Crisis Management: Dealing with a Product Crisis

Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : MKTG182
Case Length : 11 Pages
Period : 2006-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : Nokia Corporation; Bausch & Lomb; Mattel Inc.
Industry : Telecom; Eye Care; Toys
Countries : Europe, USA, Asia

To download Crisis Management: Dealing with a Product Crisis case study (Case Code: MKTG182) click on the button below, and select the case from the list of available cases:

Price:
For delivery in electronic format: Rs. 200;
For delivery through courier (within India): Rs. 200 + Rs. 25 for Shipping & Handling Charges

» Marketing Case Studies
» Marketing Management Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

Caselet 3: Mattel's Voluntary Safety Recall

"During our recent product recalls, we have taken a variety of prompt, corrective actions. We've strengthened our organization to maintain the place we have long held at the forefront of responsible corporate citizenship... Our recent challenges have presented an opportunity to again be an industry leader."²⁵

- Robert A. Eckert, Chairman and Chief Executive Officer, Mattel Inc., in August 2007.

"Mattel takes full responsibility for those recalls and I would like to apologise personally to you, the Chinese people and all of the customers who received toys that have been manufactured."²⁶

- Thomas Debrowski, Executive Vice President of worldwide operations, Mattel Inc., in September 2007.

Mattel Inc. (Mattel),²⁷ the world's leading toy maker, had to deal with the worst ever product crisis in its history in mid-2007. On August 2, 2007, Mattel announced the recall of about 1.5 million Chinese-made Fisher-Price infant toys that featured characters such as Dora the Explorer, Elmo and Big Bird. Mattel feared that these toys had toxic lead content higher than the permissible level and might put kids at a risk of health hazards. Soon afterwards the company issued a second recall on August 14, 2007 withdrawing nearly 9.3 million Chinese-made toy sets, fearing that it contained small magnets and other parts that could be lethal if swallowed by kids.

These included popular toys such as Barbie, Polly Pocket Dolls, Tanner play sets, Doggie Day Care, Batman and a few action figures. Mattel also recalled 4,36,000 die-cast 'Sarge' toy cars from different parts of the world, of which 49,000 toy cars were recalled from the UK and Ireland, 2,53,000 from the US and remaining toys were from rest of the world. After a fortnight, on September 4, 2007, the company announced a third recall of its toys stating withdrawal of more than 800,000 toys across the globe. It included the 675,000 accessories of the iconic 'Barbie' brand, 25,000 locomotive and 'Bongo Band' toys and three toy models of Fisher-Price...

Exhibit

Exhibit VI: Mattel INC's Financials

25] "Mattel Creates Corporate Responsibility Group," www.webwire.com, August 12, 2007.

26] "Mattel Apologises to China over Toy Recalls," www.money.cnn.com, September 21, 2007.

27] Mattel, Inc was founded in 1945 and headquartered in El Segundo, California. The company designs, manufactures, and markets toys worldwide. Its well known brands include Barbie dolls, Fisher-Price items, American Girl dolls, Hot Wheels, Matchbox, and others.


Fundamentals of Marketing Management Workbook Workbooks Collection	Case Studies in Marketing - Vol. II Case Study Volumes Collection	Fundamentals of Marketing Management Textbooks Collection