Mattel’s Barbie Industry Analysis
Mattel’s Barbie Industry Analysis
Mandy Hope
April 4, 2011
Every second 2.5 Barbie dolls are sold. This contributes to sales of more than $1.5 billion U.S. annually, making Mattel’s Barbie the most successful doll in history. By the year 2000, Barbie and all accessories had become more than half of Mattel’s toy sales. Despite several other companies promoting Barbie-like dolls, their management showed little fear. All believed that the American public was so engrained with the brand and lifestyle, there was no concern. This is the beginning of top managers underestimating how much the world changing effects their product. Barbie was created in the 1960s when the view of an “ideal” woman was very different from today, ranging from her voluptuous body to Homemaking 101. In present, women have active lifestyles balancing career, home and leisure creating a very different taste in doll buyers.
Mattel first failed to realize the importance of this shift in 2001 when MGA Entertainment released their Bratz dolls, a doll with personality and attitude for the new generation of girls. Mattel continues to suffer from this fall out today. Not only did Mattel not recognize these threats, they also thought it unwise to make major changes to Barbie; afraid consumers might not like the changes.
Leaving the brand untouched and turning their focus towards new digital toys and games proved to be harmful. By the time they realized their error in 2006, sales had dropped 30% despite rushed changes being made to Barbie’s figure, looks, boyfriends and clothing. They also introduced their own new line of modern dolls called “My Scene” girls. It was obvious to consumers that this was an imitation of the Bratz dolls, so it never matched popularity. If managers had worked harder to develop a strategy formulation, encouraging teams within to analyze the factors or forces inside and outside the organization that affect its ability to meet its goals now and in the future,
Mandy Hope
April 4, 2011
Every second 2.5 Barbie dolls are sold. This contributes to sales of more than $1.5 billion U.S. annually, making Mattel’s Barbie the most successful doll in history. By the year 2000, Barbie and all accessories had become more than half of Mattel’s toy sales. Despite several other companies promoting Barbie-like dolls, their management showed little fear. All believed that the American public was so engrained with the brand and lifestyle, there was no concern. This is the beginning of top managers underestimating how much the world changing effects their product. Barbie was created in the 1960s when the view of an “ideal” woman was very different from today, ranging from her voluptuous body to Homemaking 101. In present, women have active lifestyles balancing career, home and leisure creating a very different taste in doll buyers.
Mattel first failed to realize the importance of this shift in 2001 when MGA Entertainment released their Bratz dolls, a doll with personality and attitude for the new generation of girls. Mattel continues to suffer from this fall out today. Not only did Mattel not recognize these threats, they also thought it unwise to make major changes to Barbie; afraid consumers might not like the changes.
Leaving the brand untouched and turning their focus towards new digital toys and games proved to be harmful. By the time they realized their error in 2006, sales had dropped 30% despite rushed changes being made to Barbie’s figure, looks, boyfriends and clothing. They also introduced their own new line of modern dolls called “My Scene” girls. It was obvious to consumers that this was an imitation of the Bratz dolls, so it never matched popularity. If managers had worked harder to develop a strategy formulation, encouraging teams within to analyze the factors or forces inside and outside the organization that affect its ability to meet its goals now and in the future,
References: Jones R.G. & George J.M. (2011). Essentials of Contemporary Management, 4th ed., McGraw-Hill www.barbie.everythinggirl.com http://www.bizstats.com/