Marketing in Action Case Real Choices at Mattel n 1945. Mattel\'s founders, Ruth
ID: 459162 • Letter: M
Question
Marketing in Action Case Real Choices at Mattel n 1945. Mattel's founders, Ruth and Elliot Handler were through the Mickey Mouse Club TV show and thus revolution- man- ufacturing picture frames out of a garage workshop. The cou- zed the way toys were sold. In 1959, Ruth Handler, noting her ple also ran a side business making do furniture from own daughter Barbara's love for cutout paper dolls, created the frame scraps, this became so successful that they turned to the idea of a three-dimensional paper doll. Barbie was born making toys. Ten years later, Mattel began advertising its toys and very quickly propelled Mattel to the forefront of the toy CHAPTER 2 I GLOBAL, ETHICAL, AND SUSTAINABLE MARKETING 93 ndustry. The 1960s saw Mattel grow with such new products n 2011, Mattel's Fisher-Price recalled for repair its Little as Barbie's boyfriend Ken, See-and-Say toys, and Hot Wheels People Builders Load 'n Go Wagons due to a possible lacer toy cars. Mattel became a global company in the 1980s with tion hazard. Both the play rampway and the wagons were the purchase of Hong Kong-based ARCO industries, Correlle manufactured in Mexico and sold in mass-merchandise retail SA, a maker of collector-quality dolls based in France; a British stores nationwide. In 2013, Mattel voluntarily announced a company, Corgi Toys Ltd; and a joint venture with Japan's larg recall to inspect its Fisher Price Newborn Rock 'n Play Sleeper. est toy company, Banda It was discovered that "mold can develop between the remov The company's responsibility mission states, "Mattel able seat cushion and the hard plastic frame of the sleeper Corporate Responsibility mission is to positively impact our when it remains wet/moist or is infrequently cleaned people, our products and our planet by playing responsibly. ch product recalls can damage a firm's reputation and This commitment resonates in our actions and through our its bottom ust continue to work hard to recover ne. Mattel m company values each and every day." In 2013, Mattel was from these incidents. Are apologies and claims for new safety ranked number two among Corporate Responsibility maga egulations enough? Because some but not all of the recalls ne's "100 Best Corporate Citizens." Mattel and the Mattel were due to production in other countries, should the com Children's Foundation made a total cash donation of $750,000 pany stop producing its toys in China and other developing for multiyear disaster support to Save the Children and the countries where costs are low? Or should Mattel return to its American Red Cross. In addition, over 10,000 Mattel employ roots and produce the millions of Polly Pockets, "Sarge" toy ees have engaged in social impact activities to make a mean- cars, and Barbie play sets in the U.S., where costs are substan- ngful difference in the lives of children globally. tially higher but standards are tougher? How should Mattel Nevertheless, despite Mattels actions to support children protect its social responsibility reputation into the future? and the resulting recognition, there are some problems with Mattel's corporate responsibility record. In 2007, Mattel com- missioned Chinese companies to produce its products. By You Make the Call August, Mattel was forced to recall 1.5 million of its Fisher Price toys, including such favorites as Elmo and Big Bird, be 2-34. What is the decision facing Mattel? cause they were suspected of containing hazardous levels of 2-35. What factors are important in understanding this dec ead paint. Later in August, Mattel recalled over 19 m On sion situation? more Chinese-made toys because they contained magnets 2-36. What are the alternatives? that could be swallowed by children or because they were 2-37. What decision(s) do you recommend? made with dangerous lead paint. In 2010, Mattel recalled over 2-38. What are some ways to implement your recommen 10 million of its Fisher-Price products, including about 7 million dation? Fisher-Price Trikes and Tough Trikes. The tricycles have a plastic gnition key near the seat that kids can sit or fall on, potentially eading to injuries. This also included recalls of its little People Wheelies Stand 'n Play Rampway due to a possible choking hazardExplanation / Answer
Ans 1 – The decision that Mattel is facing is how to repair the damage done by the multiple product recalls made in various markets.
Ans 2 – Mattel is a toy manufacturing company. Children play with these toys day in and day out sometimes alone without supervision or someone watching over. Hence Mattel is obligated to produce or manufacture risk free or non-hazardous toys which guarantees children safety and security. These factors are important.
Ans 3 – The best alternative would be to have a standardized quality check all throughout the company’s production be it anywhere in the world. Another alternative is to outsource the quality check to an agency who would not be biased over decision making of whether the product should be in the markets or not.
Ans 4 – Not only the finished goods should be safe to use or play with even the raw materials used should be non-hazardous. Safety instructions should be displayed on the packing of the product. Proper usage instructions should be provided with the product.
Ans 5 – As discussed above in 4