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Barbie

Barbara 'Barbie' Millicent Roberts

First appearance March 9, 1959Created by Ruth Handler

InformationNickname(s) BarbieOccupation See: Barbie's careers

FamilySee: List of Barbie's friends and family

Barbie is a fashion doll manufactured by the American toy-company Mattel, Inc. and launched in March 1959. American businesswoman Ruth Handler is credited with the creation of the doll using a German doll called Bild Lilli as her inspiration.

Barbie is the figurehead of a brand of Mattel dolls and accessories, including other family members and collectible dolls. Barbie has been an important part of the toy fashion doll market for fifty years, and has been the subject of numerous controversies and lawsuits, often involving parody of the doll and her lifestyle.

Contents

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1 History 2 Barbie's 50th anniversary 3 Fictional biography 4 Controversies 5 Parodies and lawsuits 6 Collecting 7 Competition from Bratz dolls 8 See also 9 References 10 Further reading 11 External links

History

The first Barbie doll was launched in March 1959

Ruth Handler watched her daughter Barbara play with paper dolls, and noticed that she often enjoyed giving them adult roles. At the time, most children's toy dolls were representations of infants. Realizing that there could be a gap in the market, Handler suggested the idea of an adult-bodied doll to her husband Elliot, a co-founder of the Mattel toy company. He was unenthusiastic about the idea, as were Mattel's directors.

During a trip to Europe in 1956 with her children Barbara and Kenneth, Ruth Handler came across a German toy doll called Bild Lilli.[1] The adult-figured doll was exactly what Handler had in mind, so she purchased three of them. She gave one to her daughter and took the others back to Mattel. The Lilli doll was based on a popular character appearing in a comic strip drawn by Reinhard Beuthin for the newspaper Die Bild-Zeitung. Lilli was a blonde bombshell, a working girl who knew what she wanted and was not above using men to get it. The Lilli doll was first sold in Germany in 1955, and although it was initially sold to adults, it became popular with children who enjoyed dressing her up in outfits that were available separately.

Upon her return to the United States, Handler reworked the design of the doll (with help from engineer Jack Ryan) and the doll was given a new name, Barbie, after Handler's daughter Barbara. The doll made its debut at the American International Toy Fair in New York on March 9, 1959. This date is also used as Barbie's official birthday.

Mattel acquired the rights to the Bild Lilli doll in 1964 and production of Lilli was stopped. The first Barbie doll wore a black and white zebra striped swimsuit and signature topknot ponytail, and was available as either a blonde or brunette. The doll was marketed as a "Teen-age Fashion Model," with her clothes created by Mattel fashion designer Charlotte Johnson. The first Barbie dolls were manufactured in Japan, with their clothes hand-stitched by Japanese homeworkers. Around 350,000 Barbie dolls were sold during the first year of production.

Ruth Handler believed that it was important for Barbie to have an adult appearance, and early market research showed that some parents were unhappy about the doll's chest, which had distinct breasts. Barbie's appearance has been changed many times, most notably in 1971 when the doll's eyes were adjusted to look forwards rather than having the demure sideways glance of the original model.

Barbie was one of the first toys to have a marketing strategy based extensively on television advertising, which has been copied widely by other toys. It is estimated that over a billion Barbie dolls have been sold worldwide in over 150 countries, with Mattel claiming that three Barbie dolls are sold every second.[2]

The standard range of Barbie dolls and related accessories are manufactured to approximately 1/6 scale, which is also known as playscale.[3] The standard dolls are approximately 11½ inches tall.

Barbie products include not only the range of dolls with their clothes and accessories, but also a large range of Barbie branded goods such as books, apparel, cosmetics and video games. Barbie has appeared in a series of animated films and is a supporting character in Toy Story 2 and Toy Story 3.

Barbie has become a cultural icon and has been given honors that are rare in the toy world. In 1974, a section of Times Square in New York City was renamed Barbie Boulevard for a week. In 1985, the artist Andy Warhol created a painting of Barbie.[4][5]

Barbie's 50th anniversary

In 2009, Barbie celebrated her 50th birthday. The celebrations included a runway show in New York for the Mercedes-Benz Fashion Week.[6] The event showcased fashions contributed by fifty well-known haute couturiers including Diane von Fürstenberg, Vera Wang, Calvin Klein, Bob Mackie, and Christian Louboutin.[7][8]

Fictional biography

Barbie's full name is Barbara Millicent Roberts. In a series of novels published by Random House in the 1960s, her parents' names are given as George and Margaret Roberts from the fictional town of Willows, Wisconsin.[9] In the Random House novels, Barbie attended Willows High School, while in the Generation Girl books, published by Golden Books in 1999, she attended the fictional Manhattan International High School in New York City (based on the real-life Stuyvesant High School [10] ).

She has an on-off romantic relationship with her boyfriend Ken (Ken Carson), who first appeared in 1961. A news release from Mattel in February 2004 announced that Barbie and Ken had decided to split up,[11] but in February 2006 they were hoping to rekindle their relationship after Ken had a makeover.[12] Barbie has had over 40 pets including cats and dogs, horses, a panda, a lion cub, and a zebra. She has owned a wide range of vehicles, including pink Corvette convertibles, trailers, and jeeps. She also holds a pilot's license, and operates commercial airliners in addition to serving as a flight attendant. Barbie's careers are designed to show that women can take on a variety of roles in life, and the doll has been sold with a wide range of titles including Miss Astronaut Barbie (1965), Doctor Barbie (1988) and Nascar Barbie (1998).

Mattel has created a range of companions for Barbie, including Hispanic Teresa, Midge, African American Christie, and Steven (Christie's boyfriend). Barbie's siblings and cousins were also created including Skipper, Todd (Stacie's twin brother), Stacie (Todd's twin sister), Kelly, Krissy, and Francie. Barbie was friendly with Blaine, an Australian surfer, during her split with Ken in 2004.[13]

See List of Barbie's friends and family

Controversies

Barbie's popularity ensures that her effect on the play of children attracts a high degree of scrutiny. The criticisms leveled at her are often based on the assumption that children consider Barbie a role model and will attempt to emulate her.

One of the most common criticisms of Barbie is that she promotes an unrealistic idea of body image for a young woman, leading to a risk that girls who attempt to emulate her will become anorexic. A standard Barbie doll is 11.5 inches tall, giving a height of 5 feet 9 inches at 1/6 scale. Barbie's vital statistics have been estimated at 36 inches (chest), 18 inches (waist) and 33 inches (hips). At 5'9" tall and weighing 110 lbs, Barbie would have a BMI of 16.24 and fit the weight criteria for anorexia. According to research by the University Central Hospital in Helsinki, Finland, she would lack the 17 to 22 percent body fat required for a woman to menstruate.[14] In 1963, the outfit "Barbie Baby-Sits" came with a book entitled How to Lose Weight which advised: "Don't eat!."[15] The same book was included in another ensemble called "Slumber Party" in 1965 along with a pink bathroom scale permanently set at 110 lbs.,[15] which would be around 35 lbs. underweight for a woman 5 feet 9 inches tall.[16] Mattel has said that the waist of the Barbie doll was made small because the waistbands of her clothes, along with their seams, snaps, and zippers, added bulk to her figure.[17]

In 1997, Barbie's body mold was redesigned and given a wider waist, with Mattel saying that this would make the doll better suited to contemporary fashion designs.[18][19] However, the Silkstone Barbie line introduced in 2000 as well as the Model Muse Barbie body mold introduced in 2004 feature Barbie dolls with dimensions similar to those Barbies manufactured prior to 1997. The Model Muse Barbie has a very small waist, defined abs, a collarbone, defined ankles and even cleavage. The fashion of Barbies created before 1997 will fit both Silkstone dolls and the Model Muse body sculpt, but fashions created after 1997 do not fit either of these Barbie types.

"Colored Francie" made her debut in 1967, and she is sometimes described as the first African American Barbie doll. However, she was produced using the existing head molds for the white Francie doll and lacked African characteristics other than a dark skin. The first African American doll in the Barbie range is usually regarded as Christie, who made her debut in 1968.[20][21] Black Barbie was launched in 1980 but still had white features. In September 2009, Mattel introduced the So In Style range, which was intended to create a more realistic depiction of black people than previous dolls.[22]

In July 1992, Mattel released Teen Talk Barbie, which spoke a number of phrases including "Will we ever have enough clothes?", "I love shopping!", and "Wanna have a pizza party?" Each doll was programmed to say four out of 270 possible phrases, so that no two dolls were likely to be the same. One of these 270 phrases was "Math class is tough!" (often misquoted as "Math is hard"). Although only about 1.5% of all the dolls sold said the phrase, it led to criticism from the American Association of University Women. In October 1992 Mattel announced that Teen Talk Barbie would no longer say the phrase, and offered a swap to anyone who owned a doll that did.[23]

In 1997, Mattel joined forces with Nabisco to launch a cross-promotion of Barbie with Oreo cookies. Oreo Fun Barbie was marketed as someone with whom little girls could play after class and share "America's favorite cookie." As had become the custom, Mattel manufactured both a white and a black version. Critics argued that in the African American community, Oreo is a derogatory term meaning that the person is "black on the outside and white on the inside," like the chocolate sandwich cookie itself. The doll was unsuccessful and Mattel recalled the unsold stock, making it sought after by collectors.[24]

In May 1997, Mattel introduced Share a Smile Becky, a doll in a pink wheelchair. Kjersti Johnson, a 17-year-old high school student in Tacoma, Washington with cerebral palsy, pointed out that the doll would not fit into the elevator of Barbie's $100 Dream House. Mattel announced that it would redesign the house in the future to accommodate the doll.[25][26]

In March 2000 stories appeared in the media claiming that the hard vinyl used in vintage Barbie dolls could leak toxic chemicals, causing danger to children playing with them. The claim was rejected as false by technical experts. A modern Barbie doll has a body made from ABS plastic, while the head is made from soft PVC.[27][28]

In September 2003, the Middle Eastern country of Saudi Arabia outlawed the sale of Barbie dolls, saying that she did not conform to the ideals of Islam. The Committee for the Propagation of Virtue and Prevention of Vice stated "Jewish Barbie dolls, with their revealing clothes and shameful postures, accessories and tools are a symbol of decadence to the perverted West. Let us beware of her dangers and be careful."[29] In Middle Eastern countries there is an alternative doll called Fulla which is similar to Barbie but is designed to be more acceptable to an Islamic market. Fulla is not made by the Mattel

Corporation, and Barbie is still available in other Middle Eastern countries including Egypt.[30] In Iran, Sara and Dara dolls are available as an alternative to Barbie.[31]

In December 2005, Dr. Agnes Nairn at the University of Bath in England published research suggesting that girls often go through a stage where they hate their Barbie dolls and subject them to a range of punishments, including decapitation and placing the doll in a microwave oven. Dr. Nairn said: "It's as though disavowing Barbie is a rite of passage and a rejection of their past."[32][33]

In April 2009, the launch of a Totally Tattoos Barbie with a range of tattoos that could be applied to the doll, including a lower back tattoo, led to controversy. Mattel's promotional material read "Customize the fashions and apply the fun temporary tattoos on you too", but Ed Mayo, chief executive of Consumer Focus, argued that children might want to get tattooed themselves.[34]

In July 2010, Mattel released "Barbie Video Girl", a Barbie doll with a pinhole video camera in its chest, enabling clips of up to 30 minutes to be recorded, viewed and uploaded to a computer via a USB cable. On November 30, 2010, The FBI issued a warning in a private memo that the doll could be used to produce child pornography, although it stated publicly that there was "no reported evidence that the doll had been used in any way other than intended."[35][36]

Barbie's waist has been widened in more recent versions of the doll.

