Global toy market

Global toy commercialize1.0 Background1.1. Global toy persistence ScenarioMore than 80% of global toy grocery is generated by ternary Continents i.e. Europe, North America and Asia. With the recent financial turmoil, the value of toy patience has decreased in two consecutive years, from US$78.67 one thousand thousand in year 2007 to US$75.033 billion. The shrinking foodstuff size is mainly attributed by Western countries, particularly Europe. On the side of the humans, Asia registered upward skid in grocery sh be for toy market. Chart 1 World tinker Market ScenarioNPD analysts attribute the downward trend in global market value for toy industry to the following reasonsLow unit expense particularly in year end, which intensified further by the financial crisesCannibalization by other games categories namely video games, electronic games etc.In developed market, the per capita us get along with for toys is high as they argon considered to be an entirely-important(prenomi nal) aid in a childs development vis-a-vis a wasteful expenditure in developing nations. The scenario is illustrated in below table- elude 1 Toy expenditure CountryKids population in 2008 (million) spend per kid in 2008 (US$) gist available market in 2008 (US$) coupled States61.6 $281$17.31 billionJapan17.4$286$5 billionChina267.4$17$4.5 billionUnited Kingdom10.3$348$3.6 billionFrance11.9$293$3.5 billionGermany11.4$223$2.5 billionBrazil52.9$38$2.01 billionIndia361.4$5$1.8 billionMexico32.6$53$1.7 billionItaly7.9$185$1.5 billion denotation NDP Group, 20091.2 Toy Industry StructureToys ar classified into four free categories, namely Traditional Toys which consist of action figures, wenchs, playsets, stuffed animals, models, and other related wargons get along gamesVideo GamesCasino Games Accessories. Globally, the market is dominated by four braggart(a) players viz savorlessel, Lego, Hasbro Bandai with Mattel the largest and selling toys under the deformity Barbie, intent Wheels, Fisher-Price etc. Table 2 Global toy makers ingathering portfolio Toy makerTraditional toys brands posting gamesVideo GamesLicensing productMattelBarbie, Break the Safe, Hot Wheels, Matchbox, Ameri shadower young lady, Fisher-Price, Little People, Rescue Heroes, Power WheelsUNOBarbie CareNCure, UNO, Barbie Girls, Hot Wheels etcDisney, Warner Bros., Pixar, Viacom International Inc., benni WorkshopHasbroMy Little Pony, SpongeBob, Toy StoryMonopoly, Pictureka, ScrabbleMon paintbarTransformer, G.I. Joe, Incredible Hulk, Jurassic Park, Spider-Man, Star Wars, Wolverine, Disney, Iron ManBai DanBen 10, Power Ranger, flying lizard Ball, Digimon, Blue Dragon nobodyKamen Rider, Harumika, Tamaguchi, Mugen Pop PopTMBen 10, Power Ranger, Dragon Ball, UltramanMGA EntertainmentBratz roam, Zapf Creation, Little Tikes, itch born, Chou Chou, MGA games, My-ePets 3D, Resue PetsTMNILNILNILDisneyDisney charactersNILDisney charactersDisney charactersLEGO LEGO bricksNILLEGONILTakara TomyPlarai l, Pocker Moser, Transformers, Tomica die-cast vechicles, Yumel and Nerul, Licca doll lineJinsei GamesTasinoko Production, Game softwareDisney charactersThere are several market signals have impacted to toy market.Globally, toy manufacturers are partnering with companies from other sectors, like fast-food chains in their merchandise promotion campaigns, e.g. McDonaldMushrooming of consecrated malls/stores for toys is becoming increasingly visible e.g. Toy R usretail consolidation in overseas markets has changed the landscape for toy exporters. Production of mental pictures establish on toy characters for television audience is a unique trend for promoting toy sales in the US.Toy makers are entering into licensing deals with movie studios to make products in the image of film characters e.g. Disney, Sony Picture, Bai Dan etc.1.3 Mattel Inc.1.3.1Mattel Inc. founded by Harold Matt Matson and Elliot Handler (hence the name matt-el) and incorporated in 1948 with Headquarter in Hawethorn e, Los Angeles County, California and afterwards relocate to El Segundo, CA in 1990. Barbie was brainchild by Elliot and shame Handler co-founders of the Mattel Toy Company. Ruth came up with the idea for Barbie after observation her daughter, Barbara Handler, play with paper dolls. The three-dimensional model for Barbie was a Germen doll Mattel refashioned the doll into an all-American version and named it after Barbara, who was then a teenager. Barbies boyfriend, Ken, was introduced in 1961 and named after Barbaras brother.1.3.2Since establishment, Mattels product portfolio has grown from its flagship brand, Barbie, to toy cars, board games, dolls, cuddly toys and education toys Mattel offers comprehensive product lines to bring home the bacon for different age groups new born to adult segments. This can encourage repeat customer and attract different customer profiles with its range of different toys. Table 3 Mattel Inc.s product range by market segments Market segment Bra ndInfantPre-schoolSchool KidsTweens Pre-teensTeens (12 years above)Adults / ParentsBarbiePPPPFisher PricePPPHot WheelPPTyco ToysPPPAmerican GirlsPPSesame StreetPPPUNOPPScramblePPPMyScene DollsP1.3.3 Mattels Corporate Structure1.3.4 Business Model Broadly, Mattel Inc.s businesses are segmented by geographically domestically and internally. Mattels presence at Canada, Latin America, European, Asian countries, Australia, and New Zealand.1.3.5 Along its establishment in the market, Mattel has gone by several hypes and downsTable 4 Mattel Inc. Events in chronological orderwinner storiesFailures* 1959 Barbie debut * 1965 Enters Educational Market with See N Say * 1968 Hot Wheels Introduced * 1977 Ventures into Electronic Game Market * 1993 Merges with Fisher-Price * 1996 Introduces Tickle Me Elmo * 1998 Fisher-Price takes control of Infant and Preschool showcase Brands * 1998- Acquired Pleasant Company, the maker of the American Girl collection, which is a series of diachroni c dolls, books and accessories * Mattel says the average American girl owns ten Barbie dolls, and two are exchange somewhere in the world every second * As a teenage fashion model, Barbie has worn many fabulous fashions. Beginning with her hallmark black and white striped swimsuit and swirled ponytail, Barbie has followed style trends as puff up as blazed her own fashion trail. She even inspired some of fashions snarf designers * Barbie celebrates her 50th birthday in 2009. * Mattels Barbie opened her first flagship store on March 6, 2009, six-story showpiece at Shanghai . The store will also be a testing ground for new marketing strategies and services, including a design center where visitors can create their own dolls* Sold The instruction Company at a lost in year 2000 * harmful Toys Scandal. Recalled millions of China-made toys as potential hazards from parts of the toys which were colored using lead-based paint that may have exceeded the US Federal limit of 600 part pe r million. 18.2 million items were recalled in total in year 2007.2.0 Mattels sight and Mission Jennifer2.1 Mattels Philanthropic VisionTo make a meaningful difference, one child at a time.2.2 Mattels Philanthropic MissionMattel makes a difference in the global golf club by effectively serving children in need. Partnering with charitable organizations dedicated to direct serving children, Mattel creates joy through the Mattel Childrens Foundation, product donations, grant making and the micturate of employee volunteers. We also enrich the lives of Mattel employees by identifying diverse volunteer opportunities and supporting their personal contributions through the matching gifts program.2.3 Mattels Philanthropic ValuesWe intend to make a meaningful difference in the lives of children in need around the world through our interactions how we play with our communities, our partners, and our volunteers. gaming with Passion By making a meaningful and lasting impact on children g lobally.Play Together By forming deep partnerships to enrich the communities in which we work and play, and engaging Mattel employees in our efforts.Play Fair By acting with unwavering integrity in all aspects of our work.Play to Grow By striving to make long experimental condition differences in the lives of children in need and seeking continuous improvement. 3.0 The External sagacity Ezuan Issues to discuss OpportunitiesAn alliance with an Asian company, BandaiWeakening dollar makes Mattels products more low-priced in many of these new marketsgreatest pressures to adapting products with the constant changing of society* etc ThreatsChildren abandon tangible toys such Hot Wheels and Barbie for more interactive and expert products.Need extreme careful to protect customers legal and moral reputations by respecting the privacy of the children and their families, which is put in jeopardy every time the website asks a minor to provide information.Global recessionproblems breaking into foreign markets due(p) to cultural barriersAfter-effect of Toxic Toys Scandal with 18.2 million items were recalled in total in year 2007EtcExternal Factor Evaluation (EFE) intercellular substance Key inside FactorsWeightage military rankWeighted scoreOpportunities1. Barbie an recognizable brand worldwide0.140.42. Weakening dollar makes results market affordability 0.130.33. Favorable US duty law0.0530.15Threats1. Children abandon tangible toys for more interactive and technological products.0.110.22. Global recession cause reduce spending or down trading for toy0.0510.13. Cultural barriers hinder market penetration 0.110.14. High product substitution 0.110.15. organization Regulations and Environmental Quality0.0520.26. Higher bargain power from retailers0.0520.27. Raw material subject to price fluctuation0.0520.18. exceedingly appeaseal business0.0520.19. Rising in cyber virtual games0.110.110. Unpredictable shift in the play patterns of Gen X kids Netizen0.110.1Total 1.002.15Note Weight factor 0.0 (not important) to 1.0 (very important) military