Update - Barbie Project

8/7/2019 Update - Barbie Project

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Standardization vs.tandardization vs.Localizationocalization

Barbie Marketing Strategy


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ContentContent

5.Conclusion


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Global market review

Company business review

Current issues/challenges

BackgroundBackground


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General BackgroundGeneral Backgroundinformationinformation

Source: (1 & 2) Euro monitor 2010, (3) Mattel 2009 annual report, (4) Scott 2007, (5) Elsworth, 2008, (6) Kawamoto, 2010

11,012,6 13,3 12,5

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

2004 2005 2006 2007 2008 2009

World sales - Dolls and Figures

6,6

7,2

7,5

6,9

6,0

6,5

7,0

7,5

8,0

2004 2005 2006 2007 2008 2009

Average US$ per Houshold - Dolls


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SWOTSWOT


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Country-level AnalysisCountry-level Analysis

/Market review major issues

Assessment of current marketing strategy

Recommendations of strategic changes


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Country-level AnalysisCountry-level AnalysisBrazilBrazil

Market Review ofMarket Review ofBarbie in BrazilBarbie in Brazil

Market Size 48 million young consumersunder 14 years old

Competition high competition

Major Competitors Anonymous fake barbiesproducers

Sales volume/value $2,711 million BRL

Sales trend Increasing in the past fiveyears

Market shares 36%

Consumer wants/keyInfluence on purchasingbehavior

Price concern/ Cheaperbarbies

Price Premium price isinapplicable forlow-income Brazilians

(80%)

Promotion Current sale cant affordthe huge marketingexpenditure

Place SDCM issue in marketingcampaign; Lost salesopportunities.

Product The design is not catchingup consumers need

Market Issues ofBarbie in Brazil

Source:(1) World Bank (www.worldbank.org)(2) World of Toys (www.world-of-toys.org/south-america/general-market/?L=1 )

(3) International Chamber of Commerce The World Business Organization(www.iccwbo.org/uploadedFiles/BASCAP/Pages/Counterfeiting_and_Piracy_in_Brazil%5B1%5D.pdf)


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IncreaseMarket coverageand retail sales

Does notwork forall markets

High investment,not concentrateon targetconsumers

Upgrade productsimage, high cost


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Push + Pull retail marketing strategy

Focus on potential markets

Concentrate on stores with high ROI.



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Country-level AnalysisCountry-level AnalysisJapanJapan

Market ReviewMarket Review

Market Size USD $1.2 billion in Dolls market

Competition Takaras Jenny DollJapanese traditional Doll

Sales volume/value USD $6 billion

Sales trend Saturated market

Market shares N/A

Consumer wants/keyInfluence on purchasing

behavior

Original Barbie (US version)Impact of traditional culture

Product Fierce competition in localmarket

Promotion Large investment

Place Complex distributionsystem of Japanesemarket

Others Strong tradition inJapanese doll culture

Market Issues

Source:(1) World of Toys (www.world-of-toys.org/south-america/general-market/?L=1 )(2) International Chamber of Commerce The World Business Organization


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Multi-channel strategy, built brand store in key urban markets Enhancebrand image and retail sales.

Corporate citizen strategy - commit to the matured market by building brandassociation , proper for collectivistic culture.

Promotion: Emotional- oriented strategy, advertise in popular childrenmagazine


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Market review/major issues

Country-level Analysis Mid-Country-level Analysis Mid-easteast

Market ReviewMarket Review

Market Size USD $1.5 billion in toy market

Competition Laila ( Innocent looking Doll)

Sara & Dara (in Iran)Sales volume/value USD $ 0.8 billions in dollsmarket

Sales trend Potential market with highcompetition

Market shares N/A

Consumer wants/keyInfluence on purchasing

behavior

More conservative looking doll

Product Local competitions

Promotion Culture opposition /gap

Place National distributorunable to cover someLocal markets.

Others Political & social barriers;government originatedcompetition

Market Issues

Source:(1) World of Toys (www.world-of-toys.org/south-america/general-market/?L=1 )(2) International Chamber of Commerce The World Business Organization


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Be more cultural cautious in prom o and product design

Keep prem ium price st rategy; bu ilding brand associat ion of

modern image

Multi-channel strategy: Build brand store in key cities, pushdistributor to cover other 2nd tier markets.


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Cross-market AnalysisCross-market Analysis


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Cross-market AnalysisCross-market AnalysisCorporateCorporate

visionvision

Corporate vision

The Worlds Premier Toy Brands- Today

and Tomorrow. -(Mattel 2008 Annual Report)

Leading position in most of

regional markets


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Cross-market AnalysisCross-market Analysis BrandBrandimageimage

Over-arching image

Inspire girls of all ages to dream, discover and celebrate their girlhood.

Constant reminder that girls can be whoever they want to be.

