Case Study Analysis: Strategic Marketing for Mattel's Barbie Doll

This case study analyzes the marketing challenges faced by Mattel's Barbie doll, addressing the controversies surrounding its image and the decline in market share. The study identifies the business problem as the need for effective strategic initiatives to address changing customer preferences. It delves into the issues, including criticisms of Barbie's unrealistic body image and privacy concerns. The analysis employs Porter's Five Forces framework to assess the competitive landscape. Strategic marketing alternatives such as research and development, product diversification, and celebrity endorsements are evaluated. The study recommends celebrity endorsement as a key strategy to improve the company's image and drive positive growth. The conclusion emphasizes the importance of adapting to market changes and addressing customer expectations to maintain the brand's iconic status and market position.

Running head: MANAGEMENT
Applied marketing strategy
Name of the student
Mane of the university
Author note

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Executive summary
In this study, it has been identified that due to emerging opportunities in the market, the
preference of the customers is also changing regarding toys. In this situation introducing an
effective strategic initiative has become necessary. The purpose of this study is to shed light on
the Barbie controversies and those impact on decreasing market share of Mattel. In this study,
has been identified that among all the strategic initiatives, celebrity endorsement can play an
effective role in case of driving the positive growth in the company. Based on the celebrity
endorsement not only the unique image of the company will be introduced but also its initiatives
towards inspiring individuals can also be fulfilled.

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Table of contents
Introduction......................................................................................................................................3
Business problem.............................................................................................................................3
Issue analysis...................................................................................................................................4
Detail understanding of the issues...............................................................................................4
Theoretical concepts for analyzing the issue...............................................................................5
Industry overview........................................................................................................................7
Strategic marketing alternatives......................................................................................................7
Strategic alternatives....................................................................................................................7
Evaluation of alternative solution................................................................................................8
Marketing theories and concept.................................................................................................10
Marketing recommendations and conclusion................................................................................11
Reference list and bibliography.....................................................................................................12
Appendices....................................................................................................................................14
Appendix 1.................................................................................................................................14
Appendix 2.................................................................................................................................14

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Introduction
Barbie doll is leading the toy industry from last 60 years and it has become the most
iconic toy in the world (Ni, Flynn and Jacobs 2016). Due to emerging opportunities in the
market, the preference of the customers is also changing. In this situation introducing an
effective strategic initiative has become necessary. Analyzing the emerging situation, it has been
identified that Barbie has again got the spotlight as most of the customer have criticized that it is
providing the narrow and unrealistic vision of women dress and looks, which can bring strong
impact towards the career growth. The purpose of this study is to shed light on the case namely
‘Does Mattel’s iconic Barbie doll need a makeover? ’ and critically analyze the business issues.
Based on the issues, strategic alternatives will be provided and marketing recommendations will
be introduced for dealing with the situation.
Business problem
In the year 1945, the Mattel was introduced as a picture frame selling company. In the
year 2015, based on the popular portfolio of American girls’ collection, Mattel introduced the
Barbie doll as well as accessories, lifestyle elements, home and cars (Allure.com 2019). By
wearing various outfits the Barbie dolls have been sold by representing near about 150 careers.
It has been identified that near about 25% of US market share has got influenced by the Barbie
merchandise (Scmp.com 2019). As its result, Barbie has become the cultural icon for the global
people. The business issue aroused when the controversies regarding teenage pregnancy to career
attainment and education have got interconnected with the products. By continuing this, it has
also been identified that due to unrealistic body shape of the Barbie, controversies have brought
negative impact on the production process of the company. In some of the cases, sarcasm
increases based on the Barbie intelligence. On the other hand, it has been identified that in 2010,

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FBI has made an investigation on a new Barbie doll namely video Girl Barbie, where the
concern regarding its camera and video screen features of the dolls have got highlighted
(Allure.com 2019). FBI claimed that the doll can be used by the criminals. The privacy concern
increased when the Barbie called hello Barbie has been introduced with the partnership of toy
talk. In that case, the previous discussed things are being recorded on the memory of the doll,
which increased the privacy concern.
Analyzing the issues, it can be continued that due to changing customer interest on dolls
and unrealistic body shape of the products, average proportion of Barbie production has got
affected. By continuing this, it can be said that depending on the in the mid of 2010, it has been
identified that gender stereotypes and generated marketing concerns have increased the
uncertainty in the retail sector (Rd.com 2019). On the other hand, it is true that marketing
environment has got impacted on the case of dealing with the changing needs of the individuals.
Due to inctr4easing controversy as well as rapid product development practices of the
competitors, the sale rate of the company has started dropping. Due to the music video related
legal controversies, it has been identified that the product has got influenced. In the year 2012,
overall revenue of Barbie has dropped 14%. Due to decreasing sales in US, 12% revenue loss has
brought the challenging situation in its business growth.
Issue analysis
Detail understanding of the issues
Analyzing the issue faced by the company, it can be said that increasing controversies
regarding the Barbie products, the company is in challenging situation (Gurcaylilar-Yenidogan
and Aksoy 2018). It cannot be denied that due to huge success as well as rapid modification in
the products, expectations of people from the products have been increased. On the other hand,