rank scale 1 = major failing 2 = Minor Weakness = Minor Strength 4 = Major Strength.Competitive Profile Matrix (CPM) for Mattel Inc.Wght.Mattel Inc.HasbroBai DanMGA Ent.DisneyLEGOTakara TomyRatingWSRatingWSRatingWSRatingWSRatingWSRatingWSRatingWSGlobal Market persona 0.1040.430.330.320.240.430.330.3Product Quality 0.1030.330.330.330.330.330.330.3Product variation 0.1540.640.630.4520.340.620.630.6Price competitive 0.1030.330.340.430.330.330.330.3engineering Innovation 0.1020.230.330.330.330.330.330.3Management Experience 0.1030.330.330.330.330.330.330.3Financial position 0.1030.330.330.330.330.330.330.1Customer dedication 0.1520.320.320.320.320.320.320.3Global expansion 0.1030.340.440.420.340.440.420.1Total 1.003.03.13.052.73.23.22.74.0 The Internal Assessment Ezuan Issues to be discussed Strengths big history in toy industryPreferred brand by customersReleasing new product per annumfollows a co de of ethics, as well as requiring ethical actions of their suppliers.contributes to the communitiesmerged with or struck licensing deals with a number of other established brands, including Disney, Fisher Price, Nascar, and even Microsoft.time obstetrical delivery of products to retailers has soared in recent years from 50% to 90%, due to improvements in information systems and warehouse facilities.product availability has been improved in particularised market with collaborative efforts with international firms, specifically Bandai Co. of Japan. able to simultaneously cater products to each markets taste, and maintain high flexibility and low costs by simplifying packaging strategiesetcWeaknesses * Until the acquisition of Fisher Price, most of Mattels attempts to expand beyond their radical market of childrens toys were largely unsuccessful Etc Internal Factor Evaluation (IFE) matrix Key Internal FactorsWeightageRatingWeighted scoreStrengths1. Barbie as a long established br and 60 years0.0540.22. recognizable brand portfolio0.1040.43. Wide product range to cater various(a) life stage0.1040.44. New product launch annually0.0530.155. Business Integrity0.0530.156. Corporate Social right0.0530.157. Strategic partnership with Microsoft, Disney, BanDai0.1030.38. Energetic management aggroup0.0530.159. Efficient automation of SCM 0.0530.1510. Trade names and trademarks as significant assets0.0540.2Weaknesses1. Unprofitable mergers and acquisitions 0.0520.12. Slipping popularity of their core product, Barbie. 0.1010.13. After-effect of Toxic Toys Scandal 0.1010.14. History of management struggles and uncertainty0.0520.15. Royalty expense for license agreement 0.0520.16. Liquidity problems or bankruptcy of key customersTotal1.002.75NoteWeight factor 0.0 (not important) to 1.0 (very important) Rating scale 1 = Major Weakness 2 = Minor Weakness = Minor Strength 4 = Major Strength. 5.0 Strategies in Action Jennifer6.0 dodge Analysis and Choice IsmiStrength s SWeaknesses WOpportunities OThreats T7.0 Implementing Strategies 7.1 Background The growth plan for Mattel Inc will be-Maintaining its Corporate Social Responsibility sustain its commitment to children, business partners, suppliers and environs Expending its territories with product diversification and business sustainability strengthen and gain market shareZero product recall to boost up its brand imageBelow illustrate the direction for Mattel Inc. to concentrate in-7.2.0 Mattel Inc.s counselor 7.2.1 Management Operation StrategiesThe massive recall incidence in 2007 Christmas season will be an occasion to be remembered for Mattel Inc. Thus it is essential for Mattel to rise its working relationship with their suppliers and business partners. Mattels product lines are manufactured in both company-owned facilities and through third-party manufacturers and the market demand is highly seasonal driven. In order to mitigate, it is crucial for Mattel to regard just-in-time inven tory practices to reduce backlog of orders. Mattel is attached to executing Global Manufacturing Principles (GMP) policy in all areas of its business, i.e. to all parties that manufacture, assemble, or distribute any product, or package bearing the Mattel logo, and, will further engage business partners commit to GMP. Mattel will ensure full deference of GMP by its business partners, and will assist them in meeting GMP requirements. The GMP principles are to ensure there is a holistic approach that all the key stakeholders are being well care off. To ensure the closed monitor the third party manufacturers, Mattel need to set up Centre of goodness (CoE) in selected geographical areas strategicalally. The main function of the CoE is to embark manufacturing intelligent and ensure smooth execution of GMP and developing best practice in the manufacturing for their strategic partners. 7.3 Marketing Strategies7.3.1 Segmentation Currently, Mattels product range is catered to wide rang e of age group, Market segment BrandInfantToddlersPre-School KidsTweens Pre-teensTeens (12 years above)Adults / ParentsBarbie