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Mattel Case

Analyzed By: Justin Gamache Jessica Levstik Sarah Lutz Kevin Malone Lauren Palmer Winter Thielen

Case Summary
What began as a garage workshop in 1945 has now become the world leader in the design, manufacture and marketing of children’s toys. Harold Matson and Elliot Handler combined their names and began Mattel. In the early stages, picture frames and dollhouse furniture were Mattel’s only products. As time went on, pop culture was influencing the minds behind Mattel and helped create a wide variety of toys. Watching her child play with paper dolls, Ruth Handler came up with an idea that would forever change Mattel. She suggested a three dimensional doll. The name is “Barbie” after their daughter’s nickname. Barbie is the major product line for Mattel which accounts for over 50% of their total sales. In 1960, Mattel went public and was soon ranked in Fortune’s list of the 500 largest U.S industrial companies. By 1964, Mattel opened its first International sales office in Switzerland. In 1968, Hot Wheels was introduced. It became the second biggest hit since Barbie. By the mid 1970’s Mattel tried to tap into electronic games, but it soon failed because others entered the market at a cheaper price. Mattel changed its strategy and focused on its core revenue, the toys. After this was not profiting, the company decided to refocus on profiting instead of sales volume. They decided to maximize core brands while at the same time identifying new brands with core potential. Another way they did this was through mergers. In 1999, Mattel merged with The Learning Company. The Learning Company produces interactive software for computer games and activities. The idea was to evolve Mattel into a family products company. This idea soon failed and a year later, The Learning Company was dropped. A merger that was successful however was that of the Pleasant Company. This company is the maker of the American Girl collection, which is a series of historical dolls, books and...