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Consumer Behaviour
April 2021 Examination
The Birth of an Icon “Barbie”
In 1944, wife and husband Ruth and Elliot Handler, along with Harold “Matt” Matson, decided to start a new enterprise that they called Mattel, a portmanteau of Matt and Elliot. Ruth Handler, was inspired by her daughter, Barbara (Barbie) Handler, playing with cut-out paper dolls and imagining that they were college students, cheerleaders, or adults with careers. Handler immediately identified that this sort of imagination and “safe experimentation” about the future was a part of growing up, and wanted to create a doll that would inspire her daughter and better allow her to imagine the possibilities of the future. The first Barbie was brought to market on March 9, 1959 — the doll’s official birthday — at the New York Toy Fair, where she was sold for $3 as a teenage fashion model wearing a black-and-white striped bathing suit. Barbie was the world’s first mass-marketed doll that had an adult-look, a deliberate decision by Ruth Handler. From her introduction to the market, Barbie was the first product in the toy industry to be marketed heavily through television advertising. In the first year after the release, 300,000 Barbie dolls were sold.
Over the years, Barbie dolls were sold wearing various outfits, each of which reflected her career at the time. By 2015, Barbie had been sold representing more than 150 careers. Before long, other dolls joined Barbie in the product line. By the late 1980s, Barbie had become a $1 billion brand. By the 1990s, sales reached a rate of two dolls every second, and in the 2000s, annual sales were more than $3.6 billion. By 2009, Barbie merchandise represented more than 25 per cent of the U.S. market share in dolls and accessories. As her sales and appeal grew, Barbie became more than just a doll — she became a cultural icon, with a brand encompassing everything from dolls and accessories to animated aerobics videos to Barbie look-alike competitions for women.
Mattel and the Toys and Games Industry up to 2014
In the decades that followed post 1965, Mattel launched numerous product line extensions for Barbie, in addition to other popular toy lines such as Hot Wheels in 1968, and He-Man action figures in 1982. In 1975, the Handlers left the company, and Mattel embarked on a period of expansion by acquiring such companies as Aviva
Sports, Inc. (sports toys) and Fisher-Price (infant and preschool toys).The company also forged various alliances that gave it the rights to produce branded products, including a partnership with Disney in 1988, Sesame Street (including “Tickle Me Elmo”) in 1996, and Harry Potter in 2000.
In 2014, the toys and games industry were worth $151.2 billion globally, with traditional toys and games accounting for $85.1 billion and video games accounting for the remainder. Traditional toys and games included, among other items, dolls such as Barbie, construction toys, plush toys, model vehicles, and puzzles.
Within the toys and games industry, Mattel faced major competitors, including Hasbro and LEGO. Mattel’s largest competitor, Hasbro, had several core brands lines, including Jenga, My Little Pony, and Transformers. Transformers in particular performed well, largely due to the success of the Transformers movie franchise. In 2014, LEGO saw the best performance of the big three competitors in the toys and games industry, with annual growth of almost 16 per cent, which led to LEGO surpassing Mattel in sales to become the world’s largest toymaker. Further, Barbie faced competition from rising sales by brands such as Monster High, My Little Pony, and American Girl.
Although the toys and games industry faced rapidly changing consumer demands, sales of traditional toys and games experienced growth in 2014, largely driven by consumer interest in two product categories: construction toys, where LEGO led, and licensed products. Notably, interest in Mattel’s licensed products received a significant boost from the Disney hit film Frozen. Although sales of Frozen or Disney Princess dolls eroded sales of the Barbie brand, the popularity of Frozen was, overall, a huge financial success for Mattel. Licensed Frozen products were some of Mattel’s top performing products in 2014, with Frozen and Disney Princess dolls accounting for 7.3 per cent of total company sales. However, Mattel suffered a major setback in 2014, when the Walt Disney Company announced that, as of 2016, Mattel’s competitor Hasbro would take over the licensing rights for Frozen and Disney Princess merchandise.
Despite this iconic status, sales of Barbie fluctuated, both within North America and globally. In 2012, overall revenue from Barbie dropped 14 per cent from the previous year to $1.28 billion, largely due to low sales in the United States, where revenue decreased 12 per cent (to $458 million) from 2011 to 2012. The trend of declining Barbie sales continued in the years that followed. By 2013, Barbie’s market share in the dolls and accessories segment was less than 20 per cent, and sales dropped again to $1.2 billion; in 2014, Barbie sales decreased 21 per cent in the third quarter alone, resulting in overall yearly sales of $1.0 billion — the lowest in more than a decade.
Controversies and changing customer preferences
The Barbie Body
The factor that had perhaps sparked the most controversy about the doll was the long-standing discussion around whether Barbie was an appropriate role model for young girls. The most widely held concern about Barbie regarded her body aesthetic. The classic Barbie was skinny, tall, and blonde. If Barbie were human, she would have a 16-inch (41- centimeter) waist, a waist-to-hip ratio of 0.55, and weigh 110 pounds (50 kilograms); in addition, her shoe would be a size 3 — a size that did not exist in the United States. The probability for a similar body shape to Barbie in real life was less than 0.001 per cent and, when Barbie’s proportions were compared with those of average women, models, athletes, and women with anorexia, models had the shape closest to that of Barbie.
Barbie’s Intelligence
Some Barbie products were met with criticism regarding the portrayal of Barbie’s intelligence. For example, in the early 1990s, Mattel released Teen Talk Barbie, a Barbie who was programmed with certain pre-recorded phrases and statements. Teen Talk Barbie was met with criticism for some of the recorded phrases, such as “I love shopping!” and “Math class is tough!” Eventually, the latter phrase was removed from the doll.
Shifting Retailers
In the mid-2010s, the wider toy retailing industry was also experiencing change. Consumer attention was increasingly focusing on gender stereotypes in the toy industry and on concerns around gendered marketing. These concerns led to several changes. Importantly, the second-biggest retailer in the United States, Target, decided to desegregate its toys and bedding departments. Target would no longer have separate boys’ and girls’ toy sections, previously denoted by the use of blue and pink, or signage indicating “girls’ building sets.” Instead, toys would be arranged by interest or theme. Although the effect of Target’s move on the wider toy retail industry was uncertain, many suspected that other retailers might soon follow suit, simply because Target was an innovative retail leader
Next Steps:
By 2015, Barbie had represented 40 different nationalities and had been sold in more than 150 countries around the world. She had more than 150 careers, ranging from swimsuit model to flight attendant to arctic researchers depicting a strong product line. In view of ongoing controversies and changing consumer demands, answer the following questions keeping in mind that you are the marketing manager of Mattel Inc.
Q1. Which psychological factor or factors of motivation, perception, learning, and attitude is Barbie trying to target. (10 Marks)
Ans 1.
Introduction
The psychological factors play an integral part in the determination of consumer behaviors. The consumers’ decision-making of whether they are influenced enough to buy the products and commodities depends highly on the psychological factors. In the given scenario of the Barbie dolls taking over, the toy industry is also influenced by consumer behavior’s psychological characteristics. The invention, rise, and
Q2. Reading the case above suggests the segmentation, targeting, and positioning Barbie is trying to achieve. (10 Marks)
Ans 2.
Introduction
Barbie’s target consumers are the ones who are between the ages of 8-12. The adults who are married, have children, and want to help them develop their minds will buy the products. This will also help the kids in education in some cases. The middle class and the consumers make an income of almost 1 million USD. Segmentation,
Q3. Given the growth potential of the industry, changing consumer preferences and its Barbie’s declining sales
a. Discuss the traditional / modern day advertising strategies should Barbie as a brand be following as a market leader. (5 Marks)
b. Discuss how the use of the traditional or modern-day advertising strategies can help build the motivational factors of buying different variants of Barbie be persuaded by the tweens (girls aged between 8-12) lifestyle. (5 Marks)
Ans 3a.
Introduction
Mattel launched the first Barbie doll in 1959. Barbie’s popularity in the toy market has become dominant. Mattel attempted many traditional or modern marketing strategies to keep Barbie relevant to consumers in the contemporary age. The team considered targeting market audiences through online or digital media marketing and traditional marketing.
Concept and analysis
- Social media marketing:
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