Product Recall Report: Examining the Mattel Toy Company Crisis

This report examines the product recall situation of Mattel toys, focusing on the recalls of 1997 due to defective magnets and lead-paint. It analyzes the specific issues, including the need for effective communication through the company's website and social media, as well as the importance of th...Read More

RUNNING HEAD: PRODUCT RECALL 0
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

PRODUCT REACLL 1
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 REACLL 2
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
The company should communicate the company’s official website which is
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 REACLL 3
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.

PRODUCT REACLL 4
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).
Visual analytics for identifying product disruptions and effects via social media.
International Journal of Production Economics, 208, 544-559.