Mattel 1999 Annual Report Download - page 9

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1. Direct-to-Consumer: Catalogs and Internet
We are enhancing our direct communication with the consumer through catalogs and the
Internet. Mattel’s acquisition of Pleasant Company gave us unsurpassed expertise in direct-to-
consumer marketing that is being applied to other Mattel brands. Last year we introduced a
very successful Fisher-Price catalog and re-launched the Barbie Collector catalog, and there will
be more catalogs to come in 20 0 0 .
As for the Internet, we have a Mattel shopping site that specializes in collector, cus-
tomized, specialized and close-out product. But the real strength of our Internet strategy is in
the individual sites linked through the main nexus of Mattel.com, where we are able to show-
case our world renowned brands in ways that will also benefit the traditional retailer. The
enthusiastic response to these brand sites is undeniable – Barbie.com, for instance, received
180 million hits this past December, and Hot Wheels.com had 7 8 million. The worldwide web
is the perfect place to have a more direct relationship with the consumer.
2. Interactive
The second component of our strategy is to create a seamless connection between our valuable
brands and new high quality, technologically sophisticated products. This approach predated our
merger with The Learning Company, and we still regard this mission as sound and capable of
creating a substantial contribution to our company’s growth and profitability. Just as our pur-
chase of Pleasant Company gave us resources that we have leveraged across brands to enhance
direct marketing opportunities, so too we will be able to use the knowledge and resources
gained from The Learning Company.
3. Mattel International
The third pillar of our strategic approach is related to Mattel International. Mattel is dedicated
to becoming a truly global company. To this end, two years ago we unveiled Mattel’s “ market
by market” approach to international growth, in which we adapt proactively to local tastes,
economic conditions and pricing, rather than viewing the rest of the world as an extension
of our U.S. strategy. Wheels was the first of our major categories to implement the new
approach. Last year, Wheels sales grew 20 percent in international markets, and we expect to
build further on that excellent start, applying this strategy to Barbie and Fisher-Price this year.
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