Comprehensive Market Segmentation Report: Mattel Inc. Analysis

This report provides a comprehensive market segmentation analysis of Mattel Inc., exploring various segmentation strategies. It delves into demographic factors such as gender, age, and household size, emphasizing the importance of targeting specific age groups with innovative toys. Psychographic segmentation, focusing on lifestyle, personality, and values, is examined to understand family needs and consumer trends. Geographic segmentation highlights Mattel's global presence and the importance of tailoring products to regional markets. Behavioral characteristics, including occasion-based purchasing and product usage, are also considered. The report assesses Mattel's STP (Segmentation, Targeting, Positioning) strategies, emphasizing the use of appropriate marketing channels and promotional activities to reach target markets effectively, including the use of social media and special offers. The analysis highlights the importance of adapting to market trends and customer preferences for sustained success.

RUNNING HEAD: Market Segmentation
Market segmentation
Mattel Inc.

Market Segmentation 1
Mattel Inc. market segmentation:
Demographic Psychographics
Geographic Behavioral
characteristics
Market
segmentation

Market Segmentation 2
Demographic: This segment of Mattel consists of gender, nationality and household size.
The Mattel should target and advertise for both the group of genders and should consider the
age till 14 years, as to introduce more new toys for this age group. The first age group of 0-3
years comprising of infants and toddlers, next is of age group 4-6 years comprising of pre-
school children and last is age group of 7-13 comprising of school going kids (Wedel
Kamakura, 2012). The primary school going kids segment can be targeted by introducing
innovative toys. Moreover the company can also target other segment by developing learning
toys to make them learn as well while playing.
Potential of current target market:
Mattel can find significant sales revenue targeting boys of age 6-11. It is a segment which is
fascinated by world of television like fascination for superheroes toys. In this segment boys
like watching video, novels related to superheroes, video games of superheroes and many
more. So this segment can easily be targeted with current trend analysis and applying those
trends in Mattel.
For targeting youngster girls Mattel created products of unconventional looking dolls,
monster doll and many more. The girls of this age can be attracted by creating new types of
monster doll, as Barbie has become very old. The monster doll instead proves very appealing
to this age group and can easily be influenced by proper strategy and marketing (Patino, et
al., 2012).
Psychographics: This segment will help Mattel to find out the lifestyle, personality traits
and values of people. The above factors will be enabling Mattel to find out the needs and
demands of family, trends in toy sector and many more. For instance if the families are active
and keeps on going for outdoor activities will be targeted by Mattel preferably more than

Market Segmentation 3
religious family (Andreiana, Stoica & Ivan, 2014). Moreover the modern family will
purchase more frequently video games and toys for their kid’s then conservative family.
Mattel can target Australian mothers, grandparents and elders who want to give gift to
children’s. These people buy toys for cherishing their kids. This segment can be targeted, as
they keep on purchasing new and unique types of toys. The Mattel created new products like
baby panda care, educational toys, religion toys and many more, which will attract this target
group to compulsorily buy products from Mattel. The information will help Mattel to create
promotions for company more practically, rather than guessing.
Geographic: As Mattel is a global company and located all over the world. Therefore the
company can target other countries to introduce their product and become a famous brand in
every possible country. The segmentation in geographic areas can be done Mattel through
population in country, cities and many more (Goldberg, et al., 2015). Then after deciding
segment company should focus on best way like regional retail stores to introduce Mattel’s
product. The Mattel should create speaking toys in regional language of Australia to attract
new segments easily.
Mattel can target youngster’s audiences in Australia’s school and college who are very much
attracted towards science and chemistry. This can be targeted by identifying these individuals
through various sources and can enable them to purchase Mattel new products of learning
while playing in science and chemistry. This will not only enhance learning of students but
will increase Mattel image as well in versatility of products. The Mattel can also create new
target market according to geographic requirements of country. The requirement and
demands should be pre-analysed for doing the segment. If Mattel is choosing some region to
enter like rural where low income groups are not in reach of Mattel. Then it can be targeted
by creating and developing low cost and durable product enabling rural people as well to

