Comprehensive STP Analysis of Mattel Inc.'s Marketing Approach

This report provides a comprehensive STP (Segmentation, Targeting, and Positioning) analysis of Mattel Inc., a prominent multinational toy manufacturing company. It delves into Mattel's segmentation strategies, focusing on behavioral, geographic, demographic, and psychographic factors. The repo...Read More

Running head: STP ANALYSIS FOR MATTEL
STP ANALYSIS FOR MATTEL
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1STP ANALYSIS FOR MATTEL
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Segmentation..........................................................................................................................3
Behavioral..........................................................................................................................4
Geographic.........................................................................................................................4
Demographic......................................................................................................................4
Psychographics...................................................................................................................4
Targeting................................................................................................................................4
Positioning..............................................................................................................................5
Conclusion..................................................................................................................................5

2STP ANALYSIS FOR MATTEL
Introduction
Mattel Inc. is an American multinational entertainment and a toy manufacturing
company. The company was founded in the year 1945 and is currently headquartered in El
Segundo, California. Mattel is one of the most popular companies in the United States and
has been ranked 17 on Reputation Institute’s 2019 Most Reputable US Companies List
(Citizenship.mattel.com., 2020). The company has become very popular since its inception as
it provides safe and interactive toys which play a major role in helping in developing the
children and also providing games to adults. The company has been getting into various
different ventures and has been growing since its inception by coming up with Mattel films
and many more. This paper will focus on the segmentation, targeting and positioning of
Mattel.
Discussion
Mattel has become popular because of their range of brands and products which
generally cater to the children like Fisher-Price, Hot Wheels, Thomas & Friends, Barbie,
WWE and American Girl.
Mattel has successfully marketed their products which is one of the vital reasons for
their success which has helped them in becoming popular and also contributed to their
revenue. The company successfully segments, targets and positions their company and their
brands which helps in the marketing process as it helps in guiding the company develop and
implement a proper marketing mix. The segmentation, targeting and positioning of Mattel are
the following:

3STP ANALYSIS FOR MATTEL
Segmentation
The company, Mattel is mainly famous as a toy manufacturing company and thus,
they segment their products to specific types or groups of people. The primary focus of the
company is on individuals who have children of their own and are parents who purchase toys
and games which will help their children to increase their motor skills and also help in the
enhancement of their education. Young children usually play with toys for their recreational
purpose and thus the company puts emphasis on the parents of small and young children as
they are the ones who are going to buy these products for their children.
The company also targets adults who purchase games like scrabbles for their
recreational purpose or adults who are generally keen on buying collectibles to create a
collection of their own. According to scholars, there are many adults who have a fascination
for toys as it brings nostalgia for them. Mattel tries to encash on this factor and also focuses
on these adults (Chen, 2015).
Parents to small and young children are not the only ones who purchase toys but there
are many people who buy toys for their business. Govindarajan, (2016) states toys are in huge
demand in schools and in commercial businesses like daycare centers and children
amusement centers. Mattel also focuses on retailers who like buying different brands so that
they can sell those products in their stores like Toys R Us.
The company also segments on the following basis:

4STP ANALYSIS FOR MATTEL
Behavioral- The behavior has a huge role to play in segmenting the customers. According to
scholars, parents tend to buy toys that help in the development of their child (Al Kurdi,
2017). There many individuals who benefit from buying toys in different ways like
educational benefit and also personal happiness which Mattel puts emphasis on.
Geographic- Mattel usually focuses on customers belonging from metropolitan and urban
areas where the population is high and where individuals believe in purchasing toys.
Demographic- The toys that are manufactured by Mattel reach a very wide range of
consumers both middle class as well as upper class. They cater to infants, children, young
adults and also adults.
Psychographics- Mattel segments people who are concerned about the safety of their
children, their development and family-oriented individuals.
Targeting
The company, Mattel primarily targets young girls and boys who are between the ages
of 8-12 years. One of the interactive games like Barbie.com is considered to be one of the top
dolls in the United States as well as worldwide where it is mainly aimed at children who are
older than the above mentioned group. Mattel targets their products to the parents of toddlers
and infants as well who look for toys which help in the development of their child and
positive learning of their child. They target individuals who are well educated and understand
the importance of toys in the life of children. The infant brand of the company, Fisher-Price
mostly targets the parents and also few adults. The company also markets the brand, Dora the
explorer towards parents and adults so that they purchase these products for the recreational
as well as the cognitive development of their children.

5STP ANALYSIS FOR MATTEL
Positioning
Mattel Inc. is an old entertainment and a toy manufacturing company and thus it has
created many loyal customers. Healey & Mendelsohn, (2019) state most parents while
choosing toys for their children think about safety and how they help in the growth of their
children. It has been seen that Mattel uses this factor and positions themselves as the
manufacturer of user-friendly, safe and interactive toys. They also position themselves as a
company that is innovative and comes up with toys keeping in mind how the toys are going
to help the children develop, get entertained and satisfy the parents. Thus, the company
focuses on safety and development and positions themselves as a company that thinks about
the overall development and entertainment of the child.
Conclusion
Mattle Inc. is one of the oldest and most popular toy manufacturing companies which
has given many famous toys which are bought widely by various people all across the globe.
One of the major reasons for the popularity of the company is because of their segmentation,
targeting and positioning which has helped them in garnering a loyal customer base. The
company has strategically segmented their customers by their behavior, demographic,
psychology and geographical location. The company comes up with products which are user
friendly, safe, interactive and helps in development which provides satisfaction to both the
children as well as their parents and they position their products as well as their brands in that
manner to attract customers and generate profitable revenues.

6STP ANALYSIS FOR MATTEL
Reference
Al Kurdi, B. (2017). Investigating the factors influencing parent toy purchase decisions:
Reasoning and consequences. International Business Research, 10(4), 104-116.
Chen, N. W. N. (2015). Playing with size and reality: The fascination of a dolls’ house
world. Children's Literature in Education, 46(3), 278-295.
Citizenship.mattel.com. (2020). Mattel Citizenship. Retrieved 26 February 2020, from
http://citizenship.mattel.com/
Govindarajan, V. (2016). Planned opportunism. Harvard Business Review, 94(5), 54-61.
Healey, A., & Mendelsohn, A. (2019). Selecting appropriate toys for young children in the
digital era. Pediatrics, 143(1).