Company Profile
Mattel
In a good place Just before the pandemic hit, Mattel signed a lease on a brand-new office in Slough, where it planned to relocate from its long-term home in Maidenhead. Two years on, John Baulch got to experience the new premises when he met up with vice president and country manager UK & Ireland Michael Hick and Kelly Philp, who leads Marketing for the UK.
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met up with Michael and Kelly last month, shortly before Mattel unveiled its Q2 results (check out the Toy World website for details). Even though we weren’t able to talk through the Q2 numbers, the Mattel team was still celebrating a stellar set of Q1 results, described as “the highest on record for net sales and other key metrics.” Furthermore, EMEA was the fastest growing region globally, with a 29% increase, and the UK was one of the key markets, posting record-breaking first quarter numbers. So, it’s fair to say that Mattel is feeling positive at the moment, and the EMEA operation is not only gearing up for the second half of the year, but also has exciting plans for 2023, when the Disney Princess and Frozen line will re-join the Mattel portfolio. I started by asking Michael about the first half of the year, and what Michael put the strong performance down to. “Our Q1 global results were outstanding +19% represented a very strong performance,” he tells us. “It was also a record-breaking quarter for Mattel UK, off the back of a record-breaking 2021. We have
started the year in a really good place; we’re trading exactly where we wanted to be at this stage and we’re optimistic about the second half of the year. “In terms of what drove that performance, I would say two key factors have been innovation in our marketing and in our retail execution. Globally, we have done a great job with our brands, and the team here in the UK has delivered some exceptional campaigns and activations. Michael adds: “The other important element is the way we have developed relationships with our retail partners and delivered brand execution at retail – we have created a lot of fun and innovation in the way we go to retail. Our market share according to NPD YTD June was up at 7.7% - that’s our biggest market share in five years. A key part of our approach is to give retailers a point of difference; we put together joint business plans to drive traffic into their stores. In addition, we have a clearly defined channel strategy: we make sure that we are connecting with the consumer wherever they are on their shopping journey.” “This is true across the board; we’re not just looking at every channel, but every size of retailer to make sure that we are servicing them in the best possible way. We want a steady flow of product going to those stores. We create huge demand for our products, we try to get our fair share of space with that retailer and then we strive to service that demand as efficiently as possible. Despite the strong start to the year, Kelly admits that “as an industry, it has been challenging - we’ve been comparing trading figures from the pandemic and lockdowns. However, we’re about to hit a new phase, with plenty of upsides to focus on: we have incredible product tied to what we believe are the big movies of the summer – Jurassic World Dominion
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and Lightyear, Minions and DC League of Superpets. And of course, last year we faced huge supply chain issues as an industry in Q3, trying to get products onto shelves. The key now is to drive as much demand creation as we can with our marketing activity.” While it is clear that the cost-of-living situation will present challenges for retailers in every category this year, Michael still thinks that the toy industry is well-positioned to face those challenges: “I do believe toys are recession resistant; parents will forego many things for themselves to make sure the kids are looked after.” One of the biggest hurdles for suppliers last year was ensuring retailers were stocked with the right product at the right time – so how does Kelly see that situation evolving as we head into the festive trading period? “We’re excited for the holiday period. Over the past few years, as parents have spent more time at home in close proximity to their children, we’ve found that playing with toys is a core element of family life again, and suppliers and retailers will hopefully benefit from that.” As Q4 approaches, there has been much talk within the toy community of a significant shift in the marketing arena, so I asked Kelly how she sees these changes manifesting themselves in Mattel’s marketing campaigns: “The marketing space is always evolving. The platforms we’re using and the ways in which we’re communicating with both children and parents is as diverse as it has ever been. We want to be at the forefront of the evolution, leading in new platforms and testing and learning against those platforms.” And if that means spending more marketing budget, Mattel is not shy to back its key ranges:
