Mattel, Inc., a children's entertainment company, designs and produces toys and consumer products worldwide. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as content, gaming, and lifestyle products for children under the Barbie, Monster High, American Girl, Polly Pocket, Spirit, and Enchantimals brands; dolls and books under the American Girl brand name; die-cast vehicles, tracks, playsets, and accessories for kids of all ages, and collectors under the Hot Wheels, Monster Trucks, Matchbox, CARS, and Mario Kart brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other lifestyle products under the Fisher-Price and Thomas & Friends, Power wheels, and Fireman Sam brands. The company also provides action figures, building sets, and games under the Masters of the Universe, MEGA, UNO, Lightyear, Jurassic World, WWE, and Star Wars brands; and licensor partner brands, including Disney, NBCUniversal, WWE, Microsoft, Nickelodeon, Warner Bros, and Sanrio. It sells its products directly to consumers through its catalog, website, and proprietary retail stores; retailers, including discount and free-standing toy stores, chain stores, department stores, and other retail outlets; and wholesalers, as well as through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.
History
1945: Ruth Handler, Elliot Handler and Harold Matson begin collaboration in a garage
1959: Ruth Handler is inspired by her daughter and creates the first ever Barbie Doll
1960: Mattel becomes a PLC
1968: Hot Wheels invented
1971: UNO invented
1980: Mattel introduces the first diverse line of dolls
2023: New line of Disney Princess dolls launched through a multi-year global licensing partnership
Mission and Vision
Mattel states that their purpose and vision revolves around improving childhood and the market for toys in a way that empowers kids to reach their full potential and to encourage imagination.
Their mission is to create innovative products and experiences that inspire, entertain and develop children through play.
Mattel emphasises the importance relationships with their business partners and customers based on trust as well as their duty to act sustainably and promote diversity.
Mattel's key product attributes are quality, safety and value with their USP being that their toys deliver on their purpose and withstand the test of time.
Competitive Advantage
Portfolio: Mattel possesses a strong brand portfolio featuring household names that cater to a wide range of markets like Barbie for young girls, Hot Wheels for young boys and UNO for family fun of all ages. This means that Mattel can target a vast market and gather revenue from a lot of different sources
Partnerships & Collaboration: Mattel has several partnerships with Disney that include multi-year long deals as well as a partnership with their competitors Hasbro which include a Barbie themed Monopoly board in exchange fro Transformers themed UNO cards. These partnerships create more publicity for Mattel and therefore generate a larger brand presence for the company ensuring that Mattel remains relevant in the toy and entertainment industry.
Financial Performance
Industry Analysis
SWOT
Strengths: established business, strong portfolio, international presence, household names, products sold in more than 150 countries, strong marketing - 2023 Barbie movie $150mn on marketing and generated over $162mn gross in opening weekend
Weaknesses: 2007 toxic toy scandals - evidence of lead paint containing harmful substances - heavy call backs, fine and reputation damage, large workforce - high costs
Opportunities: growing population - growing market - growing demand, establish operations in developing countries to lower costs, differentiate into different markets - Barbie movie was able to reach a larger more mature audience
Threats: Technology, change in taste, cheaper dupes and imitation of products, high competition
Management and Corporate Governance
CEO: Ynon Kreiz since 2018, has led a multi-year transformation strategy, significant improvements under his leadership, ESG established, recognised achievements for having a healthy workplace culture by Forbes and Time, 14 live action movies announced, very experienced - was previously CEO of Marker Studios which was acquired by Disney in 2014, prior to Market Studios he was CEO of the Endemol Group