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the US culture has got highly influenced by the Barbie dolls. Analyzing the 60 years of
controversies of Barbie doll, it can be said that due to increasing expectations of the customers
from the products, it has become the role model of teenage girls. Becoming a role model for
girls, the body appearance of a Barbie doll created the debatable situation as the Barbie Dolls
have been compared with a real person. Due to its huge popularity, Barbie has become a strong
personality rather than a doll. In that case, its appearance, skin color and its body shape have
become the major expectation of the customers as they have started comparing a doll with
human body (Watt 2016). The controversial figure as well as appearance have enforced the
judgmental behavior of the customers. By continuing this, it can be said that the major key issue
behind the Barbie controversies is over expectation of thee customers from the company. By
setting different standard in the toy industry, Mattel has gained large numbers of customers’
attention, however, it has failed in case of promoting the product in proper manner. Improper
promotional approach of the company towards the customers has increased the safety and
security concern of individuals in case of allowing their children for playing with the Barbie
products. With the rapid growth in toy industry, huge numbers of competitors in the market are
daily introducing new products, which has increased the expectations of the customers (Bartow
2019).
Theoretical concepts for analyzing the issue
Porters 5 force framework
Bargaining power of the buyers:
It cannot be denied that the Barbie doll has developed its iconic image in the global toy
industry and due to its popularity in the market, it has developed its strong customer base in all
over the world (Jarman 2016). However, with changing sociocultural and economic

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opportunities consumption pattern of individuals have got changed. On the other hand, after 19th
century, the availability of toy manufacturing organizations in the market has been increased.
Therefore, it can be said that in this case, bargaining power of the customers is high, which can
drive the sales rate of the company.
Bargaining power of the suppliers
In case of toy industry, the mixed distribution channel is being followed by the
organizations (Ni, Flynn and Jacobs 2016). In that case organizations do not face much trouble in
case of collecting the raw materials. Hence, in this situation the bargaining power of the
suppliers is low.
Existing rivalry
Analyzing the toy industry growth, it cannot be denied that with increasing growth
opportunities in the market, various organizations have developed their strong image in the
market. In case of US toy industry, Mattel can face high threat from LEGO and Hasbro (Austin
2017). In this case, it can be said that threat from existing competitors is high.
Threats from new entrants
Toy industry is being considered as the fastest growth industry in US market. Due to its
increasing growth opportunities in the market, toy industry has brought various opportunity for
many of the entrepreneurs. Barbie has faced tough competition from the rising sales by the
brands of Monster High, American Girl and My Little Pony. In that case, the threats from new
entrants is high (Kühne 2016).
Threats from substitute products

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With high popularity in the market, Barbie has developed its huge customer base in the
market. In this situation, threat from substitute products in the market is low.
Industry overview
Analyzing the changing toy industry trends, it has been identified that the toy industry
has faced various challenges due to traditional distribution channel (Bartow 2019). Depending on
the changing marketing practices in this industry it has been identified that digitization has
become common in case of driving the product as well as sales growth in the industry. On the
other hand, it is also true that based on the current situations in the industry, it has become
necessary for managing changing marketing trends. Due to increasingly use of digital media in
the marketing process, it has become necessary for the company to introduce some strategic
initiatives for managing the emerging situation in the case of maintaining its strong position in
the market. Analyzing the growth in toy industry, it has been identified that in the year 2014 the
toy industry growth has reached $151.2 billion (Fantinato et al. 2018). By continuing this, it has
also been identified that due to rapid growth in this sector, increasing numbers of competitors
have become the major concern for this organization.
Strategic marketing alternatives
Strategic alternatives
Analyzing various issue faced by Mattel, it can be said that due to improper marketing
approach as well as lack of understanding regarding the emotional expectation of individuals, the
business growth process of the company has got affected (Jarman 2016). Rapid controversies
regarding the Barbie doll has not only driven the brand reputation but also it has brought strong
impact on its market share. In this situation, introducing an effective marketing strategy has
become necessary for gaining back the same position in the market. Analyzing the emerging

