Marketing Strategy of Mattel analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Mattel marketing mix, help the brand succeed in the market. Let us start the Mattel Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Mattel marketing strategy can be explained as follows:
Mattel is one of the leading toy and doll manufacturing brand, based out of USA, having customers globally. Mattel which started and established Barbie doll and Hot Wheels as its core products has also a rich and diverse product portfolio in its marketing mix. The brands launched by Mattel are Barbie, BoomCo, DC Universe, DC Superhero Girls, Dinotrux, Disney Cars, Disney Planes, Enchantimals, Ever After High, Fast & Furious, Ghostbusters, Halo, Hot Wheels, KamiGami, Kuu Kuu Harajuku, Masters of the Universe, Matchbox, Mattel Games, Minecraft, Star Wars, Toy Story, WWE etc. Mattel has also got a contract to start manufacturing toys related to Jurassic Park movie.
While manufacturing its products Mattel has always mainly focus on innovation and comfort part. They have always focused that toys are used by kids so they are not harmful in any way and consumer can relate it with the current sensations and enjoy it in numerous ways. Apart from toys, the company has also diversified into creating films, TV content, digital games and online streaming content.
Mattel Price/Pricing Strategy:
Below is the pricing strategy in Mattel marketing strategy:
Mattel has a very affordable price range of its products, especially at the high quality with which they deliver. When we talk about the toys, customers in terms of spending money tend to give it as a secondary priority in comparison to other goods.
Mattel started with the high price on their products in the initial stage and then seeing the demands of their products they started skimming their price in order to increase the sales. Not only that there was even a huge variation in the price range of the same brand. To gain their profit back they started selling their products online exclusively which saved their distribution cost. The marketing mix pricing strategy of Mattel also varies according to location as you can see the different ranges of price for the same branded product in different locations. Still with this different prices hasn’t tarnished the brand image of the Mattel and it continued to keep on changing its prices according to its competitors and the customers demand. One of the key reason for such a high range in price of their products is they wanted to sell it its branded products in all economy class. This strategy helped them in expanding their market share to a more extend in comparison to its competitors. The company has an annual revenue in excess of $4 billion.
Following is the distribution strategy in the Mattel marketing mix:
Mattel which is covering almost 150 countries all over the world with the sales of its products generally doesn’t concentrate on opening an exclusive store for selling its products. It mostly rely on other retailers and distributors to make its products reach to the customers. In the terms of retailers also there are mostly the ones who sell up the different companies brand all together so there is very less visibility to the Mattel products. So to increase the exposure and sell of their products within the digital era Mattel come exclusively started selling their products online. This not only increased the sales but also reduced the cost of distributors as Mattel was selling its products directly to the customer. Through their own shopping website, many e-commerce retailers, Mattel increased the number of sales and also their profit margin. Good advertising activities using TVCs, online presence, digital marketing, social media and print ads have increased brand awareness for the company.
Mattel is currently focusing on to capture the unorganized market in emerging countries which has a huge potential.
Mattel Promotion & Advertising Strategy:
The promotional and advertising strategy in the Mattel marketing strategy is as follows:
As Mattel has always focused on their brand value so they keep on doing aggressive marketing in order to reach out more audience. They followed both traditional and digital approach through TV advertisement, magazines, newspaper and through different social media sites. Through their website where detailed feature of each product is mentioned also helped them increase the sell both online and offline. Mattel also ties up with few apparel brands in order to showcase their products along with their brands and also sponsors many business events, fashion events etc. with their brand ambassadors in order to create a sensation for their new products exclusively. Mattel is also focusing on doing aggressive marketing in the regions where computers or internet is not available, especially in emerging markets as there is huge potential and they can grow up their market to a great extent. Hence, this concludes the Mattel marketing strategy and marketing mix.
Mattel is one of the biggest toy maker company in the world which has started since 1945. It has made up its presence in more than 40 countries and sell its products in more than 150 countries all over the world with headquarter in California. Mattel started its journey through wood products and then switch over for toys making like furniture house for doll. Mattel established its brand name and got the fame in late 1950’s when it came up with its toy Barbie. In early 1980’s along with toys Mattel also entered in the field of video games where it made video games within its domain also with the license of Nintendo.
Mattel also comes up with various products like Hot Wheels, Fisher Price toys etc. along with continuous innovation in Barbie toys.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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