DOES MATTEL’S ICONIC BARBIE DOLL NEED A MAKEOVER? Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

DOES MATTEL’S ICONIC BARBIE DOLL NEED A MAKEOVER? Case Solution

Strategic Challenge # 1

Part A: Statement of Strategic Challenge

How will Mattel revive the Barbie Brand?

Part B: Importance of Strategic Challenge

The importance of the above strategic challenge is highlighted by the following points:

Barbie Dolls had been launched by Mattel Inc. in the 1959 which is the official birthday of the Barbie doll. Since then Barbie dolls have shown tremendous growth and increase in the sales and market share. By 2009, the Barbie merchandise represented around 25% of the total US market share in the dolls and accessories(Robson, 2016).
Barbie has become more than a simple doll over the past period. It has become a cultural icon and it is a brand which encompasses everything from dolls to accessories to Barbie look-alike competitions for women and animated aerobics videos. By the year 2015, Barbie Doll has represented around 150 different careers as shown in exhibit 1.
Despite the iconic status, the sales of the Barbie Doll had plummeted in North America and globally after 2012. The global revenue dropped by 14% whereas the revenue from America dropped by 12%. By the year 2013, the market share of the Barbie merchandise was also less than 20% in US and the sales also dropped to all time low of $ 1 billion only(Robson, 2016).

Part C: Barriers to Success

There are a number of barriers to success regarding the above strategic challenge. These are:

Barrier # 1

The first barrier was the competition faced by Mattel from other competitors which include, LEGO and Hasbro. Hasbro was the largest competitor of Mattel and it had several brand lines, the most successful of which was the Transformers. The LEGO was also a strong barrier as it saw the best performance in 2014 among the best three competitors in the toys and games industry. Its annual growth was 16% and thus it surpassed Mattel in terms of the sales to become the largest toymaker of the world.

Barrier # 2

The second barrier was the consistent criticism and the controversies surrounding the Barbie Dolls. The discussion around the fact that whether Barbie represented as the cultural symbol or not, and whether it was an appropriate role model for the young girls is also a significant barrier.

Barrier # 3

The rise of average Barbie in 2014 and the struggle of the Barbie brand with its image around the body shape and the consumer interest in the dolls with realistic body proportions were increasing. Moreover, the rise of the average Barbie doll had features such as average waistline of the Lammily doll and other realistic features were also a barrier.

Part D: Recommendations

Recommendation # 1

Mattel should extend the Barbie Fashionistas Line and along with the addition of the new features, more realistic features should be added to the Barbie dolls which show the true image of an American girl. It should also widely experience racial diversity with respect to clothing also. This would have a positive impact on the image of the brand.

Recommendation # 2

Currently, the Barbie brand has also broken the gender stereotypes about the toys through the Barbie Moschino’s online advertisement. However, it is recommended that the cultural diversity, racial diversity and breaking the gender stereotypes should be extended and expanded by Mattel around the world. Although Barbie has been found by a female entrepreneur however, now was the time when the Brand had to break all the Gender Stereotypes and promote racial diversity around the globe in different countries especially the Asian ones.......................

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DOES MATTEL’S ICONIC BARBIE DOLL NEED A MAKEOVER? Harvard Case Solution & Analysis