This document analyzes the situation of Mattel, a toy company headquartered in California that sells toys globally through mass retailers and toy stores. It discusses Mattel's product lines, international presence, pricing strategy, and promotional activities. It also performs a SWOT and external analysis, and identifies Mattel's flat sales growth compared to competitors as a problem. Three solutions are proposed: continuing to strengthen Barbie through new campaigns and stores; expanding internationally; and launching a new marketing campaign educating parents on the benefits of toys. The decision is to combine these strategies to strengthen Mattel's brands, enter new markets, and revamp advertising.

2. Situation Analysis

3. Full lines of toys for various ages both educational and traditional Barbie Fisher-Price American Girl Hot Wheels Tyco Toys Walt Disney Product

4. Place Headquartered in El Segundo, California Offices in 36 different countries Sold in 155 Nations Mass retailers Toy stores

5. Price Competitive for some brands Barbie Hotwheels Less competitive for some American Girls

6. Promotion Television Print (children’s magazines) Licensing brand integration (Disney) In store displays Website Catalog for American Girl

7. Internal Structure Strong with new CEO Successful acquisitions Bringing more design in house Volunteerism Gift Matching

8. SWOT

9. Strengths

10. Weaknesses

11. Opportunities

12. Threats

13. External Analysis Political/Legal Lead paint rules and analysis Importing tariffs Laws regulating advertising to children countries that ban products because of the potential ideas they promote Social/Cultural Parents tight on money choose off brands and knockoffs of Mattel toys instead Emphasis on educational toys People are concerned with businesses being socially responsible-good for Mattel

14. External Analysis Economic families sometimes skip more toys for their children-they go to dollar general Demographic Children getting older younger and younger, and using internet toys and social networking to play Technological Cheaper and better working electronic components New abilities Mind control Better manufacturing Supply chain control

15. Competitive Analysis Popularity of Bratz dolls Very competitive marketplace Very affected by advertising done and where constantly changing Short product life cycle

16. Problem

17. Mattel is experiencing flat sales growth in their various product lines compared to competitors.

18. Solutions

19. 1 Continue Barbie Style Campaign with designers Barbie PR Parties Continue “Barbie I can Be…” dolls Eliminate Barbie Mini B line of Bratz knockoffs Create Barbie Flagship stores in the US Base off of Shanghai Unique architecture Events Merchandise Travel Destinations Exclusive Lines New Barbie Campaign

20. Go Abroad Conduct Market Research Design and alter products to the market Expand Toy line Internationally Partner with Toy distributors Decrease Shipping cost

21. New Marketing Campaign Focus on Educating Parents about: Benefits of Kids playing with toys How Parents can play with kids Strengthens: Perceived Value of toys Brand loyalty Differentiation from competition

22. Decision

23. Combination Strategy Strengthens the overall Mattel brand bringing new life and reinvention to mature products via: Strengthening the individual brands (solution one) Entering into emerging markets (solution two) Revamping advertising to promote benefits of their products to parents (solution 3)