One way of doing that is by increasing its brand visibility through digital

One way of doing that is by increasing its brand

This preview shows page 8 - 10 out of 13 pages.

to pass on the legacy to their children as well. One way of doing that is by increasing its brand visibility through digital media platforms and engaging with consumers in order to create nostalgia and stronger brand recall. With digital media being the new mean of communication, Mattel should take advantage of this platform to remind the mothers that Barbie has always represented women empowerment, that women has choices and Barbie is there to help their girls explore their limitless potential through the power of imagination in the same way Barbie helped them. Creating brand recall and nostalgia among mothers will encourage product adoption in the market (Walker, et al., 2012). It will further help in creating goodwill among the ex-customers also; this will be a good way of reconnecting with the old customers and reminding them of their childhood times with Barbie. The only drawback for Mattel is the promotional costs that will come with these intensive advertisements (Walker, et al., 2012). By reminding mothers of what Barbie actually stood for, it can gain back their trust and stay true to their mission. Market development is when companies try to expand its customer base by offering current products in new markets (Walker, et al., 2012). This approach can be accomplished by various options such as entering new regional markets, opening up new channels of distribution, introducing specific pricing strategies or developing new product dimensions (Proctor, 2000). Barbie as a brand is globally recognized; however Mattel solely concentrated on its distribution channels in America and relied on third party retailers such as Wal-Mart and Target for their international distribution ("Mattel Case Study Analysis", 2017). If Mattel could improve
Image of page 8
its distribution system so that Barbie could reach customers more easily, this will lead to more purchase and help Barbie grow. Barbie could use backward vertical integration model here by starting its own international distribution channels or by acquiring one. Furthermore, Barbie can invest into e-commerce channels such as digital platform to sell their products, or they can also seek strategic partnership with established e-commerce platforms such as Alibaba, ebay and Amazon. By starting its own distribution channels Barbie can have the advantages such as reduced third party involvement and cost and having complete control over the supply chain management hence leading to more opportunities for differentiation (Littler & Wilson, 1995). They can further capture the upstream or downstream profit margins and expand their core competencies (Littler & Wilson, 1995). Although in order to apply this strategy, Mattel has to incur some initial costs such as set-up cost and bureaucratic costs however; distribution to key international toy retailers would help Barbie tap into the new markets easily and make its products a premiere toy brand worldwide, hence fulfilling its vision (Littler & Wilson, 1995).
Image of page 9
Image of page 10

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture