...Failure of the Barbie Doll in the Indian Market Priti Nemani* INTRODUCTION .......................................................................................... 97 I. GLOBALIZATION AND THE MULTINATIONAL ........................................ 99 A. Globalization Defined ................................................................ 99 1. The Key to the Kingdom: The Globalized Brand ............. 100 B. Barbie in the Global Economy ................................................. 102 1. Barbie‘s History................................................................. 102 2. Corporate Philosophy and Marketing Strategies behind Barbie ................................................................................ 105 II. MATTEL‘S BUSINESS VENTURES IN INDIA ......................................... 107 A. The Late 1980s: Barbie’s Tango with the License Raj ............. 107 1. The Licensing System ....................................................... 109 2. Limits on Foreign Direct Investment .................................110 3. Mattel‘s Joint Venture ......................................................... 111 B. India’s Economic Liberalization and Mattel’s Second Chance at Success...................................................................................113 1. India, the IMF, and the World Bank ...................................113 2. Mattel in India from 1993-2010 .........................................115 III. UNDERSTANDING WHY BARBIE FAILED IN INDIA...
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...Mattel Case Study Dolls facing new challenges on the global market I. Executive Summary Mattel produces and sells various toys around the world and among these Barbie fashion doll is the flagship. This product was criticized from more aspects from other cultures of Aisa where the lifestyle Barbie represents is not commonly accepted. On the other hand privacy issues were raised by parents regarding the digital marketing activity of Mattel, as rights of children are related in this market. Mattel needs to consider whether these challenges are related specifically to the lifestyle Barbie represents, whether the lifecycle of Barbie can be expanded in a changing global environment. Or the issues are the signs of a general change regarding toys marketed internationally and also digitally. I came to the conclusion that Mattel needs to introduce a new doll which fits the new expectations. II. Problem/Issue Statement Mattel is the No 1. toy producer in the world, in terms of Sale. Their products with the strongest market presence are based on the concept of dolls / collectibles, where these characters are supported with background story, additional gadgets, additional releases of attached tools. The flagship brand of the company is the fashion Barbie doll, which was 50 years old in 2009. Barbie represents an independent, young American girl and as a fashion doll it acted in different professions and situations during the years. Thanks to this concept the lifecycle of the brand could been expanded on...
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...house in Malibu. Every day, she wears high-heels to work, and even runs a fashion chain under her name. For many, she was the influential icon of American culture in the late 20th century. Until now, I dare say that her image is still very potent worldwide. Who is she? Never before has she ever starred in a Hollywood movie or performed at a famous fashion show. Surprisingly, she never exists in real life and she is literally a toy. Yes, it can hardly be any other toy but Barbie. Nowadays, girls can be seen wearing Barbie clothing, using Barbie perfume, carrying Barbie backpacks, and sleeping in Barbie pajamas, not to mention cosmetics, sneakers etc. (Morgenson 1991, 66). Mattel, Inc., the mother company of Barbie, should feel proud of her. Because on average, an American girl has ten Barbie dolls, a British or Italian girl may own seven, while five is the number of Barbie that a German or French girl has. It was Mattel’s purpose and will when introducing Barbie that she would become a lifestyle, a fashion statement, a way of life, something sacred more than just a doll. And in fact, she did! This plastic doll is worth being considered a legend, which can represent many statuses in the society regardless of gender, skin colour or classes, thus remaining attractive to different girls’ generations since its year of birth. Barbie...
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...Rasheena Rattu P11270471 The aim of this project is to understand how visual merchandising can impact young adults impulse buying patterns. During the project I will create surveys for face to face interaction, experimental studies in controlled and structured environments such as toy stores which then would develop into case study on particular families which were interesting during the experiment. Identify-I would like to identify the key factors of visual merchandising for young adults – what works best, what persuades a young adult to buy? Compare- the different technique that works with different ages for example, a particular technique would work better with a 7 year old rather than as 15 year old. Look at different stores such as grocery store, toy store and clothing store. Establish the key factors of impulse buying for young adults in a retail environment Establish needs and wants for young adults and how impulse buying can play a big part Establish the most used visual merchandising techniques in retail “Successful retailers are aware of and satisfy shoppers’ expectations in decor and presentation. All VMs must know their products well and know their target customers’ wants and needs. Disappointing a customer is negative retailing.” , ‘Visual Merchandising: The Business of Merchandise Presentation’. Robert Colborne Initially I need to research children’s characteristics, what they enjoy looking at, when they begin to recognize brands, behaviours when wanting...
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...The Problem: The problem surrounding Mattel Inc., one of the world’s largest toy companies, is their mismanagement of international subcontractors and vendors and the production of certain toys (the manufacturing process), as well as their inability to adapt their marketing strategy or product to the constantly changing “demographic and socioeconomic trends” (Ferrell, et. all 466). This is supported by Mattel’s legal battle with Carter Bryant and MGA, their forced recall of certain toys that were manufactured overseas, and the increasing rate at which traditional toys are becoming less appealing to today’s young audience. Essentially, Mattel’s mismanagement and oversight lead to violations in terms of ethical and social responsibilities and safety standards. Issues Relevant to the Problem: Mattel’s problem of mismanagement can be divided into several issues that need to be considered: legal issues, international supply chain issues, and an increase in technology-based toys. In regards to legal issues, Mattel has been involved in prolonged litigation with Carter Bryant and MGA over a breach of an employment contract and copyright infringement. Due to Mattel’s poor management of its overseas manufacturers, in which unauthorized subcontractors and third-party suppliers were hired and unsafe materials used, several toy products were recalled. Advances in technology and changes in socioeconomic and demographic trends have created marketing, privacy, and product development issues...
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...University of New Mexico http://danielsethics.mgt.unm.edu Mattel Responds to Ethical Challenges INTRODUCTION Mattel, Inc. is a global leader in designing and manufacturing toys and family products. Well-known for brands such as Barbie, Fisher-Price, Disney, Hot Wheels, Matchbox, Tyco, Cabbage Patch Kids, and board games, the company boasts nearly $5.9 billion in annual revenue. Headquartered in El Segundo, California, with offices across the world, Mattel markets its products in over 150 nations. It all started in a California garage workshop when Ruth and Elliot Handler and Matt Matson founded Mattel in 1945. The company started out making picture frames, but the founders soon recognized the profitability of the toy industry and switched their emphasis to toys. Mattel became a publicly owned company in 1960, with sales exceeding $100 million by 1965. Over the next forty years, Mattel went on to become the world’s largest toy company in terms of revenue. In spite of its overall success, Mattel has had its share of losses over its history. During the mid to late 1990s, Mattel lost millions to declining sales and bad business acquisitions. In January 1997, Jill Barad took over as Mattel’s CEO. Barad’s management-style was characterized as strict and her tenure at the helm proved challenging for many employees. While Barad had been successful in building the Barbie brand to $2 billion by the end of the 20th century, growth slowed in the early 21st. Declining sales at outlets such as Toys...
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...Kimberly Tucker, Chris Salt, Ashley Solomon Case 7: Mattel: Overcoming Marketing and Manufacturing Challenges 11/01/2010 Marketing Management 6800 Section 004 The Problem: The problem surrounding Mattel Inc., one of the world’s largest toy companies, is their mismanagement of international subcontractors and vendors and the production of certain toys (the manufacturing process), as well as their inability to adapt their marketing strategy or product to the constantly changing “demographic and socioeconomic trends” (Ferrell, et. all 466). This is supported by Mattel’s legal battle with Carter Bryant and MGA, their forced recall of certain toys that were manufactured overseas, and the increasing rate at which traditional toys are becoming less appealing to today’s young audience. Essentially, Mattel’s mismanagement and oversight lead to violations in terms of ethical and social responsibilities and safety standards. Issues Relevant to the Problem: Mattel’s problem of mismanagement can be divided into several issues that need to be considered: legal issues, international supply chain issues, and an increase in technology-based toys. In regards to legal issues, Mattel has been involved in prolonged litigation with Carter Bryant and MGA over a breach of an employment contract and copyright infringement. Due to Mattel’s poor management of its overseas manufacturers, in which unauthorized subcontractors and third-party suppliers were hired and unsafe materials used, several...
