Thread regarding Mattel Inc. layoffs

Mattel needs to do what Lego and Hasbro did...

If the investment community is listening...

  • In 2003, Hasbro was in disaster mode. Hasbro promoted Al Verrecchia, a numbers guy, as the new CEO. He was a numbers guy. He was a numbers guy working his way up through finance...

  • In 2004, Lego was nearing bankruptcy. Lego brought a number guy, Jorgen Vig Knudstorp as the new CEO. He was a numbers guy, PhD in economics...

  • in 2017, Mattel is now in disaster mode. Margo was brought on to drive innovation. Wrong move. Nothing against Margo, she has earned her career. But Mattel is chasing the wrong stick.

The earnings calls up to the third quarter focused on innovation. If infuriates me that the investor Q & A went along with it. This company needs 100% financial leadership to set up for success. The investors should require Margo take a CDO (Development) or CIO (Innovation) role and get a CEO who only focuses on the numbers. You have to fix the ship before you can sail it. Investor community: ASK the tough questions!!!! No more soft-balling it.

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| 2311 views | | 6 replies (last October 29, 2017) | Reply
Post ID: @OP+PY6qzjp

6 replies (most recent on top)

All you have to do is listen to RD talk for five minutes to realize he knows absolutely nothing about quality product or actual play patterns if you actually are a true toy designer who does know. A fake is easy to spot.

All you have to do is look at those two freak bros and you'll know what's wrong at this company. Put these two, should three, together and it tells you what's wrong with this picture. Oh, I forgot to throw in CClicheClown.

Not to worry, PML will save us and we only paid 40 million for it. Great job upper mismanagement.

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Post ID: @1jqi+PY6qzjp

reply to comment by @PY6qzjp-1ehj, as it relates to the original post: Yes today Lego has bricks that kids want, and yes Hasbro has Nerf, a ridiculously powerful brand. BUT, that was not the case in 2003 and 2004, the dates when Lego and Hasbro were in trouble. Lego had Scalia, Alpha Team, Jack Stone, Galidor to name a few. Yes they had some successful IPs, but most were failures. Lego was flush with excess inventory of the wrong product mix...leading to bankruptcy! Hasbro, had Nerf in 2003, but it was a handful of kid focused items, not the blaster we are all familiar with today. If you look up the product mix in 2003, it was maybe a $10mm brand focused at 5 year olds. Today it is probably a $500mm to $800mm+ brand aimed at teenagers. Mattel needs to look at 2003 Hasbro and 2004 Lego for learnings of how they BEGIN a turnaround... NOT 2017 Hasbro and Lego, as that is only the results of a turnaround.

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Post ID: @1zyy+PY6qzjp

You mean the new "wonder"-ful slogans and pretty colors aren't enough to turn this sinking ship around??

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Post ID: @1fgw+PY6qzjp

Yes, Hasbro and Lego' s success was numbers related, they had more properties that people wanted. Lego could charge $30 for a small box of plastic pieces (which was 60% air) because kids wanted their toys. They developed internal properties that they sold at a small discount vs external and kept all the profits.

Hasbro has the names that investors think everyone wants and rode the wave of Nerfs and their girls properties popularly. Their games business is the the reason their numbers are up. Again, they have the properties that kids and adults want. They are also run by people who understand that they sell toys and games not . I'm guessing they don't have the massive overhead of Mattel or PLM and the like. The only area they fail at consistently is their Playskool buisness.

Hasbro and Lego aren't perfect, but importantly, they aren't Mattel.

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Post ID: @1ehj+PY6qzjp

Is it just me or does RD and the MH Twins remind you of Michonne and her zombie pets?

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Post ID: @1sxr+PY6qzjp

Margo was stunt casting. Period.

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Post ID: @1hde+PY6qzjp

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