Mattel 2002 Annual Report Download - page 6

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4
innovative ideas
As part of this transition, Pleasant
Company was separated from the Mattel
Brands business unit. The Infant/Preschool
division remains unchanged.
While we have a cache of exciting
product lines, the foundation of Mattel's
success rests in our portfolio of power
brands. Further, as 2003 will be an
"entertainment-lite" year with no block-
buster movies, such as Harry Potter™,
supporting our toy lines, the spotlight
will shine on our core evergreen brands.
For example:
My Scene™, the exciting new Barbie®
segment targeted to the “tween” market,
which launched on a limited basis in
2002, will feature an expanded line
rolling out this year.
Barbie™ of Swan Lake debuts this fall
on DVD/home video with an expanded
toy line following a solid performance
in 2002 by Barbie™ as Rapunzel.
The new ello™ brand, a creativity
system for girls, launches worldwide
this year.
The Hot Wheels Highway 35™ integrated
marketing program celebrates the
brand’s 35th anniversary.
Learning initiatives at Fisher-Price
continue with a new line-up of Kasey
the Kinderbot™ software accessories
and the launch of the new PowerTouch™
brand, an early-learning system that
has scored high marks in tests with
kids, their parents and teachers.
Following the success of the American
Girl Place®flagship store on Chicago’s
famed Michigan Avenue, a second
store is slated to open on New York’s
5th Avenue this fall.
The next “C” is channels,as in retail
channels – our customers. Our retail
customers continue to streamline their
businesses to address the difficult
economic environment through store
closures and just-in-time inventory
management, which results in a challenging
retail environment. As part of managing
our supply chain and inventory levels,
our overarching objective is to continue
better matching our shipping with
consumer demand. We also will continue
to expand our Customer Business Team
concept, which was implemented in
2002, to offer retailers focused support
from key areas of Mattel, including
forecasting, space management, logistics,
retail services and more. We will increase
our use of sophisticated category
management tools, which demonstrates
to retailers the economic benefits of
supporting our brands.
The third “C” is costs. While the
execution of our financial realignment
plan is continuing into its final year,
including the consolidation of two
manufacturing facilities in Mexico by the
end of 2003, we clearly face challenges
in controlling costs.