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...4: In the next phase of the project constructing the dam itself should HG employ someone whose main function is that of liaison between its corporate culture and the culture of its host country? If so, is Martin the right person for the job? Answer: Given the importance and the size of the project, as well as the many pitfalls that will surely be encountered along the way, it seems only logical to employ someone who is extremely well versed in the culture of Uganda to serve as a liaison with HG’s headquarters. Whether that person is Martin or someone else, however, HG must establish clear guidelines that reflect both U.S. law and corporate policy to guide the managers of their foreign operations. 4.IN HG’s NEXT PHASE, THE DAM CONSTRUCTION, SHOULD IT EMPLOY SOMEONE WHOSE MAIN FUNCTION IS TO BE A LIAISON BETWEEN HG’s CORPORATE CULTURE AND THE CULTURE OF UGANDA? IF SO, SHOULDMARTIN BE THE PERSON FOR THE JOB? The assignment taken up by Hydro Generations to construct a power plant in Uganda can be viewed in different phases. The first and initial phase can be listed as establishing an operating structure so that future work activities could be carried out smoothly and uninterrupted. The second phase consists of the construction of the dam. The final phase even though not mentioned in the case study could be assumed to be as the final construction of the power plant. Charles Martin’s initial assignment mainly dealt in the pre constructional phase where his duties were three...
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...Developing Strategic Capabilities Group 1 – Phase 2 Report Overall Situation: As the world’s largest toy company, Mattel is a seasoned veteran within the industry. It is well known for brands like Barbie, Fisher Price, American Girl, and Hot Wheels and, moreover, new product lines like Max Steel and Monster High have quickly found success. Despite its command of the toy industry, Mattel faces competition from companies like Hasbro, JAKKS Pacific, and LEGO. Nonetheless, Mattel is poised for continued growth through expansion and investment into developing markets like Latin America, Russia, China, and India and, further, through its acquisition of smaller, more specialized companies. Mattel must better monitor its product quality and brand image in these developing markets and, moreover, strive to better deliver on its vision and promise of creating the future of play. Issues: • Vision: Mattel has a strong vision, “creating the future of play” and despite successful toys, does not necessarily deliver on the “future” element of that vision. • Technology: Mattel has its “toys and dolls” tradition but needs to successfully integrate technology moving forward; this is an extension of the above issue. Fig., 2. • Competition: As with most consumer goods, shoppers are looking for the next “it” thing. Thus, Mattel will continue to face tough competition from rivals and new entrants. Fig., 10. • Economy: As with any economic downturn, sales have struggled. Figs., 5, 9. • Image: In 2007...
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...brand equity requires significant effort. Mattel has both single brand and multi brand identity. (Phillips, 2003) Loyal customer base – Mattel has been in the market since the 1950’s. They have a large and loyal customer base. (Warner, Aug 5, 1996) Wide range of products - Mattel believes its products are among the most widely recognized toy products in the world. Mattel’s portfolio of brands and products are grouped in the following categories: Mattel Girls & Boys Brands - Including Batman , and Kung Fu Panda products, and games and puzzles. Fisher-Price Brands — Collectively Core Fisher-Price, Fisher-Price Friend and Power Wheels. American Girl Brands —including Just Like You, the historical collection, and Bitty Baby. Strong distribution line – Mattel is believed to have a cost effective, efficient distribution line. Corporate responsibilities - Mattel has implemented several projects aimed at reducing energy and water use, shrinking product packaging, and reducing waste, according to the firm’s 2009 Global Citizen Report. Mattel has also established the Mattel Foundation, which promotes philanthropy and community involvement among...
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...in a garage workshop that manufactured picture frames. When the company started selling dollhouse furniture made from picture frame scraps, they realized the market potential and decided switch to toy manufacturing. In 1959, Mattel created their most popular toy, the Barbie doll. Inspired by paper dolls, Barbie was a three dimensional doll with which “little girls could play out their dreams.” Throughout the decades Mattel has continued to create and market popular toys, (Hot Wheels and He-man) merge with successful manufacturers, (Fisher Price and Tyco) partner with children’s program companies, (Disney, Sesame Street, and Nickelodeon) obtain licenses and rights to manufacture popular lines (Cabbage Patch Dolls and Harry Potter merchandise) and acquire other companies (Pleasant Company). Since its conception, the Mattel Company has done a lot to make sure it is considered a trustworthy company for children and the community. The corporation established a children’s charity, called the Mattel Children’s Foundation. In 1997 the company created the Global Manufacturing Principles, making them the first company to create a framework to ensure manufacturing would be conducted through consistent standards on a global level. In 1998 they started a $25 million multi-year donation to the UCLA children’s hospital, which is now called the Mattel Children’s Hospital at UCLA. However, Mattel has not always been able to maintain their image of child-like innocence. The corporation has had...
