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“Foundations of World Class Marketing” Development Review

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					Cover Page




             Mattel Global Marketing Training
Training Style




n   Interactive
n   Activity based
n   Flexible
n   Learn from facilitators - and each other
n   Pace




                     Mattel Global Marketing Training
  Your Expectations


These 3 days will have been an outstanding success for me if...
 These 3 days will have been an outstanding success for me if...

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                     Mattel Global Marketing Training
Ground Rules…




   n   Cell phones / Blackberrys off

   n   Everybody participates

   n   Keep to time

   n   So what?

   n   Keep it simple

   n   Commitment to action




                  Mattel Global Marketing Training
                  “Foundations Of World Class Marketing”


               Day 11                           Day 22                              Day 33                             Day 44
                Day                              Day                                 Day                                Day
OVERVIEW                        n       The Mattel Product           PLACE                            n       Media
 OVERVIEW                           n    The Mattel Product           PLACE                               n    Media
                                        Development Process
        What is Consumer                 Development Process
n
         What is Consumer               Product                      n       Shoppers, Channels &     n       Consumer Promotion
    n
        Marketing?                       Product                         n    Shoppers, Channels &        n    Consumer Promotion
         Marketing?                                                          Customers
                                                                              Customers
                                n       Selection & Quota                                             n       Marketing at the POP
n       Toys & Mattel               n    Selection & Quota                                                n    Marketing at the POP
                                        Setting                              Developing aa Customer
         Toys & Mattel                                                        Developing Customer
    n                                                                n
                                         Setting                         n

        The Mattel Marketing                                                 Proposition              n       Public Relations
n
         The Mattel Marketing                                                 Proposition                 n    Public Relations
    n
        Process                 PRICE
         Process                 PRICE
                                                                     n       Customer Plans           n       Working with Agencies
                                                                         n    Customer Plans              n    Working with Agencies
PRODUCT                         n       Mattel Profit Drivers                (MSAP) and
 PRODUCT                            n    Mattel Profit Drivers                (MSAP) and
                                                                             Presentations            n       Integrated Marketing - -
                                                                              Presentations               n    Integrated Marketing
n       Brand Strategy &        n
                                         Managing Brand P&L
                                        Managing aa Brand P&L                                                  Pulling all together
                                                                                                              Pulling itit all together
    n    Brand Strategy &           n
        Positioning
         Positioning
                                n       Pricing
        Using Insights to           n    Pricing                     PROMOTION
n
    n    Using Insights to                                            PROMOTION
        Understand Consumers            Forecasting
         Understand Consumers   n
                                    n    Forecasting                 n       The Integrated
        & Shoppers                                                       n    The Integrated
         & Shoppers                                                          Marketing Plan
                                                                              Marketing Plan
                                                                     n       TV Advertising
                                                                         n    TV Advertising




                                                   Mattel Global Marketing Training
         OVERVIEW

n   Overview of Marketing                                        22Hours
                                                                    Hours
     n Fundamentals of Brand Marketing

     n Basic concepts (4P’s)

     n Examples from outside (e.g., Coke, Nike, BMW,
       Starbucks, Apple)
     n Exercises



n   Toys / Mattel Marketing - Differences Mattel vs. FMCG       30 Minutes
                                                                 30 Minutes

n   Mattel Marketing Process                                     11Hour
                                                                    Hour

n   Mattel Marketing Roles                                       11Hour
                                                                    Hour
     n Who leads

     n Who supports




                             Mattel Global Marketing Training
  Marketing Global Brands

                        Global

                             Brand
                 Brand Positioning Positioning
                              Product Portfolio
                 Product Portfolio
                         Communications Strategy
              Communications Strategy

Insight                                            Strategy

                          Pricing    Pricing
                        Placement Placement
                        Promotions Promotions



                          Local
                Mattel Global Marketing Training
The Four “P’s” Of Successful Marketing




       n     Product

       n     Pricing

       n     Placement

       n     Promotion




              Mattel Global Marketing Training
Great Brands




  Which of the four “P’s” have made these brands great:

  n       Apple

  n       Coke

  n       Starbucks

  n       Nike




                  Mattel Global Marketing Training
        Key Differences vs. Other Consumer Products


Key differences between Mattel and most other marketers:

    n   Unpredictability
    n   Massive and rapid SKU churn
    n   Need to define and sell the Category proposition to different
        customers
    n   High level of detail planning required
    n   Seasonality/Events
    n   Sell the portfolio and not just the item
    n   Few direct item by item competitors
    n   Highly responsive to advertising (“FSI-like” response)
    n   Advertise the item, build the brand
    n   People like shopping for toys



                            Mattel Global Marketing Training
                        The Mattel Marketing Cycle

           Aug.   Sep    Oct       Nov    Dec   Jan   Feb   Mar   Apr     May     Jun   Jul    Aug    Sep‘    Oct      Nov   Dec‘   Ja.
                                                                                                                                    Ja.   Feb.   Mar.   Apr   May   Jun.   Jul   Aug.
           ‘05    ’05    ‘05       ‘05    ‘05   ‘06   ‘06   ‘06   ‘06     ‘06     ‘06   ‘06    ‘06    06      ‘06      ‘06   06     ‘07   ’07    ‘07    ‘07   ‘07   ‘07    ‘07   ’07



Spring                                                                  Global                Pre-                                  Spring Marketing
                                  LRP/                                   Global                Pre-           Ship
‘07                                LRP/                                  Line                 Toy              Ship
                                  BDO                                      Line                Toy           Spring
                                   BDO                                  Review                Fair            Spring
                                                                         Review                Fair



Global            Product Development
Activity



                               Input
Sub                              Input
Activity

                                                            Pricing/Placement


                                                                  LRP/            Promotion                                  Execution
                                                                   LRP/
                                                                  BDO
                                                                   BDO
Fall ‘07   Market Insight – Kids, Trends                                                                 Global                                                            Fall
                                                                                                          Global
                                                                                                          Line                                                             Marketing
                                                                                                                                      Toy               Ship
                                                                                                            Line
                                                                                                         Review                        Toy               Ship
                                                                                                                                      Fair              Fall
                                                                                                          Review                       Fair               Fall


Global                                                      Product Development
Activity                                                                                                      Input
                                                                                                                Input



Sub                                                                                            Pricing/Placement
Activity

                                                                                                                                    Promotion                       Execution



                                                                        Mattel Global Marketing Training
                                                 Marketing Plan
                                                  Marketing Plan
                                                   Execution
                                                   Execution
                                                    Execution
                                  Toy Fair
                                   Toy Fair
                                                   Customer
                                                   Customer
                                                    Customer
                                                 Presentations
                                                  Presentations
                                                   (Toy Fair)
                                                   (Toy Fair)
                                                    (Toy Fair)
                                Advertising
                                Advertising
                                 Advertising
                               Development
                                Development
The Mattel Marketing Process




                                                   Channel &
                                                   Channel &
                                                    Channel &




                                                                    Mattel Global Marketing Training
                                                 Customer Plans
                                                 Customer Plans
                                                  Customer Plans
                                   Line
                                   Line
                                    Line
                                  Review
                                  Review
                                   Review
                                                   Integrated
                                                    Integrated
                                                 Marketing Plan
                                                 Marketing Plan
                                                  Marketing Plan
                               Marketing Plan
                                Marketing Plan
                                Development
                                Development
                                 Development
                                                 Quota, Pricing,
                                                 Quota, Pricing,
                                                  Quota, Pricing,
                                                     P&L
                                                       P&L
                                 Product
                                 Product
                                  Product
Key Objectives




                               Development
                                Development
                                                    Product
                                                    Product
                                                     Product
                                                   Selection
                                                   Selection
                                                    Selection
                                    BDO
                                    BDO
                                      BDO
                                   / LRP
                                   / /LRP
                                       LRP
                                   Brand
                                    Brand
                                  Strategy
                                  Strategy
                                   Strategy
                                  Insight
                                  Insight
                                   Insight
                                                                                                                 Promotion
Framework For Developing The Marketing Mix




                                                               Marketing Plan
                                                                Marketing Plan
                                                                 Execution
                                                                 Execution
                                                                  Execution
                                                Toy Fair
                                                Toy Fair
                                                 Toy Fair
                                                                 Customer
                                                                 Customer
                                                                  Customer
                                                               Presentations
                                                               Presentations
                                                                Presentations
The Marketing Cycle Is A Coordinating




                                                                 (Toy Fair)
                                                                  (Toy Fair)
                                              Advertising
                                              Advertising
                                               Advertising
                                             Development
                                              Development
                                                                 Channel &
                                                                  Channel &
                                                               Customer Plans
                                                               Customer Plans
                                                                Customer Plans                       Placement
                                                 Line
                                                  Line
                                                Review
                                                Review
                                                 Review
                                                                 Integrated
                                                                 Integrated
                                                                  Integrated




                                                                                                                             Mattel Global Marketing Training
                                                               Marketing Plan
                                                                Marketing Plan
                                             Marketing Plan
                                             Marketing Plan
                                              Marketing Plan
                                              Development
                                               Development
                                                               Quota, Pricing,
                                                                Quota,Pricing,
                                                               Quota, Pricing,
                                                                   P&L
                                                                     P&L
                                               Product
                                               Product
                                                Product
                                             Development
                                             Development
                                              Development
                                                                  Product
                                                                   Product




                                                                                           Pricing
                                                                 Selection
                                                                 Selection
                                                                  Selection
                                                  BDO
                                                    BDO
                                                 / LRP
                                                 / /LRP
                                                     LRP
                                                 Brand
                                                 Brand
                                                  Brand
                                                Strategy
                                                 Strategy
                                                Insight
                                                Insight
                                                 Insight




                                                                                 Product
        Marketing Roles At Mattel



                               Global                    Local

Product
                                  Lead                   Input

Price
                                  Input                  Lead

Placement
                                  Input                  Lead

Promotion
                                  Input                  Lead

Execution
                                  Input                  Lead




                      Mattel Global Marketing Training
           Key Tasks Within Marketing Mix



    Product            Pricing                         Placement      Promotion


Insight
 Insight           Pricing
                    Pricing                       Shoppers,
                                                   Shoppers,         Integrated
                                                                      Integrated
                                                  Channels,
                                                   Channels,         Brand Plan
                                                                      Brand Plan
Brand Strategy
 Brand Strategy    Managing the                   Customers
                   Managing the                    Customers
                   Brand P&L
                   Brand P&L                                       •• Advertising
                                                                       Advertising
BDO / /LRP
 BDO LRP                                          Customer
                                                   Customer
                                                  Propositions     •• Media
                                                                      Media
Product
 Product                                           Propositions
Development
 Development                                                       •• Promotions
                                                  Customer             Promotions
                                                   Customer
Line Review &
 Line Review &                                    Presentations
                                                   Presentations   •• Public
Product                                                                Public
 Product                                                             Relations
                                                                      Relations
Selection
 Selection
                                                                   •• Execution
                                                                       Execution


                              Mattel Global Marketing Training
       Group Exercise


Objective
 n To build knowledge of Global and local marketing responsibilities
   within Mattel

Method
 n Working in groups of 3-5

 n Consider the list of tasks within the marketing mix (previous slide)

 n Discuss and agree which of these should be led by the Global team, or
   led by the local team

Timing
  n 30 minutes




                          Mattel Global Marketing Training
           Key Tasks Within Marketing Mix
           “Who Leads?”


    Product            Pricing                         Placement      Promotion


Insight
 Insight           Pricing
                    Pricing                       Shoppers,
                                                   Shoppers,         Integrated
                                                                      Integrated
                                                  Channels,
                                                   Channels,         Brand Plan
                                                                      Brand Plan
Brand Strategy
 Brand Strategy    Managing the                   Customers
                   Managing the                    Customers
                   Brand P&L
                   Brand P&L                                       •• Advertising
                                                                       Advertising
BDO / /LRP
 BDO LRP                                          Customer
                                                   Customer
                                                  Propositions     •• Media
                                                                      Media
Product
 Product                                           Propositions
Development
 Development                                                       •• Promotions
                                                  Customer             Promotions
                                                   Customer
Line Review &
 Line Review &                                    Presentations
                                                   Presentations   •• Public
Product                                                                Public
 Product                                                             Relations
                                                                      Relations
Selection
 Selection
                                                                   •• Execution
                                                                       Execution


                              Mattel Global Marketing Training
           Key Tasks Within Marketing Mix
           “Who Leads?”


    Product                  Pricing                      Placement          Promotion


Insight
 Insight              Pricing
                       Pricing                       Shoppers,
                                                      Shoppers,             Integrated
                                                                             Integrated
                                                     Channels,
                                                      Channels,             Brand Plan
                                                                             Brand Plan
Brand Strategy
 Brand Strategy       Managing the                   Customers
                      Managing the                    Customers
                      Brand P&L
                      Brand P&L                                              Advertising
                                                                          • •Advertising
                                                                              Advertising
BDO / /LRP
 BDO LRP                                             Customer
                                                      Customer
                                                     Propositions         •• Media
                                                                             Media
Product
 Product                                              Propositions
Development
 Development                                                              •• Promotions
                                                     Customer                 Promotions
Line Review &                                         Customer
Line Review &
 Line Review &                                       Presentations
                                                      Presentations       •• Public
Product                                                                       Public
Product
 Product                                                                    Relations
Selection                                                                    Relations
Selection
 Selection
                                                                          •• Execution
                                                                              Execution
               Global Lead
               Global Lead                                          Local Lead
                                                                    Local Lead
                                 Mattel Global Marketing Training
Product




          Mattel Global Marketing Training
          PRODUCT - Overview

n   Brand Strategy
     n Proposition / Personality / Positioning
                                                                           22Hours
                                                                              Hours
     n Examples of Mattel Brand Positionings (Barbie...)



n   Consumer Insights
     n Data vs. insights                                                   11Hour
                                                                              Hour
     n Overview / Examples of Mattel Research



n   Product Development
     n Brands and products
                                                                           22Hours
                                                                              Hours
     n Role of packaging

     n Mattel product development process – follow an example throughout
       the process
                                                                           11Hour
                                                                              Hour
n   Product Selection
     n Product Selection

     n Setting Quota's



n   Exercise
     n Brainstorm “Critical Success Factors” - What makes a successful     11Hour
       toy?                                                                   Hour



                                   Mattel Global Marketing Training
Brand Strategy – Traditional Versus Mattel


Traditional approach                                  The difference at Mattel




                   Mattel Global Marketing Training
       Defining A Product




n   A product can be defined by set of ATTRIBUTES

n   An attribute is a statement expressing what the product is (Features)
    or does (Benefits)

n   Attributes (real or perceived) drive a consumers product choice

n   Understanding your product attributes helps identify product
    improvement areas




                           Mattel Global Marketing Training
         Attributes - Why Do Consumers Choose The
         Petrol They Do?




n   The station is on my way to work              n    Best for my engine
n   I don’t have to turn across busy              n    Cleans my engine
    traffic                                       n    Improves my car’s performance
n   There is a shop                               n    Gives me the best Fuel
n   The toilets are clean                              economy
n   I collect the loyalty points                  n    Seems to be the cheapest



                 How would you improve the product to
                 How would you improve the product to
                  sell more, for more? (i.e. Add Value)
                   sell more, for more? (i.e. Add Value)


                            Mattel Global Marketing Training
        Understanding Your Brand’s Product Attributes

Attributes
    n   All the characteristics of the product (as defined by the consumer)
Important Attributes
    n   The characteristics the product must have to be acceptable to the
        consumer
Differentiating Attributes
    n   The characteristics that consumers believe make your product
        different
Performance Driver Attributes
    n   The characteristics that, if positively improved, would drive greater
        consumer acceptance, value and usage


                     Where do the Petrol attributes fit?
                     Where do the Petrol attributes fit?


                             Mattel Global Marketing Training
Two Basic Product Types




   Commodity
   Commodity                                               Added Value
                                                           Added Value




   Has no value
   Has no value                                          Has a value greater
                                                         Has a value greater
beyond the cost of
 beyond the cost of                                       than the cost of
                                                           than the cost of
      inputs
       inputs                                                  inputs
                                                                inputs



  Has a “Name”
  Has a “Name”                                           Can be a “Brand”
                                                         Can be a “Brand”



                      Mattel Global Marketing Training
Effective Marketing Builds Added Value Products
And Links Them To A Brand




     Sugar,
      Sugar,
Phosphoric Acid,
 Phosphoric Acid,
  Flavourings,
   Flavourings,                                               Coca-Cola
                                                              Coca-Cola
Carbonated Water,
Carbonated Water,
     Colour
      Colour



Costs $X per litre
Costs $X per litre                                      Sells for $X+y per litre
                                                         Sells for $X+y per litre




                     Mattel Global Marketing Training
   “Added Value” Can Deliver Tangible or Intangible
   Benefits



                                  Coca-Cola
                                   Coca-Cola
                                 Price per ml
                                  Price per ml
                               (Price of aaCan)
                                (Price of Can)
                                  Coca-Cola
                                   Coca-Cola
      Coca-Cola
       Coca-Cola                 Price per ml
                                  Price per ml            Why do
     Price per ml
      Price per ml        (Price of 500ml bottle)
                           (Price of 500ml bottle)        consumers pay
(2litre Supermarket
 (2litre Supermarket                                      more for the same
        Price)                    Coca-Cola
                                   Coca-Cola              “product”?
         Price)                  Price per ml
                                  Price per ml
                            (Price of 1.5l bottle)
                             (Price of 1.5l bottle)
                                  Coca-Cola
                                   Coca-Cola
                                 Price per ml
                                  Price per ml
                             (Restaurant Price)
                              (Restaurant Price)



                       Mattel Global Marketing Training
    Brand Image, Not Identity, Sets The Consumer’s
    Value Perception




               Proposition
              Proposition




               The BRAND
              The BRAND
                                 Communication
                                 Communication                   Perception
                                                                 Perception
                                                                              £$€
     Positioning
    Positioning          Personality
                        Personality




Brand Identity                                   Brand Image                  Brand Value




                              Mattel Global Marketing Training
   Coke vs Pepsi


  What the Product does
  What the Product does                         The added value of Coke
                                                The added value of Coke




     In the 1980’s Pepsi
      In the 1980’s Pepsi
conducted a huge research
 conducted a huge research                    In “branded” tests, 65% of
                                              In “branded” tests, 65% of
 project that confirmed, in
  project that confirmed, in                    respondents preferred
                                                 respondents preferred
  blind taste tests, 55% of
   blind taste tests, 55% of                          Coca-Cola
                                                      Coca-Cola
consumers preferred Pepsi
 consumers preferred Pepsi
 to their main competitors
  to their main competitors



      Tangible Benefits                               Intangible Benefits


                       Mattel Global Marketing Training
   Benefits Of Added Value Brands




Tangible Benefits

    n   Real, observable, functional benefits derived from a brand
    n   Typically “what the product does”

Intangible Benefits

    n   Emotional benefits beyond “what the product does” to
        “What it means to me”




                        Mattel Global Marketing Training
      Products Must Deliver The Brand Promise, Not
      Just An Improved Functional Benefit




            Consumer
            Consumer                                      Consumer
                                                          Consumer   Coca-Cola
                                                                     Coca-Cola
Coca-Cola
Coca-Cola                     New Coke
                              New Coke
            Research
            Research                                       Protest
                                                           Protest    Classic
                                                                      Classic




                       Mattel Global Marketing Training
Consumer Insights – Traditional Versus Mattel


Traditional approach                                  The difference at Mattel




                   Mattel Global Marketing Training
What’s A Trend?



                  Traditionally:
                   Traditionally:
        Deducting information about future
        Deducting information about future
      behaviour and attitude of stakeholders
       behaviour and attitude of stakeholders
              from a series of data
               from a series of data




                     In Toys:
                      In Toys:
        Combining intuition and fact-based
        Combining intuition and fact-based
           insight to ‘paint the future’
            insight to ‘paint the future’




               Mattel Global Marketing Training
  Example: Ford Motor Company




Current trends                                       Intuition
                                                      Intuition
 Current trends


                               Henry Ford
                             Henry Ford
                                “What do
                              “What do
                                 people
                               people
                                 need?”
                               need?”


Faster horses
 Faster horses                                        Cars
                                                       Cars




                  Mattel Global Marketing Training
        Sources Of Relevant Market Trends Information

External / Market Data                        Internal / Business Data

    n   Lifestyle                                     n   Market / segment sizes
    n   Social behaviour                              n   Brand health - awareness
    n   Family trends / aspirations                       and equity
    n   Play patterns                                 n   Company shares and sales
                                                          - toy & licensing
    n   Educational                                   n   Competitive shares and
    n   Demographic                                       sales
    n   Economic                                      n   Retailer sales and shares
    n   Fashion                                       n   Channel sales
    n   Music                                         n   Technology trends /
                                                          products
    n   Home decor
                                                      n   Financial performance
    n   Technological development
    n   Internet


                           Mattel Global Marketing Training
       Mattel Insights Gathering

Include examples of ongoing Mattel research (State of Girls, Stage of
   Boys, A&U / tracking...)




                           Mattel Global Marketing Training
 The Difference Between Data And Insight




1. Data can be
 1. Data can be                                                €
used to produce
 used to produce
insight
 insight
                                           Action
                                          Action




                 Insight
               Insight                                 2. Insight highlights
                                                        2. Insight highlights
                                                       opportunities and
                                                        opportunities and
                                                       leads to action
                                                        leads to action
 Data
Data


                    Mattel Global Marketing Training
        Producing Insight

                                                                           Persuade
                                                                          Persuade           Step 5 : Sell it!




                                                               Chart
                                                             Chart      Step 4: Chart the Data
                                                              insight          n To visually convey the
                                                            insight              information and its key
                                                                                 message


                                   Convert data Step 3: Convert the Data into insight
                                  Convert data         n So we turn the data into information
                                     to insight
                                   to insight          n Trends and conclusions



                             Step 2: Process the Data
                Process data
               Process data
                                    n To turn the raw data into something more meaningful
                                      – totals, ratios, averages etc.



               Step 1: Get the right data
 Gather data
Gather data           n What is the question we are trying to answer?
                      n Select relevant data


                                     Mattel Global Marketing Training
Product Development – Traditional Versus Mattel


Traditional approach                                  The difference at Mattel




                   Mattel Global Marketing Training
Product


          Delivering the Proposition




             Mattel Global Marketing Training
    Product Management




Product management involves the development, delivery and
enhancement of the brand through the real and perceived
performance of products and packaging that carries the brand identity




                       Mattel Global Marketing Training
Opening Discussion




What is a product?

    n   Something that can be owned and/or experienced by a
        consumer

What does a product do?

    n   Delivers a set of benefits




                     Mattel Global Marketing Training
       Exercise




To identify the 4 levels of PRODUCT attributes for 3 key Mattel brands




                           Mattel Global Marketing Training
Role of Packaging




                    Mattel Global Marketing Training
What Does Packaging Do?




 Packaging is a means of:

     n   Protection
     n   Supply
     n   Brand Identity (Why not Image?)
     n   Communication
     n   Product enhancement
     n   ??



           What examples do we know of each?
           What examples do we know of each?


                   Mattel Global Marketing Training
Packaging Can Be An Integral Part Of
The Brand’s Image




     Packaging led attributes:

         n   Easy to find
         n   Easy to use
         n   Safe to store
         n   Stays fresh for longer




                  Mattel Global Marketing Training
Exercise




   n   Identify Packaging led attributes from some toy
       products

   n   Discuss the contribution of these to selection /
       purchase or usage of the toy/brand




                   Mattel Global Marketing Training
Product Management




               Mattel Global Marketing Training
      Why Products Must Be Managed




Brainstorm reasons




                     Mattel Global Marketing Training
EXAMPLE
Mattel Product Development

    This section is under development (not complete) but
    should give you a flavor of how we will work in Mattel
                          examples




                     Mattel Global Marketing Training
          The Idea – Case Study – Follow A Product
          Through To Completion

n   General Research (example)                        n   Qualitative research
                                                           n show how research is conducted &

n   Brand Strategy (example)                                 results
                                                           n What is it for - feedback / learning /

n   BDO/LRP                                                  ideas / “likes”, “don’t likes”) research &
                                                             results
     n Explain the BDO – why / what / who

     n Focus on particular segment (e.g.,
       learning)                                      n   Quantitative research
                                                           n show how research is done and results

                                                           n For - Why girls like / don’t like, how
n   Design & Development                                     much they like (vs. category
     n Brief to design team need for a toy                   benchmarks, vs. competitive products)
       (age, play pattern, price etc.)                     n Where - US, Mexico, Europe..
     n Design concepts (photos of 3D
       models)
     n How many briefs, how many
                                                      n   Viability test
       prototypes, how may emerge
     n What products are fully researched (TV         n   Line Review – Frequently Asked Questions
       Drivers, new brands / products,
                                                      n   Toy Fair

                                                      n   Shelf & Results




                                   Mattel Global Marketing Training
        Trends – Research – Insight – Brand



  Market
   Market      Marketing
               Marketing                                   Product
                                                            Product     Line
                                                                         Line
                                 BDO / /LRP
                                 BDO LRP
  Insight
   Insight     Strategy
                Strategy                                 Development
                                                         Development   Review
                                                                       Review




Basic Trend – Learning is growing!
Basic Trend – Learning is growing!




                           Mattel Global Marketing Training
        Trends – Research – Insight – Brand



  Market
   Market      Marketing
               Marketing                                   Product
                                                            Product     Line
                                                                         Line
                                 BDO / /LRP
                                 BDO LRP
  Insight
   Insight     Strategy
                Strategy                                 Development
                                                         Development   Review
                                                                       Review




Basic Trend – Learning is growing!
Basic Trend – Learning is growing!

                Consumer research --Key Insight =
                Consumer research Key Insight =
                  Moms want learning to be fun
                   Moms want learning to be fun




                           Mattel Global Marketing Training
Key Product Development Steps


                                     •     Consumers use the term “learning
                                           toy” loosely.
                                     •     Consumer expectations for learning
                                           toys extend beyond academic skills.
                                     •     Successful learning toys have
                                           organic play patterns that are
                                           recognizable and familiar and will
                                           adapt as baby develops
                                     •     Successful learning toys also have
                                           warmth or charm
                                     •     Light and sound effects are a cost of
                                           entry.
                                     •     Finally, consumer friendly
                                           engineering promotes consumer
                                           satisfaction and keeps moms and
                                           babies interested.




             Mattel Global Marketing Training
        Trends – Research – Insight – Brand



  Market
   Market      Marketing
               Marketing                                   Product
                                                            Product     Line
                                                                         Line
                                 BDO / /LRP
                                 BDO LRP
  Insight
   Insight     Strategy
                Strategy                                 Development
                                                         Development   Review
                                                                       Review




Basic Trend – Learning is growing!
Basic Trend – Learning is growing!

                Consumer research --Key Insight =
                Consumer research Key Insight =
                  Moms want learning to be fun
                   Moms want learning to be fun




                           Mattel Global Marketing Training
       Marketing Strategy / BDO-LRP

Explanation of the BDO Process

Actual Example of an LRP (to be inserted)




                          Mattel Global Marketing Training
                          The Mattel Marketing Cycle

           Aug.     Sep   Oct       Nov    Dec   Jan   Feb   Mar   Apr     May     Jun   Jul    Aug    Sep‘    Oct      Nov   Dec‘   Ja.
                                                                                                                                     Ja.   Feb.   Mar.   Apr   May   Jun.   Jul   Aug.
           ‘05      ’05   ‘05       ‘05    ‘05   ‘06   ‘06   ‘06   ‘06     ‘06     ‘06   ‘06    ‘06    06      ‘06      ‘06   06     ‘07   ’07    ‘07    ‘07   ‘07   ‘07    ‘07   ’07



Spring                                                                   Global                Pre-                                  Spring Marketing
                                   LRP/                                   Global                Pre-           Ship
‘07                                 LRP/                                  Line                 Toy              Ship
                                   BDO                                      Line                Toy           Spring
                                    BDO                                  Review                Fair            Spring
                                                                          Review                Fair



Global              Product Development
Activity



                                Input
Sub                               Input
Activity

                                                             Pricing/Placement


                                                                   LRP/            Promotion                                  Execution
                                                                    LRP/
                                                                   BDO
                                                                    BDO
Fall ‘07   Market Insight – Kids, Trends                                                                  Global                                                            Fall
                                                                                                           Global
                                                                                                           Line                                                             Marketing
                                                                                                                                       Toy                Ship
                                                                                                             Line
                                                                                                          Review                        Toy                Ship
                                                                                                                                       Fair               Fall
                                                                                                           Review                       Fair                Fall


Global                                                       Product Development
Activity


                                                                                                              Input
                                                                                                                Input
Sub                                                                                             Pricing/Placement
Activity
                  Market
                   Market                        Marketing
                                                 Marketing                                                       Product
                                                                                                                  ProductPromotion                        Line
                                                                                                                                                           Line Execution
                                                                                 BDO / /LRP
                                                                                 BDO LRP
                  Insight
                   Insight                       Strategy
                                                  Strategy                                                     Development
                                                                                                               Development                               Review
                                                                                                                                                         Review
                                                                         Mattel Global Marketing Training
           Typical Research Path

Market
 Market        Marketing
               Marketing                               Product
                                                        Product                  Line
                                                                                  Line
                                BDO / /LRP
                                BDO LRP
Insight
 Insight       Strategy
                Strategy                             Development
                                                     Development                Review
                                                                                Review




Stage                Ideation           Exploration            Initial Concept      Market Testing
                                                                     Test

Stimuli            Early Stage            Tangible                  Developed            Developed
                    Concepts              Concepts                  Concepts             Concepts

Research           “Mom Talk”          Focus Groups                   Axiom               Axiom


Type                   Qual                  Qual                     Quant +             Quant +
                                                                       Qual                Qual
Output                Ideas               Insight                    Purchase             Relative
                                        “some tank”                    Intent /           Appeal
                                                                     Attributes       ( UK, France,
                                                                    (Like, Fun..)    Germany, Italy,
                                                                                     Spain Mexico)

                                 Mattel Global Marketing Training
     Laugh ‘n Learn House


Late Summer 2003 – Spelunker, followed by
Mom Talk




                             Mattel Global Marketing Training
         What Is A Viability Test

n   What
     – A simulated in-store environment                               Fall 2003 – Viability Test &
     – 200 pairs (moms & kid)                                           Volumetric Projection
     – “chips” to simulate shopping
     – A “more rigorous BASIS test, ”
n   When
     – Run twice per year (PTF for in/out,
       Full Year - for priority)

n   Outcomes =
     – Viability (Yes / No)
     – Priority
     – Volume predictions

n   Stimuli = pictures, boards, pricing, ads

n   Where = US, Mexico, Europe

n   Predictability = 70%



                                   Mattel Global Marketing Training
Results - Viability Test




               Mattel Global Marketing Training
      CASE STUDY - Laugh ‘n Learn House


International testing, typically
n UK
                                             Winter 2003 – Playlab Packaging
                                             Interviews
n Germany
                                             European Focus Groups
n France

n Spain

n Italy

n Mexico



Typical Results
n Relative appeal of product in
  market
n Indications of volume / pricing

n Insight into attributes




                           Mattel Global Marketing Training
Testing In International Markets




                                                  Performance Key
                                                   Performance Key
                                                  ¶¶      Star
                                                           Star
                                                  JJ      Strong
                                                           Strong
                                                  ??      Mixed
                                                           Mixed
                                                  LL      Poor
                                                           Poor

               Mattel Global Marketing Training
Price




        Mattel Global Marketing Training
           PRICE - Overview

n   Profitability
     n Price, Volume or Cost (What’s the best route to profitability)
                                                                         11Hour
                                                                            Hour
     n Profit Exercise



n   Understanding the Mattel P&L
     n Structure                                                         11Hour
                                                                            Hour
     n Key Terms (definitions)

     n Key Calculations

     n Practice exercise



n   Setting the Price                                                    11Hour
     n Pricing Methodologies (Cost Plus, Marginal. Market based, Value
                                                                            Hour
       based)
     n Competitive Pricing Strategies (Price leadership, Skimming,
       Penetration, Follower)
     n The Mattel Pricing Development Process

     n Practice exercise “What should XXX sell for?”



n   Forecasting
                                                                         11Hour
                                                                            Hour
     n Key issues at Mattel

     n Forecasting Process

     n Best Practices

                                     Mattel Global Marketing Training
Focus on Profit




             Mattel Global Marketing Training
Let’s Begin With A Basic Question




                                                 What causes a
                                                 stock to rise?




              Mattel Global Marketing Training
More Of What?



      n   Sales?
      n   Products?
      n   Earnings?
      n   Good News?
      n   Innovation?
      n   Customers?
      n   Change?
      n   People?




               Mattel Global Marketing Training
Consider Company ‘A’



    Company                      ‘A’


           Revenue               100.0%
  Cost of Goods Sold               66.0%
        Gross Profit               34.0%
                                                    How Well Is It Performing?
              SG&A                 23.9%
      Depr. & Amort.                 2.7%           Why?
      Other Expense                  0.0%
   Operating Income                  7.3%
    Non Op Expense                   1.2%
     Pre-Tax Income                  6.1%



                 Mattel Global Marketing Training
   Let’s add a few more…who’s performing the
   best? Why?

Company              ‘A’        ‘B’           ‘C’              ‘D’    ‘E’     ‘F’     ‘G’


        Revenue     100%      100%          100%          100%       100%    100%    100%


Cost of good sold   66%        76%          77.5%         67.9%      47.3%   38.2%   47.1%


     Gross profit   34%        24%         22.5%          32.1%      52.7%   61.8%   52.9%


           SG&A     23.9%    17.5%          17.9%         26.1%      33%     45.6%   30.9%


  Depr. & Amort.    2.7%      1.5%           23%               3%    3.7%    5.2%    3.9%


  Other expense      0%         0%              -          0.7%      0.1%     0%      0%


Operating income    7.3%      4.9%          4.6%           2.3%      15.8%   11%     18.1%


 Non op expense     1.2%        4%            7%           1.1%      0.9%    3.2%    0.7%


  Pre-tax income    6.1%      5.5%          4.1%           1.2%      14.9%   7.8%    17.4%


                            Mattel Global Marketing Training
Which Stock Would You Want To Own Now?


 Company             ‘A’           ‘B’           ‘C’           ‘D’      ‘E’     ‘F’     ‘G’


  REVENUE ($M)      48,163     256,329        88,474          11,566   4,960   3,139   43,377

Cost of good sold   66%           76%         77.5%           67.9%    47.3%   38.2%   47.1%


     Gross profit   34%           24%         22.5%           32.1%    52.7%   61.8%   52.9%

           SG&A     23.9%       17.5%         17.9%           26.1%    33%     45.6%   30.9%

  Depr. & Amort.    2.7%         1.5%           23%            3%      3.7%    5.2%    3.9%

  Other expense      0%            0%              -          0.7%     0.1%     0%      0%

Operating income    7.3%         4.9%          4.6%           2.3%     15.8%   11%     18.1%

 Non op expense     1.2%           4%            7%           1.1%     0.9%    3.2%    0.7%

  Pre-tax income    6.1%         5.5%          4.1%           1.2%     14.9%   7.8%    17.4%

   PRE-TAX ($M)     2,960       14,193         3,633           138      741     244    7,530


                           Mattel Global Marketing Training
And now?
Who are these companies?

 Company             ‘A’             ‘B’          ‘C’           ‘D’      ‘E’     ‘F’     ‘G’

  REVENUE ($M)      48,163       256,329       88,474          11,566   4,960   3,139   43,377

Cost of good sold   66%            76%          77.5%          67.9%    47.3%   38.2%   47.1%

     Gross profit   34%            24%         22.5%           32.1%    52.7%   61.8%   52.9%

           SG&A     23.9%         17.5%        17.9%           26.1%    33%     45.6%   30.9%

  Depr. & Amort.    2.7%           1.5%          23%            3%      3.7%    5.2%    3.9%

  Other expense      0%             0%              -          0.7%     0.1%     0%      0%

Operating income    7.3%           4.9%         4.6%           2.3%     15.8%   11%     18.1%

 Non op expense     1.2%            4%            7%           1.1%     0.9%    3.2%    0.7%

  Pre-tax income    6.1%           5.5%         4.1%           1.2%     14.9%   7.8%    17.4%

   PRE-TAX ($M)     2,960        14,193         3,633           138      741     244    7,530
     INV TURNS       5.95          7.32          12.4           3.70    6.04    7.10     5.61
      BASIC EPS     $3.26         $2.21         $3.55          $0.64    $1.18   $1.00   $2.32


                            Mattel Global Marketing Training
              Household names…

       Company            Target   Walmart     Carrefour          TRU    Mattel    Hasbro       P&G

      REVENUE ($M)        48,163   256,329       88,474         11,566   4,960     3,139       51,407

             Revenue      100%     100%          100%            100%    100%      100%        100%

   Cost of Good Sold      66%       76%          77.5%          67.9%    47.3%     38.2%       45.4%

      Gross Profit        34%       24%          22.5%           32.1%   52.7%     61.8%       54.6%

                   SG&A   23.9%    17.5%         17.9%          26.1%    33%       45.6%       32.1%

      Depr. & Amort.      2.7%      1.5%          2.3%            3%     3.7%       5.2%       3.4%

      Other Expense        0%        0%                          0.7%    0.1%       0%          0%

  Operating income        7.3%      4.9%          4.6%           2.3%    15.8%      11%        19.1%

    Non Op Expense        1.2%      0.4%          0.7%           1.1%    0.9%       3.2%       1.2%

     Pre-Tax Income       6.1%      5.5%          4.1%           1.2%    14.9%      7.8%       18.2%

       PRE-TAX ($M)       2,960    14,193         3,633           138     741       244        9,350

          INV TURNS        5.95     7.32          12.4            3.70   6.04       7.10        11.7

           BASIC EPS      $3.26     $2.21        $3.55           $0.64   $1.18     $1.00       $2.32
2003 Fiscal Year                                                            Source: Company Reports and
                                      Mattel Global Marketing Training      Hoovers
Once Upon a Time, Two Partners Went Into the
Watermelon Business…




             Mattel Global Marketing Training
Managing Profitability




                  Mattel Global Marketing Training
Profit Improvement Strategies



 Profit = (Volume x Price) - Costs

            Increase Price

          Increase Volume

            Reduce Costs


              Mattel Global Marketing Training
What Route To Profit?




