Mattel: Creating Shared Value
Case Overview
Mattel engaged FSG to develop a strategy for creating shared value that would generate meaningful ways to create positive impact for society while also driving new business opportunities.
Mattel is the world’s largest toy maker and has been creating for decades iconic brands such as Barbie, Hot Wheels, and Fisher-Price. Mattel also has a long history as an active philanthropic contributor, but its giving lacked a focus around a specific meaningful issue. In addition, Mattel’s core business was not integrated into its social sector activities; this limited the company’s opportunity to create greater societal impact and even potentially put Mattel at a competitive disadvantage. So Mattel approached FSG for assistance in identifying a social issue that had both meaningful ways to generate positive impact for society and that could drive new business opportunities and enhance the corporation’s competitive advantage vis-à-vis other toy making companies.
FSG worked closely with an internal group of stakeholders to understand the nuances of Mattel’s business in order to identify and learn about the opportunities and challenges unique to Mattel for creating shared value (CSV). FSG also conducted intensive primary and secondary research campaigns; benchmarked best-in-class companies that already had implemented approaches to CSV; and led focus groups in each of Mattel’s business units. Through these activities, FSG came to focus on children’s issues worldwide as an area with potential for further exploration by Mattel. In this process, FSG initially identified more than 150 of the issues that affected children globally; later selection criteria were developed to narrow the opportunities to one specific issue on behalf of which Mattel could leverage its unique business capabilities and constraints. That issue turned out to be play.
FSG’s next step was to conduct in-depth analysis of the issues surrounding play, and identified four barriers that prevent children from engaging more fully in developmentally-appropriate play. These barriers included time, places, and appropriate tools to play, as well as opportunities for greater advocacy around play as an issue. FSG then identified strategic levers that Mattel could leverage through both their business and philanthropy to surmount these barriers. In addition, specific opportunities within each of these areas were unearthed and compiled for Mattel. This framework—with play at its core—received company-wide executive approval. FSG then provided Mattel with recommendations on the next steps for roles and responsibilities, strategy development, and strategy prioritization. Today, not only has Mattel been supporting play through it philanthropic foundation, but brands across Mattel have begun to integrate an emphasis on play in their strategies.
About Mattel
Mattel, Inc. is the largest designer, manufacturer, and marketer of toys and family products in the world. A Fortune 500 company reporting close to $6.5 billion in revenues in 2008, Mattel has been creating products for children and families for over six decades. Mattel also has a long history of philanthropic giving of both toys and funds through the company and its Children’s Foundation; combined giving totaled $16 million in 2008 and impacted the lives of more than 3 million children in 75 countries.