Vintage booklet advising on how to lose weight.

Back cover of vintage booklet on How to Lose Weight, stating "Don't Eat!".

Bathroom scale from 1965, permanently set at 110 lbs.

Oreo Fun Barbie from 1997 became controversial after a negative interpretation of the doll's name.

Parodies and lawsuits

Barbie has frequently been the target of parody:

In 1993, a group calling itself the "Barbie Liberation Organization" secretly modified a group of Barbie dolls by implanting voice boxes from G.I. Joe dolls, then returning the Barbies to the toy stores from where they were purchased.[37][38]

Malibu Stacy from The Simpsons episode "Lisa vs. Malibu Stacy". Aqua 's song "Barbie Girl" was the subject of the lawsuit Mattel v. MCA Records, which

Mattel lost in 2002, with Judge Alex Kozinski saying that the song was a "parody and a social commentary".[39][40]

Two commercials by automobile company Nissan featuring dolls similar to Barbie and Ken was the subject of another lawsuit in 1997. In the first commercial, a female doll is lured into a car by a doll resembling G.I. Joe to the dismay of a Ken-like doll, accompanied by Van Halen's You Really Got Me.[41] In the second commercial, the "Barbie" doll is saved by the "G.I. Joe" doll after she is accidentally knocked into a swimming pool by the "Ken" doll to Kiss's "Dr. Love".[42] The makers of the commercial said that the dolls' names were Roxanne, Nick, and Tad. Mattel claimed that the commercial did "irreparable damage" to its products,[43][44] but settled.[45]

Saturday Night Live aired a parody of the Barbie commercials featuring "Gangsta Bitch Barbie" and "Tupac Ken".[46] In 2002, the show also aired a skit, which starred Britney Spears as Barbie's sister Skipper.[47]

The Tonight Show with Jay Leno displayed a "Barbie Crystal Meth Lab".[citation needed]

Mattel sued artist Tom Forsythe over a series of photographs called Food Chain Barbie in which Barbie winds up in a blender.[48][49][50]

In November 2002, a New York judge refused an injunction against the British-based artist Susanne Pitt, who had produced a "Dungeon Barbie" doll in bondage clothing.[51]

Mattel filed a lawsuit in 2004 against Barbara Anderson-Walley over her website, which sells fetish clothing.[52][53]

Collecting

Mattel estimates that there are well over 100,000 avid Barbie collectors. Ninety percent are women, at an average age of 40, purchasing more than twenty Barbie dolls each year. Forty-five percent of them spend upwards of $1000 a year. Vintage Barbie dolls from the early years are the most valuable at auction, and while the original Barbie was sold for $3.00 in 1959, a mint boxed Barbie from 1959 sold for $3552.50 on eBay in October 2004.[54] On September 26, 2006, a Barbie doll set a world record at auction of £9,000 sterling (US $17,000) at Christie's in London. The doll was a Barbie in Midnight Red from 1965 and was part of a private collection of 4,000 Barbie dolls being sold by two Dutch women, Ietje Raebel and her daughter Marina.[55]

In recent years, Mattel has sold a wide range of Barbie dolls aimed specifically at collectors, including porcelain versions, vintage reproductions, and depictions of Barbie as a range of characters from film and television series such as The Munsters and Star Trek.[56][57] There are also collector's edition dolls depicting Barbie dolls with a range of different ethnic identities.[58] In 2004, Mattel introduced the Color Tier system for its collector's edition Barbie dolls including pink, silver, gold and platinum, depending on how many of the dolls are produced.[59]

Competition from Bratz dolls

An editor has expressed a concern that this article lends undue weight to certain ideas, incidents, controversies or matters relative to the article subject as a whole. Please help to create a more balanced presentation. Discuss and resolve this issue before removing this message. (December 2010)

In June 2001, MGA Entertainment launched the Bratz series of dolls, a move that gave Barbie her first serious competition in the fashion doll market. In 2004, sales figures showed that Bratz dolls were outselling Barbie dolls in the United Kingdom, although Mattel maintained that in terms of the number of dolls, clothes and accessories sold, Barbie remained the leading brand.[60] In 2005 figures showed that sales of Barbie dolls had fallen by 30% in the United States, and by 18% worldwide, with much of the drop being attributed to the popularity of Bratz dolls.[61]

In December 2006, Mattel sued MGA Entertainment for $500 million, alleging that Bratz creator Carter Bryant was working for Mattel when he developed the idea for Bratz.[62] On July 17, 2008, a federal jury agreed that the Bratz line was created by Carter Bryant while he was working for Mattel and that MGA and its Chief Executive Officer Isaac Larian were liable for converting Mattel property for their own use and intentionally interfering with the contractual duties owed by Bryant to Mattel.[63] On August 26, the jury found that Mattel would have to be paid $100 million in damages. On December 3, 2008, U.S. District Judge Stephen Larson banned MGA from selling Bratz. He allowed the company to continue selling the dolls until the winter holiday

season ended.[64][65] On appeal, a stay was granted by the U.S. Court of Appeals for the Ninth Circuit; the Court also overturned the District Court's original ruling for Mattel, where MGA Entertainment was ordered to forfeit the entire Bratz brand.[66][67]

Mattel Inc. and MGA Entertainment Inc. returned to court on January 18, 2011 to renew their battle over who owns Bratz, which this time includes accusations from both companies that the other side stole trade secrets.[68] On April 21, 2011 a federal jury returned a verdict supporting MGA.[69] On August 5, 2011 Mattel was also ordered to pay MGA $310 million for attorney fees, stealing trade secrets, and false claims rather than the $88.5 million issued in April.[70]

In August 2009, MGA introduced a range of dolls called Moxie Girlz, intended as a replacement for Bratz dolls.[71]

See also

Barbie Mini Kingdom Barbie syndrome My Scene Playscale Miniaturism Superstar: The Karen Carpenter Story

References

1. ̂ In an interview with M.G.Lord, the author of Forever Barbie, Ruth Handler said that she saw the doll in Lucerne, Switzerland. However, the book points out that on other occasions Handler said that she saw the doll in Zurich or Vienna.

2. ̂ "Vintage Barbie struts her stuff". BBC News. September 22, 2006. Retrieved April 26, 2010.

3. ̂ ""Playscale per About.com". Miniatures.about.com. March 2, 2011. Retrieved May 23, 2011.

4. ̂ [1][dead link]

5. ̂ "Who Made America? | Innovators | Ruth Handler". Pbs.org. June 30, 2004. Retrieved May 23, 2011.

6. ̂ "Barbie Runway Show – Fall 2009 Mercedes Benz Fashion Week New York". Myitthings.com. February 14, 2009. Retrieved May 23, 2011.

7. ̂ "Runway Rundown: The Barbie Show’s 50 Designers!". Alldolldup.typepad.com. Retrieved May 23, 2011.

8. ̂ "Christian Louboutin explains Barbie “fat ankle” comments". Handbag.com. October 16, 2009. Retrieved May 23, 2011.

9. ̂ Lawrence, Cynthia; Bette Lou Maybee (1962). Here's Barbie. Random House. OCLC 15038159.

10. ̂ Biederman, Marcia (September 20, 1999). "Generation Next: A newly youthful Barbie takes Manhattan.". New York. Retrieved June 4, 2009.

11. ̂ The Storybook Romance Comes To An End For Barbie And Ken Mattel February 12, 2004

12. ̂ Madeover Ken hopes to win back Barbie CNN February 10, 200613. ̂ By Joseph Lee, CNN/Money Staff Writer (June 29, 2004). "Aussie hunk wins Barbie's

heart". CNN. Retrieved May 23, 2011.14. ̂ What would a real life Barbie look like? BBC News, March 6, 200915. ^ a b Sarah Sink Eames, Barbie Fashion: The complete history of the wardrobes of Barbie

doll, her friends and her family, Vol. I, 1959–1967, ISBN 0-89145-418-716. ̂ M.G. Lord, Forever Barbie, Chapter 11 ISBN 0-8027-7694-917. ̂ "Barbie (Doll) – Times Topics". The New York Times. October 21, 2010. Retrieved

February 16, 2012.18. ̂ "Barbie undergoes plastic surgery". BBC News. November 18, 1997. Retrieved April

26, 2010.19. ̂ Winterman, Denise (March 6, 2009). "What would a real life Barbie look like?". BBC

News. Retrieved May 23, 2011.20. ̂ "African American Fashion Dolls of the 60s". Mastercollector.com. Retrieved May 23,

2011.21. ̂ "Faces of Christie". Kattisdolls.net. Retrieved May 23, 2011.22. ̂ "Mattel introduces black Barbies, to mixed reviews". Fox News. October 9, 2009.

Retrieved October 18, 2009.23. ̂ "COMPANY NEWS: Mattel Says It Erred; Teen Talk Barbie Turns Silent on Math".

The New York Times. October 21, 1992. Retrieved June 15, 2010.24. ̂ [2][dead link]

25. ̂ "Barbie's Disabled Friend Can't Fit". Associated Press. EL SEGUNDO, Calif.: University of Washington. Retrieved November 6, 2010.

