Final Marketing Mattel

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PROJECT REPORTON

TOPIC:- Mattel- BarbieMarketing Management Project

Project Report

Submitted to Management Department, ITM University, GwaliorFor the Fulfillment of 2nd Trimester

SUBMITTED TO:- ITM UNIVERSITY SUBMITTED BY:-

PUNEET GUPTA

PRADEEP KUMAR

MANISH SINGH

MD ATIULLA KHAN

SAGAR JADHAV


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ACKNOWLEDGEMENT

It is my pleasant duty to express my profound gratitude and extreme regards to my Dr. K.C

Prakash without whose learned and able guidance and encouragement, this work would not have

been completed.

I would even like to thank my friends for the help they did to complete this project.


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Table Of Contents

Contents

Mattel Description

Barbie Description & History

Barbie- Product

Barbie- Price

Barbie- Promotion

Barbie- Place

Consumer Segmentation and targeting

MARKET PROFILE

FINANCIAL OVERVIEW

Suggestion


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Mattel

BeginningMattel was formed in 1945. Its founders were Ruth and Elliott Handler and Harold "Matt" Matson(Mattel is a combination of Elliott and Matt's names). The company started out in wood productsand soon branched out into toys. Their very first toy was dollhouse furniture created from woodscraps left over from frame making. The Handlers bought out Matson long before Barbie wascreated.

A Brief History of Mattel:Mattel sold toys through the 1950s, including wood and musical toys. Mattel became a householdname with parents and children alike with the introduction of Barbie in 1959, at Toy Fair in New

York. The Handlers were brilliant marketers, and used television advertising on children'stelevisionshows to expertly market Barbie and a host of their other products directly to children. Barbie'spopularity declined at the end of the 1960s, and so did Mattel's fortunes and Mattel nearly gobankrupt. Through constant re-invention of Barbie and the rising popularity of lines including HotWheels, the company thrives today.

Mattel's Product Line:In addition to Barbie, Mattel makes popular toys including Hot Wheels, Fisher Price toys including

TMX Elmo, and American Girl dolls through their Pleasant Company subsidiary. Other well-knowntoys include Polly Pockets, Matchbox cars, UNO games, and Power Wheels.

Mattel is a publicly traded company. Its stock is traded by the NYSE with the symbol MAT.

The company is located in Hawthorne, California.

Mattel's dolls and toys are sold in nearly every country in the world. Mattel has roughly fifty officeslocated in North and South America, Europe and Asia.


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BarbieBarbie is a fashion doll manufactured by the American toy-company Mattel, Inc. and launched in

March 1959. American businesswoman Ruth Handler is credited with the creation of the doll using

a

German doll called Bild Lilli as her inspiration.

Barbie is the figure head of a brand of Mattel dolls and accessories, including other familymembers

and collectible dolls. Barbie has been an important part of the toy fashion doll market for fifty

years,

and has been the subject of numerous controversies and lawsuits, often involving parody of the

doll

and her lifestyle.

HistoryThe original Barbie was launched in March 1959.

Ruth Handler watched her daughter Barbara play with paper dolls, andnoticed that she often enjoyed giving them adult roles. At the time, most

children's toy dolls were representations of infants. Realizing that there

could be a gap in the market, Handler suggested the idea of an adult-

bodied doll to her husband Elliot, a co-founder of the Mattel toy

company. He was unenthusiastic about the idea, as were Mattel's

directors.

During a trip to Europe in 1956 with her children Barbara and Kenneth,

Ruth Handler came across a German toy doll called Bild Lilli. The adult-

figured doll was exactly what Handler had in mind, so she purchased threeof them. She gave one to her daughter and took the others back to

Mattel. The Lilli doll was based on a popular character appearing in a

comic strip drawn by Reinhard Beuthin for the newspaper Die Bild-

Figure 1: First everBarbiedisplayed in 1959

Zeitung. Lilli was a blonde bombshell, a working girl who knewwhat she

wanted and was not above using men to get it. The Lilli doll was

first sold

in Germany in 1955, and although it was initially sold to adults, it became

popular with children who enjoyed dressing her up in outfits that were available separately.

Upon her return to the United States, Handler reworked the design of the doll (with help from

engineer Jack Ryan) and the doll was given a new name, Barbie, after Handler's daughter Barbara.

The doll made its debut at the American International Toy Fair in New York on March 9, 1959. This

date is also used as Barbie's official birthday.


