Mattel Recall Crisis: Market Research Recovery Strategy
This paper examines how Mattel Corporation can use targeted market research strategies to assess and recover from the brand damage caused by its 2007 lead paint toy recall, which affected approximately 9 million products. Following the recall and Mattel's public apology to both American consumers and the Chinese government, the company faced an urgent need to gauge consumer trust before the critical holiday selling season. The paper recommends a coordinated approach involving perceptual audits using multidimensional scaling, Voice of the Customer programs to re-engage consumers and channel partners, and an upgraded Partner Relationship Management system to track the financial and relational impact of the crisis across distribution channels.
- Introduction: 2007 recall crisis overview and paper scope
- Defining a Market Research Strategy: Key research questions Mattel must answer
- Perceptual Mapping and Audits: Using surveys and SPSS to measure trust damage
- Voice of the Customer Programs: Re-engaging consumers and channel partners
- Re-Vamping the CRM System: PRM system to track channel financial impact
- Recommendations: Four prioritized action steps for Mattel
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What makes this paper effective
- The paper connects a real, high-profile corporate crisis to specific, named market research methodologies, grounding abstract tools in a concrete business problem.
- Each recommended strategy is sequenced logically — from measuring the damage (perceptual audits) to engaging stakeholders (Voice of the Customer) to operationalizing recovery (PRM/CRM).
- The numbered recommendations section effectively distills the paper's argument into actionable steps, demonstrating applied business writing appropriate for a management audience.
Key academic technique demonstrated
The paper demonstrates applied problem-solution structure: it opens by establishing the severity of a crisis, identifies measurable dimensions of that crisis, proposes specific research instruments (Likert scales, multidimensional scaling, SPSS analysis, focus groups), and closes with prioritized recommendations. This technique shows how academic marketing concepts translate directly into managerial decision-making.
Structure breakdown
The paper opens with a contextual introduction establishing the 2007 Mattel recall crisis. Three body sections each address a distinct research tool: perceptual mapping for measuring trust damage, Voice of the Customer programs for stakeholder re-engagement, and CRM/PRM upgrades for channel management. A final recommendations section summarizes action items in numbered format. The structure mirrors a professional consulting report more than a traditional essay, making it useful as a model for applied business writing assignments.
Introduction
Throughout August and September 2007, Mattel Corporation disclosed that its manufacturing partner in mainland China had used lead-based paint in the production of Fisher-Price toys, as well as toys from several other brands (Associated Press, 2007). Chinese manufacturers countered that it was Mattel's own lack of safety and quality standards with suppliers that set the stage for lead paint being procured from unreliable and unqualified third-party suppliers. As a result, Mattel apologized to both the Chinese government and American consumers, with extensive media coverage of both events (Thottam, 2007).
With 9 million toys recalled within two months and the reputation of their brand in jeopardy, Mattel must develop and execute a market research campaign to understand the extent of the damage done to their reputation. The recalls came just before the beginning of the most profitable selling season of the year — the year-end holidays. This paper covers the specific market research strategies the company can use to assess how extensive the damage to their brand has been, and what specific steps they can take to overcome the challenges faced.
The perceptions of customers globally have been permanently changed, and it is up to Mattel to determine the extent to which those perceptions of quality and safety will impact the sales of their products throughout the remainder of 2007. It is also critical for Mattel to complete a unit forecast of its toy lines not involved in the recall, and to create marketing strategies for those unaffected products as well. The PR challenges for Mattel are daunting, and the use of market research to define the scope of those challenges is critical for the company to achieve sales during the holiday selling season.
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