26. ̂ http://gallery.bcentral.com/GID4729088P1681774-COLLECTIBLES/BARBIE/SHARE-A-SMILE-BECKY.aspx

27. ̂ "Kiss That Barbie! Why There Is No Such Thing As A Toxic Barbie". Collectdolls.about.com. June 15, 2010. Retrieved May 23, 2011.

28. ̂ Malibu Barbie, Holiday Barbie ... Toxic Barbie? 2000/08/2529. ̂ ""Jewish" Barbie Dolls Denounced in Saudi Arabia". Adl.org. Retrieved May 23, 2011.30. ̂ "Al-Ahram Weekly | Living | Move over, Barbie". Weekly.ahram.org.eg. June 7, 2006.

Retrieved May 23, 2011.31. ̂ "Muslim dolls tackle 'wanton' Barbie". BBC News. March 5, 2002. Retrieved April 26,

2010.32. ̂ "Barbie dolls become 'hate' figure". BBC News. December 19, 2005. Retrieved April

26, 2010.33. ̂ "Press Release – 19 December 2005 University of Bath". Bath.ac.uk. Retrieved May

23, 2011.34. ̂ Sean Poulter (April 30, 2009). "Barbie given tattoos by makers to mimic high-profile

celebrities like Amy Winehouse". Daily Mail. UK. Retrieved May 23, 2011.35. ̂ "FBI memo raises Barbie child pornography fears". BBC News. December 6, 2010.

Retrieved December 23, 2010.36. ̂ "FBI: New Barbie 'Video Girl' doll could be used for child porn". CNN. December 4,

2010. Retrieved December 23, 2010.37. ̂ "Barbie Liberation". Sniggle.net. May 23, 1996. Retrieved May 23, 2011.38. ̂ Firestone, David (December 31, 1993). "While Barbie Talks Tough, G. I. Joe Goes

Shopping". The New York Times. Retrieved April 26, 2010.

39. ̂ "Barbie loses battle over bimbo image". BBC News. July 25, 2002. Retrieved April 26, 2010.

40. ̂ "Aqua Barbie Girl lyrics". Purelyrics.com. Retrieved May 23, 2011.41. ̂ "1990's Nissan 300ZX Commercial" youtube April 25, 201042. ̂ "Nissan Toys 2 Barbie Ken Commercial" youtube April 25, 201043. ̂ "Mattel Sues Nissan Over TV Commercial". New York Times. September 20, 1997.

Retrieved March 3, 2012.44. ̂ After Aqua, Mattel goes after Car Ad MTV.com September 24, 199745. ̂ Battleground Barbie: When Copyrights Clash Peter Hartlaub, The Los Angeles Daily

News, May 31, 1998. Accessed July 3, 2009.46. ̂ "''Gangsta Bitch Barbie'' video". S77.photobucket.com. Retrieved March 3, 2012.47. ̂ "Saturday Night Live skit | Inside Barbie's Dream House". S177.photobucket.com.

Retrieved March 3, 2012.48. ̂ "Barbie-in-a-blender artist wins $1.8 million award". Out-Law.Com. Retrieved March

3, 2012.49. ̂ "National Barbie-in-a-Blender Day!". Barbieinablender.org. Retrieved March 3, 2012.50. ̂ [3][dead link]

51. ̂ Published on Friday November 8, 2002 00:00 (November 8, 2002). "The Scotsman". Thescotsman.scotsman.com. Retrieved March 3, 2012.

52. ̂ Barbies Shop in the news53. ̂ "Mattel Loses Trade Mark Battle with 'Barbie'". Lawdit.co.uk. July 25, 2005. Retrieved

March 3, 2012.54. ̂ "1959 Blonde Ponytail Barbie Brings Over $3,000!". Scoop. October 16, 2004.

Retrieved November 6, 2010.55. ̂ "Midnight Red Barbie Doll sets auction record". London: Yahoo!. September 27, 2006.

Archived from the original on Oct 3, 2006. Retrieved November 6, 2010.56. ̂ "Welcome to the official Mattel site for Barbie Collector". BarbieCollector.com.

Retrieved March 3, 2012.57. ̂ "Welcome to the official Mattel site for Barbie Collector". BarbieCollector.com.

Retrieved March 3, 2012.58. ̂ "Welcome to the official Mattel site for Barbie Collector". BarbieCollector.com.

Retrieved March 3, 2012.59. ̂ BarbieCollector.com – Welcome to the official Mattel site for Barbie Collector[dead link]

60. ̂ "Bratz topple Barbie from top spot". BBC News. September 9, 2004. Retrieved April 26, 2010.

61. ̂ "Barbie blues for toy-maker Mattel". BBC News. October 17, 2005. Retrieved April 26, 2010.

62. ̂ Goddard, Jacqui (December 11, 2006). "Barbie takes on the Bratz for $500m". The Daily Telegraph (London). Retrieved December 7, 2008.

63. ̂ "Jury rules for Mattel in Bratz doll case". New York Times. July 18, 2008. Retrieved December 7, 2008.

64. ̂ "Barbie beats back Bratz". CNN Money. December 4, 2008. Retrieved December 7, 2008.

65. ̂ Colker, David (December 4, 2008). "Bad day for the Bratz in L.A. court". Los Angeles Times. Retrieved December 7, 2008.

66. ̂ "Court throws out Mattel win over Bratz doll". Reuters. July 22, 2010. Retrieved July 22, 2010.

67. ̂ Mattel Inc. v. MGA Entertainment, Inc., no. 09-55763 (9th Cir. Jul 22, 2010)68. ̂ Chang, Andrea (January 18, 2011). "Mattel, MGA renew fight over Bratz dolls in

court". Los Angeles Times.69. ̂ "Federal jury says MGA, not Mattel, owns Bratz copyright". Southern California

Public Radio. Retrieved April 22, 2011.70. ̂ Chang, Andrea (August 5, 2011). "Mattel must pay MGA $310 million in Bratz case".

Los Angeles Times. Retrieved August 5, 2011.71. ̂ Anderson, Mae (August 3, 2009). "Bratz maker introduces new doll line". Associated

Press. Retrieved October 29, 2009.

Further reading

Gerber, Robin (2009). Barbie and Ruth: The Story of the World's Most Famous Doll and the Woman Who Created Her. Collins Business. ISBN 978-0-06-134131-1.

Knaak, Silke, "German Fashion Dolls of the 50&60". Paperback www.barbies.de. Lord, M. G. (2004). Forever Barbie: the unauthorized biography of a real doll. New

York: Walker & Co.. ISBN 978-0-8027-7694-5. Plumb, Suzie, ed. (2005). Guys 'n' Dolls: Art, Science, Fashion and Relationships. Royal

Pavilion, Art Gallery & Museums. ISBN 0-948723-57-2. Rogers, Mary Ann (1999). Barbie culture. London: SAGE Publications. ISBN 0-7619-

5888-6. Singleton, Bridget (2000). The art of Barbie. London: Vision On. ISBN 0-9537479-2-1. Boy, Billy (1987). Barbie: Her Life & Times. Crown. ISBN 978-0517590638.

External links

Wikimedia Commons has media related to: Barbie dolls

The Official Barbie Website – Owned By Mattel St. Petersburg Times Floridian: "The doll that has everything – almost", an article about

the "Muslim Barbie" by Susan Taylor Martin USA Today: Barbie at number 43 on the list of The 101 Most Influential People Who

Never Lived The Telegraph: Doll power: Barbie celebrates 50th anniversary and toy world dominance NPR Audio Report: Pretty, Plastic Barbie: Forever What We Make Her Lawmaker Wants Barbie Banned in W.Va.; Local Residents Quickly React March 3,

2009 New York Times: Barbie: Doll, Icon Or Sexist Symbol? December 23, 1987 Barbie at the Internet Movie Database Barbie's 50th – slideshow by The First Post Mattel shuts flagship Shanghai Barbie concept store March 7, 2011

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Barbie is Back… And She’s Going Global

by Tony Daltorio, Investment U ResearchWednesday, February 3, 2010

In 1959, Barbie Millicent Roberts made a name for herself at the New York toy fair and five decades later, she’s still around; though she goes by just Barbie these days.

It’s a name that Mattel (Nasdaq: MAT), the world’s largest toy maker, quickly turned into a global icon. And while the Barbie brand struggled over the last ten years, it made an obvious turn around as evidenced by the larger company’s latest earnings statement, which showed that fourth-quarter profits nearly doubled from the same time in 2008.

U.S. sales for the doll and her numerous accessories rose 9% during the last quarter, the first rise in

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nearly two years. Likewise, Barbie did well internationally; even excluding the positive impact of the weak U.S. dollar, they rose by 5%.

CEO Bob Eckert summed it up simply by saying: “Barbie is back.” And with strong sales of its sister products, it seems reasonable to say the same about Mattel.

Barbie’s Middle-Age Makeover

The last decade introduced plenty of competition for Barbie, in part due to societal changes and how young girls interact with each other. But the company invested heavily in revitalizing the brand, including intense marketing for the doll’s 50th anniversary last year.

The company’s revitalization plan made Barbie dolls more relevant for today’s girls and its marketing campaign worked beautifully. For instance, Mattel’s Barbie Fashonista line became one of the season’s hottest toys, and retailers had similar difficulty keeping the doll’s three-story townhouse – despite its $200 price tag – and $80 camper van in stock due to high demand.

And Barbie got a little help from her legal team as well. One of her edgier and most fierce competitors, Bratz, disappeared from shelves altogether after Mattel won a court battle for the brand’s design rights from MGA Entertainment. Of course, when Mattel prepared a line of its own Bratz dolls for 2010, the other company did succeed in putting at least a temporary stop to that line. But the legal battle hasn’t ended yet and the outcome could end favorably for Mattel.

Barbie Goes East

The Bratz battle will probably stretch on throughout at least this year, but Mattel is pursuing other paths to profit all the same, especially in Asia with major marketing campaigns in China. It plans to take similarly strong action in India, which it believes has the same potential in the long run, despite infrastructure problems it needs to deal with in the short term.

While it waits for India to play catch-up though, Mattel opened its first House of Barbie in Shanghai last year, complete with six stories, play areas and workshops where kids and their parents can design their own Barbie dolls. In addition, it also targeted young, Chinese women with clothing lines from Patricia Fields and Vera Wang, Barbie brand cosmetics, a spa and even a bar that serves grown-up drinks.