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Mattel acquired the rights to the Bild Lilli doll in 1964 and production of Lilli was stopped. The first

Barbie doll wore a black and white zebra striped swimsuit and signature topknot ponytail, and was

available as either a blonde or brunette. The doll was marketed as a "Teen-age Fashion Model,"

with

her clothes created by Mattel fashion designer Charlotte Johnson. The first Barbie dolls were

manufactured in Japan, with their clothes hand-stitched by Japanese homeworkers. Around

350,000

Barbie dolls were sold during the first year of production.

Ruth Handler believed that it was important for Barbie to have an adult appearance, and early

market research showed that some parents were unhappy about the doll's chest, which had

distinct

breasts. Barbie's appearance has been changed many times, most notably in 1971 when the doll's

eyes were adjusted to look forwards rather than having the demure sideways glance of the original

model.

Barbie was one of the first toys to have a marketing strategy based extensively on television

advertising, which has been copied widely by other toys. It is estimated that over a billion Barbie

dolls have been sold worldwide in over 150 countries, with Mattel claiming that three Barbie dolls

are sold every second.

The standard range of Barbie dolls and related accessories are manufactured to approximately 1/6

scale, which is also known as playscale. The standard dolls are approximately 11 1/2 inches tall.

Barbie products include not only the range of dolls with their clothes and accessories, but also a

large range of Barbie branded goods such as books, apparel, cosmetics and video games. Barbiehas

appeared in a series of animated films and is a supporting character in Toy Story 2 and Toy Story

3.

Barbie has become a cultural icon and has been given honours that are rare in the toy world. In

1974, a section of Times Square in New York City was renamed Barbie Boulevard for a week. In

1985,

the artist Andy Warhol created a painting of Barbie.


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Barbie- Product

Barbie as a brand is having a product line as mentioned below:

Barbie Dolls.Barbie Accessories.Barbie Clothing.

Barbie Dolls: Barbie is, almost universally, 11.5 inches tall, and she has been this size since herinception. However, there have been Supersize Barbie dolls which are the size of a small child aswell. Ken is generally 12 inches tall, and Skipper (Barbies Little Sist er) 10 inches (check!). Barbiehashad a few shorter friends and relations as well, including vintage Francie and Casey at 10.5inches).

Barbie Accessories: It is offering many kind of accessories for the decoration of barbie as well asforthe normal girls e.g. Barbies range of Back -to-School bags which are offered at many retailoutlets

have created buzz among young girls.

Barbie Clothing: The clothing line covers the clothes for the doll. Now as girls like to decoratetheirdolls, so Barbie came up wit h the clothing line to exploit the accessories market as well. Itsclothingline have been awarded tp The Shirt Collection to retail among its stores in Mumbai.

Barbie came up with various variants and designs of dolls. To capture Indian market,they launched a new doll in 1982 known as Indian Barbie. It was one of the first

brown Barbies of the International Collection (now known as Dolls of the World.).

As being sold on one of the leading website below are the product detailsof Mattel Barbie in Indian Avataar Doll

Product Details

Mattel games with the expressions of India series.The doll is a modelled in "Indian Avataar".Barbie looks breathtakingly beautiful in her Indian avataar.

Figure 3: Barbie in

jewellery that gets heads turning. Indian AvataarBring home the gorgeous Barbie in India and celebrate in Indian style.Contents: Dressed doll, shoes and hair brush.


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Colour AssortedHeight 11.5 InchesWidth 1.8 InchesDepth 1.5 Inches

Her wardrobe has colorful sarees draped stylishly and ethnic Indian

General Features

This shows the customization in product according to the Indian market theyve brought.


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Barbie- Price

In comparison to commodities, the prices of toys have

always been secondary to the consumers. On the otherhand it also plays an important role in the sales and shares

of the product in the market.

In the case of Barbie it dominates the doll industry for more

than 40 years and several competitors were unable to

withstand the popularity of Barbie dolls however the

entrance of Bratz became a threat to Barbie dolls.

Although, the price is only secondary to consumers of dolls,

they still make sure that they get the appropriate value for

their products.

Since we are talking about Indian markets, they set the

prices of their products, keeping in mind the diversification

and the consumer buyer behaviour. Due to which if we

check the Indian market the prices range between `100 tohuge product mix that they comprise.

The Barbie Doll shown in Product section is for the offer price of 479/- only. This doll isspecially

customized according to Indian markets and still priced low to get into the affordability

comfort zoneof Indian middle class.


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Barbie - Promotion

Mattel have created Barbie a separate brand and never let the brand image of Barbie effectthe

brand image of its parent company.

It has never followed an aggressive marketing strategy as it has always believed on its brandvalue.

