Tough Times for Mattel

It’s going to take a marketing miracle to get Mattel out of this one.

The toymaker last month recalled 253,000 Chinese-made toys tainted with lead paint and another 9.5 million fitted with magnets that can come loose and pose a risk of being swallowed.

Moms are really angry. Many are worried that their toddlers may have already chewed on toys that contained the bad paint.

And Christmas, the most lucrative time of year for this product category, is coming. That’s when 50% of toys are sold.

Retailers like Toys “R” Us, HobbyTown USA and Learning Express are wondering if they will even be able to give Chinese-made toys away this holiday season.

With 80% of all toys sold in the U.S. manufactured in China, these and other retailers have been calling on American toymakers to help stock their shelves for the coming holiday crush.

But are parents likely to buy just because a toy says it is made in America? Skepticism is rampant.

One toy manufacturer, The Whittle Shortline Railroad, received so many inquiries about the safety of its products after the recall that the company couldn’t get any work done, owner Mike Whitworth says.

But it found a solution. The company posted a bright yellow burst on its Web site, www.woodentrain.com, stating: “100% Kid-Safe with Lead-Free Paints.” The calls dropped off.

But what’s the best way to demonstrate that the Mattel toys are OK to buy?

Promotion should play an important role in rebuilding trust.

Messaging on packaging can drive kids and their parents to a Web site where they can play games that teach them about company’s safety processes. And these could tie to a sweepstakes offering a chance to win a trip to Mattel’s headquarters in El Segundo, CA — and some free toys.

If that sounds mundane, remember that El Segundo is right outside of Los Angeles. Tickets to a movie premiere or stopovers at some of Hollywood’s hot spots could be added to the prize package.

Even a humdrum product like milk was able to grab plenty of attention with a game.

The California Milk Process Board launched a 3-D game called “Get the Glass” to teach people about the health benefits of drinking the beverage. As of Aug. 13, the game had 1.6 million unique visitors.

But Mattel has a much more difficult task ahead of it than getting people to ingest bone-building calcium. The wild popularity of interactive games is a good place to start.

Coupons could be another. Gas prices are up. The stock market is down. Consumers are looking for bargains.

Mattel could send its street teams out to stand in front of Toys “R” Us in Times Square and hand out discount coupons. The offers could carry an educational message about the company’s safety practices.

Mattel spokesperson Sara Rosales says the company is revising (more likely overhauling) some of its advertising, promotion and PR. She adds that retailers have been supportive, but won’t elaborate. Toys “R” Us wouldn’t comment.

Other companies should take note how the Mattel marketing machine kicks into action to refurbish its image since an estimated 80% of what most Americans currently wear and carry is made in China.

Lead was recently reported to have been found in baby bibs. Is a toxic substance laced into that shirt you’re wearing? Your socks?

Are apparel companies and sock marketers next?

Meanwhile, Mattel has prepared U.S. consumers for another recall.

It’s one thing to come out and express concern and outline safety checks, as Mattel’s CEO Bob Eckert did. It’s quite another to rebuild a marketing plan to bring back customers who are now afraid of your products.

Send your comments to Patricia Odell at [email protected].