Admittedly, the House of Barbie’s adult side hasn’t done as well, since Mattel didn’t do its homework on local consumer tastes and subsequently chose styles that didn’t work for the area. But the rest of the business has a lot of potential, considering that China’s fragmented toy market currently amounts to about $2 billion annually. Mattel could capture as much as $300 million of that if it does its due research

With its line of Chinese Barbie dolls – priced at $6 and up – the company hopes to tap a generation of only children, the product of China’s one-child policy. And those boys and girls are fast becoming big spenders in large part due to their doting parents and relatives.

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Jean-Christophe Pean, Mattel’s Asia-Pacific general manager, calls China “a double-digit growth market, certainly for us.” The company believes it can turn the country into one of its largest five international markets within the next few years and is only waiting on the growing middle class to progress to the next level, allowing Mattel to follow suit.

Mattel Is Playing This One Right

Mattel shares have risen by about 30% since July 2009, when it began to outpace the S&P 500. And its recent performance should help keep it ahead of its smaller rival Hasbro (NYSE: HAS), whose stock still managed to perform largely better over the last decade.

But Hasbro has fewer movie themed tie-ins to call on this year, and its boy division – which contributes about a third of its sales – may struggle to match the strong performance it showed in recent years. For example, as Avatar‘s popularity grows, Mattel’s blue-skinned Na’avi action figures could start to edge Hasbro’s Transformers out of the toy box.

Also in its favor, is the fact that toys remain relatively resilient in a recession, so Mattel should be able to grow steadily and raise their operating margin to the 15-20% range, pushed along by Asia. Between that favorable future and Mattel’s stock still selling on the cheap at only 12 times prospective earnings, it should perform well for patient investors no matter what surprises the economy may bring.

Good investing,

Tony Daltorio

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2 Responses to “Barbie is Back… And She’s Going Global”

Jon the action figures buff Says:

February 3rd, 2010 at 4:31 pm

Mattel is only going uphill from here on… and few people know that Barbie started the beginning of the history of the action figure.

Reply

babyphat Says:

February 11th, 2010 at 9:31 am

BOOOOOOOOOOOOOOOOOOO!!!!!!! barbie kicked bratz off the self and now they are no. one by babies!!!!!!!!!!!! teens want more than a white doll with no fashoin taste!!!!!!!! they want bratz back!!!!!!!!!!!!!!!!!!!!!!!!??????????????????

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Analyzed By:

Justin Gamache

Jessica Levstik

Sarah Lutz

Kevin Malone

Lauren Palmer

Winter Thielen

Case Summary What began as a garage workshop in 1945 has now become the world leader in the design, manufacture and marketing of children’s toys. Harold Matson and Elliot Handler combined their names and began Mattel. In the early stages, picture frames and dollhouse furniture were Mattel’s only products. As time went on, pop culture was influencing the minds behind Mattel and helped create a wide variety of toys. Watching her child play with paper dolls, Ruth Handler came up with an idea that would forever change Mattel. She suggested a three dimensional doll. The name is “Barbie” after their daughter’s nickname. Barbie is the major product line for Mattel which accounts for over 50% of their total sales. In 1960, Mattel went public and was soon ranked in Fortune’s list of the 500 largest U.S industrial companies. By 1964, Mattel opened its first International sales office in Switzerland.

In 1968, Hot Wheels was introduced. It became the second biggest hit since Barbie. By the mid 1970’s Mattel tried to tap into electronic games, but it soon failed because others entered the market at a cheaper price. Mattel changed its strategy and focused on its core revenue, the toys. After this was not profiting, the company decided to refocus on profiting instead of sales volume. They decided to maximize core brands while at the same time identifying new brands with core potential. Another way they did this was through mergers. In 1999, Mattel merged with The Learning Company. The Learning Company produces interactive software for computer games and activities. The idea was to evolve Mattel into a family products company. This idea soon failed and a year later, The Learning Company was dropped. A merger that was successful however was that of the Pleasant Company. This company is the maker of the American Girl collection, which is a series of historical dolls, books and accessories. This merger continues to do well and has American Girl stores in major cities.

Besides looking at strategies, Mattel also need to look at its leadership. From 1997 until 2001, Mattel was lead by CEO Jill Barad. Because she was a female and running a major company, she was constantly in the spotlight. Stock had been declining and many did not approve of her management style. Other areas of the company were deteriorating. Barad resigned and Robert Eckert became

CEO. After Eckert’s first three years, stock prices were rising, and Mattel was ranked 40th on Business Week’s list of top performing companies. Eckert had an agenda of brings stability and predictability to Mattel. He also added new packaging practices which included many languages on them in order to ship from country to country. He also wanted to improve relations with retailers and increase service levels to above 90%.

International sales were also a goal. Even though Mattel was already the largest toy company, Eckart wanted to increase international sales. They ended up doing that by globalizing brands, improving product availability and better alignment of worldwide marketing and sales plans as well as stronger product launches. Mattel took their most recognized product, Barbie, and globalized it. A few countries had a hard time accepting the concept. For example in Islam, the Western influences and characteristics such as makeup, and revealing clothing did not fit their culture. Barbie ended up been pulled from the toy stores there. At the same time, many countries accepted the product and it did quite well.

Another area Mattel strives to exceed in is customer service. Their management philosophy focuses on satisfying customer’s needs and wants. They made some modifications to Barbie, so she takes on different roles in order to relate to different segments of the market. They also realized the market wanted more interactive toys so they decided to release new products yearly that were made for more interaction.

Another area which Mattel strives for is good social responsibility. Mattel demonstrates a commitment to economic, legal, ethical and philanthropic responsibilities. They realize their focus is on children and they try and keep that in mind with all decisions. They use technology to communicate with parents about their corporate marketing strategy. They also take business ethics very seriously. They regularly do full ethics audits to ensure no child labor is involved along with any other ethical standards. The company also wants to keep its potential partners, customers, and other stakeholders happy. They have made a serious commitment to insure ethical values.

Another way they have done this is through philanthropic events. The Mattel foundation promotes philanthropy and community involvement among Mattel’s employees and makes charitable investments to help children in need. It is funded through mainly pretax corporate profits and helps a variety of children’s issues. One of the main goals is to open a Children’s Hospital at UCLA. Within the philanthropy is a Mattel Employee Volunteer Program. Employees are encouraged to volunteer and give back to their communities and to continue it commitment to help children.

Mattel is a unique company, and has changed the world in the area of children’s toys. It has had many ups and downs in its 60 years of existence. With the changes in the environment (i.e. economy, competitors, and changing trends) it has tried to re-evaluate its strategies. It has made many strides to try and keep up with the current changes. In the future it challenges the rate at which children are growing up and moving away with toys. Ever changing technology and the rate at which consumers purchase are also of concern.

With the change of new leadership, Mattel is in a good spot financially, other than factors out of its control. The low economy, the situation in the Middle East and low customer confidence has definitely made an impact. Analysts predict that Mattel has a great potential to expand in International markets. This will increase cash flow and can be of huge success for the company if they continue to follow their strategies.

This company began out of a garage and has become more than a huge success. Mattel has changed the lives of children throughout the world. More and more competitors are emerging, but Mattel has a great chance of continued success.

SWOT Analysis

Strengths One of Mattel’s most important strengths is the history that it has behind their company. Mattel turns 60 this year, with much of that time spent at the forefront of the toy industry. Staying power such as that, leads to brand recognition: in Mattel’s case, this is a positive thing. The brand remains very popular among customers.

This long history has also allowed ample time to develop effective corporate strategies. This includes an integrated focus on the customer. One of the most significant ways this is accomplished is through market research in an attempt to satisfy the market’s wants by releasing new products annually.

Mattel also follows a code of ethics, as well as requiring ethical actions of their suppliers. Such a move also helps ensure the positive perception of their company continues.

Finally, Mattel contributes to the communities in which it operates, particularly to causes benefiting children. It makes it very easy for stakeholders to support a company that will reciprocate the support.

Specifically, Mattel has a handful of very recognizable brands. The largest, of course, is Barbie, which put Mattel on the map at the beginning, and currently accounts for over half of the firm’s revenue. Other products include Hot Wheels and American Girls. Further, Mattel has merged with or struck licensing deals with a number of other established brands, including Disney, Fisher Price, Nascar, and even Microsoft. In addition to diversifying Mattel’s product line, working with these successful and popular names will increase chances for success.

Mattel’s new management has helped to turn one of the company’s former weaknesses into a strength. On time delivery of products to retailers has soared in recent years from 50% to 90%, thanks to improvements in information systems and warehouse facilities. High service numbers have led to happier distributors, a huge plus when considering they are the last contact between Mattel’s product and the customer.

Finally, Mattel has been considerably successful venturing into international markets in recent years. International sales account for over one-third of Mattel’s revenue, with plans to raise that figure to 50%. There are multiple reasons for the company’s international success. First, product availability has been improved in specific market thanks to collaborative efforts with international firms, specifically Bandai Co. of Japan. Secondly, Mattel has been able to simultaneously cater products to each market’s taste, and maintain high flexibility and low costs by simplifying packaging strategies. These, along with a global marketing strategy, are helping to improve Mattel’s prospects for continued international expansion.

Weaknesses Although there are still improvements to be made, Mattel’s weaknesses appear to be far fewer than they were just a few years ago. New leadership appears to have righted the ship, but Mattel has had a history of management struggles and uncertainty since the original co-founders, the Handlers, left the company in the 1970’s. Many of the decisions that have led to trouble can be attributed to this fact.

One frequently occurring mistake is that of unprofitable mergers and acquisitions. While some mergers, such as that with Fisher Price, have proved profitable, others have cost the company severely. Two of the largest financial disasters are the purchase of Intellivision in the late 1970’s, and the Learning Company in 1999, coincidentally both electronic firms. In fact, until the acquisition of Fisher Price, most of Mattel’s attempts to expand beyond their primary market of children’s toys were largely unsuccessful.

The most concerning piece of news for Mattel, however, must be the slipping popularity of their core product, Barbie. As of 2002, Barbie dropped out of the top five selling dolls. Mattel has been scrambling to recapture market share by expanding the Barbie line to items such as computer software and girl’s clothing.

Opportunities The American toy market is becoming increasingly saturated and competitive, along with a downward shift in age of when children abandon tangible toys such Hot Wheels and Barbie for more interactive and technological products. This makes for little opportunity domestically for Mattel if they continue with the same product line. Fortunately, ample opportunity exists in Mattel’s new primary focus, international

markets. Barbie has become an extremely recognizable brand worldwide, and has been selling very well in the markets it has been introduced to, namely Europe and Latin America.

