The Case Study Of Barbies Success Story free essay sample

CONSUMER BEHAVIOR case by aaa fmg19d BARBIE’S SUCCESS STORY Friday 12 August 2011 THE CASE The case examines the evolution of the Barbie doll over the years from its launch in 1959. It explores the product development strategies adopted by Mattel for Barbie and the reasons for the success of Barbie. The case also explores changes in Barbies image along with the changes in American society. The criticism leveled against Barbie by feminists has also been described. The case also examines the challenges that Barbie could face in the future with the launch of Disney Princess. Issues addressed Gain insights into the challenges faced by traditional playthings, such as dolls, in the Internet age. Friday 12 August 2011 Question 1 Analysts observed that Barbie, the icon of American culture, reflected changes in American society. Analyze the changes in Barbie’s image over the years. Friday 12 August 2011 Friday 12 August 2011 Friday 12 August 2011 Friday 12 August 2011 Consumer behavior brand equity model Friday 12 August 2011 Location †¢ †¢ †¢ Barbie’s Global Shift: Many branches in the USA. Manufacturing pre 1950s took place in Japan. Manufacturing post 1950s in China, Indonesia, Malaysia, Mexico and Thailand. Location GNP per capita % annual % children aged US$ (UK=21,410) growth in GNP 10-14 who work Comment China Indonesia Malaysia Mexico Thailand Friday 12 August 2011 750 174 3670 578 2160 6. 4 4. 7 4. 0 0. 9 5. 2 12 10 3 7 9 Known internationally for its disregard for human rights. Huge economic potential. Politically unstable, losing a long term president and civil war in late 90s. Slower economic growth after rapid growth of up to 10% in late 1990s. Joined NAFTA in the late ’90s, creating a tariff-free market with the USA. No. of children working has dropped recently – government laws are now phasing it out. Minimum wage approx. ?80/month. Reasons behind Barbie’s Global Shift Most of Mattel’s sales are in the USA. Wage costs in the USA are amongst the highest in the World. To make Barbies in the USA would reduce profits significantly. Mattel now make the bulk of their toys in China. The company have ‘Principles’ that apply to all parties that manufacture, assemble or distribute any products bearing their logo. This means that no one under the age of 16 can be employed and if local law requires a higher minimum age, it will comply. It was the first company to utilize external independent monitoring (as well as an internal monitoring program) to ensure the welfare of it’s staff. Friday 12 August 2011 Question 2 Analysts attributed Barbie’s success to the Mattel’s innovative product development. They pointed out that Mattel’s product d eve l o p m e n t r e f l e c t e d changing cultural patterns in American society. Analyze the role played by product development in Barbie’s success. Friday 12 August 2011 Question 3 According to analysts technological innovations a n d t h e ava i l a b i l i t y o f various other forms of entertainment were turning yo u n g g i r l s away f r o m traditional playthings such as dolls. In this scenario, discuss the future of Barbie. Do you think Barbie will be able to retain its dominance? Justify your answer. Friday 12 August 2011 The Future? Barbie is Mattel’s biggest selling product. If the company is to survive it needs to move with current trends. These recent articles suggest that the battle may be being lost. Mattel also needs to consider more modern ways of shopping. Toys R Us and Walmart account for 33% of sales, but the company is reaching customers in new ways, including catalogue and online sales. Friday 12 August 2011 Future strategy As a subsequent product strategy, it has been publicized that Mattel and Digital Domain are working together again on a new CD-ROM title to be launched next March: Barbie Cool Looks Fashion Designer CD-ROM ®. Some new extensions on the Barbie paraphernalia are also supporting Mattels continued growth through core brands: electronic commerce and foreign market tailored product development, among others. As part of the new trend in electronic commerce, and targeting mostly the collectibles market, Mattels website Barbie. com makes an interesting range of products available. On the site it is possible to access a special shoppe with some items that can be bought exclusively through the Internet, from a catalogue of the current models and future editions. Targeting mainly the collectors market, it is also a place for customers to be made aware of Mattels new creations in the Barbie product line. Friday 12 August 2011 In the traditional doll segment, the next maneuver will be to reinforce international markets. This new approach was determined by a study conducted by Boston Consulting Group in which key markets and product areas for growth are defined. The strategy includes the development of special products for target markets, rather than simply adapting U. S. products to them. â€Å"Barbie alone has potential additional sales of $2 billion†, stated Boston Consulting Group study. â€Å"The greatest opportunity exists outside the US. † -said Jill Barad, Mattel’s Chief Executive. â€Å" Only 3% of the worlds kids are in the US. In order to increase Barbies presence in Japanese and European markets, culturally suitable friends are being planned for Barbie: Ingrid in Germany and Collete in France are examples. The ultimate goal is to boost the number of dolls owned by each child. As a complementary strategy to maintain Barbies dominance in the market, Mattel has been working on an actualization of the doll. In recent years, the bulk of the discussion has been concerned with Mattels intention to redesign Barbies body, making it look more appropriate to the new womens look. Friday 12 August 2011 Thank you Friday 12 August 2011