This paper reviews the situation of the product recall made by Mattel Toy. Mattel is the manufacturer of hot wheel cars and Barbie dolls, emerged with profit making manufacturers like Tyco Toys in 1997, Fisher price in 1993 etc.
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RUNNING HEAD: PRODUCT RECALL0 Product Recall Product recall is the process of replacing and retrieving the deserted goods for the customers. This paper reviews the situation of Mattel toys, when they called for a product recall.2019
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PRODUCT REACLL1 Contents Introduction.................................................................................................................................................2 Analysis of the Specific Issues......................................................................................................................2 Needs to Be Communicated........................................................................................................................2 Company’s message....................................................................................................................................3 Benefits of the plan.....................................................................................................................................3 Bibliography................................................................................................................................................4
PRODUCT REACLL2 Introduction This paper reviews the situation of the product recall made by Mattel Toy. Mattel is the manufacturer of hot wheel cars and Barbie dolls, emerged with profit making manufacturers like Tyco Toys in 1997, Fisher price in 1993 etc. In August 1997, Mattel challenged the major recall in the company’s history( Emilien, Weitkunat, & Lüdicke, 2017). Analysis of the Specific Issues There are two different explanations why Mattel recalled 19 million toys from August to September in the year 2007. The first product recall was due to the defective high-energy magnets in the toys and the second product recall was made because the toys were found covered in the Lead-paint. Mattel willingly recalled 63 magnetic toys sold in January 2007 at retail. These includes 11 doggie day care toys, one One piece toy, 44 Polly pocket toys, 4 batman toys and the auxiliary quantity of two Barbie toys. It is the biggest current months including Chinese products, which have come under inspection worldwide for producing products that involves high level of toxins and chemicals that are dangerous for the children(Ni, Flynn, & Jacobs, 2016). Needs to Be Communicated Thecompanyshouldcommunicatethecompany’sofficialwebsitewhichis www.mattel.com, so that the consumers can understand the defects and impacts of the toys on the children through which they can take the products away from the children and must contact company in order to return the defected products in replacement of the selected toys of the consumer choice. With the help of social media, the company shared a video of CEO of Mattel toys where he conveys an apology message for the situation they are facing and mentions, “Nothing is more important than the safety of our children”, the media can help the company to maintain the goodwill and to regain the trust of the consumers( Gilbert & Wisner, 2010). The company should share the annual and sales report through newspapers, magazines, articles or media so that consumer can identify the number of the recalled products and can return it after contacting to the company.
PRODUCT REACLL3 Company’s message Companies should have strengthened their obligations headed for the safety after the dust has been stable. The message should include the words, which can help the company to regain the trust of the consumers. As the CEO declares that “nothing is important than the safety of our children”, Mattel should have declared the pause in the production of the toys from the contract factories and there will be no mistakes in the future for such manufacturing. They should make consumers more aware about the defected products by providing some information of the negative effects of the toys. Benefits of the plan Mattel toys took fast action and responsibility to replace the defected products, which can result in the benefit for the company as well as for the consumer. However, this decision leads to decrease in the profit of the company but it helps to increase the press and media that can further help to increase the reputation of the company(Zavala & Ramirez-Marquez, 2019). Consumers become more conscious about such production, which will make them not to purchase such products in the future again. The company was able to stop the further damage that can be caused by such products in the market by calling a product recall. Some decisions are very useful for some companies and this decision was very beneficial for the Mattel toys which further lead them to save their decreased reputation in the market and to regain the trust of the consumers.
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PRODUCT REACLL4 Bibliography Emilien, G., Weitkunat, R., & Lüdicke, F. (2017).Consumer Perception of Product Risks and Benefits.Springer. Gilbert, J., & Wisner, J. (2010). Mattel, lead paint, and magnets: Ethics and supply chain management.Ethics & Behavior, 20(1), 33-46. Ni, J., Flynn, B. B., & Jacobs, F. R. (2016). The effect of a toy industry product recall announcement on shareholder wealth.International Journal of Production Research, 54(18), 5404-5415. Zavala, A., & Ramirez-Marquez, J. E. (2019). Zavala, A., & Ramirez-Marquez, J. E. (2019). Visualanalyticsforidentifyingproductdisruptionsandeffectsviasocialmedia. International Journal of Production Economics, 208, 544-559.