  Consider a business that
   n Sells 100 000 toys

   n At a price of €1 each

   n That cost €0.75 each




  What’s required to improve profits by 15%?




                 Mattel Global Marketing Training
               Comparing the Options


                    Current Business        Option 1                  Option 2             Option 3
                                            Drive Volume              Raise Price          Reduce Costs

Sales Units         100000                  115000                    100000               100000


Price per unit      €1                      €1                        €1.0375              €1


Cost per unit       €0.75                   €0.75                     €0.75                €0.7125


Profit per unit     €0.25                   €0.25                     €0.2875              €0.2875


Total Sales         €100000                 €115000                   €103750              €100000


Total Profit        €25000                  €28750                    €28750               €28750


Profit Strategy                             Increase Volume by        Increase prices by   Reduce Costs by
Options                                     15%                       3.75%                5%



                                       Mattel Global Marketing Training
         “Ready Reckoner”


n What price increase is needed to deliver the same profit improvement as
 a given volume increase?



n What volume increase will bring the same profit improvement as a given
 price increase?


  % Gross Margin x % Volume Increase                     = % price increase required
           100


  % Price Increase x 100      = % Volume Increase required
    % Gross Margin


                           Mattel Global Marketing Training
 In Real Life, These Options Are Interrelated



To drive volume
   n Do we need to reduce price

   n Do we need to invest ( raise costs)

   n Will the additional volume reduce our costs?




To raise price
   n Will we lose volume




To reduce costs
   n Will this reduce volume (Why would this happen?




                    Mattel Global Marketing Training
Mattel Finance & Performance Measures




              Mattel Global Marketing Training
           The Pressure On Mattel Is Immense

                                                   Powerful
                                                  Powerful
                                                   Multiples
                                 Adapting
                               Adapting toto      Multiples
                                                                      Other Brands
                               Modern Trade
                             Modern Trade                          Other Brands
                Customer Specific                                                Ill Disciplined Non
                                                                            Ill Disciplined Non
               Customer Specific
                    Promotion                                                    Branded Retailers
                                                                            Branded Retailers
                  Promotion
         More Margin
        More Margin                                                                        Own Label
                                                                                         Own Label

   Implementation
 Implementation                                                                                   No.3 Brands
                                                                                               No.3 Brands
  ofof Agreements
     Agreements

 Better Service
Better Service                              Mattel Pressure
                                           Mattel Pressure                                          Legislation
                                                                                                   Legislation
                                                  Points
                                               Points
   Stockholding                                                                                  High Production
                                                                                               High Production
 Stockholding
                                                                                                      Costs
                                                                                                    Costs

          J.I.T.                                                                                Changing
                                                                                              Changing
        J.I.T.
                                                                                               Consumers
                                                                                             Consumers
                 Space
               Space
              Productivity                                                              Economy
                                                                                       Economy
            Productivity
                          Channel
                         Channel                                          Shareholders
                          Balance                                        Shareholders
                         Balance
                                     Extended Credit
                                    Extended Credit          Bad Debts
                                                            Bad Debts


                                      Mattel Global Marketing Training
Profitability Drivers

               Objectives
                                                       Price
                                                       Price
                                                    Strategies
                                                    Strategies
                   Margin
                   Margin
                                               Cost Strategies
                                               Cost Strategies
 Net Income
 Net Income           X
                                                   Market Share
                                                   Market Share
                                                    Strategies
                                                    Strategies
                   Volume
                                                   Market Size
                                                   Market Size
                                                   Strategies
                                                    Strategies




                                                       Turn
                                                       Turn
                                                    Strategies
                                                    Strategies
   Assets
   Assets        Inventory
                  Inventory
  Managed
  Managed                                             Terms
                                                       Terms
                                                    Strategies
                                                    Strategies

                Mattel Global Marketing Training
     Margin: Price Strategies



                                                           Product Exclusives
                                                            Product Exclusives

Objective
Objective                                                      Product Mix
                                                                Product Mix

                                                           Breadth of Selection
                                                           Breadth of Selection

        Margin
        Margin    Price Strategies
                   Price Strategies                         Ease of Shopping
                                                             Ease of Shopping

                                                      Maximize in store experience
                                                      Maximize in store experience

                                                      Store placement by price point
                                                       Store placement by price point

                                                          Maximize Retail prices
                                                          Maximize Retail prices




                   Mattel Global Marketing Training
     Margin: Cost Strategies



                                                       Process Innovation - -CPFR
                                                        Process Innovation CPFR

Objective
Objective                                             Info Exchange Efficiency - -EDI
                                                       Info Exchange Efficiency EDI
                                                           SKU rationalization
                                                            SKU rationalization
        Margin
         Margin   Cost Strategies
                   Cost Strategies                          Ease of Shopping
                                                             Ease of Shopping
                                                      Terms ––Pay for performance
                                                       Terms Pay for performance
                                                       Integration of Boys/Girls and
                                                         Integration of Boys/Girls and
                                                      Infant and Preschool in Plans
                                                        Infant and Preschool in Plans
                                                        Merchandising efficiency
                                                         Merchandising efficiency




                   Mattel Global Marketing Training
     Volume: Market Share Strategies



                                                      Promo – BOGO/Bundles/GWP
                                                      Promo – BOGO/Bundles/GWP
Objective
Objective                                              Comp Intel (Timing/Pricing)
                                                       Comp Intel (Timing/Pricing)

                                                        Pricing –EDLP, Hi-Lo, TPR
                                                        Pricing –EDLP, Hi-Lo, TPR
                  Market Share
                  Market Share
        Volume
        Volume                                        Merch–Feature Display, Pallets
                                                      Merch–Feature Display, Pallets
                   Strategies
                    Strategies
                                                       Value- Add prods or service
                                                       Value- Add prods or service

                                                       Barriers to entry- Exclusivity
                                                       Barriers to entry- Exclusivity

                                                      New products – 1st to market
                                                      New products – 1st to market




                   Mattel Global Marketing Training
     Volume: Market Size Strategies




Objective
Objective                                                    New markets
                                                              New markets

                                                      Distrib ––Breadth of Offering
                                                       Distrib Breadth of Offering
                  Market Size
                   Market Size
       Volume
        Volume     Strategies
                    Strategies                        Usage Occasion-Beyond XMas
                                                       Usage Occasion-Beyond XMas

                                                        More Usage per occasion
                                                         More Usage per occasion




                   Mattel Global Marketing Training
      Inventory: Turn/Terms Strategies



                                                                Sourcing
                                                                 Sourcing
                                                       SKU/Vendor Rationalization
                                                        SKU/Vendor Rationalization

Objective
Objective           Turn Strategies
                     Turn Strategies
                                                                  CPFR
                                                                   CPFR
                                                       Inv Flow -Cross Dock, Freq
                                                        Inv Flow -Cross Dock, Freq

       Inventory
        Inventory                                      Modular Traiting- Store Type
                                                        Modular Traiting- Store Type
                                                             Exit Strategies
                                                              Exit Strategies
                        Terms
                         Terms
                      Strategies                               Planograms
                                                                Planograms
                       Strategies
                                                            Dating/Off invoice
                                                             Dating/Off invoice
                                                       Markdowns/Shrink/Damage
                                                        Markdowns/Shrink/Damage




                    Mattel Global Marketing Training
            The Mattel Brand P&L Structure – Managed at
            Two Levels – By Country / By Brand
                                       International
                                        International


   International
    International          MUSA
                            MUSA                                        Mattel
                                                                        Mattel           Fisher
                                                                                         Fisher
                                                                        Brands
                                                                        Brands           Price
                                                                                          Price

       Europe
        Europe             Asia
                            Asia

                                                                       Boys
                                                                       Boys      Girls
                                                                                 Girls
        UK
         UK               France
                           France



 Boys
  Boys           Girls
                  Girls    FP
                            FP                                            Hot Wheel
                                                                          Hot Wheel
                                                                            P&L
                                                                             P&L
       Wheels
        Wheels
        Hot
        Hot
         Hot
SKU




                                                                                 SKU
                                                                                 SKU
 SKU




                                    Mattel Global Marketing Training
Mattel P&L (TLP to Props)

                                                      At several levels
                                                       At several levels
                                                  (Subsidiary, Boys, Brand,
                                                   (Subsidiary, Boys, Brand,
                                                      sub-brand, SKU
                                                       sub-brand, SKU

                                                           Sales at list
                                                             Sales at list
                                                           - -DFI
                                                               DFI
                                                            - -Accrued
                                                                Accrued
                                                                Customers
                                                                 Customers
                                                           - -MDF
                                                               MDF
                                                           ==Net Sales
                                                                Net Sales

                                                 Manufactured Cost
                                                  Manufactured Cost

                                                            Allocated
                                                             Allocated


                                                     Brand Managed


                                                   Managed at Sub Level
                                                    Managed at Sub Level


              Mattel Global Marketing Training
Mattel P&L (TLP to Props)



                                                                Brand Managed
                                                                 Brand Managed
                                                       • • Advertising Media (typically at
                                                            Advertising Media (typically at
                                                         Director level)
                                                          Director level)
                                                       • • Promotion
                                                             Promotion
                                                       • • Public Relations
                                                             Public Relations
                                                       • • Program Development
                                                             Program Development
                                                       • • Internet
                                                             Internet
                                                       • • Events
                                                             Events
                                                       • • ....
                                                             ....




                                                                  Local Systems
                                                                   Local Systems




    TLP to Props
     TLP to Props
                    Mattel Global Marketing Training
Placeholder page for one level down of report (per Wody’s note)




                          Mattel Global Marketing Training
Mattel P&L (TLP to Props)

                                         TLP
                                         n Primarily a Planning tool
                                         n Full Year & YTD




                                                         To

                                           PROPS
                                           n Full Year, YTD & Monthly
                                           n Planning & Management Tools
                                           n What ifs?
                                           n Added dimensions




              Mattel Global Marketing Training
Mattel Financial Planning Milestones




                                                 Need to fix this graphic


              Mattel Global Marketing Training
We may move the selection     and quota section here (as per
suggestions)




                    Mattel Global Marketing Training
What is Direct Import?




                  Mattel Global Marketing Training
What Is A Direct Import? A Technical Definition


                          Sold directly to the customer Asia.

                          FOB Hong Kong/China

                                n         Customer pays supplier on
                                          Letter of Credit:
                                n         Payment in US Dollars
                                n         Payment at time of shipment
                                n         Customer owns the inventory

                          Customer is responsible for all costs
                          and managing all logistics from China
                          to their stores.




              Mattel Global Marketing Training
         Framework

Cost
 to
Serve
          Direct           Domestic/Trade
          Warehouse
          (DW/DDI)
 US                                                          REVENUE BY CATEGORY
                                                             REVENUE BY CATEGORY
                JIT            HIGH COST
                                                             Trade:
                                                             Trade:    $ 1,200 million
                                                                        $ 1,200 million
                                                             DI:
                                                             DI:       $ 150 million
                                                                        $ 150 million
          Direct Import    FOB/Import                        DW:
                                                             DW:       $ 150 million
                                                                        $ 150 million
                                                             FOB:
                                                             FOB:      $ 20 million
                                                                        $ 20 million
Orient

            LOW COST             EARLY $



                                                                       Cost
             Non-Ad                  Ad                               to Sell
                          Mattel Global Marketing Training
       Direct Imports Come in Two Varieties
       - Branded and Unbranded

         Branded (e.g., Mattel)                                Unbranded

n   Strong, well known brand                      n   Unknown Brand
n   High consumer recognition and                 n   Little consumer recognition and
    appeal                                            appeal
n   Top quality product                           n   Variable quality
n   Strong features                               n   Few features
n   Media and promo support                       n   No support
n   Complements TV Drivers                        n   No link to TV Drivers
n   Good turns                                    n   Slower turns




                          Mattel Global Marketing Training
         Direct Import Exercise

Break into to 2 groups
                                                                 •15 Minutes in
                                                                  •15 Minutes in
 n   Group 1 = the retailer                                      groups
                                                                  groups
 n   Group 2 = Mattel                                            •15 minutes review
                                                                  •15 minutes review
                                                                 and discussion
                                                                  and discussion

Brainstorm – why (Branded) Direct Imports?
 n   Group 1 from Retailer perspective
 n   Group 2 from Mattel perspective


On a flip chart, list the reasons for selling / carrying Direct Imports




                              Mattel Global Marketing Training
         DI Shared Benefits

              For Mattel                                       For Retailer

n   Makes product mix more                     n   High % gross margins on
    profitable for customers = more                branded toys / brand support
    support for Mattel brands                      from Mattel
n   Incremental space / market share           n   Combine with to TV Drivers to
n   Extends Brand presence on shelf                create profitable mix
n   Rounds out product line                    n   Fill out product lines with
n   Competes with Private Label, un-               complementary items – (Barbie
    branded DI, knock- offs                        clothes with Barbie dolls)
n   Competes for lower “price                  n   Ability to hit key retail price
    points”                                        points
n   Captures more “Open to Buy”                n   Price/Value for consumers
    dollars                                    n   Better “trip capture”
n   No Inventory costs / risk                  n   Direct Imports often perceived as
n   No bad debt                                    a better deal

                            Mattel Global Marketing Training
Selling Items DI allows Mattel To Tap Into Two
Sources Of The Retailer’s Budget


  Domestic                                        Direct Import
 Open to Buy                                      Open to Buy




   $                                                 $

               Mattel Global Marketing Training
   Direct Import – A Definition




Direct Imports are a marketing
strategy that enables Mattel to
provide retailers with a better
margin mix and extend our brand
presence.




                      Mattel Global Marketing Training
        Direct Import vs. Domestic Distinctions

                                  Domestic                           Direct Imports

Brand                    Stronger                              Strong


Media Support            Media Support                         Items not supported but
                                                               supported by brand
                                                               advertising
Turns                    Better                                Good
Features                 Unique Features                       Strong Features

Differentiation          Yes+                                  Yes

Retailer Margin          Medium/Low                            High


Mattel Margin            Very High / High                      High / Medium

           Domestic / /Direct Imports vary by brand and by market
           Domestic Direct Imports vary by brand and by market
                 but, in general, have these distinctions.
                  but, in general, have these distinctions.
                            Mattel Global Marketing Training
       Why Are DI Product Higher Margin For The
       Retailer?
Retailer buys directly from Asia
 n Mattel takes mark-up off a lower base

 n Retailer pays all shipping costs

Lower Handling Costs

                         Domestic                            DI            %

 Cost in Asia                      $10.00                         $10.00

 Mattel Mark-up                            --                      $2.00   20%

 Ocean Ship                          $3.00                         $3.00

 Domestic Ship                       $4.00                         $2.00

 Mattel Markup                       $3.50                            --   20%

 Cost to Retailer                  $20.50                         $17.00

                          Mattel Global Marketing Training
           Exercise : Creating A Mixed Offer

Objective    To discriminate between DI and Trade products leading to
              To discriminate between DI and Trade products leading to
Objective
             creation of superior offers for both Retailers and Mattel
              creation of superior offers for both Retailers and Mattel

Method       •• Break into two (2) teams
                 Break into two (2) teams
Method
             •• Each group will be given five (5) products
                 Each group will be given five (5) products
             •• Assess whether each product should be sourced Trade
                 Assess whether each product should be sourced Trade
                or DI
                 or DI
             •• Establish a price to retailer for each product
                 Establish a price to retailer for each product
             •• Calculate margin to retailer
                 Calculate margin to retailer
             •• Calculate margin to Mattel
                 Calculate margin to Mattel




 Timing      45 min to prepare
              45 min to prepare
  Timing
             15 min to present
              15 min to present

                            Mattel Global Marketing Training
Pricing & Selection




                  Mattel Global Marketing Training
Product Selection – Traditional Versus Mattel


Traditional approach                                  The difference at Mattel




                   Mattel Global Marketing Training
             Product Selection & Quota

        Line Review – Total Line
        Line Review – Total Line
                                                                             Global TV Drivers
                                                                              Global TV Drivers
  Global Line                  Local Line
                                 Local Line
    Global Line                • •History
  • •Research Results
      Research Results             History                                 Local
                                       •category / /brand in this market     Local
         • •global
             global                     •category brand in this market     • •Market conditions
                                       (>=< than ROW)                          Market conditions
         • •region
             region                     (>=< than ROW)                     •Legal considerations
                                       •History of price point in local      •Legal considerations
  • •Volume Estimates
      Volume Estimates                  •History of price point in local   • •Business goals
                                       market                                  Business goals
  • •TV Support Options
      TV Support Options                market                             • •Media Budget
                               •Size / /strength of local Sub                  Media Budget
  • •Global priorities
      Global priorities          •Size strength of local Sub
                               •CDI
                                 •CDI
                               • •BDI
                                   BDI
                               • •Region / /Market priorities
                                   Region Market priorities
                               • •Sales goals
                                   Sales goals
                               • •Distribution
                                   Distribution
                               • •Marketing Support Levels
                                   Marketing Support Levels



                                      • Local Product Line
No tools identified, more judgments   • Quota


                                       Mattel Global Marketing Training
Line Pricing Vs. SKU Pricing




              Mattel Global Marketing Training
Euro N pricing model




                       Mattel Global Marketing Training
       Tips On Selection of Line & TV Drives & Setting
       Quotas

Groups make better decisions than individuals
Perennial slots (segment / price) as a guide
Coverage of key segments & price points
How do will I support
    n Umbrella strategy (e.g., “Hot 100”
    n Flagship (e.g. Accelerators)
What are my business priorities?




                   Andres is getting some examples

                           Mattel Global Marketing Training
     Different Market Approach to Line Selection



 Global
 Global                   Global
                          Global                      Global
                                                      Global
  Line
   Line                    Line
                            Line                       Line
                                                        Line


US / /Canada
 US Canada                   Europe
                              Europe                    LATAM
                                                         LATAM

 Global                    Country                     Region
                                                       Region
 Global                    Country                      Line
  Line
   Line                     Line
                             Line                        Line
                                                        Must Carry
                                                         Must Carry
                                                      Option to Carry
                                                       Option to Carry
                                                       Not in Region
                                                        Not in Region




                                                      Country
                                                      Country
                                                       Line
                                                        Line

                   Mattel Global Marketing Training
Finding The “Right Price”




n   Cost Plus Pricing

n   Marginal Pricing

n   Market Based

n   Value Pricing



         Define and discuss the pros and cons of
         Define and discuss the pros and cons of
             these different pricing strategies
              these different pricing strategies


                        Mattel Global Marketing Training
   Setting The Price

Global price, based on research
 Global price, based on research


         “A” Price
          “A” Price                                         Local Market
                                                         Local Market


                                                              Landed Cost
                                                           Landed Cost


                                                   Local Trade Spend Structure
                                                Local Trade Spend Structure


                                                                  Competition
                                                               Competition


                                                            Mattel Margin
                                                        Mattel Margin Mix Mix


                                                              Retailer Margin
                                                          Retailer Margin
        Local Price
        Local Price

                            Mattel Global Marketing Training
         Need to Add

n   TV Drivers vs. Non-Driver / DI

n   Local Pricing Models




                             Mattel Global Marketing Training
Managing - POS
- Need to add this section




                  Mattel Global Marketing Training
Forecasting Processes




                 Mattel Global Marketing Training
Refresher: Lead Time Summary




       Material                                 60
       Production                               30

       Transit                                  30

                                                120 days
                                                120 days




             Mattel Global Marketing Training
    How Mattel Manages Demands




n      Demand Forecasts
n      Monthly quantity requirements submitted to manufacturing
       sources

n      Quota Reviews
n      Monthly review of demand forecasts by item

n      Measurements
n      Demand Measurements
n      Inventory Measurements




                    Mattel Global Marketing Training
         Planning And Forecasting:
         The Ideal Forecasting Process!


 Marketing
                                                   Quota
                                                    Quota                  Marketing
                                                                            Marketing
(Top Down)



   Sales
                            Forecast
                             Forecast                          Sales
                                                                Sales
(Bottom Up)



               Reconciled Production
                Reconciled Production
 Planning              Plan
                        Plan




Fulfillment                                   Production
                                               Production      Retailer
                                                                Retailer   Consumer
                                                                            Consumer



                            Mattel Global Marketing Training
         Planning and Forecasting:
         A process perception?


 Marketing
                                                  Quota
                                                   Quota                  Marketing
                                                                           Marketing
(Top Down)



   Sales
                           Forecast
                            Forecast                          Sales
                                                               Sales
(Bottom Up)



              Reconciled Production
               Reconciled Production
 Planning             Plan
                       Plan




Fulfillment                                  Production
                                              Production      Retailer
                                                               Retailer   Consumer
                                                                           Consumer



                           Mattel Global Marketing Training
           Exercise: Forecasting Process


Objective    To discuss the subtle process nuances between desired
              To discuss the subtle process nuances between desired
Objective
             forecasting process and perceived forecasting reality
              forecasting process and perceived forecasting reality


             •• Beak into groups of three (3)
                 Beak into groups of three (3)
Method
Method       •• Compare and contrast the forecasting process
                 Compare and contrast the forecasting process
                diagrams, discuss
                 diagrams, discuss
                 •• How are they different?
                     How are they different?
                 •• Is perception reality?
                     Is perception reality?
                 •• Is the ideal possible?
                     Is the ideal possible?
                 •• What should change?
                     What should change?
                 •• What is Sales role in change?
                     What is Sales role in change?
             •• Capture team thoughts on flipcharts
                 Capture team thoughts on flipcharts


             30 min to discuss and prepare
              30 min to discuss and prepare
 Timing
  Timing     15 min to present
              15 min to present
                            Mattel Global Marketing Training
       Create a Bridge from Base Plan to Forecast


Market Forecast
Market Forecast




                                Add                             Customer
                                                              Customer
      Base
     Base                     Add
                                                                 Specific
      Plan
     Plan         +           Events
                            Events / /                 =       Specific
                             Activities                         Forecast
                                                              Forecast
                            Activities




    Spread
     Spread
   Forecast
    Forecast
   over time
    over time
                      Agree with customer                  Monitor and Manage

                        Mattel Global Marketing Training
       Quantify the Impact of Events and Activities


Market Forecast
Market Forecast




                                Add                             Customer
                                                              Customer
      Base
     Base                     Add
                                                                 Specific
      Plan
     Plan         +           Events
                            Events / /                 =       Specific
                             Activities                         Forecast
                                                              Forecast
                            Activities




    Spread
     Spread
   Forecast
    Forecast
   over time
    over time
                      Agree with customer                  Monitor and Manage

                        Mattel Global Marketing Training
         Events and Activities

                RETAILER                                         MATTEL
n   Product in stock                             n Products in-stock
                                                 n Product to support promotion
n   Product to support promotions
                                                 n Coordinate with TV Advertising
n   Coordinate with TV Advertising               n Helps Control Mattel Inventory Costs
n   Helps Control Retailer Inventory             n Measure Mattel’s performance
    Costs                                        n Drives the replenishment plan
n   Measure Retailer Performance with            n Identify and Act on issues early
    Mattel                                            Allocate the ‘HITS’
                                                      n

n   Drives the replenishment plan                   n Move the ‘DOGS’ out early

                                                 n Estimates that impact production
n   Identify and Act on issues early
                                                 n Information to Marketing
                                                 n Timely information that you need to
                                                   manage your account
                                                    n Am I going to make my target?

                                                    n Is there a gap?

                                                    n What can I do to close the gap
     Developed Through Dialog
     Developed Through Dialog
       With Your Customers!
       With Your Customers!

                              Mattel Global Marketing Training
       Quantify the Impact of Events and Activities


Market Forecast
Market Forecast




                                Add                             Customer
                                                              Customer
      Base
     Base                     Add
                                                                 Specific
      Plan
     Plan         +           Events
                            Events / /                 =       Specific
                             Activities                         Forecast
                                                              Forecast
                            Activities




    Spread
     Spread
   Forecast
    Forecast
   over time
    over time
                      Agree with customer                  Monitor and Manage

                        Mattel Global Marketing Training
       Base Plan and Events/Activities Drive the
       Forecast!

Estimate Volume impacts by Customer by SKU by EVENT




                                                                                              Customer
Base   New Item   Lost Space   Extra Ad    Store Closings          Extra Space    End Cap
                                                                                              Forecast
                  Hot Wheels                                         Barbie      Hot Wheels




                                Mattel Global Marketing Training
       Account for Timing


Market Forecast
Market Forecast




                                Add                             Customer
                                                              Customer
      Base
     Base                     Add
                                                                 Specific
      Plan
     Plan         +           Events
                            Events / /                 =       Specific
                             Activities                         Forecast
                                                              Forecast
                            Activities




    Spread
     Spread
   Forecast
    Forecast
   over time
    over time
                      Agree with customer                  Monitor and Manage

                        Mattel Global Marketing Training
     Spread The Forecast



      Jun
       Jun        Jul
                   Jul   Aug
                         Aug        Sep
                                    Sep             Oct
                                                    Oct        Nov
                                                               Nov       Dec
                                                                         Dec   Jan
                                                                                Jan
                                                White
1 POSà
  POSà
                                                 White
                                                Space
                                                 Space
                                                              Display
                                                               Display   TV
                                                                          TV




2 Shipmentsà
  Shipmentsà
  Initial Fill
   Initial Fill                 Replenishment
                                 Replenishment


                                             Seasonality Trends




                           Mattel Global Marketing Training
      Include the Customer and Monitor Accuracy


Market Forecast
Market Forecast




                                Add                             Customer
                                                              Customer
      Base
     Base                     Add
                                                                 Specific
      Plan
     Plan         +           Events
                            Events / /                 =       Specific
                             Activities                         Forecast
                                                              Forecast
                            Activities




    Spread
     Spread
   Forecast
    Forecast
   over time
    over time
                      Agree with customer                  Monitor and Manage

                        Mattel Global Marketing Training
       Creating an Accurate “Bottom Up” Forecast




Base                                                   Customer
Plan                                                   Forecast


                    Mattel Global Marketing Training
      Creating A Base Plan

               WHAT would happen if I did nothing?

    LY performance = $550k



Distribution
 Distribution                     +2
                                   +2
Pricing
 Pricing                          +2
                                   +2                      New Base Plan
Promotions
 Promotions                       -1
                                   -1                         = $555k
Display
 Display                           00
Customer Performance
 Customer Performance             +3
                                   +3
Category Performance
 Category Performance             -1
                                   -1

TOTAL
 TOTAL                            +5
                                   +5




                        Mattel Global Marketing Training
   Events And Activities Should Take You From
   Base To Target




   Base
 Base                                                              Target
                                                                  Target
 Volume
Volume
                     TV
                 White Space
                  Displays
                   Events
             Secondary Locations

                                                   Make sure that we have the
                                                   inventory to cover the event?




                Mattel Global Marketing Training
Managing Forecast Changes




                Mattel Global Marketing Training
         Planning and Forecasting:
         A process perception?


 Marketing
                                                  Quota
                                                   Quota                  Marketing
                                                                           Marketing
(Top Down)



   Sales
                           Forecast
                            Forecast                          Sales
                                                               Sales
(Bottom Up)



              Reconciled Production
               Reconciled Production
 Planning             Plan
                       Plan




Fulfillment                                  Production
                                              Production      Retailer
                                                               Retailer   Consumer
                                                                           Consumer



                           Mattel Global Marketing Training
         Planning and Forecasting:
         A process perception?


 Marketing
                                                  Quota
                                                   Quota                  Marketing
                                                                           Marketing
(Top Down)



   Sales
                           Forecast
                            Forecast                          Sales
                                                               Sales
(Bottom Up)
                                          Faster, Furious


              Reconciled Production
               Reconciled Production
 Planning             Plan
                       Plan




Fulfillment                                  Production
                                              Production      Retailer
                                                               Retailer   Consumer
                                                                           Consumer



                           Mattel Global Marketing Training
         Planning and Forecasting:
         A process perception?


 Marketing
                                                  Quota
                                                   Quota                  Marketing
                                                                           Marketing
(Top Down)
                                       Slower, Powerful

   Sales
                           Forecast
                            Forecast                          Sales
                                                               Sales
(Bottom Up)



              Reconciled Production
               Reconciled Production
 Planning             Plan
                       Plan




Fulfillment                                  Production
                                              Production      Retailer
                                                               Retailer   Consumer
                                                                           Consumer



                           Mattel Global Marketing Training
         Planning and Forecasting:
         A process perception?


 Marketing
                                                  Quota
                                                   Quota                  Marketing
                                                                           Marketing
(Top Down)
                                       Slower, Powerful

   Sales
                           Forecast
                            Forecast                          Sales
                                                               Sales
(Bottom Up)
                                          Faster, Furious


              Reconciled Production
               Reconciled Production
 Planning             Plan
                       Plan




Fulfillment                                  Production
                                              Production      Retailer
                                                               Retailer   Consumer
                                                                           Consumer



                           Mattel Global Marketing Training
        Forecasting Can Be Like a Hurricane…

…As the season progresses, the storm builds!


                                                         ds
                                                   r Win
                                           ,H ighe
                                    ge ncy
                            in g Ur
                        eas
                   Incr




    Month 0                  Month 3                           Month 5


                            Mattel Global Marketing Training
Focus on the Slower, More Powerful “Winds of
Change”

            WEEKLY FOCUS
            Slower, Powerful

            MONTHLY FOCUS
             Faster, Furious




              Mattel Global Marketing Training
           Exercise: Supply Chain

             To better appreciate the impact schedule changes have on
              To better appreciate the impact schedule changes have on
Objective
Objective    Mattel supply chain performance and overall financials
              Mattel supply chain performance and overall financials



             ••   Beak into groups of three (3)
                   Beak into groups of three (3)
Method       ••   Review the 2x2 forecasting matrix
                   Review the 2x2 forecasting matrix
Method
             ••   Identify market rationale behind each scenario (4 total)
                   Identify market rationale behind each scenario (4 total)
             ••   Assess each scenarios impact on Mattel
                   Assess each scenarios impact on Mattel
             ••   Present views to group
                   Present views to group




             15 min to discuss
              15 min to discuss
 Timing
  Timing     30 min to present
              30 min to present
                                Mattel Global Marketing Training
 Inaccurate Forecasts: Reasons & Reaction




         Over        RATIONALE?
                      RATIONALE?                    RATIONALE?
                                                     RATIONALE?
       Planned         IMPACT?
                        IMPACT?                       IMPACT?
                                                       IMPACT?

 Initial
Forecast
        Under        RATIONALE?
                      RATIONALE?                    RATIONALE?
                                                     RATIONALE?
       Planned         IMPACT?
                        IMPACT?                       IMPACT?
                                                       IMPACT?




                         LT                             GT
                      4 Months                       4 Months
                          Adjustment Lead Time


                 Mattel Global Marketing Training
           Inaccurate Forecasts Cost Everyone

                        Impact                                   Remember…
                •   Excess
                    Inventory                                    Inaccurate forecasting costs
        Over    •   Excess                    FREE                     Lost revenue
      Planned       Warehouse
                                                                     n

                •   WIP/Interest $                                   n Increase costs
                •   Cutbacks                                         n Lower margin
 Initial                                                             n Lower EPS
Forecast               Impact
                                                                 Focus on improving upfront accuracy
                •   Production $
                •   Logistics $                                  Keep large changes to a minimum
       Under    •   Raw Material $            FREE               When in doubt, ASK
      Planned   •   Crowding Out




                        LT                    GT
                     4 Months              4 Months
                        Adjustment Lead Time




                                     Mattel Global Marketing Training
   Forecast Changes Are Ripples…




They Most Often Start Out Small…
                Mattel Global Marketing Training
That Quickly Grow Out-of-Control!

                                          How to stop the wave?

                                          n      Proactively manage change
                                          n      Constantly monitor customer
                                                 expectations
                                          n      Communicate changes both
                                                 externally AND internally




              Mattel Global Marketing Training
         Do’s and Don’t


                 DO                                             DON’T

n   Use prior year data as a                 n   Wait until the last minute to input
    reference/starting point                     changes
n   Reconcile quota gaps to                  n   Take the easy way by assuming
    improve accuracy                             others have a better view of YOUR
n   Focus on BIG changes first                   customers needs
    and frequently                           n   Be too risk adverse, rather learn by
n   Pay attention to details                     embracing the forecasting
                                                 challenge
n   Update forecasts based on
    consumer demand AND                      n   Begin with a self-constrained
    customer interests                           forecasts, then “lead the
                                                 customer” to this view
n   Create a logical rationale to
    guide customer discussions


                             Mattel Global Marketing Training
Place




        Mattel Global Marketing Training
          PLACE - Overview

n   Shoppers, Channels, Customers
                                                                               11Hour
                                                                                  Hour
     n The Occasion, The Shopper, The Channel, The Outlet, The Customer

     n Shoppers vs. Consumers

     n Mattel Channel Examples



n   Developing a Customer Proposition                                          11Hour
                                                                                  Hour
     n Customer Needs

     n Retail Economics

     n The Commercial Proposition



n   Customer Plans & Presentations
     n Plans vs. presentations                                                 22Hours
                                                                                  Hours
     n MSAP / GAP Plans – process / example

     n Exercise “Persuasive Presentation” (turning an existing “deck” into a
       simple but effective presentation)
     n Supporting the Sales Team - checklist of what Sales need from
       Marketing to do their job




                                   Mattel Global Marketing Training
          Taking The Insight And Proposition To The POP
          Is Critical


                            Total Target Market
                             Total Target Market
                                       Aware
                                       Aware




                                                                       New Users
  Above       Intention           Understand
                                  Understand
   The            To                  Believe
   Line       Purchase                Believe
                                                              Cost
                                       Want
                                       Want
   Point                                Find
                                         Find




                                                                                   Loyal Users
                Trial
Of Purchase                                                  Revenue
                                        Buy
                                        Buy
                                        Like
                                         Like
Experience     Repeat                                         Profit
                                      Prefer
                                       Prefer


                          Mattel Global Marketing Training
Shoppers vs. Consumers




                Mattel Global Marketing Training
        Identified Shopping Habits Will Change

Planned         I need to get / we always buy
Immediate                I need it now
Expert                   I need something special
Social                   I want something more
Constrained              It’s all I can get
Opportunistic            I might as well buy
                                     %
                                     40
                                     35
                                     30                                            Planned
                                     25                                            Immediate

                                     20                                            Opportunistic
                                     15                                            Expert
                                     10                                            Constrained
                                      5                                            Social
                                      0
                                                   2000                     2015
                               Source: Research International, The Store 2001
                           Mattel Global Marketing Training
Mattel Global Marketing Training
        Driving The Need For Effective Management Of
        Consumer And Shopper Dynamics

n   Recognize that shoppers differ from consumers

n   Understand the differences

n   Understand the similarities

n   Ensure that there are strategies for both

n   Ensure that these strategies are complementary




             Consumers                                Shoppers




                            Mattel Global Marketing Training
   The Shopper Understanding Decision Model

         A profile of the purchaser of the category (demographics, lifestage,
Who?
         lifestyle, composition of shopping party) and whom they purchase for
         Identification of products and quantities purchased, amount
What?
         spent, product switching and price paid

         Identification of purchase frequency, seasonality, time spent in
When?
         store / at fixture, time of purchase

         Identification of which stores the purchaser shops for the category
Where?   (could be channel, banner, or outlet specific, e.g. Discount channel,
         Wal-Mart banner, or Store No. 486

         Description of how the purchaser responds to various stimuli in the
How?     purchase environment (assortment, price, promotion, shelf
         presentation and location)
         Understanding the motivations of why the purchaser shops, responds,
Why?     and makes decisions as identified above e.g. includes shopper
         attitudinal typologies, need states segments, etc.)


                          Mattel Global Marketing Training
Shopper Exercise / Discussion




              Mattel Global Marketing Training
The Role And Importance Of Channels




                 Mattel Global Marketing Training
The routes to the final consumer are made up of
many different channels
          Distribution                      Retail
            Cash &
                                             shop
                                         Toy shop
             Carry


         Wholesaler                                      Planned



                                    Department Store    Seasonal



                                                       Special
                                                       Occasion


                                          Mass / /
                                           Mass
                                         Grocery
                                          Grocery




                 Mattel Global Marketing Training
  But what is a channel?




 A group of points of purchase that satisfy the
  A group of points of purchase that satisfy the
same consumer/shopper needs or requirements.
same consumer/shopper needs or requirements.




                Mattel Global Marketing Training
    For example…



n    Shops                                     n           Internet
n    Markets                                   n           Mail order
n    Kiosks                                    n           Newspapers
n    Theatres                                  n           Magazines
n    Cinemas                                   n           Vending machines
n    Bars                                      n           Private houses
n    Restaurants                               n           Offices
n    Airports                                  n           Aeroplanes
n    Bus stations                              n           Buses
n    Railway stations                          n           Trains
n    Factories                                 n           Street vendors




                        Mattel Global Marketing Training
           Why do we need channels?




 In an ideal world                                           Treating them all
we would manage                                             the same however
     every POP                                               would not allow
    individually.                                              our brands to
However, in reality                                           reach their full
this would not be                                                potential
   cost effective




                      So, we create channels so that
                         we can manage them in
                                 groups!


