Seminar 5, November 9-13, 2009

Seminar 5
Seminar Tutor: NG


Topics Covered

A. Insurance Institute of London Diploma Awards on 16 November

Those who are free in the afternoon of Monday Nov 16 would be welcome to attend the Insurance Institute of London Diploma Awards.

Unfortunately, exchange students would not be able to attend as they are likely to be taking the MC exam in class.

Please let NG know if you can come asap (you have got to attend if you say you can come).

The details are:

Date: Monday 16 November 2009

Venue: Great Hall, 20 Aldermanbury, London EC2V 7HY

Timings: Please arrive by 5.40pm for a musical reception, which will be followed by the Diploma awards ceremony. After the ceremony, complimentary drinks and canapés will be served until the evening closes at approximately 7.00pm.

Dress code: Business attire.

If you are attending, you have to be at 'Great Hall, 20 Aldermanbury, London EC2V 7HY' by 5 30 pm in business attire. You are responsible for getting there and then back home etc.

It would appeal a lot ot those interested in insurance, marketing of financial services, or the City in general.


B. Brief Review of the Multiple Choice Exam in Week 8 (next week)

There is a Multiple Choice Exam next Week, Week 8.

It is a formative exam for the Exchange Students.

It is a summative exam for the regualt third year students.

Please watch your mail inboxes and OasisPlus as to where you will take the exam.


C. Brief Review of the Individual Assignment

By now, you should have finalised which case you will do.

And now it is time to start working on it.

When you come to the seminar next week, I expect you to have started working on your case!


D. Case 4-2: Barbie - Growing Pains as the American Girl Goes Global

Barbie, the “icon” of American lifestyle, once so popular, looses its sales due to new line of Bratz dolls and general hardships in the global market. Europe and Japanese experiences show that Barbie is demanded more in its original American version instead of its “culturally adjusted” ones. The Middle East is the main region requiring Mattel to be culturally and religiously sensitive to compete with the local producers of dolls.

Q1. Describe Mattel’s global marketing strategy for Barbie and assess its success. Does management demonstrate that it understands and embraces the need to “think global and act local”?

In each country, management was attempting to create a doll that would be based an aesthetic standards of the new country’s market. Even though the attempts to adjust a product to other cultures were done in every country outside the United States, the usual American prototype was still the most successful. Mattel tried to adjust to the principle “Think globally and act local” but the product was more successful in its original “home grown” look.

Q2. Approximately 90 percent of the world’s children live in developing countries. Despite recent negative sales trends, Barbie remains the most popular toy in the world. What must Mattel do to capitalize on the strategic strength of the Barbie brand and take advantage of market opportunities around the globe?

The decline in sales of Barbie was caused, in part, by the newly developed Bratz line. Before Bratz were created, Barbie was considered the fashion doll and a symbol of the American lifestyle and prosperity. Barbie stays the most popular toy, but to take advantage of market opportunities, the doll (her clothes and accessories) should be modernized (new fashion American trends) to compete with Bratz.

Q3. How important is culture in dictating children’s toy preferences? Will cultural differences result in failure for Mattel as the company faces new competitors in the Middle East?

Culture is important in dictating children’s toy preferences. In Barbie’s case, local culture seems to play less of a role as, in most countries, children prefer American Barbie to the culturally adjusted one. The Middle East is probably the one region where American Barbie may have a problem connected to cultural standards. Parents in Middle Eastern countries may refuse to buy toys which make their daughters think that it is appropriate to be independent and open-minded. The competitors of Barbie, especially that Fulla doll, would be more culturally accepted and therefore more in demand.

Q4. Industry observers often refer to Barbie as an “icon.” What does this mean? What should Mattel executives do to turn around sales of Barbie in the United States?

Barbie is an “icon” of the American lifestyle, with her Cadillac, house with a pool, and boyfriend Ken. The doll is associated with the “ideal” adult life that children want to reach to have freedom from their parents. At the same time, the United States is a country of many nationalities and the U.S. market should be responsive to the needs of its cultural mix. In addition to creating African-American, Asian American, and Hispanic dolls, current cultural trends should be incorporated. Innovations in technology (such as the iPhone, iPod, etc.) could be reflected as accessories for Barbie.