- (Mattel 2008 Annual Report)

k l iC k A l i


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Cross-market AnalysisCross-market AnalysisChallengesChallenges

Cross-market challenges

Source: Prof Donnel A. Briley, Innovative Marketing Strategies


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Cross-market AnalysisCross-market Analysis MarketMarketdirectiondirection

Market directions


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Cross-market AnalysisCross-market Analysis MarketMarketdilemmadilemma

Dilemma of Standardization &

Localization

Source: International Marketing


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Cross-market AnalysisCross-market Analysis MarketMarketdilemmadilemma

Dilemma of Standardization &

Localization

Source: Aaker, D, 2007, Strategic market management

Hoenig, S, 2008, Localization in a Global Marketplace


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Cross-market AnalysisCross-market Analysis NewNewstrategystrategy

Suggestions for global marketing strategy

Concept:

Global localization marketing strategy ?


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Balanced strategy, sweet spot between S&L:

Essential business target

Culture heritage

Key message delivered byproducts

Raw materials purchasingSupplier platform

Product package (includingclothes and otheraccessories)

Retail price

Distribution modelPromotion

Organization

Standardization Localization


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Balanced strategy:

:Standardization

nEssential business targetThe Worlds Premier Toy Brand

nCulture heritage

American culture

nKey message delivered

Inspire girls of all ages to dream, discover and

celebrate their girlhood;Constant reminder that girls can be whoever they

want to be.

nRaw materials sourcing/Supplier platform

Consolidation of resources/Integration of suppliers


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Balanced strategy:

:Localization nProduct packageClothes and other accessories

nRetail price

Various SRP in regional markets

nDistribution model

Channel sales; Direct to retailer (DTR);Brand store

nPromotionCustomized promotion campaign

nOrganization

Set up regional Head Quarter


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Organization: -Prioritize regional markets in line with 2/8 principle, set up regional HQ offices for top

country level markets (US, Japan, China..), localize marketing strategy within these markets. -Combine other country level markets with similar background, tailor-made strategy for these

markets.

Distribution: -Use national distributor where Barbie has high profit margin

-Use multi-channel strategy in complex markets such as China, Japan -Set up brand store to enhance brand image in key markets

Promotion: Based on principal product image, develop localized Promotion Mix. Price:

Various SRP(suggested retail price) for different local markets

Product: Develop global consistent product image with necessary changes in products accessories to

meet requirement of local culture concerns.

Conclusion of GlobalConclusion of GlobalStrategyStrategy


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ReferencesReferences

AAKER, D. A. & MCLOUGHLIN, D. 2007. Strategic market management, Hoboken, NJ, Wiley. BARBIE COLLECTOR, www.barbiecollector.com/shop.ELSWORTH, CATHERINE. (2008). Bratz vs

Barbie in Toytown courtroom showdown. Available:http://www.telegraph.co.uk/news/newstopics/howaboutthat/1930145/Bratz-vs-Barbie-in-Toytown-courtroom-showdown.html. Last accessed 22 August 2010.

EUROMONITOR 2010

HOENIG, S. 2008. Localization in a Global Marketplace, Monterey Institute of InternationalStudies.

INTERNATIONAL CHAMBER OF COMMERCEwww.iccwbo.org/uploadedFiles/BASCAP/Pages/Counterfeiting_and_Piracy_in_Brazil%5B1%5D.pdf

KAWAMOTO, DAWN. (2010). Super Spy Barbie? Bratz Maker MGA Accuses Mattel of ToyEspionage. Available: http://www.dailyfinance.com/story/company-news/barbie-bratz-spy-mattel-mga-copyright-lawsuit/19598413/. Last accessed 22 August 2010.

MATTEL ANNUAL REPORT 2009

SCOTT, JULIA. "Barbie and Bratzdolls slug it out over popularity claims." McClatchy - Tribune

Business News 6 February2007 1. http://www.proquest.com/ (accessed August 22,2010).

TIME MAGAZINE, www.time.com/time/magazine/article/0,9171,1874769,00.html

WORLD OF TOYS, www.world-of-toys.org
http://www.barbiecollector.com/shophttp://www.iccwbo.org/uploadedFiles/BASCAP/Pages/Counterfeiting_and_Piracy_in_Brazil%5B1%5D.pdfhttp://www.time.com/time/magazine/article/0,9171,1874769,00.htmlhttp://www.world-of-toys.org/south-america/toy-market/?L=1http://www.world-of-toys.org/south-america/toy-market/?L=1http://www.time.com/time/magazine/article/0,9171,1874769,00.htmlhttp://www.iccwbo.org/uploadedFiles/BASCAP/Pages/Counterfeiting_and_Piracy_in_Brazil%5B1%5D.pdfhttp://www.barbiecollector.com/shophttp://www.barbiecollector.com/shop

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