The Toy Industry

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The Toy Industry A Broader Look at Mattel and Hasbro MKT 501 Cleveland State University Cleveland, Ohio Table of Contents Abstract Introduction History of Mattel History of Hasbro Product Price Place Promotion Market Segmentation Trends SWOT Strengths Weaknesses Opportunities Threats Conclusion References Abstract Introduction The toy industry used to be a term used to describe a number of industries that produced small goods in any material. This could include hinges, buttons, belt buckles, and hooks. The term toy was used starting in the 18th century and changed to its now known form of toy as in plaything many years later. The 1900’s were huge years for the toy industry. In 1903 the U Toy Industry celebrated its 76th anniversary. It was also the first year of the American Toy Fair. 1903 also marked the 76th anniversary of the world’s favorite toy the Teddy Bear. In 1916 the Toy Industry Association was founded. It is a New York City based national trade association for producers and importers of toys, games, and children’s entertainment products. Today the toy industry is one of the top five markets. It has U.S. retail sales of $21.4 billion as of 2008 and worldwide retail sales of $78.1 billion in 2008. Leading the toy industry today is Mattel. Mattel has revenues of $5.4 billion as of 2009 putting them at the top of this market. However, Mattel is followed by a close second know as Hasbro. Hasbro is the second worldwide producer of toys, and they have revenues of $4.7 billion in 2009. History of Mattel The history of Mattel dates back to the early 1900’s. In 1945 Ruth and Elliot Handler and Harold Matson founded Mattel. Mattel was launched out of a garage workshop in southern California. Mattel’s first products were picture frames, but Elliot Handler developed a side business making dollhouse furniture using old picture

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