Assessment of Mattel's Global Marketing Strategy for Barbie - Essay Example

Evaluate and comment on Mattel's global marketing strategy for Barbie The basic issues in global marketing involve global efficiency through standardisation of products and services as well as garnering national and local responsiveness through adaptation of the products. (Walter et al, 1988 )The Mattel Company has effectively marketed Barbie through the use of these two basic premises in its global marketing strategy. In terms of the suitable model to be used for the development of a relevant marketing plan and strategy, the Mattel Company has made use of the International Market Entry Mode Strategy for the marketing of Barbie on a worldwide scale. This strategy is ideal for those companies that wish to diversify geographically. This strategy along with others that have to do with market segmentation and brand positioning for maximum customer satisfaction has been used by the Mattel Company in order to evolve a strategy that is best suited for the purpose of an entry level product in a diverse global market. Therefore, a good entry-level strategy for the Mattel Company has involved introducing the fact that Barbie has an international face as it can be modified to cater to any kind of culture or country. In this regard, there has been long-term growth through the management of the immediate and other short-term risks. In this case, the main risk came from losing its exclusivity, which can be tackled through the direct investment strategy. (Finnigan, 2001) Mattel has experienced problems in entering the Japanese market. What could they have done differently to achieve greater success in this market The Japanese market did not take very kindly to the Mattel Company's Barbie. This was basically due to the fact that the Japanese market did not understand Barbie with her long legs and wide chest. The physical attributes did not conform to the general attributes of Japanese women. This was a major problem apart from stiff competition from the doll names Takara which was a huge success in the Japanese market. Despite trying to strike a partnership with Takara, Barbie did not do very well. (Chonko, 1999) In order to do better business, Mattel could have first of all changed the way Barbie looked, to a certain degree. Even though, its priority list speaks of countries like UK and Australia as strategic places for expansion, internationalisation in today's world would mean a westward as well as an eastward growth owing to the fact that the East is booming and almost at par with the West as far as politics and economies are concerned. As an entry point mode, a company dealing with such products needs to make a more individualistic statement so as to avoid cheap imitations, which is what happened in the case of the Japanese market when it came up with its own 'Japanese Barbie' after the agreement between Mattel and Takara fell through. This calls for a mix of passive as well as consumer centric activities at the location as well as around it for better cultural orientation and market segmentation. For this, it is important to touch the pulse of the target consumers by being accessible to them distance wise and culture wise. Therefore, it will be found that for an entry level product in an international market, exploring the retail market is the best option. The direct investment strategy is the best one for the entry mode strategy. According to the entry level mode strategy, it is important for the product to take the characteristics of its target market into account apart from the investment plan it will follow in the course of going international. (Walter et al, 1988) In this regard, the entry level mode can be applied to find the areas where there is competitive advantage so as to find variations in the large consumer base that this product can enjoy in Japan. This will assist the company in finding an appropriate contractual or intermediate strategy that may be customised to fit into the Indian market in terms of segmentation. With franchising, licensing and other activities that will promote an environment of direct exports will also be a definite draw for most retailers. (Walter et al, 1988) What strategies should Mattel employ to combat the threat from the Susi Doll in Latin America Barbie has been losing its South American market to the local Susi doll primarily due to the fact that the strength of the dollar over the local currency makes the Barbie an expensive toy for this developing economy. It was found that in the 1999 pre Christmas period, five Susi dolls were sold for two Barbies. (Downie, 2000) This was a dismal figure for the Matte Company. Cosmetic changes to make Barbie more Brazilian looking would be the foremost change in making it a hit in the South American market, apart from a price depreciation. Therefore, for the South American market, the Mattel Company's Barbie needs to follow a different marketing mix altogether. This is a strategic process of planning and implementing the various elements in a certain combination so as to achieve the organisational goals. In this regard, it is imperative to reach a combination of the said elements along the lines of prevailing market forces and other such factors. This has a strong connection with brand identity in the case of the Barbie and the South American market. Brand identity is built on the basis of various elements that surround the final perception surrounding a brand. This has a strong nexus with brand positioning in the market. Brand positioning is an activity that Mattel needs to place special emphasis on before its formal launch in order to study the operational aspects of the potential consumers and to assess the actual promotional