                         Mattel Global Marketing Training
         Why do we need channels?

Channels provide a convenient and
effective way of grouping points of
purchase so that we can

 n   Assess their size and growth
     potential
 n   Assess their opportunity for the
     company’s brands
 n   Produce strategies to develop
     these opportunities
 n   Maximise the use of our
     resources
 n   … but only if we define our
     channels correctly!



                             Mattel Global Marketing Training
       What is an accurate channel definition?

Reflects consumer/shopper usage,
  needs and/or requirements

Considers the total universe
   n Not just channels that

     currently sell the company’s
     brands
   n Not just channels that the

     company calls on currently

Provides tangible information that
  can be translated into actions

Will change over time



                           Mattel Global Marketing Training
Commercial Benefits Of A Channel Strategy




  Better return on human and financial investment

  Competitive advantage - focusing on big wins

  Barriers to entry for competition

  Sustainable growth strategy




                   Mattel Global Marketing Training
Channel Strategies
Case Study MUSA - CDO Workshop


         We will need to get an updated version




                  Mattel Global Marketing Training
          Background

                                                                       Wal-mart
                                                                       Wal-mart
                                                                        Target
                                                                         Target
                                                                         TRU
                                                                          TRU
                                                                        Kmart
                                                                         Kmart
                                                                         KB
      ‘The Full Line’
       ‘The Full Line’                 ‘Big Five’
                                                                          KB
      Marketing Driven                  ‘Big Five’
      Marketing Driven

                                                                          Everyone Else!
                                                                          Everyone Else!


Mattel US had not traditionally taken a channel-oriented approach to managing customers
It has been a marketing – driven process - They created the full line - most appropriate for a
dedicated toy store (e.g., TRU) - and support program to drive line
But that wasn’t working any more!
   n Our business was increasingly concentrated with the big 4 customers and yet they didn’t

     feel that we gave them a program tailored to their needs
   n Meanwhile – we weren't getting much traction with the other channels




                                    Mattel Global Marketing Training
     Roles


   CONSUMER                     CHANNEL                       CUSTOMER
                                 CHANNEL                       CUSTOMER

BRAND MARKETING        CUSTOMER MARKETING                       SALES
 BRAND MARKETING        CUSTOMER MARKETING                       SALES


 CONSUMER INSIGHT        CHANNEL SHOPPER INSIGHT         ACCOUNT SHOPPER INSIGHT
  CONSUMER INSIGHT        CHANNEL SHOPPER INSIGHT         ACCOUNT SHOPPER INSIGHT


 CATEGORY STRATEGY          CHANNEL STRATEGY               CUSTOMER STRATEGY
  CATEGORY STRATEGY          CHANNEL STRATEGY               CUSTOMER STRATEGY

                             CHANNEL IN-STORE
  BRAND STRATEGY              CHANNEL IN-STORE                ACCOUNT PLAN
   BRAND STRATEGY            BRAND STRATEGY                    ACCOUNT PLAN
                              BRAND STRATEGY




   BDO
   BDO                        CDO
                              CDO                            ADO
                                                             ADO
   BRAND                     CHANNEL                        ACCOUNT
DIRECTIONAL                DIRECTIONAL                    DIRECTIONAL
  OUTLINE                    OUTLINE                        OUTLINE


                      Mattel Global Marketing Training
     But What Is A Channel?

                                       What is an accurate channel
                                       definition?
 Definition of a Channel
 Definition of a Channel                n  Reflects consumer / shopper
                                           usage, needs and / or
                                           requirements
                                        n  Considers the total universe
  A group of points of
   A group of points of                      – Not just channels that
purchase that satisfy the
purchase that satisfy the                       currently sell the
   same consumer /
    same consumer /                             company’s brands
    shopper needs or
     shopper needs or                        – Not just channels that the
      requirements
       requirements                             company calls on currently
                                        n  Provides tangible information
                                           that can be translated into
                                           actions
                                        n  Will change over time


                    Mattel Global Marketing Training
           We Knew The Alternative Channels Were A Big
           Opportunity For Mattel


             US Toy Market
                                                     The Alternative or “Growth
Big Five                                             Channels” represent 1/3 of the
  66%
                                                     toy market – but only 15% of
                                                     MUSA’s business

                                                     To these channels, which
                                                     included Grocery, Drug,
                                                     Department and Dollar Stores
                                                     among others, had different
                                                     needs and requirements than
                         Alternate Channel           our traditional customers.
                                34%




                         Mattel Global Marketing Training
          But there were obstacles!

                                                                                 Best Practice Approach
We wanted to work against                          Consumer
                                                    Consumer           Category Strategy
a best practice approach –
but we did not have a fully
developed understanding                                               Shopper
                                                                       Shopper          Channel Strategy
of the category and our
knowledge of shoppers
                                                                                        Customer
was patchy - particularly                                                                Customer           Customer Strategy

in regard to the ‘growth’
channels                                                                                                  Point Of
                                                                                                           Point Of
                                                                                                          Purchase         Implementation
                                                                                                           Purchase

                             Build New            Channel
            Channel                                Channel              Channel
             Channel          Channel           Opportunity              Channel            Sales Strategy            Implementation
           Definition                            Opportunity            Strategy             Sales Strategy            Implementation
            Definition       Database           Assessment               Strategy
                                                 Assessment
         • Agree           • Agree             • Generate key        • Channel            • Consolidate              • Develop channel
           • Agree
            category         • Agree
                              channel            • Generate key
                                                  insights from        • Channel
                                                                        SWOT                • Consolidate
                                                                                             channel strategies        • Develop channel
                                                                                                                        implementation
             category
            definition          channel
                              evaluation            insights
                                                  channel from            SWOT
                                                                     • Set channel           into sales strategies
                                                                                               channel strategy          implementation
                                                                                                                        plans
             definition
         • Agree                evaluation
                              criteria              channel
                                                  database             • Set channel
                                                                        objectives             intoOrganisation
                                                                                                 • sales strategy        plans
           • Agree
            channel             criteria
                           • Identify data          database
                                               • Develop top              objectives
                                                                     • Develop                   • • Organisation
                                                                                                   Coverage
             channel
            definitions      • Identify data
                              requirements       • Develop top
                                                  line channel         • Develop
                                                                        strategic                • • Coverage
                                                                                                   Capability
             definitions
         • Produce              requirements
                           • Source data            line channel
                                                  prioritisation          strategic
                                                                        options                  • • Capability
                                                                                                   Technology
           • Produce
            Channel          • Source data
                              and create            prioritisation        options
                                                                     • Develop                   • • Technology
                                                                                                   Customer
             Channel
            Reference           and create
                              database                                 • Develop
                                                                        channel POP                • Customer
                                                                                                   service
             Reference
            Guides              database                                  channel POP
                                                                        vision                       service
                                                                                                 • Customer
             Guides
         • Validate                                                       vision
                                                                     • Develop                     • Customer
                                                                                                   development
           • Validate
            channel                                                    • Develop
                                                                        channel                      development
                                                                                                   plans
             channel
            definitions                                                   channel
                                                                        action plan                  plans
             definitions                                                  action plan


                                               Mattel Global Marketing Training
       The CDO Process

Mattel US’ ultimate objective was to develop a comprehensive channel
strategy that cascades into specific customer strategies.

Our immediate objective was to use the existing research and information
on channel and customers to develop a channel strategy that can be used
as a guideline for the fall 05 line selection by customer and also to help
define the right:
 n customized product line lists

 n space planning recommendations

 n merchandising and promotional programs

 n packaging and case packs decisions




                           Mattel Global Marketing Training
        Channels (Traditional Definition)

Supermarkets / Grocery                            Electronic Stores
  n Kroger, Safeway, Albertson's                    n Best Buy, Circuit City, Fry’s

Drug                                              DIY Hardware
  n Walgreen’s, CVS, Rite Aid                       n Home Depot, Lowe’s, Ace

Super Centers & Mass Discount                     Office Supply
  n Wal-mart, Target, Kmart                         n Staples, Office Depot

Convenience Discount                              Department
  n Dollar General, Family Dollar, Freds            n Kohl’s, Sears, Nordstroms

Dollar Stores (.99 & lower)                       Auto
  n Dollar Tree, 99¢, Supervalu                     n AutoZone, Advance, Pep Boys

Club Stores                                       Large Toys
  n Costco, Sam’s, BJ’s                             n TRU, Kaybee, Learning Express

C-Stores & Gas                                    Small Toy
  n 7-11, AM-PM, Wawa                               n Independents

Craft / Hobby                                     Discount Outlets
  n Hobby Town, Micheals, Jo-Ann                    n Big Lots, Value City
    Stores


                               Mattel Global Marketing Training
    CDO Process


        Channel Definition and Segmentation
         Channel Definition and Segmentation
  AUG
AUG       • • Matrix of Channels vs. Differentiators (data input)
               Matrix of Channels vs. Differentiators (data input)
 0404     • • Channel and Customer Attractiveness and Prioritization
               Channel and Customer Attractiveness and Prioritization



        Channel Summary
         Channel Summary
          • • Channel Role for the Category
               Channel Role for the Category
  SEP     • • Mattel Role for the Channel
               Mattel Role for the Channel
SEP
 0404     • • Line Selection Principles
               Line Selection Principles
          • • Opportunity Assessment
               Opportunity Assessment
          • • Outline Channel Strategies (1st Cut)
               Outline Channel Strategies (1st Cut)




  OCT
OCT                     Top Line Customer Strategies Fall 05
                         Top Line Customer Strategies Fall 05
 0404



                           Mattel Global Marketing Training
       Channel Differentiators

  Shoppers’ Propensity to Buy Toys
   Shoppers’ Propensity to Buy Toys                                                  Retail Experience
                                                                                      Retail Experience
       Primary / / Secondary / Impulse
        Primary Secondary / Impulse                                              Poor / / Average / Good / Great
                                                                                  Poor Average / Good / Great

       Perception of Price / /Value
        Perception of Price Value                                                          Service
                                                                                            Service
             High / / Medium / Low
              High Medium / Low                                                  Poor / / Average / Good / Great
                                                                                  Poor Average / Good / Great

                Range of Toys
                 Range of Toys                                                     Toy Transaction Size
                                                                                    Toy Transaction Size
       Minimum / / Low / Medium / High
        Minimum Low / Medium / High                                              Low / / Medium / High / V. High
     (<100) / (100-400) / (400-700) / (700-1,000)                                 Low Medium / High / V. High
       (<100) / (100-400) / (400-700) / (700-1,000)



                  Type of Trip
                   Type of Trip                                                         Store Image
                                                                                         Store Image
Convenience / / Bulk / Recreational / Replenish
 Convenience Bulk / Recreational / Replenish                                 Basic-Boring / / Average / Hot-Cool
                                                                              Basic-Boring Average / Hot-Cool


            Seasonality of Toys
             Seasonality of Toys                                                         Promotion
                                                                                          Promotion
        All Year / / Hols-Season / Other
         All Year Hols-Season / Other                                                Low / / Medium / High
                                                                                      Low Medium / High


     How did we select these Channel Differentiators?
      How did we select these Channel Differentiators?
       • • Materially distinguish the reason shoppers chose certain channels to buy toys
            Materially distinguish the reason shoppers chose certain channels to buy toys
       • • Rated low medium high etc. by group
            Rated low medium high etc. by group
       • • Based on available data / / judgment of team
            Based on available data judgment of team

                                              Mattel Global Marketing Training
Channel Database – CDO Matrix Created For All
Channels




              Mattel Global Marketing Training
       Channel Differentiators

  Shoppers’ Propensity to Buy Toys
   Shoppers’ Propensity to Buy Toys                                                   Retail Experience
                                                                                       Retail Experience
                                 WALGREENS
       Primary / / Secondary / Impulse                             KROGER
        Primary Secondary / Impulse                                               Poor / / Average / Good / Great
                                                                                   Poor Average / Good / Great

                                                         Grocery &                COSTCO
       Perception of Price / /Value                                                           Service
        Perception of Price JCValue
                               PENNY                       Drug                                Service
             High / / Medium / Low
              High Medium / Low                                                   Poor / / Average / Good / Great
                                                                                   Poor Average / Good / Great




                                                                            Clu
                                                   me




                                                                             bs
                                               art
                                                                                      SAMS
                Range of Toys


                                              nt
                 Range of Toys                                                      Toy Transaction Size
                                           Dep
                           SEARS
       Minimum / / Low / Medium / High                                               Toy Transaction Size
        Minimum Low / Medium / High                                               Low / / Medium / High / V. High
                                                                                   Low Medium / High / V. High




                                                                               es
     (<100) / (100-400) / (400-700) / (700-1,000)




                                                                           tor
       (<100) / (100-400) / (400-700) / (700-1,000)
                                                                                      TRU




                                                                        yS
                                         Me Ma
                                            rch ss




                                                                      To
                  Type of Trip
                   Type of Trip                                                             Store Image
                                                                                             Store Image
Convenience / / Bulk / Recreational / Replenish ants
 Convenience Bulk / Recreational / Replenish                                 Basic-Boring / / Average / Hot-Cool
                                                                              Basic-Boring Average / Hot-Cool
                                WAL-MART                                     HOBBY



                                                      TARGET      K-MART
            Seasonality of Toys
             Seasonality of Toys                                                             Promotion
                                                                                              Promotion
        All Year / / Hols-Season / Other
         All Year Hols-Season / Other                                                 Low / / Medium / High
                                                                                       Low Medium / High


     How did we select these Channel Differentiators?
      How did we select these Channel Differentiators?
       • • Materially distinguish the reason shoppers chose certain channels to buy toys
            Materially distinguish the reason shoppers chose certain channels to buy toys
       • • Rated low medium high etc. by group
            Rated low medium high etc. by group
       • • Based on available data / / judgment of team
            Based on available data judgment of team

                                              Mattel Global Marketing Training
                    Channel Priority – Focus On A&B


Channel                           Toys            Mattel            Growth   Fit   Profit   Priority


Super Centers & Discount          10,650           2,035              +      =       +         A

Large Toys                         3,050            640               -      +       -         A

Department Stores                  376               60               =      +       =         A

Super Market / Grocery             143               17               +      =       =         B

Discount Outlets                  Hi – Po            28               +      =       +         B

Drug                               365               33               +      =       =         B

Club                               281               25               +      +       +         A

Convenience Discount              Hi - Po            7                +      =       +         B

Small Toys                         411              50                =      +       -         C

Electronic Stores                  398               6                =      =       -         C

Auto Stores                        Low              Low               =      +       =         C

Dollar Stores                    Low/Med             2                +      =       +         C

DIY & Hardware                     Low              Low               +      =       =         C

Office Supply                      Low              Low               -       -      =         D

C-Store & Gas                      Low              Low               =       -      -         D

Craft & Hobby                      665               3                +       -      =         C




                                 Mattel Global Marketing Training
Mattel Channel – Account Quadrant
SCALE




                                                      Based on
                                                      MVI
              Mattel Capabilities (With
          Growth =Global Marketing Training Mattel)   Quadrant
       Shopper Modes
                                    Opportunistic…
                                    “I might as well”
                                                                                             The Treasure Hunt!
Social…
“I want something                   WALGREENS                  KROGER
more than just
shopping”                                                                       COSTCO
                       JC PENNY             Grocery & Drug



                                   nt




                                                                        Clu
                                  me




                                                                         bs
                                                                                      SAMS
                              art

                    SEARS
                            Dep




                                                                           es
                                                                                      TRU




                                                                        or
                                   Ma



                                                                    St
                                       ss


                                                                     y
                                            Me

                                                                  To
                                               r   ch
                       WAL-MART                         an                    HOBBY
                                                          ts
                                                                                              Expert…
                                        TARGET                 K-MART                         “I need something
                                                                                              special”
   Planned…
   “We always buy”

                                  Mattel Global Marketing Training
       Shopper Modes
                                    Opportunistic…
                                    “I might as well”
                                                                                             The Treasure Hunt!
Social…
“I want something                   WALGREENS                  KROGER
more than just
shopping”                                                                       COSTCO
                       JC PENNY             Grocery & Drug



                                   nt




                                                                        Clu
                                  me




                                                                         bs
                                                                                      SAMS
                              art

                    SEARS
                            Dep




                                                                           es
                                                                                      TRU




                                                                        or
                                   Ma



                                                                    St
                                       ss


                                                                     y
                                            Me

                                                                  To
                                               r   ch
                       WAL-MART                         an                    HOBBY
                                                          ts

                                        TARGET                 K-MART
                                                                                              Expert…
   Planned…                                                                                   “I need something
   “We always buy”                                                                            special”

                                  Mattel Global Marketing Training
Mass Merchandising Solutions




             Mattel Global Marketing Training
             Channel Database Summary – Initial Definitions
             Indicate Distinct Channel
                                                                         Disc         Drug                     Conv.
Channel             SC & Mass    Large Toys     Dept       Grocery                                 Club
                                                                        Outlets                                Disc.
                                                                                                               Dollar
Example               Target        TRU         Kohl’s      Kroger     Big Lots       CVS         Costco
                                                                                                              General

Buy Toys             Second       Primary      Impulse     Impulse     Impulse      Impulse      Impulse      Impulse

Price/                                         Medium/
                       High       Medium                   Medium        High       Medium         High         High
Value                                           Low

Range                Medium        High          Low       Medium      Medium         Low          Low          Low


Trip                Replenish    Replenish    Recreation   Replenish   Replenish   Convenience   Replenish    Replenish

                                 All Year /   Holidays /                                         Holidays /
Season               All Year
                                              Seasonal
                                                            All Year   All Year     All Year
                                                                                                 Seasonal
                                                                                                              All Year
                                    Full

Experience            Good        Average       Good         Good      Average      Average        Good       Average


Service              Average       Poor         Good         Good        Poor       Average      Average        Poor


Ticket               Medium        High         High         Low       Medium         Low          High         Low

                      Basic/                                            Basic /      Basic/       Basic/       Basic/
Image                 Boring
                                  Average      Average     Average
                                                                                     Boring       Boring       Boring
                                                                        Boring

Promo               Low & High     High        Medium        High        Low          High       Medium         Low

             Notes - Some similarities in Drug / Grocery. Potential to look split Department Stores.
                                          Mattel Global Marketing Training
                  Channel Strategy Summary

                                             Large               Depart-                                      Disc.                                                         Conv.
Channel             SC & Mass
                                              Toy                 ment                Grocery                Outlets                                                       Discount
                                                                                                                                    Drug                 Club

                                                                                                                                                                            Dollar
Example                Target                 TRU                 Kohl’s               Kroger                Big Lots               CVS                Costco
                                                                                                                                                                           General


                                                                                    Gift / Holiday +      Value at low price
Line                   Main Line             Full Line        Theme / Fashion
                                                                                        Impulse                 point
                                                                                                                                      Gift              Special            Select Value