An alliance with an Asian company, Bandai, should also prove very beneficial as numerous eastern countries open their markets to western goods. This market has been left largely untapped, and offers a huge increase in customer base.

Another positive signal for international sales is the weakening dollar. This makes Mattel’s products more affordable in many of these new markets. Furthermore, the company does not experience the downside to a weak dollar in the form of overseas imports and production, as new corporate strategy has reemphasized in-house manufacturing.

Threats The most notable threat in the domestic market is the systematic movement away from tangible toys, which account for a majority of Mattel’s core products, at an earlier age. Children are adopting more interactive and electronic toys earlier in age today, eroding Mattel’s primary market of children under the age of 10. This has already forced Mattel to enter, and may force Mattel to further their involvement in the technological realm, a product category in which the firm has performed very poorly.

Mattel’s attempts to follow their market into the technological realm have included the development of a number of children-friendly websites to accompany their toys. Targeting children with internet sites, however, brings about extra concerns. Mattel must be very careful to protect their legal and moral reputations by respecting the privacy of the children and their families, which is put in jeopardy every time the website asks a minor to provide information. To their credit, Mattel has worked extremely diligently to follow the guidelines of the Better Business Bureau’s Children’s Advertising Unit, and encourage parental supervision.

Other threats include those that have affected most firms in recent years, including the lackluster economy following September 11th. The national recession has led to more frugal spending, and decreasing returns by a majority of companies. Stocks in general have also been more volatile than in the late 1990’s. Mattel’s stock specifically has lacked stability for years, dropping and rising upwards of $30 per share in a matter of years. Such instability can lead to wary investors, and the firm could find itself having trouble generating funds.

Finally, the firm has experienced a recent cultural backlash; to some degree here at home, but very dramatically in some locations abroad.

Problem/Decision Statement Companies compete from day to day within the consumer driven world to have the top selling products in the market. Although Mattel is a well known and reputable company, they are not an exception to this struggle. Mattel will face many challenges in the future, such as: breaking through cultural barriers in order to market their products worldwide, developing products that will receive attention of adolescence as well as the “tweens,” and most importantly, to regain market position.

The issue of regaining market share has become very difficult given the development and shifting of societal norms. With the age that children leave tangible toys constantly decreasing, a lot of market research must be done to understand what the target market will respond to. In order to regain market position, Mattel will have to think outside of the box and look into unexplored markets.

In August of 2002, the Mattel’s core and most recognized product, slipped in the rankings and was not named one of the five top selling dolls in 2002. In response to this, Mattel launched a “mature” line of Barbies known as My Scene dolls, which would market to a newly introduced age group, the “tweens.” Out of “The 100 Best Global Brands,” Barbie was the only Mattel product recognized. Research has shown that children leave tangible toys at the young age of seven. Therefore, it is important for Mattel to understand what is prompting this move. Mattel also needs to establish how best to cater to children between the ages of seven and twelve.

Mattel has also experienced problems breaking into foreign markets due to cultural barriers. The Chinese found it offensive that the Barbie doll did not represent people of their culture, the Russians believe that the doll promotes adolescents to think in a promiscuous fashion at a young age, and the Islamic countries find that the doll goes against their religion with regards to the role and image of women. The foreign market will be very prosperous for Mattel if they can structure their entry into the market appropriately.

By neglecting to face the issues brought to their attention, Mattel could be on a continuous downward slope in the market. One of the greatest pressures a company faces is adapting their products with the constant changing of society. Obsolescence must be avoided, thereby forcing the research and design teams to stay current. If Mattel fails to evolve with the continuously changing society, their products will lose the attention of the consumer and be fatal to the company’s existence. More importantly, the company needs to focus on how they will regain the market position that was once possessed. We can blatantly see the implications of the continuous loss of market share Along with this, if Mattel truly wishes to expand further on a global level, the product packaging will not be the only part that needs adaptation. As stated earlier, Mattel faces many cultural barriers which need to be overcome before market penetration will be successful. By ignoring the proper research and adaptation of products, Mattel will be losing out on a large market that could prove to be extremely prosperous. Without the proper research and understanding of different cultures, Mattel will not have the opportunity to make a great impact on certain areas of the world.

Strategy Alternatives

Strategy #1 The first and simplest strategy for Mattel is to maintain the course of action that it is currently taking. Mattel is a strong company that has strong brand recognition. This might just be a rut that the company is in, and they will pull out on top in the end.

Advantages

The only advantage for this strategy, both short and long term is that they will incur no additional costs. It is very expensive to alter your production and to produce advertisements. This way, they can use the resources they have now, take advantage of the learning curve, and try to compete on price.

Disadvantages

If Mattel decides on this course of action, they may soon find their products on the top shelves of the outlet stores. This will decrease the sales of their products, because they are no longer at eye level. Mattel can also start to see their brand recognition slip if the products are no longer readily visible or available, and consumers will be quick to find substitutes. This will also make it easy for a competitive company to come in and take over the market share that Mattel currently holds.

Over the long-term, if Mattel stays on this course of action, then they can be sure that they will eventually lose all or most of their market share. There are too many ambitious companies that want to make money. If Mattel remains on the plateau where they currently stand, they will be overtaken. The end result would inevitably be that Mattel either goes out of business or gets bought out.

Strategy #2 An alternative strategy is for Mattel to expand into the technology market. Mattel tried to penetrate the market in the mid-1970s with a handheld electronics games and a gaming platform called Intellivision. This expansion did not benefit Mattel due to copycat companies that created cheaper imitation products. In 1999, Mattel tried to penetrate the technology market once again with the purchase of The Learning Company. Even though The Learning Company was well known for their computer gaming software, this ended in failure for Mattel similar to the previous business venture. Although Mattel has not had success in the past, we feel that there is still a market to be penetrated within the technology sector, and see an opportunity for Mattel to become a part of this market

Advantages

There are several short term advantages of Mattel entering the technology market. Within a year of Mattel going into the technology market, they will gain publicity from their repeated attempt to enter the technology market. Mattel will be coming out with new products while exploring a new market. In order to be successful, it will be advantageous for Mattel to create an aggressive advertising plan for the new product line. The new product line will create buzz and cause people to once again take note of the Mattel brand name. Another short-term advantage is the cross-promotion that will occur due to the affiliation of the products within the company. If Mattel comes out with a computer game involving Hot Wheels, it will likely increase demand for the actual Hot Wheels. The benefit will also be felt in the opposite direction: if a child likes playing with Hot Wheels, then he will also want to purchase additional Hot Wheels products.

There are some long-term advantages for Mattel to expand into technology. The technology market is a rapidly growing market, making for a large amount of market share to be gained. Children are losing interest in toys at an age as young as five years old. If Mattel does not figure out a way to get into the technology market, they will inevitably continue losing money and market share Children now want games on the computer or on a gaming system. By gradually coming out with technology products and a proper marketing plan, there is no reason that Mattel cannot reverse its past failures and experience success in the technological market. If Mattel is able to accomplish a successful penetration into this market, they will incur a large amount of growth and as well as greater revenues.

Disadvantages

A short-term disadvantage is the risk Mattel must take in order to pursue such a market. In the past, Mattel has not been successful with technology markets or products. This could be due to Intellivison coming out in the 60s, far before the .com era which has helped to create such strong technological demand. Mattel may have also simply chosen a bad company to merge with in 1999. It could be that The Learning Company was in trouble long before Mattel had ever acquired it. If Mattel decides to make technological toys, it will require a lot of money and man hours to perform the research needed to create a product that will appeal to the appropriate target market, as well as the development of an efficient marketing campaign. This will siphon resources and money away from other key areas in the Mattel Corporation. If the allocation of funds is not properly distributed, Mattel could in turn end up incurring a significant loss.

In the long term, Mattel could be faced with a public that will not accept them as a technology company, which has been the previous response. Mattel has been a toy manufacturer since 1945. Since the technology boom has come and gone, Mattel might be too late to successfully penetrate the market. Mattel may also be too trivial to create computer games that will create demand. Children want exciting action games, not Barbie riding a skateboard down a street. Mattel has very good brand equity; but their reputation may hurt them when it comes to developing technology products.

Strategy #3 Another potential strategy for Mattel is to add-on to and re-innovate their existing product lines. Mattel has made many of the same products nearly since it was established, with the exception of picture frames and doll furniture, which were short lived products. Barbie has changed a little bit, but other than that, the products have remained unaltered. In order to have a competitive advantage, Mattel needs to grow with the market. As of right now, Mattel has four major subsets of their company: Barbie, Hot Wheels, Fischer Price, and American Girls. Mattel may want to consider either expanding on what these sectors make, or developing brand-new sectors to keep their company up to date.

Advantages

The main short-term advantage of re-innovating their products is the hype that Mattel will generate. Mattel is a well known company in regards to their renowned toy manufacturing as well as the respect they have earned among parents for their trusted products. If Mattel produces creative new toys and places their label on them, parents will be inclined to purchase the toys and children will like playing with them.

A main long-term advantage is that it will create a larger target market. Mattel already has established toys for young children. However, if they re-innovate for the tweens market, then they will gain more market share. Children will be inclined to use Mattel products for a longer span of time. Mattel can also gain share in the adult market. There are adults that have a childlike impulse in them. This being said, if Mattel were to advertise collector versions of both Barbie and Hot Wheels, they could also reach the adult market. If the new products are successful and kids cannot get enough

of the toys, Mattel will once again become a popular family name and a preferred brand. This also creates the opportunity for Mattel to strengthen their foreign market. At the moment, there is controversy over some of Mattel’s toys that are sold overseas because they do not coincide with the customs or religion in other countries. There is a huge market to be tapped if Mattel can find the wants and needs in each of those countries. By identifying

these needs, Mattel will break down cultural barriers and have the advantage over other non-indigenous competitors.

Disadvantages

There are some disadvantages to expanding and re-innovating the product lines. Anytime you alter an already successful or once successful product line, there is always some risk. The main risk that the company will face is the initial rejection of the product by the consumers due to change. Also, when it comes to new product lines, they may not be accepted into the market due to the possibility of Mattel misreading the market’s needs and wants. They could create toys that have no demand, or neglect to create toys that do meet the current demand. Money is also a huge factor. It costs a great deal of money to not only create new products, but also to change old ones. If too much money is put into this project, it can hurt other areas of the company financially.

In the long-term, Mattel will find out if their products will fail. In today’s world, the highly saturated toy market is constantly changing and evolving. In order for a product to do well, it needs to be very innovative and create a lot of buzz. Therefore, Mattel has their work cut out for them to create a product that will have customers.