However, it does the online promotion. Its being promoted by Indians leading retail store Big

Bazaar online for sale.

At 50th Anniversary, Barbie has endorsed Bollywood actress

Katrina Kaif as their brand ambassador. Katrina Kaif unveiled the

new Barbie collection in Lakme Fashion Week in 2009. She hasalso been approached to be waxed as Barbie Doll for New York

museumac. This has endorsement has given the rise in the

visibility and popularity of the brand a boost. In Lakme Fasion

Week, Katrina Kaif dressed up like a Barbie doll to create buzz in

media and increase the popularity of the brand.

Mattel has awarded The Shirt Company (TSC) to retail the

Barbie clothing collection among its 3 showrooms. It is entering

They have never done aggressive marketing but through online

ads, they are promoting sales.

Figure 5: Katrina Kaif handling Barbie to

young girl

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Figure 6: Katrina Kaif in Lakme Fashion Week2009

Figure 7: Katrina Kaif unveils new collection ofBarbie Dolls

dressed up as Barbie


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Barbie - Place

Barbie dolls do not have their own store and therefore relies on the retailers. Having an own retail

store will definitely generate more sales and market share because all of the designs and styles ofBarbie dolls are displayed and there are more choices to choose from unlike in retail stores

wherein

the shelf space is limited.

They are selling through various online websites. Following are some of them:

http://www.infibeam.com/

http://www.indiangifthouse.com/

http://shopping.rediff.com/shopping/index.html

http://shopping.indiatimes.com/

http://www.naaptol.com/

http://www.homeshop18.com/

http://www.exoticindiaart.com

Some of the offline selling units of Barbie are mentioned as below:

Mom N Me, Himayat Nagar, Hyderabad.

New Born Shoppee, Kondpur, Hyderabad.

Babies Wonderland, Banjara Hills, Hyderabad.

Appis Collection, Madhapur, Hyderabad.
http://www.infibeam.com/http://www.indiangifthouse.com/http://shopping.rediff.com/shopping/index.htmlhttp://shopping.indiatimes.com/http://www.naaptol.com/http://www.homeshop18.com/http://www.exoticindiaart.com/http://www.indiangifthouse.com/http://shopping.rediff.com/shopping/index.htmlhttp://shopping.indiatimes.com/http://www.naaptol.com/http://www.homeshop18.com/http://www.exoticindiaart.com/http://www.infibeam.com/


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Consumer segmentasion and targeting


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By

By this cluster in 1st segment we see that fashion is so important simple fashion is so demandable bycustomer because if we use simple fashion then we dont have to pay high price.

In 2nd medium price is so good , so we have to develop the product with medium price sothat everyone easly buy our product.And so on.


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POSITIONING:-

Acoording to the diagram we devide the product in to four quadrant :- ist is ( +ve +ve) , 2nd is ( +venegative) 3rd is (negative negative) and 4th is (negative, positive)

And we devide the segment according to the fashion and price. We se that teddy has a positive impactbecause of fashion and low price teddy is so popular.

And if we see negative relation then cars and Barbie comes under this because of high price.


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MARKET PROFILETrends and Forces

Video Games vs. Traditional ToysToy sales in the U.S. have been growing at a very low rate for the last few years, mainly due to the shiftfrom traditional toys towards video games. Mattel does own the digital gaming company Radica, but

Radica produces handheld electronic games (such as electronic devices that offer games such as 20Questions, Checkers, etc) while the major growth in electronic games is in console gaming (Sony'sPlayStation3, Microsoft's Xbox 360 and Nintendo's Wii). Without a major foray into video gaming, Mattelcould stand to lose significant market share as youth turn to digital entertainment over traditional toys.

Importance of Oil PricesA considerable amount of Mattel's manufacturing cost comes from plastic resin, which accounts forapproximately one-quarter of cost of goods sold. In recent years, resin prices have soared because of a risein prices of its key component: petroleum. These price movements cause the price of manufacturing plastic-

based toys rise, in turnhurting Mattel's profit margins. This effect is augmented because oil prices play aprimary role in Mattel's distribution costs related to transporting its products from manufacturing plants inAsia to customers and retailers around the world. Conversely, a return to rising oil prices would putdownward pressure on Mattel's profit margins.

Changes in Toy RetailingThe toy retailing environment has changed greatly in recent years. Specialty retailers such as Toys'R'Us andFAO Schwartz have faced difficulty in the current decade. The latter has already been in and out of several

bankruptcies and Toys'R'Us has flirted with bankruptcy. Part of this change has been driven by the slowgrowth of the traditional toy market and the rapid rise of video games, a category that toy stores were slowto adopt. Instead, the video game market became dominated by electronic retailers such as Best Buy (BBY).Compounding the woes of toy stores is that growing dominance of large discount retailers such as Wal-

Mart (WMT) and Target (TGT), both of which have captured a significant chunk of both the traditionaltoys market and the video game market.