                                                                                                                                                                              Narrow
Selection              Main Line              Full line
                                        “Brought to Life” /   Depth not breadth
                                                                                    Gift coverage +
                                                                                  S.U.T. (price point /
                                                                                                               Full DI +
                                                                                                           “Stripped down”
                                                                                                                                 Gift Coverage
                                                                                                                               (price point, age,
                                                                                                                                                    Narrow - Special        Secondary
                                                                                                                                                         Packs              Items/Low
Criteria                                    Innovation                                    age)                exclusives            gender)
                                                                                                                                                                         Price/Small Size




                                                              Add on + higher
                                        Full Line & Push                                                  Focus on $10 and
Price                  Main Line
                                         the Limits Up
                                                                    end                 $5 - $15
                                                                                                               below
                                                                                                                                   $5 - $15            Big Ticket         $10 and below
                                                                ($15 - $30+)




                                        Full Year planned
                                           purchases,                                                       Reach specific                                              Reach Consumer
Channel Role        Volume / Profit /
                        Growth           Enhanced Toy
                                                                 Showcase
                                                                                  Frequency / share
                                                                                   of pocket money
                                                                                                          consumer segment
                                                                                                                                  Frequency         Share of $ wallet
                                                                                                                                                                        Segment Where
                                           Experience,                                                     / Volume at low                                                They Shop +
for Mattel                                Platform for
                                                                                      purchases
                                                                                                             cost to serve                                                  Volume
                                            Innovation



                                                                                    Margin / basket
                                        Support strategies
                                                                                    opportunities,         Brands at value                                              Brands at value for
Mattel role for    Seasonal Category
                    Growth / Basket
                                        for differentiation
                                          on selection &
                                                               Enhance family
                                                                  shopping
                                                                                     upgrade toy          reinforces value /
                                                                                                                                Support “Gift
                                                                                                                                Destination”
                                                                                                                                                    Support Treasure      their Shopper
                                                                                    selection to be         treasure hunt                             Hunt Strategy     (Family / Hispanic
Channel                                  merchandising /         experience
                                                                                     more in line             strategies
                                                                                                                                  Strategy
                                                                                                                                                                            shoppers)
                                               Profit
                                                                                    w/store image




                                                                Mattel Global Marketing Training
       The Benefits Of A Channel Strategy for Mattel




Clarity on highest priorities

Sustainable growth strategy

More balance against the top 4 accounts

A more focused, effective organization

Guidelines for line selection and promotional activities

Efficiency - better return on human and financial investment

Improved communication - a common language for strategic planning




                            Mattel Global Marketing Training
        Results (add the latest)

What Was Accomplished
    n

    n

    n

    n




What still needs to be done....
n
n
n
n




                            Mattel Global Marketing Training
                         Games Sold Where we Sell our Toys
                         - A Little Less Toy Channel
                         -A Little More Mass Channel


                                         UK                           France                 Germany                 Italy
                             Total Toy        Games         Total Toy       Games       Total Toy   Games   Total Toy        Games

  Toy Shop                     28%            20.3%           43.3%            42.3%     41.7%      42.3%    28.4%           24.0%

  Catalogue/Mail Order        26.1%           28.3%           4.0%             4.9%       7.2%      4.8%

  Department Store             3.2%           4.3%            2.4%             2.0%      15.8%      17.3%     7.5%           10.0%

  Mixed                        27%            30.8%                                                          9.4%*           8.3%*

  Hyper/Super                                                 42.7%            47.6%     14.9%      15.8%    39.4%           42.1%

  Grocery                      9.8%           10.9%

  Electr&VideoGames            0.2%           0.4%                                                            0.4%           0.3%

  Internet                     1.3%           1.3%

  Discounter                                                  2.5%             1.2%       4.6%      4.6%

  Cash & Carry                                                                            0.9%      1.0%

  Book/Gift Stores                                            0.9%             0.6%                           4.5%           5.3%

  All Other                    4.3%           3.7%            4.3%             1.3%      14.9%      14.2%    10.2%           10.0%


  *Includes Clothing and Toys shop in Italy


  Distribution of sales by channels for Total Traditional Toys and Games FY 2004

Source: NPD Consumer Panel                           Mattel Global Marketing Training
In the UK, Argos(20.6%) and Woolworths(22.1%) are the leading retailers for Games, while the Hyper/Supermarkets, Carrefour(13.0%) and Leclerc(13.3%) are the most important channels
in France. Karstadt(7.4%) and Kaufhof(6.0%) represent important channels in Germany




       333                            % of                                                       % of Sales                                                  % of Sales
                                      Sales
                                                           Hyper/Super                              47.6%              Toy Shop                                 42.3%
       Toy Shop                       20.3%
       ELC                             2.1%                Auchan                                    9.0%              Toys R Us                                 7.9%
       Toymaster                       2.4%                Carrefour                                13.0%              Rofu                                      2.7%
       Toys R US                       7.2%                Leclerc                                  13.3%              Spiele Max                                1.4%
       All Other                       8.6%
                                                           All Other                                12.3%              All Other                                30.3%
       Catalog Showrooms              24.6%                Toy Specialists                          42.3%              Department Store                         17.3%
       Argos                          20.6%
                                                           Jouet Club                                5.9%              Karstadt                                  7.4%
       Index                           3.7%
       All Other                       0.3%                Grande Recre                              5.6%              Kaufhof                                   6.0%
                                                           Maxi Toys                                 1.6%              Woolworth                                 1.3%
       Department Store                4.3%
                                                           Toys R Us                                12.8%              All Other                                 2.6%
       Debenhams                       0.9%
                                                           King Jouet                                3.8%
       John Lewis                      1.0%                                                                            Discounter                                4.6%
       All Other                       2.4%                All Other                                12.6%
                                                                                                                       Aldi                                      1.4%
       Mixed                          30.8%                Mail Order                                4.9%              All Other                                 3.2%
       WH Smith                        4.9%                Eveil et Jeux                             3.7%
                                                                                                                       Cash & Carry                              1.0%
       Woolworths                     22.1%                All Other                                 1.2%
       All Other                       3.8%                                                                            Metro                                     0.7%
                                                           All Other                                 5.2%              All Other                                 0.7%
       Super/Cash & Carry             10.9%
       Asda                            3.4%                                                                            Mail Order                                4.8%
       Tesco                           6.2%                                                                            Quelle                                    1.4%
       All Other                       1.3%
                                                                                                                       All Other                                 3.4%
       Internet                        1.3%                                                                            All Other                                14.2%
       All Other                       7.8%                                                                            Buchhandel                                3.9%
                                                                                                                       All Other                                10.3%

                             Distribution of sales by retailer for Games FY 2004
                              Distribution of sales by retailer for Games FY 2004
                                                                     Mattel Global Marketing Training
Customer Marketing




                Mattel Global Marketing Training
It Used To Be Simple!




         Sales
       Sales                                        Marketing
                                                  Marketing
             Sales
            Sales
           Planning
          Planning


           owns                                         owns
        owns                                         owns



    Customers                                     Consumers

               Mattel Global Marketing Training
Customers Have Become Bigger And More
Sophisticated; The Lines Become Less Clear


                              Tasks
                        Category Management
                                  Tasks
                           Space Planning
                           Category Management
                           Merchandisers
                               Space Planning
                          Channel Strategy
    Account
  Account
                               Merchandisers
                         Shopper Research
                              Channel Strategy
                             Promotions                Marketing
                                                     Marketing
   Management
 Management
                              Shopper Research
                       Sales support materials
                       PromotionPromotions
                                  evaluation…
                           Sales support materials
                           Promotion evaluation…




        owns                                               owns
     owns                                               owns

               “The Shopping Experience
                    For Our Brands”
 Customers                                           Consumers

                Mattel Global Marketing Training
                     Appendix - Defining The Evolution Of Customer
                     Marketing
                                                       Evolutionary Development
                                                        Evolutionary Development                                       Strategic
                                                                                                                        Strategic
                                                                                       Planning
                                                                                        Planning          n       Channel Brand / /
                                                 Advisory                                                     n    Channel Brand
                                                                                                                  Segment Volume,
             Service                              Advisory                n       Design Customer                  Segment Volume,
                                                                                                                  Value, Profit
              Service               n       Provide Trade                     n    Design Activity
                                                                                  Specific Customer                Value, Profit
                                                                                                                  Management
                                                                                   Specific Activity
n       Provide Sales Support           n    Provide On Needs
                                            FeedbackTradeNeeds                    Develop Quality New
                                                                                                                   Management
                                             Feedback On
         Provide
        Material Sales Support
                                                                          n
    n
                                                                              n    Develop Quality New    n       Insights to Medium / /
         Material                   n       Interpret Market                      Product Introduction        n    Insights to Medium
                                                                                                                  Long Term Demand
                                        n    Interpret Market                      Product Introduction
                                                                                  Methodologies                    Long Term Demand
n       Supply Information                  Research Data and                      Methodologies                  Strategy Development
    n    Supply Information                  Research Data and
                                            Provide Directional                                                    Strategy Development
                                                                                  Formulate
        Administer Budgets                   Provide
                                            Advice Directional
                                                                          n
n
         Administer Budgets                                                   n    Formulate              n       Evaluate Category
    n
                                             Advice                               Merchandising               n    Evaluate Category
                                                                                                                  Performance at
n       Firefight Logistics                                                        Merchandising
                                                                                  Strategies                       Performance at
    n    Firefight Logistics        n       Communication of                       Strategies                     Channel and Customer
        Issues                          n    Communication of To
                                            Brand / / Sector Plans To                                              Channel and Customer
         Issues                              Brand Sector Plans           n       Develop Systems                 levels
                                                                                                                   levels
                                            Sales in Functional               n    Develop
                                                                                  Strategy Systems
                                             Sales
                                            Formatin Functional                    Strategy               n       Implement strategies
                                                                                                                   Implement strategies
                                             Format                       n       Short/Medium Term
                                                                                                              n
                                                                                                                  via Joint Working and
                                    n
                                        n
                                            Evaluate Promotions
                                             Evaluate Promotions
                                                                              n    Short/Medium Term
                                                                                  Tactical Planning               In-Store Initiatives and
                                                                                                                   via Joint Working
                                                                                   Tactical Planning               In-Store Initiatives
                                    n       Provide Business
                                        n    Provide
                                            Analysis Business
                                             Analysis
                                    n       Produce Generic and
                                        n    Produce Generic and
                                            Key Customer
                                             Key Customer
                                            Planograms
                                             Planograms
                                                                              Lead Role in Strategic Category Marketing

              n   The speed of development is conditioned by the pace of development in the market place
                  and among key customers
              n   As roles are developed, these are additional to the existing activities. There should be
                  no implication that roles are dropped as the function evolves


                                                        Mattel Global Marketing Training
The Customer Business Team - From Bow Tie
Approach To...

       Logistics                                           Logistics
       Marketing                                          Marketing
                         Sales              Buyer
       Services                                         Stock Levels
       Finance                                              Finance


                         Logistics       Logistics
         Sales          Marketing        Marketing        Buyer
                         Services        Stock Levels
                          Finance        Finance




                                     T
                 Specialists è       E      ç Specialists

                       Buyer         A        Seller
                                     M


                                  Joint
                                 Working

                     Mattel Global Marketing Training
Retail Economics




                   Mattel Global Marketing Training
         Levels Of Product Performance Assessment



        Level 1                         Level 2                        Level 3

     Conventional
     Conventional                 Productivity
                                   Productivity                    Comprehensive
                                                                   Comprehensive
      Profitability
       Profitability         Space & Inventory
                              Space & Inventory                      Financial
                                                                      Financial


n   Gross Profit / Unit      n   $ Sales / Foot                n   RONA
    (Cash Profit)            n   Gross Profit / Foot
n   % Gross Margin (POR)     n   Day's Supply
n   Gross Profit / Wk        n   Turns
n   Adjusted Gross Profit    n   GMROI
    (Net Net)




                            Mattel Global Marketing Training
     Level 1
     Conventional Profitability



     Measurements
     Measurements


Gross Profit / Unit ($ Profit )
Gross Margin % (POR)
Gross Profit / Week
Adjusted Gross Profit (Net Net)




                         Mattel Global Marketing Training
 Clarifying Terminology



Gross PROFIT is measured in dollars $
   n  $ per unit
   n  Total $ (price x volume)
   n  Unit Gross Profit will differ from Total Gross Profit

Gross MARGIN is calculated as a %
   n  % per unit
   n  % total $ (volume impacted)
   n  Unit Gross Margin is the same as Total Gross Margin




                      Mattel Global Marketing Training
               Conventional Profitability

 Gross Profit / Unit                   % Gross Margin                      Gross Profit / Week
   (Cash Profit)


Retail Price       $12.00           Gross Profit              $2.00        Gross Profit     $2.00


  Minus              -                                          ÷            Times           x
                                     Divided By


   Cost            $10.00            Retail Price             12.00        Movement /
                                                                                           100/Wk
                                                                              Wk

  Equals             =                 Equals                   =            Equals
                                                                                             =

Gross Profit        $2.00              Gross                               Gross Profit
                                      Margin %                16.7%                         $ 200
                                                                              / Wk




 Baseline Metrics:          Retail Price - $ 12.00        List Price - $ 10.00   Wkly Unit Volume
 – 100

                                      Mattel Global Marketing Training
       Conventional Profitability (cont.)

                     Adjusted Gross
                         Profit
                                                          Baseline Metrics          -
                    Retail Price           12.00
                                                          Retail Price   $ 12.00
                                                          COGS           $ 10.00
                      Minus                               Net A&D           $ .48

                       Cost                10.00


                       Plus                  +

                    Allowances
                                            0.48
                    Discounts


                      Equal                  =
                        s

                     Adjusted               2.48
                    Gross Profit
Per Unit View


                       Mattel Global Marketing Training
  Retail Measures - Fill In The Blanks



Selling Price
 Selling Price   Cost Price
                  Cost Price                  % Margin
                                              % Margin    Cash Margin
                                                           Cash Margin
    1.49
     1.49           .97
                     .97
     .99
      .99           .52
                     .52
    1.79
     1.79                                        30.1%
                                                  30.1%
   2/$3.00
    2/$3.00                                      17.0%
                                                  17.0%
                    1.25
                     1.25                                     0.44
                                                               0.44
                    1.25
                     1.25                                     0.74
                                                               0.74
                                                 22.0%
                                                  22.0%       0.44
                                                               0.44
                                                 50.0%
                                                  50.0%       0.50
                                                               0.50




                    Mattel Global Marketing Training
  Retail Measures - The Answers



Selling Price
 Selling Price   Cost Price
                  Cost Price                  % Margin
                                              % Margin    Cash Margin
                                                           Cash Margin
    1.49
     1.49           .97
                     .97                         34.9%
                                                  34.9%       0.52
                                                               0.52
     .99
      .99           .52
                     .52                         47.8%
                                                  47.8%       0.47
                                                               0.47
    1.79
     1.79           1.25
                     1.25                        30.1%
                                                  30.1%       0.54
                                                               0.54
   2/$3.00
    2/$3.00         2.49
                     2.49                        17.0%
                                                  17.0%       0.51
                                                               0.51
    1.69
     1.69           1.25
                     1.25                        26.0%
                                                  26.0%       0.44
                                                               0.44
    1.99
     1.99           1.25
                     1.25                        37.2%
                                                  37.2%       0.74
                                                               0.74
   3/$2.00
    3/$2.00         1.56
                     1.56                        22.0%
                                                  22.0%       0.44
                                                               0.44
   4/$1.00
    4/$1.00         .50
                     .50                         50.0%
                                                  50.0%       0.50
                                                               0.50




                    Mattel Global Marketing Training
        Level 2
        Productivity, Space & Inventory


     Measurements
     Measurements

$ Sales / Foot
Gross Profit / Foot
Day's Supply
Turns
Gross Margin Return on Inventory
Investment (GMROI)




                          Mattel Global Marketing Training
           Productivity, Space & Inventory


                          $ Sales / Foot
                                                                         § Improve sales per foot by
 Important
 Measurement to                Sales / Wk              $ 1,200
 maximize Sales to                                                       § Driving more volume from
 Space                                                                     same space
                              Divided By                   ÷
 performance
                                                                         § Maintaining volume using
                             Item's Shelf
                                                         8 ft              less space
                                  Ft


                                Equals                     =
                                                                         § Increase prices and
Baseline Metrics                                                           maintain volume and
                                                                           space
Retail Price   $ 12.00        Sales / Ft.               $ 150
Weekly Vol.        100                                                   § Reduce space and do not
Facing             8 ft
                                                                           lose volume pro-rata


                                      Mattel Global Marketing Training
           Productivity, Space & Inventory

                          $ Gross Profit / Foot

                                                                       § Improve profit per foot
 Important                                                               by
 Measurement to              Gross Profit
                                                         $ 200
                                / Wk
 maximize Profit to                                                    § Increasing gross
 Space performance                                                       margin per unit and
                             Divided By                    ÷
                                                                         maintain volume and
                             Item's Shelf
                                                                         space
                                                           8
                                footage
                                                                       § Increase volume at
Baseline Metrics               Equals                      =             same margin through
                                                                         same space
Retail Price   $ 12.00          Gross                    $ 25
                              Profit / Ft.
COGS           $ 10.00                                                 § Reduce space and
Weekly Vol.        100                                                   maintain volume at
Facing             8 ft                                                  same margin


                                    Mattel Global Marketing Training
           Productivity, Space & Inventory

                              Days Of Supply
                                                                    § Improve days of supply
                                                                      by
 Important                   Full Shelf
                                                     300
                             Inventory
 Measurement to                                                     § Reduce full shelf
 maximize Profit to          Divided By               ÷
                                                                      inventory and maintain
 Space performance                                                    sales
                                Unit
                                                     100
                            Movement/Wk                             §
                                                                    § Increase movement per
                               Times                  x
                                                                      week from same full shelf
                                 7                                    inventory
                                                       7
Baseline Metrics             (days/wk)

                              Equals                  =
                                                                    § Increase full shelf
Full Shelf Inv. 300 units
                                                                      inventory and increase
Weekly Vol. 100 units
                              Days of
                                                      21              unit movement per week
                              Supply
                                                                      by a higher factor



                                 Mattel Global Marketing Training
           Productivity, Space & Inventory


                                        Turns
                                                                     § Improve turns by
Important
Measurement to              Unit Movement
                                                        5,200        § Increase movement
                                  / Yr
manage Inventory                                                       per year from same
and Cash Flow                                                          full shelf inventory
                             Divided By                   ÷
performance
                                                                     § Reduce full shelf
                              Full Shelf
                              Inventory
                                                           300         inventory and
                                                                       maintain movement
                               Equals                     =            per year
Baseline Metrics

Full Shelf Inv. 300 units                                            § Increase movement
                              Turns / Yr                 17.3
Weekly Vol. 100 units                                                  per year and increase
                                                                       full shelf inventory
                                                                       by a lower factor


                                  Mattel Global Marketing Training
      Exercise: Metric Analysis


Objective   Demonstrate understanding of metrics and associated
Objective
            customer applications


Method      § Break into (4) four teams
Method
               § Team 1 – Gross Sales/Foot
               § Team 2 – Gross Profit/Foot
               § Team 3 – Days Supply
               § Team 4 – Turns
            § Describe metric in words
            § Define levers for customer with “issue”

            Analysis & Preparation – 15 min
 Timing
  Timing    Presentation – 15 min



                          Mattel Global Marketing Training
   Productivity Exercise

                                       Example A                    Example B

Retail Price                                      2.69                   1.21
Cost                                              1.63                   0.93
Gross Profit / Unit
Gross Margin %
Unit Movement / Wk                                18                     47
Gross Profit / Wk
Gross Profit / Yr.
Full Shelf Inventory                             30                     22
Days of Supply
Inventory ( At Retail)
Unit Movement / Yr.
Turns


                                                 NB 6 days / week
                         Mattel Global Marketing Training
        Productivity Exercise - Answers

                                       Example A            Example B
Retail Price                               2.69               1.21
Cost                                       1.63               0.93
Gross Profit / Unit                        1.06               0.28
Gross Margin %                             39.4               23.1
Unit Movement / Wk                           18                 47
                                          19.08              13.16
Gross Profit / Wk

Gross Profit / Yr.                      992.16              684.32
Full Shelf Inventory                       30                   22
Days of Supply                             10                 2.81
Inventory ( At Retail)                      80.7             26.62
                                             936              2444
Unit Movement / Yr.
                                            31.2             111.1
Turns

                         Mattel Global Marketing Training
          Productivity, Space & Inventory

                                                Definition
          GMROI
                                                The Customer's gross profit return on
                                                each Dollar invested in inventory per year
 Gross                                          (assuming full shelf inventory)
                  $10,400
Profit / Yr
                            Profit
                    ÷
Divided By
                                                Notes:
Full Shelf
                   300
Inventory                                       * Shaded area equals brackets, therefore
                            Inventory           do this calculation first.
  Times             x
                            Investment
                                                GMROI is affected positively by
Cost / Unit       $10.00                         •  Low shelf inventory
                                                 •  High gross profit / unit
                                                 •  High unit movement
 Equals             =
                                                 •  High inventory turns

 GMROI             3.47                         This one measure alone helps the customer
                                                assess the productivity of space, inventory
                                                and gross profit contribution

                            Mattel Global Marketing Training
      Gross Margin Return On Inventory Investment




GMROI measures how much gross profit is generated per year compared to
                   the money invested in stock




In the last example GMROI is 433%. This means for each $ of stock
held, the business makes $ 4.33 profit per year.




