Mattel – Made in China

8/2/2019 Mattel Made in China

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MATTEL TOYS

Made in ChinaCase Study Analysis


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Mattel products

Outsource production to Asia.

Wholly owned, tightly controlled factories in

China, Indonesia, Thailand and Mexico.

High quality

High safety standards

Huge product line


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Mattel in china Since 2007Manufacturing and subcontracting.

65% of Mattel toys made in China

5 Production units.

37 principal contract manufacturer.


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Corporate social

responsibility

The true goal behind these Corporate Social

Responsibility (CSR) campaigns is to improve the

image of the company.

A recent study by the Natural Marketing Institute

(NMI), almost 90% of the U.S. population state

that it is important for companies to not just be

profitable, but to be mindful of their impact on theenvironment and society.


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Corporate social

responsibility Societal Marketing Concept

Good working condition for the workers.

Importance given to Product safety.

Supplies & Raw materiel is checked in contractors

factory.

Mattel again test them on receiving the product from

the contractors.

Separate test facility for this in Shenzhen.


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Lee der industrial company

cheung Shu-hung and Xie Yu-guangfounded in

Foshan city, Guangdong province, China.

From 1993exclusive contract supplier to Mattel.

In 20072500 workers in 3 plants. Annual sales26 millions.


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Problems in china

Like the CPSC(Consumer Product Safety commission)

in USA , the Chinese government didnt have an

effective enforcement system to check the quality ofthe products manufactured in China

Due to the huge competition in the Chinese markets for

foreign contracts, contractors resort to reducing the

quality of the products

The bad perception of Chinese toys in USA and Europe


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Product recalls

During the year 2000-06, nearly 30-43% of the

products in US were recalled due to different

reasons(safety , design , hazard materials)

People loose faith in the company.

From 1991- 2006, Mattel total of 6 product, which

cost the company a loss of appox. $107 million.


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Companies problems to

product recall

Mass communication to the public

Reverse distribution logistics

Writing-off the value of the defective goods

Paying compensation to the customers

Affects the reputation of the Company


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Problem with Lee Der In 2007, Fisher toy made by Lee Der was recalled

Due to lead content in the paint.

Recall of 1million shipped to US and half million

to Europe.

Dongxing New Energy Co. regular supplier of

paint to Lee Der. Shortage of yellow paint made

them to borrow from a third party through internet.

This had lead content higher than the standard

mentioned by CPSC.


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What happened?Mattel stopped accepting any shipment from Lee

Der.

Lee Der left with $16 million of toys.On 9thAugust, Chinas Administration of quality

banned Lee Der from exporting.

Evacuated one factory to sell equipmentraise

cash. Cheung Shu-hung committed suicide on 13th

August 2007.


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Importance of CSR

CSR is very important if the company wishes to go

Globally.

Building up the image of the company is very

important in this age of social marketing

Examplesweatshop condition in Indonesian

factory of PUMA and Chinese factory of NIKE

These created a bad image of the company. And they

immediately address the problem to loose image


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THANK YOU

Mattel – Made in China

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