Mattel: Overcoming Marketing and Manufacturing Challenges
Case Analysis Mattel Company
Shorter University
MGNT 3410
Class 2 Team Assignment
In 1945 the Mattel Company was founded in a California garage by Ruth and Elliot Handler and Matt Matson. The company got its start producing picture frames but soon realized the potential of the toy industry. The company that begun as a garage workshop became a publicly traded company in 1960 and sales exceeded $100 million dollars by 1965. Mattel changed the toy producing business forever by gaining the rights to produce the very popular “Mickey Mouse Club” products. By 1959 Ruth and Elliot Handler has sole possession of the Mattel Company and invented a toy that became famous, the Barbie Doll. Despite being the world’s largest toy company and being added to Forbes Magazine’s 100 best companies to work for in 2012, Mattel has had its share of trouble over the years.
Mattel’s problems can be traces back to the 1990’s. Mattel lost millions of dollars due to decreased sales and poor decisions regarding business acquisitions. Jill Barred became CEO in January 1997 and her management style was very struck, which was unpopular with many employees. During her three year reign as CEO stock prices dropped 60 percent. The Mattel company in based in the United States but is a multinational company. Given this fact not all manufactures based in other countries have adhered to Mattel’s high standards. This has led to claims of unsafe products and recalls of certain toys containing lead paint and parts which could possibly come loose posing a choking hazard. Included in those choking hazards, a magnet, that could lead to fatal complications if swallowed. These problems led to over 21 million recalls and several lawsuits.
Just as any successful company Mattel’s goal is to satisfy their customer’s needs and deliver products that those customers will purchase. Mattel attempts to do so but has at times missed the mark regarding the ever
Shorter University
MGNT 3410
Class 2 Team Assignment
In 1945 the Mattel Company was founded in a California garage by Ruth and Elliot Handler and Matt Matson. The company got its start producing picture frames but soon realized the potential of the toy industry. The company that begun as a garage workshop became a publicly traded company in 1960 and sales exceeded $100 million dollars by 1965. Mattel changed the toy producing business forever by gaining the rights to produce the very popular “Mickey Mouse Club” products. By 1959 Ruth and Elliot Handler has sole possession of the Mattel Company and invented a toy that became famous, the Barbie Doll. Despite being the world’s largest toy company and being added to Forbes Magazine’s 100 best companies to work for in 2012, Mattel has had its share of trouble over the years.
Mattel’s problems can be traces back to the 1990’s. Mattel lost millions of dollars due to decreased sales and poor decisions regarding business acquisitions. Jill Barred became CEO in January 1997 and her management style was very struck, which was unpopular with many employees. During her three year reign as CEO stock prices dropped 60 percent. The Mattel company in based in the United States but is a multinational company. Given this fact not all manufactures based in other countries have adhered to Mattel’s high standards. This has led to claims of unsafe products and recalls of certain toys containing lead paint and parts which could possibly come loose posing a choking hazard. Included in those choking hazards, a magnet, that could lead to fatal complications if swallowed. These problems led to over 21 million recalls and several lawsuits.
Just as any successful company Mattel’s goal is to satisfy their customer’s needs and deliver products that those customers will purchase. Mattel attempts to do so but has at times missed the mark regarding the ever
References: Ferrell, O. C., and Michael D. Hartline. Marketing strategy. 5th ed. Mason: South-Western Cengage Learning, 2011. 457-67. Print