                         Mattel Global Marketing Training
   Productivity Measures - Retailer Applications



                  Items with High GMROI Space Productivity
                   Items with High GMROI Space Productivity


              •   Preferred shelf position
              •   Additional display support
              •   Greater promotional support


 The business manager helps the retailer improve total category
The business manager helps the retailer improve total category
 productivity through
productivity through

    •
       Proper balance of inventory
      Proper balance of inventory
        •
     • Sale of high profit items
    • Sale of high profit items




                         Mattel Global Marketing Training
Category Based Commercial Arguments




                Mattel Global Marketing Training
      The Commercial Argument


Definition :

 n   A Commercial Argument is (usually) a data based sales
     proposition with a numeric value which should help to satisfy the
     commercial criteria and the required performance levels of the
     customer.

 n   Customers will make decisions based on how supplier proposals
     influence these commercial criteria.

 n   The Commercial Argument should look at steal versus
     incremental performance from a category and customer
     perspective.



                          Mattel Global Marketing Training
Steal Versus Incremental


Category      Size of                 Steal           Category
 Today       Initiative                               Tomorrow


                                                                 Incremental




     Look at the incremental impact on Revenue, Profit, etc
     Look at the incremental impact on Revenue, Profit, etc



                   Mattel Global Marketing Training
     The Impact On A Customer’s Business

                      Mattel Proposal:- _______________________

                                                                                  Cash
Measurement               RSP           Volume            Revenue     % Margin   Margin
Current Category          46.0            100               4600       25.0      1150
                          47.0             25               1175       23.0      270.25
Steal Effect          A   30.0              5                   150    24.0       36
Proposed Initiative   B   55.0              5                   275    25.0       68.8
                      C   40.0             10                   400    27.0       108
                      D


Total Steal               41.3             20                   825    25.8      212.80
Incremental                                +5               +350                 +57.2
Category Forecast         47.1            105               4950       24.4      1207.2




                             Mattel Global Marketing Training
      The Impact On A Customer’s Business

                          Mattel Proposal:-
                          _______________________

                                                                                   Cash
Measurement                RSP             Volume           Revenue   % Margin    Margin
Current Category            20               200               4000     30        1200
Proposed Initiative         30                40               1200     31        372.0
Steal Effect          A     15                 5                75      35        26.25

                      B     25                15               375      32        120.0
                            35                15               525      28        147
                      C
                      D

Total Steal                27.86              35               975     30.1      293.25
Incremental                                   +5               +225              +78.75
Category Forecast          20.6              205               4225    30.3      1278.75




                                   Mattel Global Marketing Training
 The Impact On A Customer’s Business

                      Mattel Proposal:-
                      _______________________

                                                                                 Cash
Measurement               RSP            Volume           Revenue    % Margin   Margin
Current Category           20              200                4000    30        1200
Proposed Initiative        16               40                640     32        204.8
Steal Effect          A    19               25                475     31        147.25

                      B    21               15                315     30         94.5

                      C
                      D

Total Steal               19.75             40                790     30.6      241.75
Incremental                                  -                -150              -36.98
Category Forecast         19.75            200                3850    30.2      1163




                           Mattel Global Marketing Training
      Demonstrating Commercial Arguments


                       Mattel Proposal
Cash Margin
120
                                                                               The numeric
100
                                                                               value of the
 80                                                                            Proposition

 60                                                                            will be
                                                                               somewhere on
 40
                                                                               the line
 20

  0
         Worst Case       5%                    10%            Best Case
         100% Steal   Incremental           Incremental      20% Incremental




                          Mattel Global Marketing Training
       Commercial Argument


Golden Rules

Your argument will have the best chance of success if:-

  n   It helps to satisfy the customer needs.

  n   It meets the performance levels of the Customer Decision Making
      Criteria.

  n   It is important therefore that you constantly cross check your
      argument against the Driving Needs and the Decision Making
      Criteria.

  n   Quantify the customer benefits of your proposal from a category
      perspective.

                           Mattel Global Marketing Training
MSAP




       Mattel Global Marketing Training
The MSAP concept




  Negotiation

                                                   Negotiating



   Selling
                                                     Selling




   Planning
                                                    Planning




                Mattel Global Marketing Training
        The strategic account planning and selling
        business model
       Not for presentation; may help trainers articulate the flow

                                                How can I
                                             How can I
                                           integrate brand and
                                       integrate brand and
     Why is our                          customer opportunities
   Why is our                        customer opportunities                  How have I done?
  category unique?                        DRIVEN BY INSIGHT                How have I done?
category unique?                      DRIVEN BY INSIGHT
                                               to beat my                       How is my
                                            to beat my                       How is my
                                               objectives?                   customer doing?
                                            objectives?                    customer doing?


                CATEGORY
                 INSIGHT
                                            SELLING              MONITOR
                           STRATEGIC
                                              TO                   AND
                           PLANNING
                                           CUSTOMERS              REVIEW
                CUSTOMER
                 INSIGHT       FEEDBACK LOOP



       What is my
     What is my
  customer’s strategy?                               What skills
customer’s strategy?                              What skills
                                              and tools will help me
      How do they                           and tools will help me
    How do they                                  SELL THE PLAN
        operate?                              SELL THE PLAN
     operate?                                          to the
                                                    to the
                                                     customer?
                                                  customer?

                              Mattel Global Marketing Training
         Strategy development overview


                                                               33
                                                                                  44
       11                      22                         Analysis / /
                                                           Analysis           Objective
                                                                               Objective
Data gathering
 Data gathering       Identifying vision
                       Identifying vision             interpretation of
                                                       interpretation of       setting
                                                                                setting
                                                         information
                                                          information




                             77                              66                    55
      88
                      Creating Action
                       Creating Action                  Evaluating
                                                         Evaluating           Developing
                                                                               Developing
Implementation
 Implementation            Plans
                            Plans                    strategic options
                                                      strategic options    strategic options
                                                                            strategic options




                  99
            Performance
             Performance
              Review
               Review




                                 Mattel Global Marketing Training
Case Study (I have several good ones)




              Mattel Global Marketing Training
Presentations


                    Storyboarding




                Mattel Global Marketing Training
Set up a storyboard

            Purpose     Background



           Message       Message       Message



           Message       Message       Message     Message




                Mattel Global Marketing Training
                                      Set up a visual outline of your presentation and build
                                      the storyboard as you complete the analysis
                                                                                               Identify the topics to be analyzed
                       Draw a key message                 Keep track of what
                                                          remains to be done
                                                                                          Fill in the blanks as you
                                                                                                     obtain
                                                                                          the required information
                                                                                                                  Extract a
          summarize each section




                                                                                                                  message
                                                                                                               for each visual
Roadmap




                                                                                               Message   Message     Message
                                                                                                                               Summary



                                             Message   Message     Message      Message        Message

                                                                                                                     Prepare an extra
                                                                                                                   visual to summarize
                                                                                                                       long sections
                                                                                 Prepare “back-ups”
                                                                              to anticipate questions or
                                                                                      discussion
                                   SUMMARY   NEXT STEPS


                                                            Mattel Global Marketing Training
Global Sales Training


        11 Commandments of Customer Presentations




                    Mattel Global Marketing Training
 The 11 Commandments Of Customer
 Presentations
                                              1                                                                                                      2
                                                                                                                                     Compelling Customer, Shopper,
                        Logical Structure And Flow                                                                                        Category Insights
Keep it simple, straightforward and understandable for the customer
                                                                                                                          Base your arguments
Move from background through objectives to actions                                                                       on compelling consumer           Build your arguments on a
                                                                                                                            shopper / category            platform of customer and
                                                                                                                                insights
                                                                                                                                                         shopper insight
                                                                            Action Plan
                                                           Brand
                                          Customer      Opportunities
                                                                                                                                   Retailer               Demonstrate your unique
                                        Understanding                           How do we
                  Presentation                                              n
                                                                                                                                                          knowledge of consumer,
                   Objectives                                                   realize this
     Background                                         n   What is in it                                                                                 shopper category and
                                                                                opportunity
                                    n    Demonstrate        for the                                                                                      customer
                                                                                together?
                  n   What is the        our unique         brand?
     Why we           point of           insight                            n   Next steps
 n                                                      n   Identify
     are here?        today?        –    Channel            where           n   Close
                                                            the greatest                                                Supplier          Consumer
 n   Why you                        –    Customer
     should                                                 opportunities
     listen?
                                    –    Shopper            lie
                                    –    Category




                                                                                               5
                                                                                   Keep It Real For The Brands

                                                                                               Link insights and opportunities to
                                                                                                the Brand drivers
                                                                                               What are the implications / indicated
                                                                                                actions for
                                                                                                     –   Promotions
                                                                                                     –   Innovation
                                                                                                     –   Distribution

                                                                                               Involve the brand in the discussion
                                                                                               Formulate an action plan designed
                                                                                               to build brand sales and profit
                                                                                               Identify areas for joint working




                                                                                                   Mattel Global Marketing Training
The 11 Commandments

                                                 1
                              Logical Structure And Flow
    Keep it simple, straightforward and understandable for the customer

    Move from background through objectives to actions



                                                                                         Action Plan
                                                                                          Action Plan
                                                                      Brand
                                                                       Brand
                                            Customer               Opportunities
                                             Customer               Opportunities
                      Presentation        Understanding                              •    How do we
                       Presentation        Understanding
                       Objectives                                                         realize this
    Background          Objectives                             •     What is in it        opportunity
     Background
                                          •   Demonstrate            for the              together?
                      •   What is the         our unique             brand?
                                              insight                                •    Next steps
•    Why we are           point of                             •     Identify
     here?                today?                – Channel            where           •    Close
                                                                     the greatest
•    Why you                                    – Customer
                                                                     opportunities
     should
                                                – Shopper            lie
     listen?
                                                – Category



                                  Mattel Global Marketing Training
The 11 Commandments

                                         2
                Compelling Customer, Shopper,
                     Category Insights
      Base your arguments
       Base your arguments
     on compelling consumer
      on compelling consumer
        shopper / category
         shopper / category
                                                  Build your arguments on a
             insights
              insights                            platform of customer and
                                                  shopper insight


               Retailer                           Demonstrate your unique
                                                  knowledge of consumer,
                                                  shopper category and
                                                  customer



    Supplier         Consumer




                          Mattel Global Marketing Training
The 11 Commandments

                                      3
                  Re-enforce The Brand’s Needs



                                                           Demonstrate your
  Primary Need                     Profit                  understanding of
                                                           brand needs early
                                                           in the presentation
                         Increase       Maximize
                         Revenue        Returns

                                                           Demonstrate the link
  Supporting Needs Penetration Loyalty        Efficiency   between your
                                                           proposals
                                                           and brand needs
                          Strategic Drivers




                       Mattel Global Marketing Training
The 11 Commandments

                                    4
          Identify The Opportunities For Brands

                                           Brands buy opportunities!
     Identify opportunity
      by sizing the prize                  Sell brands on the opportunity
                                           for them and they are far more
                                           likely to support your proposals

                                           The prize must be a credible,
                                           logical and supported by
                                           Category / Consumer and Shopper
                                           Insight

                                           Highlight opportunities for
                                           incremental sales and profits

                                           Provide the brand with insight
                                           on their performance within the
                                           customer

                     Mattel Global Marketing Training
The 11 Commandments

                            5
          Keep It Real For The Brands

                                Link insights and opportunities to
                                the Brand drivers

                                What are the implications / indicated
                                actions for

                                      §   Promotions

                                      §   Innovation

                                      §   Distribution

                                Involve the brand in the discussion

                                Formulate an action plan designed
                                to build brand sales and profit

                                Identify areas for joint working




             Mattel Global Marketing Training
The 11 Commandments

                            6
         The Consumer / Shopper Is King




                         The consumer (not Sales) says ……..


                         Our insight (not Sales) suggests ………


                         According to the consumer (not Sales)
                         ………


                         From our research (not Sales) we have
                         learned that ……..




             Mattel Global Marketing Training
The 11 Commandments

                          7
               Insight Not Data


                                    Focus on the key insights
                                    for the brand


                                    Use data to support the
                                    conclusions

                                    Involve the brand in
                                    developing indicated
                                    actions


                                    Each chart must pass the
                                    “so what test”




           Mattel Global Marketing Training
The 11 commandments


                           8
           Don’t Forget The Sizzle



                                         Visualize and
                                         dramatize
                                         your key insights


                                         Communicate with
                                         style and flair


                                         Make it memorable,
                                         stand out from the
                                         crowd




            Mattel Global Marketing Training
The 11 Commandments


                            9
         Focus On Benefits Not Features



                                        Brands buy benefits
                                        not features


                                        Talk brand, not Sales
                                        language

                                        Link the benefits of
                                        your proposals to
                                        customer needs




             Mattel Global Marketing Training
The 11 Commandments

                        10
           Don’t Forget The Close

                                    You are still selling!

                                    Create a joint action plan

                                    Agree next steps with
                                    deadlines and
                                    responsibilities

                                    Suggest something small
                                    and simple as a next step

                                    Re-cap to check for
                                    understanding

                                    Follow-up with written
                                    confirmation




           Mattel Global Marketing Training
The 11 Commandments

                        11
            Deliver With Impact

                                    Plan for success
                                         Materials
                                         Attendance
                                         Roles
                                         Venue
                                       Rehearse / edit
                                    Consider
                                         Smartmaster, typeface
                                         Style
                                         Tone
                                         Speed
                                         Delivery style
                                         Props
                                    Manage discussion
                                         Listen
                                         Rephrase / recap
                                         Capture action points



           Mattel Global Marketing Training
         The Presentation Scorecard (Worksheet 13)

                   Commandment                                             Where Are We?

Logical Structure And Flow

Compelling Customer, Shopper, Category Insights

Re-enforce The Brand’s Needs

Identify The Opportunities For Brands

Keep It Real For Your Brands

The Consumer / Shopper Is King

Insight Not Data

Don’t Forget The Sizzle

Focus On Benefits Not Features

Don’t Forget The Close

Deliver With Impact



                                        Mattel Global Marketing Training
       Exercise “Persuasive Presentation”

n turning   an existing “deck” into a simple but effective presentation




                              Mattel Global Marketing Training
       Supporting the Sales Team

Discussion of how Sales needs from Marketing very by market




                         Mattel Global Marketing Training
Promotion




            Mattel Global Marketing Training
           PROMOTION – The Integrated Marketing Plan
           Overview          Examples throughout

n   What an Integrated Marketing Plan?                                  22Hour
     n Marketing objectives
                                                                           Hour
     n Integrated Communications

     n Role of Message, Medium and Mechanic



n   TV Advertising                                                     30 Minutes
        – Global development and testing                                30 Minutes
        – Local do and don’ts
n   Media
     n Media Choice – Pro’s and Con’s
                                                                        22Hours
                                                                           Hours
     n Media Exercise

     n The Role of Entertainment


                                                                       1.5 Hours
                                                                        1.5 Hours
n   Consumer Promotions

n   Marketing at the POP                                               1.5 Hours
                                                                        1.5 Hours
n   Public Relations                                                   30 Minutes
                                                                        30 Minutes
n   Working with Agencies / the Brief                                   11Hour
                                                                           Hour

n   Potential Integrated Marketing Case Study                             ??
                                                                           ??
                                    Mattel Global Marketing Training
       Promotion

What is Promotion?
    n  Promotions objectives
    n  Integrated Communications
    n  Role of Message, Medium and Mechanic
    n  Advertising
         – Global development and testing
         – Local do and don’ts
    n  Media Choice – Pro’s and Con’s
    n  Working with Agencies
Integrated Marketing Plan
    n  Setting Clear Objectives
    n  Developing the message
    n  Selecting Media
    n  Consumer Promotions
    n  Communicating the Plan
    Will need lots of market examples to bring to life

                            Mattel Global Marketing Training
       “Promotion” covers all forms of Brand
       communication and interaction with the Market

Insert the Mattel Integrated Communications model




                          Mattel Global Marketing Training
There are a number of levels at which the
integrated communications model must succeed


                 Target Market
                  Target Market
                        Aware
                        Aware
                   Understand
                   Understand
                       Believe
                       Believe
                         Want
                         Want
                          Find
                           Find
                          Buy
                          Buy
                          Use
                          Use
                        Prefer
                         Prefer


             Mattel Global Marketing Training
Why Promote?




  n   Grow the category
  n   Grow brand volume
  n   Grow brand share
  n   Improve distribution
  n   Build awareness
  n   etc




              Brainstorm exercise
                  Mattel Global Marketing Training
     The Ultimate Purpose Of Promotions Is To Drive
     Sales




A promotions campaign can have multiple objectives, which result in a
desired sales impact

A promotions activity SHOULD, ideally, have one clear objective which
results in a sales impact




                        Mattel Global Marketing Training
Successful Promotions




    n   A clear objective
    n   Target a specific market (consumer, shopper, customer)
    n   Simple, motivating message
    n   Effective and efficient use of media
    n   Simple, engaging mechanics
    n   The right time period
    n   A measurable, positive result




                 Mattel Global Marketing Training
What People Hear Is More Important Than What
You Say


                                                What a pushy, arrogant
                                                  What a pushy, arrogant
                                                        …… ……




      Buy ME!!
    Buy ME!!




