Standar dization vs.

Localization
Barbie Marketing Strategy
Content

5.Conclusion
Background
 Global market review

 Company business review

 Current issues/challenges



 General Background
information

World sales - Dolls and Figures

16,0
14,0 12,6 13,3 12,5
12,0 11,0
10,0
8,0
n D
U
B
S
ilo
s

6,0
4,0
2,0
0,0
2004 2005 2006 2007 2008 2009

AverageUS$per Houshold -Dolls

8,0
7,5
7,5 7,2
6,9
7,0
6,6
6,5

6,0
2004 2005 2006 2007 2008 2009

Source: (1 & 2) Euro monitor 2010, (3) Mattel 2009 annual report, (4) Scott 2007, (5) Elsworth, 2008, (6) Kawamoto, 2010
SW OT
Country-level Analysis
Ø
 Market review/major issues

 Assessment of current marketing strategy

 Recommendations of strategic changes



Country-level Analysis
Brazil
Market Review of Market Issues of
Barbie in Brazil Barbie in Brazil
Market Size 48 million young consumers Premium price is
under 14 years old ¹
Price
inapplicable for
low-income Brazilians
Competition high competition ³ (80%)

Promotion Current sale can’t afford

Major Competitors Anonymous fake barbie’s the huge marketing
producers ³ expenditure
Sales volume/value $2,711 million BRL ²

Place SDCM issue in marketing

Sales trend Increasing in the past five campaign; Lost sales
years ² opportunities.
Market shares 36% ²
Product The design is not catching
Consumer wants/key Price concern/ Cheaper up consumers need
Influence on purchasing barbies ³
behavior

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)
Country-level Analysis
Brazil

Increase Does not High investment, Upgrade products

Market coverage work for not concentrate image, high cost
and retail sales all markets on target
consumers
Country-level Analysis
Brazil
 Recommendations of strategic changes


 Push + Pull retail marketing strategy


 Focus on potential markets

 Concentrate on stores with high ROI.



Country-level Analysis
Japan
Market Review Market Issues
Market Size USD $1.2 billion in Dolls market Product Fierce competition in local
market

Competition Takara’s “Jenny” Doll

Japanese traditional Doll
Promotion Large investment

Sales volume/value USD $6 billion

Sales trend Saturated market Place Complex distribution

system of Japanese
market
Market shares N/A

Consumer wants/key Original Barbie (US version) Others Strong tradition in

Influence on purchasing Impact of traditional culture Japanese “doll” culture
behavior

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
Country-level Analysis
Japan
 Assessment of current marketing strategy

Country-level Analysis
Japan
 Recommendations of strategic changes

 Multi-channelstrategy, built brand store in key urban markets – Enhance
brand image and retail sales.

Corporate citizen strategy - commit to the matured market by building brand
association , proper for collectivistic culture.

Promotion: Emotional- oriented strategy, advertise in popular children
magazine
Country-level Analysis Mid-
east
 Market review/major issues
Market Review Market Issues
Market Size USD $1.5 billion in toy market Product Local competitions

Competition Laila ( Innocent looking Doll)

Promotion Culture opposition /gap

Sales volume/value Sara

USD $& 0.8
Dara (in Iran)
billions in dolls
market
Sales trend Potential market with high Place National distributor
competition unable to cover some
Local markets.
Market shares N/A

Consumer wants/key More conservative –looking doll Others Political & social barriers;
Influence on purchasing government originated
behavior competition

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
Country-level Analysis Mid-
east
 Assessment of current marketing strategy

Country-level Analysis Mid-
east
 Recommendations of strategic changes

Be m ore cult ural caut ious in prom o and product design


Keep prem ium price st rat egy; building brand associat ion of
m odern im age

Multi-channel strategy: Build brand store in key cities, push
distributor to cover other 2nd tier markets.
Cross-market Analysis
Cross-market Analysis
Corporate
vision
Ø
 Corporate vision



“ The World’s Premier Toy Brands- Today
and Tomorrow.” - (Mattel 2008 Annual Report)




Leading position in most of
 regional markets



Cross-market Analysis Brand
image

Ø
 Over-arching image


Ø Inspire girls of all ages to dream, discover and celebrate their girlhood.
Ø
Ø Constant reminder that girls can be whoever they want to be.



- (Mattel 2008 Annual Report)

Cross-market Analysis
Challenges

Ø
 Cross-market challenges


Source: Prof Donnel A. Briley, Innovative Marketing Strategies

Cross-market Analysis Market
direction

Ø
 Market directions



Cross-market Analysis Market
dilemma

Ø
 Dilemma of Standardization &

Localization


Source: International Marketing

Cross-market Analysis Market
dilemma

Ø
 Dilemma of Standardization &

Localization


Source: Aaker, D, 2007, Strategic market management

Hoenig, S, 2008, Localization in a Global Marketplace
Cross-market Analysis New
strategy
Ø
 Suggestions for global marketing strategy



Concept:


 Global localization marketing strategy ?




Cross-market Analysis New
strategy
Ø
 Suggestions for global marketing strategy



Balanced strategy, sweet spot between S&L:

Standardization Localization

Essential business target Product package (including

Culture heritage clothes and other
 Key message delivered by accessories)
products Retail price

Raw materials purchasing Distribution model

Supplier platform Promotion
  Organization
Cross-market Analysis New
strategy
Ø
 Suggestions for global marketing strategy



Balanced strategy:

StandardizationnEssential
: business target
 The World’s 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
Cross-market Analysis New
strategy
Ø
 Suggestions for global marketing strategy



Balanced strategy:

Localization: nProduct package
 Clothes and other accessories
nRetail price

Various SRP in regional markets
 nDistribution model
Channel sales; Direct to retailer (DTR);Brand store

nPromotion
 Customized promotion campaign
nOrganization

Set up regional Head Quarter
Conclusion of Global
Strategy
 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.



References
 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 International
Studies.
 INTERNATIONAL CHAMBER OF COMMERCE
www.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 Toy
Espionage. 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
