toavoid ethical conflicts.

Assurance to parents about internet safety and privacy

All informations on www.bbb.org i.e better business bureaus web

Encouragement of parents to read and follow suggestions provided bymattel on internet safety


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Problems faced in global market

The Malaysian consumers tried to banned because of non-asianappearance and lack of creativity needed to play with her.

Govt agencies in IRAN opposition ,They confiscated Barbie from toy

stores because of dolls non- Islam

ic character

istics

Western influence, make up, revealing clothes were not wanted insociety where women were not allowed to go pool or beach

In RUSSIA ,ministry banned Barbie and Pokmon

Barbie is under fire because of thought to awaken sexual impulse inminds ofvery young among Russian infants


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SWOT ANALYSIS OFCOMPANY


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Strengths :1. Well established brand name ,world wide image

2.Wide range ofit product

3. Regular re innovation in designs

4. Sum total strength of many companies owned by mergers andacquisitions

5. Ideas with the changing time and demand

6. Have space in consumers heart

7.Company ethical values and serious CSR commitment make potentialpartners ,customers, and other stakeholders to base business decisionon them


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Weaknesses

1. Not getting warm welcome in international market

2. Not able to convince Malaysian market,Iran,Russia

3. Position in mind of people of many countries as it gives sexual impulse in

minds of infants

4. Too many mergers and aquistions


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Opportunities :

1. Buy back stocks

1. to make acquisitions

2. children growing up leaving toys

3. Role of technology in consumer product


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Threats :

1. Conflict in middle east

2. Great deal of sales growth potential in international market

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International sales

Mattel was already rank 1 company, target was to raising internationalsales to 50 % of mattels sales

Strategy followed : focus on global brands ,improved productavailability ,better alignment of world wide marketing and sales planand strong product launches

99 mattel alliance wit Bandai co. the worlds 3rd toy makers

Bandai was responsible for japans sales of mattels products


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customer orientated approach

Main focus on satisfying customers needs and wants

Redesigning of Barbie to reflect a normal athletic woman to meet needof more realistic doll as per demand

Hot wheels with NASCAR logos in attempt to meet consumer demand

Ello product to draw girls to building toys ,which were traditionallymeant for boys

Ello now globally known and used for social plays


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Solutions to problems

Restructuring plan to improve relations with retailers

Focused study on retailers

Visit to warehouses and implementation of new pattern and box shapefor better information flow

Service increased to 90 % and was among consumers best serviceproducts companies


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Globally also serious commitment to business ethics.

Company published ethics audit of each of manufacturing sites andfacilities of primary contractors

Audit indicated not using child labor and forced labor, a prob that NIKEfaced

Issue of code of conduct global manufacturing principles


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conclusion

1. facing many market opportunities and threats

2. children's changing preference from toy to technology

3. purchasing power and consumer needs in global markets

4. success in Barby line ,but weak in financial results

5. Challenges like lackluster economy, low consumer confidence, conflicti

n mi

ddle east

6. Flexible management to make acquisitions ,buy stocks, increase theannual dividend


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Navi Mumbai

Thank you

Documents

Barbie Round 2