MATTELJustin Gamache

Jessica Levstik

Sarah Lutz

Kevin Malone

Lauren Palmer

Winter Thielen

Presented By:

MATTEL

• Began in 1945Began in 1945• Major ProductsMajor Products

– Barbie, Hot Wheels, American Barbie, Hot Wheels, American Girl, and Fischer PriceGirl, and Fischer Price

• Adjustment of leadershipAdjustment of leadership• InternationalInternational• Customer ServiceCustomer Service• Social Social

Responsibility/PhilanthropyResponsibility/Philanthropy

SITUATION ANALYSIS

MATTEL

• HistoryHistory– Corporate StrategiesCorporate Strategies

• Social ResponsibilitySocial Responsibility

• Brand RecognitionBrand Recognition– Barbie, Hot Wheels etc…Barbie, Hot Wheels etc…– Merger/Licensing DealsMerger/Licensing Deals

• New ManagementNew Management• Penetration of International Penetration of International

MarketsMarkets

STRENGTHS

MATTEL

• Overturn of LeadershipOverturn of Leadership

• Unprofitable mergers and Unprofitable mergers and acquisitionsacquisitions

• Loss of popularityLoss of popularity– BarbieBarbie

WEAKNESSES

MATTEL

• International MarketsInternational Markets– Alliance with BandaiAlliance with Bandai

• Weakening of the DollarWeakening of the Dollar

OPPORTUNITIES

MATTEL

• Early abandonment of tangible Early abandonment of tangible toystoys

• Child-Friendly WebsitesChild-Friendly Websites

• RecessionRecession

• Cultural BacklashCultural Backlash

THREATS

MATTEL

• Breaking through cultural Breaking through cultural barriersbarriers

• Product Development for the Product Development for the TweensTweens

• Regaining Market PositionRegaining Market Position

PROBLEM STATEMENT

MATTEL

• AdvantagesAdvantages– No additional costsNo additional costs

MAINTAIN STATUS

ALTERNATIVE I

MATTEL

• DisadvantagesDisadvantages– Slippery brand recognitionSlippery brand recognition– Become a “top-shelf” itemBecome a “top-shelf” item– Will eventually lost all or most of Will eventually lost all or most of

the market sharethe market share

MAINTAIN STATUS

ALTERNATIVE I

MATTEL

STRATEGY II

EXPAND INTO THE TECHNOLOGY

• AdvantagesAdvantages– PublicityPublicity– Cross-PromotionCross-Promotion– Gain subsidiary market shareGain subsidiary market share– Gain market share in a growing Gain market share in a growing

marketmarket– More profitsMore profits

MATTEL

STRATEGY II

EXPAND INTO THE TECHNOLOGY

• DisadvantagesDisadvantages– Takes money away from other Takes money away from other

areasareas– Additional marketing feesAdditional marketing fees– Consumers might not accept Consumers might not accept

Mattel as a technology companyMattel as a technology company– Past failures history against themPast failures history against them

MATTEL

• AdvantagesAdvantages– Publicity/HypePublicity/Hype– Improving foreign marketImproving foreign market– New brand imageNew brand image– Create larger target marketCreate larger target market– Become a family name againBecome a family name again

STRATEGY III

ADD ON/REINNOVATE PRODUCTS

MATTEL

• DisadvantagesDisadvantages– RiskyRisky– Money allocationMoney allocation– Misreading the marketMisreading the market– Market recognitionMarket recognition– New product lines might failNew product lines might fail

STRATEGY III

ADD ON/REINNOVATE PRODUCTS

MATTEL

• AdvantagesAdvantages– PublicityPublicity– Reinforce brand imageReinforce brand image– Create demand for both new and Create demand for both new and

old productsold products

ALTERNATIVE IV

STRENGTHEN ADVERTISING

MATTEL

• DisadvantagesDisadvantages– CostlyCostly– Could create no new demandCould create no new demand– Advertisement could get pulledAdvertisement could get pulled

ALTERNATIVE IV

STRENGTHEN ADVERTISING

MATTEL

• -Strategies 2 & 3: Expand into the -Strategies 2 & 3: Expand into the technology market /Add-on and Re-technology market /Add-on and Re-innovate    innovate    Their Product Lines Their Product Lines -Threat of new entrants -Threat of new entrants    ---Age    ---Age    ---Technology    ---Technology -Strategy 1: Maintain course of -Strategy 1: Maintain course of action action -Strategy 4: Strengthen advertising-Strategy 4: Strengthen advertising

RECOMMENDATION

MATTEL

• CostsCosts– R&D, etc…R&D, etc…

• Past FailuresPast Failures– The Learning CompanyThe Learning Company– IntellevisionIntellevision

• Foreign MarketsForeign Markets– Customizing ProductsCustomizing Products

IMPLEMENTATION