Market Segmentation 4
purchase the toys of company. The company should be looking for densely populated area in
which toys can be easily sold and produced with ease.
Behavioral characteristics: This segment focuses mainly on occasion and usage of
products. As Mattel is large organisation, so this segment plays significant role in designing
and implementing marketing plans for company. The occasions like birthdays of kids,
Christmas and many more is very important for parents (Sulekha & Mor, 2014). This
segment also considers the usage of product. The usage can be defined like purchasing group
is regular user of product. As in case of toys usage will be considered by frequency of
purchase by customers, as this will help Mattel to divide its customers in segment of regular
or irregular purchaser. This segmentation will help customers as well as frequent purchasers
will be given more preference and offers rather than irregular shoppers.
Purchasing on events is the primary type of behavioral division. Items, for example,
chocolates and premium toys will gifted on celebrations. Toys stores like Mattel will offer
when there is a party. In this way these items are for the most part focused by behavioral
segmentation.
The best case of focusing on a conduct of purchasing on events is birthday’s cards,
welcoming cards, occasion cards for all events. The essential targeting of cards and gifts was
that be it any event, customers will locate the correct and apt card for the event. In this
manner Mattel have the ideal alternative to convey what is the demand in the market.
Assessment of STP:
The Mattel Inc can use the target market by using appropriate strategies

Market Segmentation 5
Psychographic characteristics: Targeting this segment Mattel can appeal more precisely to
inspirations through social media, which increase adaptation rate. This segment can be
reached by using a proper means of media like television, discount offers, and many more
schemes through which the family, mothers and many more will be compelled to buy the toys
for children (Veloso & Campomar, 2012). The Mattel can use latest trend and launch its
fashionable product which will allure not only young girls but their families as well. This can
be done by opening fashion outlets for girls showing trendy toys and products.
Demographic and geographic: The target market set by Mattel will be profitable as teenagers
and young boys require new toys according to market. Mattel entering to the target market
not only enhance the revenue but as well will be able to increase the demand among
children’s. The market decided can be targeted through promotion, marketing, demonstration
and many more in places where this age group can easily be reached. For instance Mattel can
do promotional activity in parks, T.V, schools and many more places to attract children’s to
purchase Mattel’s newly launched toys.
Behavioural characteristics: The behavioural segment can be targeted by Mattel through
special discounts, offers, gifts and many more on occasions so that target group like family,
parents and relatives would prefer buying toys and gifts from Mattel rather than any other
brand. Moreover to retain these customers in long run Mattel should give special benefits to
loyal customers.

Market Segmentation 6
References:
Andreiana, V. A., Stoica, C. G., and Ivan, C. D. (2014). Influence Of Marketing
Environment On The Toy Market. SEA-Practical Application of Science, (2),
48-54.
Goldberg, R., Peiss, Kathy, Licht, Walter, Serlin, David, & Sugrue, Thomas.
(2015). Children's Toys, Social Change, and the Business of Culture in the
United States during the 1960s and 1970s, ProQuest Dissertations and
Theses.
Patino, A., Kaltcheva, V. D., Lingelbach, D., & Pitta, D. A. (2012). Segmenting the
toy industry: a study of pre-teen Millennials. Journal of Consumer
Marketing, 29(2), 156-162.
Sulekha, O., & Mor, K. (2014). Market segmentation in the age of diversity: A
necessity of marketers. European Journal of Business and
Management, 6(14), 181-183.
Veloso, A. R., & Campomar, M. C. (2012). Segmentation and Positioning in the
Brazilian Kids Market: A Case Study on the Bottom of the Pyramid. Revista
Administração em Diálogo-RAD, 14(1).
Wedel, M., & Kamakura, W. A. (2012). Market segmentation: Conceptual and
methodological foundations (Vol. 8). Springer Science & Business Media.