Toying Around with New Products
Listen in as Prepared Foods’ Chief Editor Bob Garrison talks with Bob Eckert, chairman, at Mattel Inc.
Eckert joined Mattel in May 2000 from Kraft Foods Inc. A 23-year Kraft veteran, he most recently had served as its president and CEO since October 1997. He was responsible for all of Kraft’s business units and for leading the company’s policy decision-making board. Previous positions include serving as group vice president of Kraft Foods Inc. and being responsible for the company’s Oscar Mayer Foods and North American Foodservice Division, along with the Operations, Sales and Customer Service, Technology, Marketing Services and Business Development staff functions.
Eckert also serves on the McDonald’s Corporation Board of Directors, the Levi Strauss & Co. Board of Directors, is a member of the Board of Visitors at The Anderson School at UCLA, the J. L. Kellogg Graduate School of Management Advisory Board at Northwestern University and the Board of the Los Angeles World Affairs Council. He serves as a member of The Business Council, the American Society of Corporate Executives, the World Presidents’ Organization in Los Angeles, the Asia Society and Town Hall Los Angeles.
Bob Garrison (BG): What are you up to these days?
Bob Eckert (BE): I retired as CEO of Mattel at the end of last year, but I remain chairman of the board. It’s not a full-time position, but it keeps me engaged with the company. I also serve on the boards of McDonald’s and Levi Strauss and Company. So, I’m still involved with iconic brands. But really, I’m playing lots of golf. I took up the game four or five years ago, when my four kids were finished growing up. Now I’m hooked.
BG: I remember visiting you at Oscar Mayer’s Madison, Wis., headquarters. Your desk seemed to be filled with Oscar Mayer Wiener Whistles. How many do you own today?
BE: I’m looking at a Hot Wheels rendition of the Wienermobile that adorns my desk here at Mattel. I’ve also got my honorary Hotdogger name badge, and yes, indeed, I’ve got a Wiener Whistle here. I’ve always had a spot in my heart for the Hotdoggers, the young folks who drive Wienermobiles around the country. They create miles of smiles every day.
BG: What were a few noteworthy new products during your overall tenure at Oscar Mayer and Kraft?
BE: I’m a huge fan of DiGiorno pizza. [Former] Kraft execs Betsy Holden and Mary Kay Haben, still good friends of mine, really propelled DiGiorno to the mainstream. And the positioning, It’s not delivery, it’s DiGiorno., is as relevant today as it was 15 or 20 years ago. I think food marketers broadly, not just at Kraft, are really good at their trade.
BG: Any recollections as to why those new items were so successful?
BE: As in most products, including the toy business, finding the relevant consumer insight is key. For example, one of Mattel’s best performing new products last Christmas was Hot Wheels Wall Tracks. It’s Hot Wheels’ orange track, which has been around since the late ‘60s that uses 3M adhesive strips that hold it safely on a wall. Kids love the vertical play; moms love getting the toys off the floor. So many homerun ideas are so simple at their core.
BG: From what you can observe, how do think the food and beverage new product process or structure has most changed since 2000?
BE: I’m too far removed to respond directly, but I will say that packaging is an area that I think can still be mined. We use Tide pods at home: detergent plus stain remover plus brightener in one hassle-free, pre-measured capsule. Does it get any easier?
I think food packaging has improved (see Oscar Mayer bacon or lunch meats, for example), but other consumer goods categories have done more. Just look at the packaging of Apple products: intimidating, sophisticated electronic gadgets so beautifully displayed. They invite the consumer into the friendly and easy experience of setting them up.
BG: Let’s talk about your transition to Mattel and specifically, about that company’s new product development process. What can you tell us about a toy company’s approach to consumer insights?
BE: We believe we talk to more kids than anyone else in the world. Some people describe the toy business as “fashion for four-year-olds.” I don’t subscribe to that. The toy business moves very quickly. About 80 percent of Mattel’s 8,000 SKUs are new every year, but the best ideas are still grounded in consumer insights.
For example, the hottest new fashion doll to come along in years is Mattel’s Monster High. The characters are offspring of famous monsters (Frankenstein, Werewolf, et al.) who attend high school together. It’s all about recognizing that each of us has imperfections and finding a way to make that interesting to eight- to 10-year-old girls.
BG: What about a toy’s company’s pace of new product development?
BE: The toy business moves so fast, and it’s part art, part science. The science includes consumer insights, understanding play patterns (for example nurturing or conflict resolution or aspiring to be a teenager), usage occasions (birthday, holiday, gifting) and price points. But the art is apparent in the magic the toy brings to a child.
One of the reasons Mattel sells more toys than any other company on the planet — year after year, despite so many of the products being completely new — is that we have the best artisans in the toy business: sculptors, painters, sketch artists, fashion designers, car designers, writers. The other key advantage is the power of our brands, the canvasses, if you will, on which our artists create. Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas and Friends — I love iconic brands.
The toy business understandably works at a frenetic pace. Most toys are purchased during the holiday season. Those products have to be designed, engineered, manufactured overseas, shipped and delivered to retailers by early fall. It’s fun to see the toy development machine, but stressful to experience.
BG: How would you describe a toy company’s R&D structure and staffing?
BE: In toy parlance, it’s “D&D” — design and development. The structure is identical to the food business: cross-functional teams, including product and packaging designers, engineers, marketing, sales, and procurement professionals managing a tight timeline.
Unlike the food-heads, however, the toy-heads never outgrew their love of toys. The toy folks have managed to make a living out of something they’ve loved since childhood. In that respect, I think they’re similar to chefs.
BG: What were a few of Mattel’s top new products during your tenure there?
BE: Monster High, Fijit (a five-year-old’s best friend) and Rocky the Robot Truck, just to name a few. Beyond creating brands, however, the key to Mattel’s success is its ability to keep decades-old iconic brands fresh and relevant. Barbie, for example, was the best-selling toy 50 years ago as well as during the 2011 holiday season. That’s quite a feat. She’s had more than 125 careers, lots of friends, almost 50 wedding gowns (despite never making it to the altar) and a little bit of work (“plastic never looked so good”). We’ve also been fortunate to develop toys for many other great brands, such as Disney Princess, Pixar CARS, Nickelodeon, Dora the Explorer and WWE. I’ve been a pretty lucky guy. I only worked in two industries, at two companies, both full of fascinating folks.
BG: Last question. Let’s pretend you’re addressing a room of food and beverage company R&D executives. In your opinion, where could food companies most learn from toy companies? What’s your advice?
BE: The biggest difference I found is in speed of decision making. The toy folks need to move quite fast, or they’ll miss Christmas. As a consequence, everyone appreciates the ticking clock and proceeds to get the job done, makes the calls that need to be made, and charges ahead. Food companies have the benefit of time, but I suspect, at times, this actually hurts the process. Be decisive.