             Mattel Global Marketing Training
..And A Lot Of Other Messages Are Trying To Get
Through


                                                   What a bunch of pushy,
                                                      What a bunch of pushy,
                                                       arrogant ……
                                                           arrogant ……




               Buy ME!!
                 Buy ME!!
                 Buy ME!!



    Buy ME!!
  Buy ME!!                             Buy
                                  Buy ME!! ME!!
               Buy Buy ME!!
                   ME!!




                Mattel Global Marketing Training
Promotions Require Effective Communication




    n   Reaches the target audience

    n   Captures their attention

    n   Communicates the intended message

    n   Ties the message to the brand

    n   Achieves the desired response




                 Mattel Global Marketing Training
Key Components


  Market
     n   Who the brand wants to talk to

  Message
     n What the brand wants to say and how the brand
       talks to the market

  Medium
     n How, when and where the message is delivered

  Mechanic
     n How the market is engaged



                 Mattel Global Marketing Training
The Market




    Who does the brand need to communicate with?

    n   Consumers?
    n   Shoppers?
    n   Customers?
    n   Suppliers?
    n   Competitors?




                Mattel Global Marketing Training
       Mattel Target Markets

Show the consumer, shopper, customer target markets for Barbie, Hot
Wheels and F-P




                          Mattel Global Marketing Training
    The Message




               Proposition
              Proposition



                                           What we need to say?
                                         What dodo we need to say?
                                            How should say it?
                                          How should wewe say it?
               The BRAND
              The BRAND


     Positioning
    Positioning          Personality
                        Personality




Brand Identity                                                       Brand Image




                              Mattel Global Marketing Training
Mattel Examples




 Show / play recent brand Messages (TV, Audio, Print etc)
 Ask participants to
     n Identify the brand
     n Identify the message
     n Identify what it makes them think about the brand
     n What would they do?




                  Mattel Global Marketing Training
    TV Advertising


Role of TV Advertising and how it is different at Mattel

    n   “instant response” vs. steady brand build
    n   Why TV – analysis of effectiveness / efficiency

Case Study development of a TV Ad (Lisa G is getting this)

    n   Product Concept
    n   Strategy
    n   Agency Brief
    n   Story Board
    n   Testing (and results / benchmarks
    n   Shooting Board
    n   TV Commercial
    n   On-Air Testing (& Results / benchmarks)

                         Mattel Global Marketing Training
   TV Ads - Local Do’s & Don’ts




Legal Changes - Yes
Translation – Yes
Cultural Adaptation – If Necessary
Other Edits – No

We may want to support this position with data / anecdotes / examples




                      Mattel Global Marketing Training
The Medium


 How, where and when should the message be delivered?

    n   TV
    n   Radio
    n   Print (National, Specialist, Trade)
    n   Outdoor
    n   Direct Mail
    n   Internet
    n   Tele Sales
    n   Exhibitions
    n   Sponsorship
    n   Product Placement
    n   PR
    n   Point of Sale
    n   Direct Sales



                   Mattel Global Marketing Training
Media Strengths and Weaknesses




  Identify Strengths and Weaknesses of each

  Brainstorm / moderated discussion
  I can provide a “model” answer if needed




                 Mattel Global Marketing Training
Evaluating Media




How is media measured

   n   Insert how Mattel do this (Chris is developing this)
         – Efficiency Measures
         – Effectiveness Measures




                   Mattel Global Marketing Training
The Mechanic


  How will the market be engaged?

     n   An event?
     n   An activity?
     n   An offer?
     n   A once off?
     n   A loyalty programme?

  What do they have to do?

     n   Buy?
     n   Recommend?
     n   Tell?
     n   Understand?
     n   Believe?



                 Mattel Global Marketing Training
Evaluating Mechanics




 Show recent mechanics used in different markets

 Ask
       n   What was the objective?
       n   How else might you have achieved the objective?
       n   What would make you choose this mechanic?




                     Mattel Global Marketing Training
Evaluating Mechanics




n   Draft example of 3 / 4 mechanics showing impact on a
    particular objective ( sales?), and cost associated

n   What are the total costs associated with each mechanic?

n   What mechanic offers the best ROI




                   Mattel Global Marketing Training
   Defining The Promotion



Why
Why            Why do you want to run the promotion?
               Why do you want to run the promotion?

Who
Who             Who do you want to achieve this with?
                Who do you want to achieve this with?

When
When              When do you need to achieve this
                  When do you need to achieve this

What
What                What do you need to tell them
                    What do you need to tell them

Where
Where               Where do you need to tell them
                    Where do you need to tell them

How
How                   How will you engage them?
                      How will you engage them?


        This should form the basis of the agency brief
         This should form the basis of the agency brief


                   Mattel Global Marketing Training
Opening Exercise



Objective: Define “Integrated” Marketing



Method:

n   Group Discussion
n   Facilitator captures comments on a flip charts



Timing: 10 Minutes




                    Mattel Global Marketing Training
       Why Integrated Marketing?
       The Whole > the Sum!

“Fragmented” Marketing
 “Fragmented” Marketing

   TV
    TV          Promotion                 PR                       POP
                 Promotion                 PR                       POP
 Impact
  Impact          Impact                Impact                   Impact
                   Impact                Impact                   Impact

   2        +       2        +             2                 +      2      =   8
Integrated Marketing
 Integrated Marketing

   TV
    TV          Promotion                 PR                       POP
                 Promotion                 PR                       POP
 Impact
  Impact          Impact                Impact                   Impact
                   Impact                Impact                   Impact

 2         X       2         X           2               X         2       =   16
                          Mattel Global Marketing Training
  The Mattel Integrated Marketing Plan


                       TV Advertising
                      TV Advertising
     Retail
   Retail                                                   Consumer
                                                          Consumer
   Promotion
 Promotion                                                  Promotion
                                                          Promotion




 Entertain-ment
                             Brand
                            Brand                         Public Relations
Entertain-ment                                           Public Relations




                 Internet
               Internet                            Licensing
                                                 Licensing


                     Mattel Global Marketing Training
Integrated Marketing Communications Model
Succeeds At Several Levels


                   Target Market
                    Target Market
                         Aware
                          Aware
                    Understand
                     Understand
                        Believe
                         Believe
                          Want
                          Want
                          Find
                           Find
                           Buy
                            Buy
                           Use
                            Use
                         Prefer
                          Prefer



             Mattel Global Marketing Training
       Integrated Marketing Exercise



Objective: Identify how different elements of an integrated marketing
 plan impact a consumer

Method:
n In small groups – review the steps in communicating a brand message
n Discuss how different methods (e.g., TV, promotions, etc.) impact
  different steps in the “persuasion” process
n Construct an integrated marketing plan for a new Girls brand


Timing
30 Minutes




                           Mattel Global Marketing Training
    Hot Wheels™ Licensing
    Advertising and Promotion, Plans 2004


                                            Public Relations:
                                       Public Relations:
                                   HWCP product focused press releases
                                HWCP product focused press releases
                                              • Summer Fun
                                         • Summer Fun
                                                 • Holiday
                                            • Holiday



    Retail Promotions:
Retail Promotions:                                                                      Promotional Partnerships:
            • Zellers                                                              Promotional Partnerships:
      • Zellers                                                                       Family Channel HWCP promotion
          • Wal*Mart                                                              Family Channel HWCP promotion
    • Wal*Mart                                                                               • Home furnishings
             • Sears                                                                     • Home furnishings
       • Sears
             • SDM
       • SDM




                Licensee Support:
            Licensee Support:
                • Summit                                           In-store Merchandising:
            • Summit                                         In-store Merchandising:
                • Sales sheets                                   • All retailers – signage refresh
            • Sales sheets                                 • All retailers – signage refresh
                • VIL meetings                                  • Canadian Tire – Sporting goods
            • VIL meetings                                • Canadian Tire – Sporting goods
                • Trade shows
            • Trade shows



                                    Mattel Global Marketing Training
Integrated Communications Objectives


                    Target Market
                     Target Market

                         Aware
                          Aware

                      Understand
                       Understand

                         Believe
                          Believe

                          Want
                          Want

                           Find
                            Find

                           Buy
                            Buy

                           Use
                            Use

                         Prefer
                          Prefer




             Mattel Global Marketing Training
        Exercise




Referencing Integrated Communications objectives slide

    n   Put actual numbers into the chart (% of Target Market) – one each
        for Barbie, Hot Wheels, F-P

Set up teams to consider each scenario
Ask them to draft a Promotions definition for their scenario




                            Mattel Global Marketing Training
Working With Agencies




                Mattel Global Marketing Training
Selecting and Briefing
Evaluating Responses




                         Mattel Global Marketing Training
Why Do You Work With The Agency You Do?




        n   Reputation
        n   Price
        n   Size
        n   Personal Chemistry
        n   Experience




              Mattel Global Marketing Training
The One Fundamental




Trust

        You must believe the agency can deliver the
        assignment to the standard your brand needs




                 Mattel Global Marketing Training
       What The Agency Needs To Know

Context                                      Specifics

   n   Trends, Dynamics, Issues                      n   Target Market (Who)
        – The Market                                 n   Objective (Why)
        – The Category
                                                     n   Proposition (What)
        – Consumers
        – Shoppers                                   n   Timing (When)
        – Customers                                  n   Preferred Media (Where)
        – Competitors                                n   Preferred Mechanics (How)
        – Previous activity                          n   Budgets
        – Brand Identity                             n   Requirements of the Agency
            l  Proposition
            l  Personality
            l  Positioning
        – Brand Image



                          Mattel Global Marketing Training
Briefing the Agency


       Allow sufficient time

       Provide written copies

       Be specific on all key points
           n What is information
           n What is pre determined
           n What you want them to do
           n When you expect their response
           n In what form they should respond

       Encourage questions
          n  Check for understanding

       Ensure you are “Helping” not “Testing”



                 Mattel Global Marketing Training
       Exercise

Could role play this, and the next section




                            Mattel Global Marketing Training
       Agency Responses

Allow the time needed

Restate the objectives

Ask the agency to show how their proposals would achieve your
objectives
    n  What you “like” is not important – what you think will work or nor
       is critical

Clarify critical success factors

Confirm cost estimates (Design, Production, Placement)

Revise the brief to include what is already agreed and what still needs to
be done




                            Mattel Global Marketing Training
Could role play a debrief




                            Mattel Global Marketing Training
Integrated Marketing Plans




                  Mattel Global Marketing Training
Show what they look like

Show the development process (i.e. typical Mattel approach)

Walk through, highlighting the key components discussed in the
materials




                  Mattel Global Marketing Training
Integrated Marketing plans could be discussed at the beginning of the
promotions section – and used to define the issues that are covered in
more detail in this presentation ( Best Practice)




                           Mattel Global Marketing Training
Opening Exercise



   Objective: Define “Integrated” Marketing



   Method:

   n   Group Discussion
   n   Facilitator captures comments on a flip charts



   Timing: 10 Minutes




                   Mattel Global Marketing Training
       Why Integrated Marketing?
       The Whole > the Sum!

“Fragmented” Marketing
 “Fragmented” Marketing

   TV
    TV          Promotion                 PR                       POP
                 Promotion                 PR                       POP
 Impact
  Impact          Impact                Impact                   Impact
                   Impact                Impact                   Impact

   2        +       2        +             2                 +      2      =    8
Integrated Marketing
 Integrated Marketing

   TV
    TV          Promotion                 PR                       POP
                 Promotion                 PR                       POP
 Impact
  Impact          Impact                Impact                   Impact
                   Impact                Impact                   Impact

 2         X       2         X           2               X         2       =   16
                          Mattel Global Marketing Training
  The Mattel Integrated Marketing Plan


                       TV Advertising
                      TV Advertising
     Retail
   Retail                                                   Consumer
                                                          Consumer
   Promotion
 Promotion                                                  Promotion
                                                          Promotion




 Entertain-ment
                             Brand
                            Brand                         Public Relations
Entertain-ment                                           Public Relations




                 Internet
               Internet                            Licensing
                                                 Licensing


                     Mattel Global Marketing Training
Integrated Marketing Communications Model
Succeeds At Several Levels


                   Target Market
                    Target Market
                         Aware
                          Aware
                    Understand
                     Understand
                        Believe
                         Believe
                          Want
                          Want
                          Find
                           Find
                           Buy
                            Buy
                           Use
                            Use
                         Prefer
                          Prefer



             Mattel Global Marketing Training
       Integrated Marketing Exercise



Objective: Identify how different elements of an integrated marketing
 plan impact a consumer

Method:
n In small groups – review the steps in communicating a brand message
n Discuss how different methods (e.g., TV, promotions, etc.) impact
  different steps in the “persuasion” process
n Construct an integrated marketing plan for a new Girls brand


Timing
30 Minutes




                           Mattel Global Marketing Training
    Hot Wheels™ Licensing
    Advertising and Promotion, Plans 2004


                                            Public Relations:
                                       Public Relations:
                                   HWCP product focused press releases
                                HWCP product focused press releases
                                              • Summer Fun
                                         • Summer Fun
                                                 • Holiday
                                            • Holiday



    Retail Promotions:
Retail Promotions:                                                                      Promotional Partnerships:
            • Zellers                                                              Promotional Partnerships:
      • Zellers                                                                       Family Channel HWCP promotion
          • Wal*Mart                                                              Family Channel HWCP promotion
    • Wal*Mart                                                                               • Home furnishings
             • Sears                                                                     • Home furnishings
       • Sears
             • SDM
       • SDM




                Licensee Support:
            Licensee Support:
                • Summit                                           In-store Merchandising:
            • Summit                                         In-store Merchandising:
                • Sales sheets                                   • All retailers – signage refresh
            • Sales sheets                                 • All retailers – signage refresh
                • VIL meetings                                  • Canadian Tire – Sporting goods
            • VIL meetings                                • Canadian Tire – Sporting goods
                • Trade shows
            • Trade shows



                                    Mattel Global Marketing Training
     Next Steps




Mattel Global Marketing Training
What’s Missing?




n   Examples of Brand Strategies

n   Example of BDO / LRP

n   Examples of Mattel Marketing Positioning Statements

n   Best Practice examples from different markets – in particular,
    integrated marketing plans, visual merchandising...




                      Mattel Global Marketing Training
       Proposed Pilot


Objective: Validate Foundations of Marketing Training Program

Approach:
n Working session / Interactive
n Review / Challenge / Revise

Attendee's
n Small Group (8 – 10)
n 50% Senior Marketers
n 50% Target (Brand Managers / ABMs)
n Nominees?

Where: Amsterdam or London

When: Sept 26 - 29


                           Mattel Global Marketing Training
Appendix


            Module Examples




           Mattel Global Marketing Training
EXAMPLE -
Mattel Marketing Process




               Mattel Global Marketing Training
                                                                                              Draft for IMC Aug 12

              “Foundations of World Class Marketing”

Objective: To provide an overview of all the marketing tools and processes used at Mattel
 Objective: To provide an overview of all the marketing tools and processes used at Mattel
Target Audience: Assistant Managers, Brand Managers and New Hires
 Target Audience: Assistant Managers, Brand Managers and New Hires

           Day 1                          Day 2                           Day 3                        Day 4

OVERVIEW                    n   The Mattel Product            PLACE                       n    Media
                                Development Process
n   What is Consumer            Product                       n   Shoppers, Channels &    n    Consumer Promotion
    Marketing?                                                    Customers
                            n   Selection & Quota                                         n    Marketing at the POP
n   Toys & Mattel               Setting                       n   Developing a Customer
n   The Mattel Marketing                                          Proposition             n    Public Relations
    Process                 PRICE
                                                              n   Customer Plans          n    Working with Agencies
PRODUCT                     n   Mattel Profit Drivers             (MSAP) and
                                                                  Presentations           n    Integrated Marketing -
n   Brand Strategy &        n   Managing a Brand P&L                                           Pulling it all together
    Positioning
                            n   Pricing
n   Using Insights to                                         PROMOTION
    Understand Consumers    n   Forecasting
    & Shoppers                                                n   The Integrated
                                                                  Marketing Plan

                                                              n   TV Advertising



                                            Mattel Global Marketing Training
EXAMPLE MODULE
Integrated Marketing Plans




             Mattel Global Marketing Training
                                                                                              Draft for IMC Aug 12

              “Foundations of World Class Marketing”


Objective: To provide an overview of all the marketing tools and processes used at Mattel
 Objective: To provide an overview of all the marketing tools and processes used at Mattel
Target Audience: Assistant Managers, Brand Managers and New Hires
 Target Audience: Assistant Managers, Brand Managers and New Hires

           Day 1                          Day 2                           Day 3                        Day 4

OVERVIEW                    n   The Mattel Product            PLACE                       n    Media
                                Development Process
n   What is Consumer            Product                       n   Shoppers, Channels &    n    Consumer Promotion
    Marketing?                                                    Customers
                            n   Selection & Quota                                         n    Marketing at the POP
n   Toys & Mattel               Setting                       n   Developing a Customer
n   The Mattel Marketing                                          Proposition             n    Public Relations
    Process                 PRICE
                                                              n   Customer Plans          n    Working with Agencies
PRODUCT                     n   Mattel Profit Drivers             (MSAP) and
                                                                  Presentations           n    Integrated Marketing -
n   Brand Strategy &        n   Managing a Brand P&L                                           Pulling it all together
    Positioning
                            n   Pricing
n   Using Insights to                                         PROMOTION
    Understand Consumers    n   Forecasting
    & Shoppers                                                n   The Integrated
                                                                  Marketing Plan

                                                              n   TV Advertising



                                            Mattel Global Marketing Training
         Mattel Lingo

Quota
                                          Short /Shortage
 n MARKETING estimate of full
                                           n AVAILS less than DEMANDS
   year quantity per item
Forecast                                  Excess / Overage
 n SALES estimate of customer              n AVAILS greater than DEMANDS
   shipments by item
                                          Pull Forward
                                           n quantity produced ahead of
Demands
                                             DEMANDS
 n quantity PLANNING asks to
   receive each month                     Allocation
                                           n worldwide capacity cannot meet
Avails                                        worldwide DEMANDS
 n quantity SOURCE plans to
                                          CIT (Company Inv. Transfer)
   deliver each month
                                           n Finished goods transfer between
                                             markets
PS
 n   production start


                        Mattel Global Marketing Training

				
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