Competition/threats

Hasbro: The manufacturer of major toy and game brands such as Monopoly, Mr. Potato Head andTransformers. Mattel and Hasbro have different core segments -- Hasbro makes a large of portion ofrevenue from board games (Clue, Monopoly and Scrabble) while Mattels core business is dolls (Barbie).On the other hand, the two companies compete head-to-head over certain segments, as Hasbro's Playskoolgoes after the same younger audience as Mattel's Fischer-Price division.JAKKS Pacific (JAKK): A smaller toy manufacturing company, with licensing deals with Nickelodeon'sBlue Clues and Disney's Hannah Montana, among others. JAKKS Pacific is considerably smaller thanMattel by market capitalization, however.Secondary competitors of Mattel include LEGO (toy brick building sets), Bandai (Japanese action figuresand video games) and video game manufacturers such as Electronic Arts (ERTS). None of these companiescompete directly in the toy market for the same demographic of customer as Mattel, howeve

Geographic PresenceMattel divides its business into two primary sectors: Domestic/North America and International. Mattel

products are sold directly to retailers in most European, Latin American and Asian countries; in Australia,Canada and New Zealand, its products are sold through agents and distributors (Mattel has no direct sales

presence). Except for American Girl, which is not sold internationally, Mattel offers the same products inboth domestically and abroad. It does tailor product mix to regional fads and the quality is varied due toprice sensitivity. International net sales were $2.92 billion in fiscal 2010, up 6% from fiscal 2009


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Financial Evaluation:

Mattel (NYSE: MAT) is the worlds largest toy manufacturer. [1]Mattel makes some of the best knownbrands in the toy industry, including Barbie, Matchbox, Fisher-Price and Hot Wheels. In fiscal 2010,Mattel reportednet sales of $5.856 billion and net income of $684.9 million.

Key Mattel, Inc. Financials

Company TypePublic -(NASDAQ:MAT)Headquarters

Fiscal Year-End December

2010 Sales (mil.) $5,856.2

2010 Employees 31,000

Mattel, Inc. Income StatementDec 08

Revenue 5,918.0

Cost of Goods Sold 3,233.6

Gross Profit 2,684.4

Gross Profit Margin 45.4%

SG&A Expense 2,142.6

Depreciation & Amortization 172.1

Operating Income 541.8

Operating Margin 9.2%

Nonoperating Income 3.1

Nonoperating Expenses (56.9)

Income Before Taxes 488.0

Income Taxes 108.3

Net Income After Taxes 379.6

Continuing Operations 379.6

Discontinued Operations --

Total Operations 379.6

Total Net Income 379.6

Net Profit Margin 6.4%
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Diluted EPS from Total Net Income 1.05

Dividends per Share 0.75

All amounts in millions of US Dollars except per share amounts.Mattel, Inc. Balance Sheet

Assets Dec 08

Current Assets

Cash 617.7

Net Receivables 873.5

Inventories 485.9

Other Current Assets 409.7

Total Current Assets 2,386.9

Net Fixed Assets 536.2

Other Noncurrent Assets 1,752.0

Total Assets 4,675.0

Liabilities Dec 08

Current Liabilities

Accounts Payable 421.7

Short-TermDebt 150.0

Other Current Liabilities 688.2

Total Current Liabilities 1,260.0

Long-Term Debt 750.0

Other Noncurrent Liabilities 547.9

Total Liabilities 2,557.9

Shareholder's Equity

Preferred Stock Equity --

Common Stock Equity 2,117.1

Total Equity 2,117.1

Shares Outstanding (thou.) 358,430.3
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Suggestion

As Barbie, is a commodity and is of secondary level. Rarely people go to buy Barbie dolls,most of the

time while purchasing other things Barbie is being bought.

In Indian markets, still most of the market share of commodities is being captured byunorganized

sector of Indian retail. So along with big brands, if it can reach unorganized sector of Indian

retail

market then itll reach maximum consumers. Because even today when it comes to buying

toys,

Indian middle class (bottom of pyramid) looks towards the local shops, and if they getBarbie

available over there then the probability of buying it would be increased. Entering into

unorganized

sector of Indian retail will increase the visibility of brand along with the popularity among

kids.

Final Marketing Mattel

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