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...beauty pageant held. And beauty queens and even beauty contestants are always admired and considered as one of the beautiful icons in the country. But as the Philippine culture easily being influenced by the American society, this research hopes to emphasize the distinction of Philippine beauty pageants from American beauty pageants for it is in beauty pageants that the epitome of a Filipino is being showcased around the world. With that in the mind, this research also hopes to discover and unravel the purposes behind the staging of beauty pageants in both American and Philippine society. Background of the Study The researcher, who is not a stranger in the world of beauty contests in her school, has been asked by a judge on what she thinks is the purpose of beauty pageants in the society and whether its purpose is still prevalent. Intrigued, the researcher decided to do a research on beauty pageants. The TLC TV series Toddlers and Tiaras where girls as young as two wear skimpy clothing and heavy make-up just to win the pageant’s crown drove the researcher to gather more information and details of how American beauty pageants work, especially that the Philippines is highly influenced by the American culture. Disappointed with the controversies swirling today’s different American pageants, and since the...
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...Stephanie Roussell / MC 7999 / 11.21.11 Introduction Abercrombie and Fitch, an American retailer with nearly 800 U.S. and international stores, is no stranger to controversy. The company has long profited from shock value and consumer backlash not only in its marketing, but also in its clothing and employment practices. Known for its preppy, casual style of mid-luxury clothing, the retailer is a mainstay in the American shopping mall. But recent controversies about its product style and marketing practices have kept the company continually in the news. The latest controversy is no different. In March 2011, the company posted a new product on its Abercrombie kids website: the “Ashley” bikini, a striped triangle bathing suit, sized for girls ages 8 to 14. It seemed innocent enough until one small word in the clothing description caused a firestorm of media and activist backlash. The website described the bikini as a “push-up,” complete with “extra padding for breast enhancement.” (Mendez, para. 1) Because this description was added to a website that markets to girls as young as 2nd grade, it caused an uproar about the company’s intentions of over-sexualizing young girls. Comments began pouring in decrying the company’s apparent lack of decency or sensitivity. All were asking the same question: “how soon is too sexy?” Did this controversy expose a company intent on objectifying young girls? Or is it another cog in the successful marketing wheel of one of the popular clothing...
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...Toying with Indonesia’s Deforestation Andrew Wirawan Introduction to Environmental Studies April 2014 Introduction Indonesia is one of the world’s most forested countries with a wide variety of forest types. These forests are rich in biodiversity and unsurprisingly are an important livelihood source for a great number of people. Somewhere between 6 million and 30 million Indonesians are estimated to be directly dependent on forests (Sunderlin et al. 2000). As Indonesia is a developing country, the government is highly dependent on the forestry sector, as well as forestry-related sectors such as agriculture, estate crops, mining and logging. Consequently, during Indonesia’s history, its forests have been continually exploited, meaning deforestation and forest degradation have been inevitable. This paper will emphasize on deforestation caused by various world famous toy manufacturers, such as Mattel, Disney, Hasbro and Lego. The usage of MTH (Mixed Tropical Hardwood) in their packaging means rainforest clearance in Indonesia, since MTH is only pulped at commercial scales in Indonesia, mainly by APP (Asia Pulp & Paper). Not only deforestation is caused, but this deforestation is also pushing critically endangered wildlife like Sumatran tigers toward extinction and making climate change worse. The Producer: APP APP or Asia Pulp & Paper is one of the largest pulp and paper companies in the world. APP has its roots since the 1970s, and with the founder’s close...
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...Mattel Recalls 2007 Communication Implications for Quality Control, Outsourcing, and Consumer Relations [ABSTRACT] In August 2007, America's largest toy manufacturer announced the first of what would become five recalls involving 21 million toys—most of which were manufactured in China. This case study and teaching note examine a corporate response to a global crisis and consider the unique communications challenges facing a corporation that operates in an international, crosscultural arena. The teaching note critiques the response’s suitability to the level and impact of the crisis and recommends alternatives. It illustrates that communicators should be cognizant of their international stakeholders and should proactively manage global issues of public concern such as outsourcing and product safety. An example would be that to avert future recalls, Mattel should work closely with its Chinese suppliers and government agencies to implement realistic quality control solutions for which it can be held accountable. The company must reassure stakeholders that outsourcing to China does not mean sacrificing quality. Regaining consumer confidence and controlling the dissemination of product safety information requires strong corporate communicators who can delicately and deliberately balance complex relationships. Table of Contents I. Case Study 1. Overview 2. Company History 2.1 Beginnings 2.2 Reorganization as Mattel, Inc. 2.3 Products 2.4 Accolades for Ethics 2.5 Financial Performance...
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