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issue in the company, it can be said that Mattel needs to focus on developing a research and
development team, which will mainly focus on understanding the needs and demands of
individuals. In case of sustaining in the competitive market, product development strategy can be
followed by the company. Mattel can introduce dolls for both boys and girls. In that case gender
stereo types can be broken by the company by introducing boy doll. Based on this strategic
initiatives, the company will not only increase its customer base, but also it can play an important
role for dealing with the gender biased controversy. In case of introducing the marketing
improvement, an advertisement with the strong tagline can be introduced in which the
empowerment of individuals can be mentioned. In that case, both the male and female celebrity
personality can be endorsed, where they will share about their struggle journey.
Evaluation of alternative solution
Solution 1: Research and development
Research and development is being considered as one of the effective strategic initiatives
in which helps to get the clear information regarding the expectation of the customers from the
particular organization (Fantinato et al. 2018). By developing the research and development team
it will be easier for the organization to analyze if the customers are satisfied with the services or
not. Based on the analysis, further development plan can be introduced for getting better result.
However, some of the cases, wrong information could have been collected by the research team,
which can also drive the negative strategic direction of the company.
Solution 2: Introducing product for both boy and girls
By introducing Barbie as well as boy doll, both the boys and girls will be attracted. It will
also play an important role for grabbing the attention of large numbers of customers, which can

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help to ensuring its growth opportunities. By reducing the gender stereotypes, it will be easier for
Mattel for strengthening its strong brand image. It is also true that with this product development
strategy, market popularity of the company can be increased in the existing market. However,
changes of facing the failure in this strategy is high. It is quite unpredictable that if the new
product will be appreciated by the customers or not. If the new product will not get appreciated
by the customers, in that case brand reputation as well as financial wealth of the company will
get affected.
Solution 3: Celebrity endorsement for individuals’ empowerment
Analyzing the mission of the company, it has been identified that it aims to bring
empowerment of individuals by introducing inspiring marketing practices. By targeting both the
girls and boys and ensuring their engage towards the empowerment process, both the male and
female celebrity personality will be introduced by the company. During the marketing process,
individuals will share their stories with the customers, which can play an important role for
regaining the emotional trust of the customers. With this initiatives, Mattel will be able to give
tough competition to its competitors’ in the market. However, analyzing the disadvantage of this
strategy, it can be said that the process will take huge investment and the grand introduction. In
that case it will take minimum three weeks for arranging the entire process.
Pestle analysis
Refer to appendix 1
SWOT analysis
Refer to appendix 2

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Marketing theories and concept
Ansoff Matrix
In the Ansoff matrix, different growth strategies of an organization are being provided.
The Ansoff matrix is being developed based on four segments (Schawel and Billing 2018).
Based on the position of the organization in the market, the particular strategy is being
development. Analyzing the strategic evaluation of Mattel, it can be said that in case of gaining
competitive advantage in the existing market, new product development strategy has been
suggested to adopt. It cannot be denied that the product development strategy can play an
important role in case of strengthening the customer relationship. It is also true that in case of
new product development process the company mainly focus on increasing the marketing share
rather than any others business element. Analyzing the product development initiative of the
company, it can be assumed that by in traducing different products for both the boys and girls,
customer base of the company can be increased. It is also true that with this initiative, it will be
able to give tough competition to its customers.
The consumer decision making process
Customer decision making process is another important marketing theory that helps to
understand the purchasing behavior of the customers. This theory consists with five stages such
as need recognition, information search, evaluation of alternatives, purchase and post purchase
behavior (Ni, Flynn and Jacobs 2016). Through the celebrity endorsement strategy, the company
aims to drive the decision making process of the customer so that market share can be increased.
Analyzing the strategic initiative of Mattel, it can be said that celebrity endorsement can be
beneficial for the company to regain the customer trust. Due to the various controversies, the

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trust issue among the customers has been aroused. In that case, it will be easier for the company
to reestablish its strong image in the market.
Marketing recommendations and conclusion
In this study, it can be concluded that among all the strategic initiatives, celebrity
endorsement can play an effective role in case of driving the positive growth in the company.
Based on the celebrity endorsement not only the unique image of the company will be introduced
but also its initiatives towards inspiring individuals can also be fulfilled. Rather than focusing on
women empowerment, if the company will focus on human empowerment, it can play an
important role for enhancing its target segment, which can indirectly influence its business
revenue. Analyzing different theoretical aspects of marketing and its relation with the solutions,
it can be said that the theories has helped to analyze the issue in the company in an appropriate
manner.