Liv Doll by Spin Master - Research Paper Example

 Liv Doll by Spin Master The entry of Canadian company, Spin Master Ltd in to the Doll market has caught the attention of the business world. Earlier, Barbie and Mattel like big companies almost monopolized the toy market in the world and no other companies had the courage to challenge these business tycoons. But Varadi, Harary, and Rabie, the three Canadian entrepreneurs and founders of the Spin Master Company shown immense courage in challenging Barbie and Mattel and they introduced the concept of Liv Dolls in the market. “Spin Master has succeeded in part because founders Ronnen Harary, Anton Rabie, and Ben Varadi, who met at the University of Western Ontario in the 1990s, think more like boys than like corporate executives” (Palmeri, 2009). Because of the special features using electronic components, Liv Dolls caught the attention of the teenagers all over the world. This paper briefly analyses the macro-environmental variables like; Political and legal, Economic, Social and cultural, and Technological factors of Spin Master with through the marketing perspectives of Liv Dolls. Macro-environmental factors which affect the Liv Dolls of Spin Master Economic factors Global economic conditions are not so good at present which is not a good sign for the Liv Dolls of Spin Masters. People forced to cut down their expenditure on non-productive goods in order to streamline their family budget in the right track, especially in the dipping economic conditions. In other words, toy market is facing stiff problems at present which is not a good sign for Spin master’s product, Live Doll. “Liv dolls are in stores now and retail for $19.99 and accessory items range from $5.49 to $19.99” (Spin Master Launches Liv Dolls, 2010). Spending 20 dollars for toy items was not a big thing earlier, but at present people forced to cut down even such small expenditures because of the recession problems. Technological factors Advanced features incorporated in the Live Dolls using the advanced technologies and electronic components are big attractions for the teenagers. Spin Master says the girls are targeted at girls aged six to ten. The dolls include Daniela, Sophie, Katie and Alexis. Spin Master says some features of the dolls include 14 points of movement, easy to change wigs, insert-able glass eyes and detailed fashions. The Liv Dolls are adorable. They do have a passing resemblance to Bratz dolls because of the larger head size, but they don't look slutty like the Bratz dolls do (Spin Master Launches Liv Dolls, 2010) Spin Master completely redesigned the toy concept in the market. They succeeded in rewriting many of the traditional concepts about the designs and features of a toy, existing in the market. The competitors like Mattel earlier used motorised toys to catch the attention of the teenagers. But Spin Masters took out such features from their toys and added wigs so that kids can change the dolls' hairstyles easily. Moreover, they have incorporated many story concepts with their toys in order to make the toy playing more interesting. “It also gave its characters—four friends from an imaginary high school—back stories and imperfections that make them seem more real than the inspirational Barbie astronauts, beauty queens, and Presidential candidates” (Palmeri, 2009) Social factors The interactions with the society are necessary for the success of every business. Modern communication channels like the internet, print, and audiovisual media are extensively used by Spin Masters in order to communicate with the customers. Spin masters created a website, Livworld.com in order to update the information about their toys, daily. The information about the new Liv dolls and its prices can be obtained from these websites. Most of the people irrespective of young or adult are spending lot of times in internet and in order to attract the kid segment, Spin Masters has put lot of attractive advertisements about their Liv Doll products in the internet and the television. The major goal of Spin Masters is to make cool toys suitable not only for the kids, but even for the adults. In elementary school classrooms, some of their toys are used extensively which shows the popularity of their products. Legal and political factors Toy business is not easy as it seems at a glance. Political and legal problems can affect the toy business also. Barbie and Mattel have immense influences in political circles and they have many lobbyists in the decision making bodies. The business interests of Mattel and Barbie are protected because of their huge influences in the political circle. On the other hand, Spin Masters seems do not have such wider influences in the political circle to protect their business interests. Moreover, the designers of the toys can also put Spin Master like toy companies into legal battles over the ownership of the designs. “In 2006, Spin master paid an undisclosed sum to an outside designer for a doll prototype with an internal mechanism that allowed it to move its arms and legs freely” (Palmeri, 2009). Opportunities and threats from competitors and substitute products Competitions from arch rival Mattel and the entry of substitute products from Barbie are big problem for Spin Master and its Liv Doll products. It is difficult for Spin Masters to overcome the resistance offered by Barbie and Mattel easily. The brand values of Mattel and Barbie are so huge that Spin Masters are currently finding extreme difficulties in cracking the established markets of both Barbie and Mattel. Even amidst the above challenges, Liv Dolls were able to establish their names in the market because of the following attractive features incorporated to them. Liv Dolls are totally pose-able, have ‘real’ (inserted) eyes, and innovative wig play Each Liv doll comes with a detailed outfit, a long wig and a short wig. Fully articulated body (14 pts.) allows for multiple poses. Every doll comes with a unique code that allows girls to enter the Liv world online. Can stand alone (Liv Fashion Doll Blonde – Sophie, 2009) Conclusions Liv Dolls, introduced by Spin Masters, have revolutionized the toy market. Even though, Barbie and Mattel are raising stiff resistances, Liv Dolls were able to penetrate deep into the markets of these companies. The macro-environmental variables provide both opportunities and threat to the future growth prospects of Liv Dolls. The success of Liv Dolls depends on how well the Spin Masters Company tackles the challenges raised by the social, political, economical and technological factors in the market. References 1. Liv Fashion Doll Blonde – Sophie, (2009)Retrieved from http://www.toysrus.com/product/index.jsp?productId=3560916 2. Palmeri, C. (2009). Spin Master Goes Up Against Barbie. BusinessWeek. September 15, 2009. Retrieved from http://www.businessweek.com/magazine/content/09_39/b4148066771166.htm 3. Spin Master Launches Liv Dolls. (2010). Retrieved from http://www.shoppingblog.com/blog/731099 Read More