Strategy # 4 The final strategy is for Mattel to strengthen its advertising efforts in their main product lines. Children’s advertising is under a lot of scrutiny in today’s culture, so Mattel needs to be careful implementing this strategy. However, it has been awhile since Mattel has come out with a truly memorable advertising campaign. They need to once again create great demand for their products. The parents are no longer deciding which toys the child will play with, the children themselves are voicing their opinion of what they want their parents to buy at the toy store.

Advantages

Within a year, this strategy will help put the Mattel name back in the minds of its consumers. It will show everyone that they are still here and how their toys ignite creativity in children, a trait few electronics games can provide. This in turn will help reinforce their brand image. In America, Mattel has a very good brand image. Fischer Price is one of the most trusted product lines on the market for baby necessities. This will also help relay that brand image to their toys as well. The advertising has to relay enjoyment and excitement in their new toys. It also has to remind parents that Mattel is the brand they trusted when their children were babies, so why isn’t it the brand they trust today?

In the long run, the advertising campaign will help to create demand, not just for the new products, but for the original products as well. The advertisement will help remind both parents and children how much fun they had with their toys when they were little, and attempt to reintroduce those products to the consumers that once played with them. However, Mattel must be cautious that the marketing division and the production division are in sync with each other. Demand does nothing for a company unless it can be met.

Disadvantages

The main short-term disadvantage for increasing advertising is that it is costly. The price tags on commercial spots are skyrocketing. If Mattel does not have the resources to pay for these spots, then this strategy will be very hard to implement. Again, this strategy will also be taking money away from other

areas in the company. Another disadvantage is that the marketing campain could potentially be pulled from the media due to new restrictions and regulations being placed on the marketing to children. Due to the strict requirements on commercials for children in today’s world, it is very difficult to stay within the delegated restrictions that are appropriate. If the marketing campaign does not fall within the regulated requirements and is pulled from the media, this will prohibit the use of the campaign along as well as harm Mattel’s brand image.

The long-term disadvantages are as follows. In the end, it could turn out that the advertising campaign does absolutely nothing for demand and ends as a complete waste of money for Mattel. Since the entertainment/toy market is so saturated, it is difficult to stand out from the others. This increases the difficulty of a resurgence for Mattel, who has been losing market share in a growing market for the past couple of years. There are millions of potential consumers in the world, but if Mattel cannot figure out a way to reel them in and create demand, they will have to make some major cutbacks.

Recommendation

Strategies 2 & 3: Expand into the technology market /Add-on and Re-innovate Their Product Lines Mattel, Inc. is known to many as the leading manufacturer, designer and marketer for children’s toys. They have accomplished brand recognition throughout the world, and have established offices in over 36 countries. However, Mattel still is faced with the threat of new entrants. Competition in the toy industry is primarily based on price, quality and play value. In order to reside as an industry leader, Mattel must use their leadership skills to take advantage of current market opportunities within their corporation.

Within our fast paced world, come children moving further and further away from toys at an early age than ever before. Although toys such as Barbie have shown previous success, new toys must be established to keep the attention of the older children. Toys have been replaced by more technological products like video and computer games. The age gap has narrowed, and the window of time to sell certain toys is shrinking. With this in mind, Mattel has the opportunity to re-innovate their current toys and add-on to particular product lines in order to maintain the attention of their target market. By combining our second and third strategy, we recommend the creation of a more technological segment with the objective of catching the attention of the older market. Hasbro, a large competitor of Mattel, has already aggressively persued the teen market. Unless Mattel does the same, they may see further decreasing revenues in the future.

Not only are children leaving tangible toys at earlier ages, but the impact of the global market is affecting the success of Mattel. Mattel’s Barbie is well recognized throughout the global market, but is not considered appropriate in all cultures. This controversy opens a window of opportunity for the Mattel brand. We also recommend the re-innovation of existing product lines, enabling acceptance within other cultures. Market research should be utilized in order to grasp the culture within a particular country.

Strategy 4: Increase advertising within main product lines, was not recommended because it does not offer long term success. High costs would be implemented and there is no guarantee that it will result in high returns. Changing demographics within the market have led to decreasing revenues for popular Mattel toys. We do not believe increasing advertising expenses for current product lines provides the best potential returns for Mattel.

Strategy 4: Maintaining current course of action was not recommended because it simply is not feasible. The market is always changing; if Mattel ignores that fact, they will be left behind. Globalization is a reality, and without alterations to current product lines, Mattel will miss out on opportunities to gain a piece of the market.

Implementation Issues

Costs There are many issues that need to be addressed before the strategy alternative can be implemented. The first concern is cost. The creation of new product lines, and the adjustment of others, demands significant financial backing. Mattel not only needs to allocate funds to the research and design, raw materials, overhead and production costs, but they also need the managerial capacity to oversee the entire process. Although we did not choose to implement an increased advertising budget on current lines, advertising will be necessary for the new product lines. Mattel will have the choice to either keep the budget they currently use for advertising and re-allocate the funds among products, or increase the budget altogether.

Past Failures Going into the technology market is very risky for Mattel because of their past experience with both The Learning Company and Intellivision. This may be the greatest issue, because it forces Mattel to come to terms with its past failures. To overcome this and prevent a similar fate, Mattel must merge with a successful technology company and create an appropriate marketing plan. It is imperative that Mattel select a healthy company. They cannot be so desperate as to buy-out a failing company with the intent of turning it around. A merger would also be preferred over an acquisition due to the practice of specialty. Mattel is very successful at making toys for children. They do not have the experience running a technology company. Therefore, Mattel should merge with a company that they can trust to carry out their same values. This way, both will benefit from each other’s strengths. This will also help Mattel financially. Not only will they have another company to share the financial burden with, but they will also attain an established market. Mattel will not have to contribute as much money as they would to advertise an unknown electronics parter’s products because their partner company will already have a following.

This in turn will bring in greater revenue for Mattel.

Customizing to Foreign Markets The final issue Mattel must address is that of selling in foreign markets. An important aspect of going global is being able to adapt to different cultures and to break down cultural barriers. Mattel has done a little bit of this with the changing of the product packaging, and some of their Barbie lines. However, there are still some countries that are boycotting Mattel because they are offended by some of their products that are being sold. While Mattel is expanding their product lines, they need to take into consideration the message each of their products is conveying. By conducting market research, Mattel can find out what values are important in foreign markets. If Mattel neglects to customize to

all of their markets, their new products can fail overseas, and therefore the company as a whole will not be able to expand.

and this will lead to more marketing efforts and hopefully some new target audiences. This is good because the target audience for Barbie and Hot Wheels is shrinking.

All of the issues stated are over come able with the proper research, and the ability to make it happen. With the culture issues being addressed prior to entering there should be minimal resistance. Cost will be coved by the increasing revenue for the updated product lines and marketing campaigns. Letting the new acquired companies run as they were will help cut down on management issues. This will all make the transition into expanded product lines, new marketing effort, and entering new cultures mush easier.

What is this crap at the end?

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June 09, 2008

Years of Success Catch Up With Barbie

In the 70s it was Pepsi versus Coke. The 80s saw Virgin Atlantic take on British Airways. In the 90s it was own-label Puffin against manufacturer brand Penguin. Now, we have Bratz versus Barbie.

The latest battle, like its predecessors, is a fascinating story of competing interests about to spill over into the courtroom, as Mattel accuses Isaac Larian, chief executive of MGA, the company that created Bratz dolls, of 'stealing' the Bratz design. Mattel claims that it was created by a former employee who went on to work for MGA. The category might be girls' fashion dolls, but the struggle could not have higher stakes.

Larian believes his brand has supplanted the market leader, and he has the consumer insights to prove it. 'When we ask kids: How old are Bratz Dolls? They think they are teenagers. When they look at Barbie they say, "old" and "it's Mum'," he says.

No one can accuse Larian of failing to deliver on the contemporary positioning of his Bratz dolls. They have skimpy clothes and oversized features, such as huge almond eyes and pursed, full lips. The characters have eschewed ambitious social goals for a simple philosophy - 'a passion for fashion'. So far, this is working; Bratz has outsold Barbie in the UK for the past four years.

For most of the past five decades, Barbie has reigned supreme in the hearts of little girls. In the US, 90% of young girls own at least one Barbie. However, as good marketers know, nothing breeds branding trouble like consistent, unchallenged success.

For starters, there is the problem of keeping the brand youthful as generations of little girls move into, and out of, the target market. Keeping Barbie relevant to the ideals of nine-year-olds in 2008 is very different from creating the positionings that appealed to her mum or her grandmother.

One of the great paradoxes of branding is that you must keep changing to remain consistent, and Mattel appears to be losing the struggle to keep Barbie contemporary.

Chuck Scothon, vice-president of girls' products at Mattel, believes Barbie's values of 'courage, inspiration and imaginative play' are superior to the 'shallow fun' of Bratz. 'If Barbie reminds some girls of mothers, I can't think of anything better. One of the most important jobs a woman can take is being a mum,' he says. This may make sense to a 40-year-old marketer, but nine-year-old girls just want to look cool.

Another problem for Barbie is that she was created in the mould of the 50s archetypal, idealised woman: blonde, blue-eyed and impossibly slim. The fact that Bratz dolls began life in 2001 has given their DNA more global origins. Larian is very conscious of this.

'I don't think an African American girl, or a girl with a Middle-Eastern ethnic background, or a Latin girl, wants a blonde doll. They want one that resembles them,' he says.

Half a century of market dominance has left Mattel ill-equipped for competition with an aggressive, contemporary market entrant. It took Bratz barely three years to make major inroads into Barbie's leadership, and recent publication has brought to light an internal email sent by a senior Mattel executive in 2004, lamenting that the company had been 'out-thought and out-executed' by MGA. The email concluded that 'theBarbie business is in serious decline'.

Mattel's response to the situation is along the lines of 'if you can't beat them, sue them'. Barbie's last hope is not Ken but John (Quinn), the prosecutor now making the case for her against Bratz in court.

30 SECONDS ON ... BARBIE vs BRATZ IN THE COURTROOM

- Mattel's case against MGA began late last month in California. Mattel attorney John Quinn began proceedings by asking how MGA could 'suddenly, overnight, become one of the most innovative toy companies in the world'. He went on to accuse MGA of stealing the idea for Bratz from a design that had originated at Mattel.

