Mattel 2011 Annual Report Download - page 8

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I am very happy with the
current state of our business.
We have …
• Phenomenal brands
• A highly-successful franchise
launch with Monster High
• A great acquisition with
HIT Entertainment
• Strong entertainment partners
• An incredible global
infrastructure
• An organization that is
never satisfi ed and
• Standout results
With that said, I want Mattel to
achieve its full potential in the
marketplace. These existing
components of our business set
the stage for great opportunity
to drive our performance and
to do even better.
How does Mattel plan
to achieve its vision?
We remain focused on four
keys to delivering success and
achieving our full potential:
plan for growth; structure for
growth; nurture our talent; and
accelerate innovation.
1 | Plan for Growth
Our plan for growth has four
components: grow our core
businesses, both brands and
countries; launch new brands,
like Monster High; optimize our
entertainment partnerships by
living our credo partner with the
best and be the best partner; and
expand and strengthen our
international footprint.
Our core brands are strong.
For the second year in a row,
Barbie gained NPD share and
continued its fi ve-consecutive-
year reign in 2011 as the No. 1
property in the toy industry
for the holiday season.2
Consumers responded well
to the innovations in Hot
Wheels with Wall Tracks™,
and American Girl reached a
major milestone, hitting the
half-billion-dollar sales mark.
And we are making great
progress with Fisher-Price.
When it comes to new
franchises, Monster High is
performing beyond anyone’s
expectations, having been
launched in more than
35 countries.
Our proven leadership in brand
management — whether it be a
50-year-old iconic brand like
Barbie or an up-and-comer like
Monster High — combined with
our global reach, makes us the
strategic partner of choice for
anyone owning toyetic intellec-
tual property. The business is
growing and entertainment
currently comprises about a
quarter of our total revenues.
Mattel manages a diverse and
evergreen entertainment
portfolio, and we treat these
entertainment licenses like our
own brands — we constantly
innovate the product and work
with our customers to maximize
their global reach. That is why
you see such strong evergreen
brands in our portfolio, like
CARS®, Disney Princess,
Toy Story®, Mickey Mouse®
Clubhouse, Batman®, WWE®
and Dora the Explorer®. These
properties are consistently on
toy shelves around the globe.
Our Latin American business
has reached the “sweet spot”
where growth and scale
intersect. The business
achieved a major milestone in
2011, growing 14% and almost
reaching the $1 billion sales
mark. Asia had another solid
year of performance, and we
are particularly pleased with the
development of our businesses
in China and India. Both
countries represent examples
of patient and disciplined
investments in brands and
infrastructure to create a strong
foundation for future growth.
6
2 NPD Data, US Toy Industry, Q4 2011