Revitalizing Barbie: A Comprehensive Marketing Strategy Report

This report provides a comprehensive marketing strategy for Mattel's Barbie doll, addressing key business problems such as increased competition, unrealistic body image concerns, privacy issues, and gender stereotypes. It analyzes the competitive landscape using Porter's Five Forces model and internal/external environment through SWOT analysis and STP. The report recommends a differentiation strategy based on Porter's generic strategies, targeting both young females and males to combat gender stereotypes. Marketing mix strategies are proposed, including new product development using Ansoff's matrix, aggressive promotional campaigns, and affordability-based pricing. Ultimately, the report aims to reposition the Barbie brand to regain market dominance and increase sales.

Running Head: MARKETING STRATEGY 0
2019
System04115
3/29/2019
MARKETING STRATEGY

MARKETING STRATEGY 1
Executive summary
Barbie doll is one of the most popular toys in toys and games manufacturer industry created
by Mattel Inc. Initially, the Barbie doll was marketed through a saying that each little girl
requires a doll for projecting herself to dream of her future.The company has been facing
various issues that have also lead to a decrease in sales of Barbie Doll. One of the major
issues identified for Mattel’s was increase in competition in the industry. Other relevant
issues associated with the brand included unrealistic body image, privacy concern, and
gender stereotypes
Considering the porter’s generic competitive strategy the company needs to sustain in the
increasing competition, for which one of the relevant strategies would be a differentiation
strategy. In order to resolve the problem identified of targeting only young females by the
brand. This can overcome through changing brand perception, which could be done by a
marketing campaign by the company encouraging heroes to target boys as well. Moreover,
the most approachable strategy for the company to overcome the decreasing sales of the
company would be a product development strategy.

MARKETING STRATEGY 2
Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................3
Business problem.......................................................................................................................4
Issue analysis..............................................................................................................................5
Strategic marketing alternatives.................................................................................................9
Porters generic marketing strategy: Differentiation –..........................................................10
Target group –......................................................................................................................10
Marketing mix strategies......................................................................................................11
Product strategy................................................................................................................11
Promotional strategy: Aggressive marketing...................................................................12
Pricing strategy - Affordability........................................................................................13
Brand repositioning..............................................................................................................13
Marketing recommendations....................................................................................................14
Conclusion................................................................................................................................15
References................................................................................................................................16

MARKETING STRATEGY 3
Introduction
Barbie doll is one of the most popular toys in toys and games manufacturer industry created
by Mattel Inc. Since the social trends and another external environment have changed, the
consumer preferences are changing at a rapid pace. Initially, the Barbie doll was marketed
through a saying that each little girl requires a doll for projecting herself to dream of her
future. Since years, the doll was marketed with various outfits that also depict the career of a
girl. The company has been facing various issues that have also lead to a decrease in sales of
Barbie Doll (Adam & Kotler, 2014). The report will include major issues for the company
and marketing strategies to overcome those issues.

MARKETING STRATEGY 4
Business problem
One of the major issues identified for Mattel’s would increase in competition in the industry.
There are some other relevant issues associated with this issue that includes:
 Unrealistic body image – One of the major issues regarding this that the company has
faced includes the criticism by the customers and the industry about the brand
reflecting unrealistic body image of a girl through this doll. Initially, the Barbie doll
was developed with a very small waistline. The girls tend to imagine themselves in
that body shape, which is practically not possible and led to unrealistic efforts by girls
(Jarman, 2016).
 Privacy concern – With some of the Barbie’s models the issue of privacy was
identified. For example, video girl Barbie had an inbuilt camera for which federal
bureau of investigation had issue warning considering the breach of privacy and the
risk of using the toy by the predators for a criminal purpose (Bach, 2017).
 Gender stereotypes - Another major issue regarding the product was it is toy made
for girls. However, which change in market retailers and customer preferences the
unisex toys was preferred. The retailers market the goods not according to gender
anymore. They marketed the goods as per the theme instead of gender stereotypes.
For instance, the wider toy retailing industry had brought major change and it was
observed that the customer attention has rapidly enhanced over gender stereotypes in
this industry and pointed fingers on gender marketing concern. In the United States
the second biggest retailer decide to avoid departments for boys and girls separately
(Balmer & Abratt, 2016).
From this, it can be said that competition is one of the major problems that the business is
facing. There are various companies coming up with new products in the industry, which

MARKETING STRATEGY 5
result in major competitors and effective the company’s revenue. Management has to
bring innovation and major changes in the marketing of goods to gain competitive
advantage and sustain in the industry further (Chari & Feng, 2018).
Issue analysis
These issues can be analyzed through the various model. For instance for analyzing the
competitor's industry analysis needs to be done for which porters five force models can be
applied. According to Porter's five-force model, the major five forces that are affecting the
Mattel business decision would include
 Competitors – From the case, it was identified that the major competitors were LEGO
and Hasbro which introduced to toys like my little pony, transformers, and Jenga. The
competition is very high in the market. Moreover, indirect competition has also been
increased with the change in technology. For example, tablets, mobile devices or
other electronic games like PlayStation have taken over the market to a greater extent
(Dobbs, 2014).
 The threat of new entrants – The entry to the industry is not that difficult for the
companies and the companies entering the industry are coming up with an innovative
idea and bring along the technological advancement. This affects the pricing policy
for the company as the company becomes unreasonable to ask for premium prices by
the customers. Considering this Mattel has to manage the challenges and issues
related to new entrants and develops barriers to save its competitive edge (Hsu, 2016).
 Bargaining power of suppliers – According to this force the bargain powers are not in
hands of suppliers the reason being the company is procuring raw material from
various suppliers and not rely on a single source. However, some of the dominant

MARKETING STRATEGY 6
positioned suppliers can affect the profit margins for the company that Mattel must
consider as it may influence the company’s profitability.
 Bargaining power of buyers – With an increase in options for the customer the
demand from the customer has also increased largely. They are asking for best offers
and wish to pay the minimum for the product and the customer has become smarter,
search for various substitute product, and compare rationally. Therefore, the threat of
bargaining power to the buyers is higher for the company.
 The threat of substitute goods – This is one of the major force that is influencing the
business of Mattel as there is a various substitute to Barbie like fashion dolls in the
local market or online doll decoration games. Therefore, it can be said that this threat
to the company is high (Ogutu & Mathooko, 2015).
Another model that can be helpful to analyze Mattel internal and external environment
analysis would include SWOT analysis
Strengths
 Brand name – The brand name is one of eth biggest strength of the company that is
responsible for the recognition by the customer around the globe and increase the
brand goodwill.
 Wide range – The range of goods by the brand is very wide that could be one of the
reasons for the company to sustain in the market yet and brand recognition.
 Global market leader – Mattel has been market leader according to toy industry
offering goods worldwide. This also effect the brand recognition and brand image.
 Good retailing network – The retailing network of the company has been due to which
the company is able to reach out to maximum customers in various nations (Hunt &
Bicen, 2017).

MARKETING STRATEGY 7
 Customized product as per the nation’s culture – the company has customized the
product according to each nation it is offering goods. For example, in Arabic
countries their traditional dress has been used while creating a product.
Weakness
 Limited product portfolio – The Company is limited to Barbie dolls as product
portfolio. This could be one of the disadvantages for the company as they would be
unable to offer different types of products to customers.
 Fake imitations – In the local market, the imitability of the product is one of the major
weakness of the company. The prices for these goods are very low than the original
product that affects the company’s revenue to a greater extent (Jarman, 2016).
Opportunities
 Product innovation – The company can bring rapid innovation through product range
a new product development could be done by the company.
 Increase in Barbie activities – The activities associated with Barbie can be increased
like events or television shows for kids to attract children.
 Regain dominance in the industry – The Company has lost the market share since
some years due to increase in competition and change is customer preference, which
can be taken as an opportunity by the company and regain the dominance in the
industry (Chatzoglou & Chatzoudes, 2018).
Threats
 Change in the taste of the customer
 Change in technology
 The threat of new entrants

MARKETING STRATEGY 8
 Increased competition (Bruns, 2013)
Moreover, the issues identified can be analyzed through the STP of the company.
Segmentation
The company has segmented the goods through customized and innovative dolls that can be
involved in various activities.
Target
The company is targeting the young females of the upper and middle-class group. This could
be one of the reasons for the issues of gender stereotypes identified in the previous section.
Positioning
The positioning of the product was different since years but one of the major positioning
includes Barbie serving as a role model for a teenage girl. This has been one of the major
causes of unrealistic body shape issue identified previously. This has affected the teenage
girls to believe that they need to have a very small waistline and similar body shape to look
beautiful, which was completely unrealistic (barbie.mattel, 2019).
These issues could be the reason for the decrease in gross sales of the company.

MARKETING STRATEGY 9
Figure 1: Mattel’s (Barbie) gross sales from 2012 to 2018 (Source: (statista, 2019)
From the figure it can be analyzed that the company has faced a various decline in sales
volume since years.
Strategic marketing alternatives
Some of the alternative strategies that the company could have adopted in order to overcome
the issues that are competitive strategies of the company could include:

MARKETING STRATEGY 10
Porters generic marketing strategy: Differentiation –
Figure 2: (Source: (Betton, 2017)
Considering the porter’s generic competitive strategy the company needs to sustain in the
increasing competition, for which one of the relevant strategies would be a differentiation
strategy. According to this strategy, the company will consider approaching a broad customer
base with innovation through the product. This could include a new range of products that
would increase in activities by Barbie.
Target group –
 Hero’s – In order to resolve the problem identified previous was targeting only young
females by the brand. This needs to be overcome through creating a brand perception,
which could be done by a marketing campaign by the company encouraging heroes.
Through this, the company can reflect playing with Barbie by a boy as well. This

MARKETING STRATEGY 11
would also reflect a campaign against gender stereotypes or encourage equality
(Andersson, 2016).
 Mothers – Mothers prefer their children to have a safe and high-quality product for
their kids. The mother would be the perfect target customer who could influence and
be the purchase decision maker for the product. The campaign could show the Barbie
that a child’s mother uses to play with and now making her children play with the
same brand with innovation in them.
Marketing mix strategies
Product strategy
Ansoff’s matrix: New product development
Figure 3: (source: (Aksoy, 2018)
For the product strategy of the company, Ansoff’s matrix could be used. There are various
strategies that a company can be adopted according to the market to be targeted and products