- Mattel is fighting for a share of the estimated $500m (£255m) a year that Bratz is generating for MGA. The money will help to offset a downturn in sales at Mattel; Barbie's Q1 sales slipped by 12% in the US this year, and this trend looks likely to continue for the rest of 2008.

- MGA's case rests on the argument that the Mattel designer in question, Carter Bryant, first had the idea for Bratz in 1998, some eight months after he left Mattel's employment. MGA has also counter-sued Mattel on the basis that the Barbie is a copy of the Bratz doll.

- The case is likely to drag on for at least two months. If the losing party lodges an appeal, a final verdict will not be reached before 2009.

 

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GREAT MOMENTS IN KIDDIE MARKETING:

Barbie Vs. the Misfits

Introduced in 1958 as "anatomically perfect," Barbie was modeled after a German doll/cartoon prostitute named Lilli. Unlike other dolls at the time, Barbie dolls resembled full-grown women (as opposed to babies, dwarves, or animals), enabling young girls to act out their fantasies of the adult world: shopping, buying clothes, wearing makeup and jewelry.

From the start, clothes and accessories were central to Barbie's success. While the doll retailed for $3 in the mid-sixties (a $6 version with various wigs was also available), the complete wardrobe cost 45 times as much: $136. More profitable than the dolls themselves, fashion accessories encouraged year-round spending to constantly update Barbie's image. The ageless doll (was she sixteen? thirty?) was the blank slate--and the clothes and accessories, the signifiers of choice--upon which girls could project themselves and situations they imagined. As Barbie's 1987 slogan put it, "Girls can be anything" (as long as they had the right clothes).

After twenty years as a top seller, Barbie's sales started to wane in the mid-eighties, largely due to the lack of a comprehensive promotional

strategy. Her creators, Ruth and Elliot Handler of Mattel, didn't want to specify Barbie's personality, because this might limit the imagination of girls who play with the dolls. Without a comprehensive TV marketing plan, her own show, and hundreds of coordinated licensing arrangements, Barbie was losing market share, mostly to a new character doll named Jem.

Jem--Barbie's first serious rival in a market flooded with imitators--was launched in 1986, complete with a television show, books, posters, T-shirts, and tape recorders. Every detail related to her character, every bit of narrative, was carefully calculated, targeted, screened, and analyzed. After extensive market research and planning, Jem was born: crusader for orphaned girls by day, rock star by night. As Jerrica Benton, she ran the Starlight Home for Girls (inherited from her father) and communicated with a special computer via her earring . . . which somehow would transform Jerrica and her friends into Jem and the Holograms, pink rock band, forever to battle rival rockers the Misfits and their greedy punk rock manager (I'm not making this up). A typical commercial for Jem went like this:

Chorus: (over animation from the series) Jem.

Female voice: Battling the Misfits, battling, battling the Misfits.

Girl 1: (watching Gem) Your clothes are outrageous.

Girl 2: Truly outrageous.

Misfits: We are the Misfits, we are better. Our music is better, and we are taking it all. Taking it, taking it, taking it all.

Girl 2: It's Jem and the Holograms.

Girl 1: The Misfits are better.

Girl 2: We'll let our fans decide.

Female Voice: Flash 'n' sizzle Jem, the Holograms, and the

Misfits, each sold separately with cassette.

Chorus: Jem!

The Mattel camp responded to all this by fighting fire with fire. Come 1987, Barbie had both a rock band and a TV show.

Apparently, Mattel's fantasies were more effective at moving dolls than little girls' fantasies: Barbie sales went back up and Jem bit the dust.

Not that Mattel's financial woes were limited to Barbie's sales. Ruth Handler pleaded no contest and was found guilty in 1978 for conspiracy, mail fraud, and falsifying statements to the SEC. Handler received a 41-year suspended sentence, $57,000 suspended fine, and 2,500-hour community service. Upon leaving Mattel, she quit the toy industry for good and started a new business: manufacturing artificial breasts for cancer victims. Her new product, Nearly Me, became "the Cadillac of the business," generating several million dollars a year. --CM (Sources: Out of the Garden; Toyland; Fashion and Merchandising Fads)

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History of Barbie

Barbie was born in 1959 and was produced by Mattel, Inc. Ruth Handler is the creator of Barbie after seeing her daughter, Barbara, played with her paper dolls. She noticed that her daughter likes to act out mature roles.

During those times, most of children's dolls were representations of infants. After seeing the potential market for these type of dolls, Handler suggested the idea of making adult-bodied doll to her husband Elliot. Elliot is a co-founder of the Mattel toy company. But he was not really interested about the idea, as well as the other Mattel's directors.

In 1956, Ruth had a tour to Germany with her children Barbara and Kenneth. That's when Ruth Handler came across a German toy doll called Bild Lilli. Ruth was amazed to see the adult-figured Lilli doll, so she purchased three of them. She gave one to her daughter and brought the other dolls to Mattel.

When Ruth went back to America she decide to redesigned the doll together with Jack Ryan, an engineer who is working for Mattel. Since then the newly designed doll was called Barbie which was named after Ruth's daughter, Barbara.

It was in March 9, 1959 when Barbie made her first appearance at the American International Toy Fair in New York. This date is also now used as Barbie's official birthday. It was in 1964 when Mattel acquired the rights to the Bild Lilli doll. Since then production of Lilli dolls were stopped. The first Barbie dolls were manufactured in Japan. During the first year of its production, around 350,000 Barbie dolls were sold.

Although some were unhappy about Barbie's appearance especially with her distinct breast and figure, Ruth Handler still believed that it is important for Barbie to have an adult appearance. But due to parents unhappy response to Barbie, Mattel decide to change some of her original appearance.

It is estimated that over a billion Barbie dolls have been sold worldwide in over 150 countries. Barbie's success was attributed mainly on extensive advertising and marketing plan of Mattel.

Barbie is now considered as a cultural icon and has been given honors that are rare in the toy world. In 1974 a section of Times Square in New York City was renamed Barbie Boulevard for a week, while in 1985 the artist Andy Warhol created a painting of Barbie.

Barbie Stuffs on Amazon

Barbie Glam Vacation HouseAmazon Price: $36.90List Price: $39.99

Barbie in A Mermaid Tale 2Amazon Price: $11.99List Price: $19.98

Barbie Strollin Pups PlaysetAmazon Price: $16.00List Price: $20.99

Neat-Oh! Barbie ZipBin DreamHouse Toybox & PlaymatAmazon Price: $16.51List Price: $19.99

Modern Barbie Dolls

Since the development of technology, the way Barbie being played also evolved. Nowadays, you don't need to buy your own Barbie, because you can play with them anytime you want online.

Everyday, hundreds of Barbie dress up games were made for kids and also to kids at heart. This new development makes it for people to play their favotire Barbie dolls anywhere and anytime. Also you don't to buy all the trendy clothes of Barbie because they are already available online. ot only that, kids can now play with their Barbies for hundreds of times without even breaking or tearing them apart.

Here are just some of the dress up games sites I've found online that features different Barbie dress up games.

Barbie at Many Dress Up Games.com Barbie-Dress Up Games.com

Have fun with you Barbie Dress Up Games now!

Play Barbie Dress Up Games

New Games @ Many Dress Up Games

This does not appear to be a valid RSS feed.Ads by GoogleLooking for Barbie Na? www.Facebook.comFind Barbie Na on Facebook. Sign Up Free Now!18" Doll Clothes Patterns LibertyJanePatterns.comDownload Our PDF File, Print It, & Begin Making Trendy Clothes FastMarketing EconomicTimes.Indiatimes.comLatest News, New Product Release, Tech Industry performance & More !

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karen 3 years ago

hi!!!!!!!!!!!

albana 2 years ago

shum bukur shum madje shum shum shums

samrina 2 years ago

i like barbie in the diamond castle "the movie" thanx for making this beautiful movie.i wish i was also in this

stanley 2 years ago

good and wtf and you so loser

nimra 16 months ago

bad games

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On Eve of Turning 40, Barbie Faces Midlife Marketing Crisis

ADVERTISING & MARKETING

February 04, 1999|GREG JOHNSON | TIMES STAFF WRITER

She's had her share of plastic surgery, seen the spotlight shift to an upstart younger sister and heeded the call for diversity by evolving from blond bombshell to a multihued, multi-tasking, multimedia Barbie.

But as Barbie starts celebrating her 40th birthday party this weekend at the annual American International Toy Fair in New York, the world's best-selling doll faces a midlife crisis brought on by changing play patterns among Barbie's young fans and fundamental shifts in the way toys are sold.

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Shipments of Barbie dolls, apparel and accessories fell by 14% in 1998 to just under $2 billion, a dramatic reversal for a play toy that for years delivered double-digit revenue growth for El Segundo-based Mattel Inc.

The doll's uncharacteristic slip notwithstanding, Mattel Chairwoman Jill Barad predicts that the parade of new Barbie products being introduced at Toy Fair will take Barbie to "high single-digit" sales growth in 1999. Speaking during a Tuesday conference call with analysts, Barad maintained that Barbie's future "has never looked better."

Barbie remains by far the world's most popular toy--sales at the retail level actually increased during 1998, although much of the sales were of merchandise marked down by retailers eager to clear their inventories.

But some industry observers are wondering if the world's first material girl has the right stuff to continue as a growth engine in an increasingly interactive age. Although Barbie has taken her first steps toward a multimedia future, observers say the doll's success remains tied to her role as a basic toy.

"Mattel wasn't just sitting on its hands last year, but for whatever reason, it didn't win the pot," said John G. Taylor, an industry analyst with Portland, Ore.-based Arcadia Investment Group. "What I think they need to see is kids start to head back into the doll aisle in a meaningful way."

As it tries to revive Barbie's fortunes, Mattel will continue to play to its decades-old strength of marketing myriad versions of the doll and her friends to girls between the ages of 3 and 8.

But Mattel knows that little girls can only buy so many dolls, so the Barbie line is being expanded to include a doll designed to appeal to older girls and younger teens with plenty of discretionary income.

The marketing plan calls for Barbie to continue her march into the hotly competitive world of interactive toys and games. Mattel also wants to craft a new line of Barbie-inspired fashions for girls that will be sold through department stores and mass merchants.

In short, Mattel wants to turn Barbie into a lifestyle brand that includes everything from music CDs to books. "Just as adults say, 'I want a Donna Karan suit,' we want girls to say, 'I want Barbie overalls,' " said Lisa McKendall, Mattel's director of marketing communications.