tools that will need to be applied with a focus on spreading awareness. Further, the pricing must be such that these dolls must be affordable and well within the reach for those right below the average standard. This will help the company maintain a certain image and standing of its own. In this case, it will also command a greater market share if its price matches the exclusivity of its promotion and reach. (Bennett et al, 2002) How important is national culture in children's toy preference Going international does not imply selling your product internationally. It means a variety of things, chief among which is the adaptation of the product to command a national and local reach. Culture is one of the most important parameters in this regard. Culture forms the very basis in deciding the type of marketing communication that the company will opt for when embarking on the brand building and positioning process. Since children are affected most by the environment that surrounds them, it may be seen that culture plays the greatest role in what they would like to imitate during their playtime. Children also need the acceptance of their peer group through an adherence to the standards set within this group. These standards more often than not are generated through a cultural nexus. Adhering to this cultural environment also helps them communicate with other children on a common platform as they all pretty much share the similar cultural attributes due to geographical similarities. Culture helps a child understand and form perspectives in life. These building blocks are important to parents as well when it comes to the appropriate choice for a toy. Therefore, general cultural knowledge must be garnered during the market segmentation process before embarking on the formal marketing of a toy internationally. (Bennett et al, 2002) Will cultural differences lead to Mattel' s downfall in the Middle East Why or why not Barbie has been greatly influences by the cultural factor upon its arrival in the Middle East. Modesty is the basic attribute of the culture followed for women in the Middle East. The portrayal of Barbie has been seen as a political and social mismatch owing to this basic criterion. The culture in the Middle East has prevented parents and religious leaders alike from embracing the doll. The Barbie has not fit into any of the values that are propagated for women and taught to young girls in the Middle East. Further, the fact that Barbie has a male friend in the form of Ken has further antagonised the Middle Eastern market and consequently, Barbie's following. The Middle East is not yet in a place - politically and socially - where it can accept the values that Barbie stands for. Further, the fact that Barbie comes the West (USA) is another reason why it has been met with harsh criticism and opened a new political debate. Also, as we saw with the South American market, the pricing of the doll has not been well accepted due to the fact that the dollar is stronger than the local currency and once converted, the price of the Barbie is not very reasonable for the ordinary Middle Eastern. The affordability of the Barbie in the Middle East is low, which has been a major reason in the slow pace of its growth in popularity. In Iran, the doll costs seven times the salary of an average person. Also, there are wide gaps in the social make up in the Middle Eastern society. While the Barbie has been successful in Iran, it has strong competitors in the form of two other dolls namely, Sara and Dara. These dolls conform to the dressing style of most Middle Eastern women besides being affordable. Strong competition from these dolls has also kept Barbie from becoming popular in other parts of the Middle East. Barbie's adaptability in cultural and geographical terms is going to something of a challenge for the basic image and brand that the doll represents. This is a complete contrast with the cultural environment within the Middle East. More than competitors in the market share, there is a strong dissent from the governmental authorities over the marketing of Barbie, which needs to be tackled through a complete makeover of the doll to suit the taste and sensibilities of the Middle Eastern market. (Jehl, 2002) References: 1. Bennett, R; Blythe, J (2002) International Marketing: Strategy Planning, Market Entry and Implementation. Kogan Page. 2. Walter, I; Murray, T (1988). Handbook of International Management. John Wiley and Sons. 3. Discovery Online, "You Shoulda Been There -Barbie" www .discovery .corn/stories/history /toys/BARBIE/shoulda.htrnl www .yesterdayland.corn/popopedia/shows/toys/ty 1 092.php 4. "Barbie" David Finnigan "Mattel Dolls Up Barbie 'Nutcracker' With a Little Help form McD, CBS", Brandweek, July 16,2001 vo142, p6 5. Mattel Inc. Annual Report 1999, p9 6. Bill Britt "Barbie Ages Well", Haymarket Publishing, 1991, pI 7. Lawerence B Chonko, "Case study: Alliance formation with direct selling companies: Avon and Mattel", Journal ofPersonal Selling and Sales Management, winter 1999, p6 8. Jehl, D, "It's Barbie vs. Laila and Sara in Mid East Culture War", Cairo Journa/, http://www .library ,cornell.edu/colldev/mideast/barbi.htrn, 14/5/02 9. Masoumeh Rahimi in "Muslim Dolls tackle Wanton Barbie" http :/ /nwes. bbc. uk/hi/ english/world/middle-east/newsid-185 6000/1856558 .stm 10. Mona Eltahawy "Meet Barbie of Arabia", US News and World Report, 1999 11. Kathleen Grassel "Barbie Around the World", www,ru.org/barbie.htrnl 12. According to Government Religious Adviser in "Meet Barbie of Arabia" US News and World Reports, 1999 13. Andrew Downie, "Brazilian Girls Turn to a Doll More Like Them" www .csmonitor .corn/a.tesmonitor/specials/women/mirror/mirrorO 1200 .html Read More