Mattel's battle plan runs counter to a world in which girls tend to put their toy dolls on the shelf as they see their peers gravitating toward more grown-up interests--and industry statistics suggest the trend is occurring earlier than ever before.

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But Mattel counters that there's a market for Barbie among older girls. For proof, it notes that Barbie software registration forms show most buyers to be older girls or younger teens.

As Mattel tries to broaden Barbie's appeal to older girls, toy industry observers caution that the company must safeguard Barbie's relationship with young girls who use their imaginations to craft their own story lines each time they enter Barbie's world.

"That's the reason we've stayed away from entertainment and books with story lines, because we don't want to give Barbie definable attributes," McKendall said. "There's a very fine line to walk, and we're aware of that line at all times."

When apparel and accessories are counted, Barbie still sells the cash equivalent of 1.5 million dolls each week, so observers say she's well-positioned for a rebound. "The fundamentals are still in place, but Mattel has to put in place the vehicle to make it happen," said Eric Johnson, a professor at Vanderbilt University's Owen Graduate School of Management in Nashville who studies the toy industry. Mattel will stick closely to the formula it has used to build Barbie from a $200-million toy in 1982. Look for new occupations for the doll who's already toyed with more than 75 careers. Barbie also will squeeze new friends into her busy social calendar, and add to her sizable menagerie of cats, dogs and horses.

The avalanche of Barbie product starts this weekend in New York, where Mattel is painting the town Barbie Pink with advertisements on buses, billboards, taxis and trains. But the message will be different from that of recent advertising. Instead of telling young girls they need Barbie dolls, Mattel is shifting its marketing message to their mothers.

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Business Plan-Lego and Barbie-Free Essay

Posted by Thanhthai2212 | 4:22 AM | Business Plan | 0 comments »

Marketing Plan1. Market segmentation :

In general, Lego and Barbie are two kinds of plastic toys so they should be especially focused and offered to children. According to Unicef Vietnam, there are approximately 30 millions children which is 36% out of total Vietnamese population. It can be seen that market’s range is very high so segmentation process must be evaluate carefully the most. Consider about geographic, all the three parts in Vietnam will be targeted at the same level. More detail, we are going to get attention mostly from big cities and urban areas such as Ha Noi, Ho Chi Minh and Da Nang.

A. Lego: For Lego, it was already a famous toy brand since the year 1950s. Based on Lego’s reputation and market we tend to continue offering normal-quality as well as high-quality toys whereas the price is at an affordable level for the family at even an under income scale in Vietnam. In order to limit the market segment, the focused section is planed to be children from 4 to 13 years old. Based on Vietnamese General Statistic Office and our calculation, there would be more than 15.6 children involved in this section equal to 19.5% in total 80 millions Vietnamese population. To be more specific, we only take a half of above number. In detail, because the main feature of Lego’s toy is to train the creativity of children through combining many “colorful interlocking plastic bricks” to shape various objects. Therefore, it is the fact that boys are easy to be appealed than girls due to the complexity of Lego’s toys so obviously they are who we mainly aim at.

B. Barbie: In contrast to Lego, targeted segment of Barbie doll is all the girls from 4 to 13 years olds. In our plan, Barbie’s quality is going to be normal as well as the price offering. We tend to provide Barbie dolls for all the girls which are living in the upper-normal living standard families. One challenge for our products is how to approach customers because they are all children, they can not buy toys by themselves. It is the truth that we need to attract both children and their parents as well.

2. Marketing Goals

A. Lego’s Marketing goals :• Domesticate 30% of toy’s market share in Vietnam at the end of quarter 4 of 2009. Keep growing constantly 5% every following quarter.• Income is expected to increase at least 20% each quarter.• Guarantee for a high quality product and an affordable price.• Expanding and improving quality of after and before sales services in order to achieve the customer royalty as well as customer retention.• Focus not only children but also their parents, who concern about quality and safety of products.

• Never stop refreshing products and services.

B. Barbie doll’s Marketing goals• Gain 20% market share of toy in Vietnam after 8 quarters. • Growth rate is maintained at 5% ~ 7% each quarter.• Income increases steadily at a high rate of 40% every 2 quarter.• Customer’s satisfaction must be considered carefully as the most important part of Barbie doll’s business.

3. Marketing Strategy and Marketing Key Performance Indicator (KPIs) 3.1. Marketing Mix Strategy:The ambitious marketing goals that we have mentioned above reflects that our aim is to make a really big jump in business and toy’s market. It can be seen that to reach this level, Hamachi company needs to use reputation as an advantage while impressing customers with a positive image. In this part, based on the Porter’s Generic Competitive Strategies theory (Porter, M, 1985) we will present the Marketing Mix Strategy contains 4Ps, Products, Price, Promotion and Place. It will show clearly which way we use to approach all the goals mentioned.

A. ProductBased on “Three levels of product” (Kotler.P,2005), we will bring you some analyses to show how our products different with other competitor’s products

• Core benefit:It’s easy to realize the main purpose of Lego and Barbie when they are sold to the children, to Entertain. However, a product can not survive for a long time if we introduce them only for entertainment purpose. The first product is Lego, we want to bring children not only a game to play but also a chance to gain their creativity through arranging and mixing up various colourful bricks into one perfect shape. Consider Barbie doll, it can be seen that they are not the same from head to toe. What we try to create here is the collective value. • Actual product:Both Lego and Barbie also have great brand name as well as reputation so it is obviously an advantage for our Hamachi over other competitors. As the fact of Toy market in Vietnam, low quality products come from China and other countries are having priority over high-quality toys so we will make the difference. From the beginning, level of Quality is always at least normal with Lego and high with Barbie. The design of Package and Product is important because it will be able to catch the children’s eyes. It must be colourful as well as trendy style. In detail, Lego toys are more modern while Barbie doll is always following the newest trend such as the hottest singer at the moment or even introducing the doll with face of the new president.• Augmented product:Though services are intangible, we are planning to put a lot of money in this part. If children are attracted by fantastic look and beauty of toys, their parents judge Toy in another way. They consider about safety and also moral issue what mainly affect their children. Therefore, we are going to include the guarantee certificate of quality and safety in every package of both Lego and Barbie dolls, note that they are available for 1 year. We also operate a hotline running 24/24 in order to provide for any help as well as receive the complaints from customers. After buying a

product, every customer will be given a card of Hamachi to collect point for each time so when it is accumulated certain times, they would be received a special gift or a discount for every Hamachi’s products.

B. Price

Price of Lego is higher than Barbie so Lego will be made as a lead product of Hamachi. Price of Lego is set at a high level and the quality is also very high indeed. Due to the low quality, demand of Barbie doll becomes lower than Lego so we tend to produce only a small number of Barbie doll. At the first quarter, the price of Lego will be 67$ and Barbie will be 49$. In the following quarter, we plan to increase the quality of Lego as well as its price. In contrast, Barbie’s price will increase slightly and the quality will be upgrade to a higher level.

C. PromotionThere are 3 ways to promote our products, by TV advertising, Newspaper advertising and Magazine advertising. Our company is targeting to put effort on TV advertising because it is the shortest way to get attention from children. Colourful advertisement with famous comic characters sure will be able to appeal all the boys and girls. The second way to approach customers is magazine. The reason why we choose magazine is because magazines are colourful and easier to get to children’s mind. Nevertheless, with magazine we can add more descriptions. This is the thing which TV advert cannot fully provide due to the shortage of time appearing on TV. Some of our products can be produced and designed to follow the real characters. For instance, Star wars characters or some comic characters. The last and probably the least is the Newspaper advertising. The reason why we use Newspaper least because it does not provide most of the characteristics that are demanded to meet the requirement. We can create the replicas and put them in our showrooms where children and their parents can go to and see the products in real life.

D. PlaceIn the near future, we are planning to open 4 official shop in Ha Noi included one at Trang Tien Plaza and another at Vincom city towers, the 2 biggest shopping centre in Ha Noi. Soon there will be a shop where customer can receive the all the fastest maintaining services as well as exchanging products. The places are required to have such a good view and can attract our potential customers. To do that, we have to have our s unified in our very own style. More specifically, the places are required to be attracting yet friendly which is the things that our potential customers are looking for

3.2. Marketing KPIs

a. Efficiency of advertising

• Definition: how effects in comparison between the money that spend on advertising with the effects of those.• Measure: the quantity of goods sold (sale) in every quarter.• Target: decrease the cost for advertising but still keep the number of tradition customers and

attract new ones as well as reach 5%sales per quarter.

b. Sales forecast and actual demand

• Definition: the sales forecast should be close to the actual demand.• Measure: the differences between forecast and actual can be seen in the Quarter Performance Report. Manager can find the errors and take experiences for the next forecast.• Target: become one in top 3 companies that forecast very closely to demand in the fact.

4. Marketing Forecast

4.1. Price for the 1st 4 quarters

Unit Price Quarter 1 Quarter 2 Quarter 3 Quarter 4LEGO $67 $69 $69 $72Barbie $49 $50 $51 $51

4.2. Advertising for the 1st 4 quartersMarketing decision Quarter 1 Quarter 2 Quarter3 Quarter 4TV adv LEGO 1 2 2 4Barbie 1 1 3 2Newspaper LEGO 23 27 33 37Barbie 21 23 28 34Magazine LEGO 2 4 5 7Barbie 4 3 2 3

Quarter 1 Quarter 2 Quarter 3 Quarter 4Advertising LEGO BAR Total LEGO BAR Total LEGO BAR Total LEGO BAR TotalTV 5,000 5,000 10,000 10,000 5000 Newspaper 23,000 21,000 44,000 27,000 Magazine 6,000 12,000 18,000 12,000 Subtotal

4.3. Market research for the 1st 4 quarters

Marketing research decision Quarter 1 Quarter 2 Quarter 3 Quarter 4Price TV Newspaper Magazine Prod Quality Unit Sold Market demand

4.4. Sales forecast for the 1st 4 quarters

Product 1 Product 2Quarter 1 6400 5700Quarter 2 7002 6003Quarter 3 7150 6230Quarter 4 7350 6590

Sales Fore Cast Quarter 1 Quarter 2 Quarter 3 Quarter 4Unit SalesLEGO 6400 7002 7055 7350Barbie 5700 6003 6240 6590Total Unit 12100 13005 13295 13940Units PriceLEGO $66 $69 $72 $73Barbie $49 $53 $55 $56SalesLEGO $422,400 $483,138 $507,690 $536,550Barbie $279,300 $318,159 $343,200 $369,040Total Sales $701,700 $801,297 $850,890 $905,590

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