8arble Case

Croup 3
8ahul kumar
San[av kumar Sah
Shlshlr kaLarla
nLroducLlon Lo 8arble
W MaLLel nc founded ln
1944 bv 8uLh and LllloL
Pandler and Parold
MaLLson
W Þroduced plcLure
frames
W CpporLunlLv Lo a Lov
markeL
8abv boom posL WW
IlrLuallv Lov less markeL
W ÞromoLlon SLraLeav
1I adverLlsemenL wlLh
Lhe proaram
Larller MarkeLlna SLraLeav
W n 1933
AdverLlsemenL of lLs new Lov º1he 8urp Cun" Lhrouah
a 1I proaram ºMlckev Mouse Club" Ŷ verv expenslve
$300ţ000
1hls was a areaL brand bulldlna exerclse and hence
resulLed wlLh a huae sell
Cross revenue onlv from º1he 8urp Cun"
W $4 Mllllon
W n 1939
nLroduced º8arble" doll
Cllmpses of flnanclals
W 1he companv became publlc ln 1960
W LlsLed ln n?SL
W $10 per share worLh $322 ln 1971
W n revenueţ $18 mllllons ln 1960 Lo $211
mllllons ln 1969
ndusLrv Analvsls
W ndusLrv Analvsls
ALLracLlveness has been decreased
W uecreased sales ln seven sLralahL quarLers ?o? baslsŦ
AlLernaLlves are avallable Lo chlldren such as
Ildeo aames and oLher hlŴLech aames
A framework for compeLlLor analvsls
ÞredlcLlons
WhaL sLraLeav chanaes wlll Lhe
compeLlLor lnlLlaLe ?
Pow wlll Lhe compeLlLor respond Lo
our sLraLealc lnlLlaLlves ?
SLraLeav
Pow ls Lhe flrm compeLlna ?
AssumpLlons
CompeLlLor's assumpLlon abouL
lndusLrv and lLself
8esources and CapablllLles
CompeLlLor kev SLrenaLh and Weakness
Cb[ecLlves
CompeLlLor's CurrenL aoal
s performance meeLlna Lhe aoal ?
Pow are lLs aoals llkelv Lo chanae ?
CpponenLs
W nlke
nlke also [olned
ºChallenae beauLv"
Lrend ln 2003
WlLh Lhe campalan
ºWhaL sLorv does
vour bodv Lell"
ShorL fllms of
women dlscusslna
such as Lhelr bodv
and worklna ouL
W 1he 8odv Shop
Self esLeem
campalan
nLended Lo
challenae
sLereoLvpe of
beauLv
Þervaslve
lnfluence of Lhe
cosmeLlc
lndusLrv
W uove (unllever)
n 2003ţ uove
creaLed Lhe
ºCampalan for real
bodv" wlLh Laallne
º8eal woman have
real curve"
8eauLv Þhllosophv
W n 1990sţ Lhe
female beauLv
ldeal looked llke
8arble
W Lower sense of
self esLeemed
W WlLh Lhe
campalanţ Lhev
Lrled chanalna
Lhe mlndseL ln
women
CompeLlLors Analvsls
W MCA LnLerLalnmenL
nLroduces 8raLz dolls
W uove (unllever)
n 2003ţ uove creaLed
Lhe ºCampalan for real
bodv" wlLh Laallne º8eal
woman have real curve"
8eauLv Þhllosophv
W n 1990sţ Lhe female
beauLv ldeal looked llke
8arble
W Lower sense of self
esLeemed
W WlLh Lhe campalanţ Lhev
Lrled chanalna Lhe
mlndseL ln women
SWC1ťŴ 8arble
51kLNG1n
1Ŧ n|story
2Ŧ Lffect|ve corporate strategy
3Ŧ very recogn|zab|e brands
4Ŧ n|gh serv|ce numbers have |ed to
happ|er d|str|butors
WLLkNL55
1Ŧ a h|story of management strugg|es and
uncerta|nty s|nce the or|g|na| coŴ
founders
2Ŧ unprof|tab|e mergers and acqu|s|t|ons
LxceptŴ I|sher pr|ce
3Ŧ sllpplna popularlLv of Lhelr core producLţ
8arble
CÞÞLk1UNI1¥
1Ŧ 8arb|e has become an extreme|y
recogn|zab|e brand for |nternat|ona|
market
2Ŧ An a|||ance w|th an As|an companyţ
1h|s market |s st||| |eft by compan|esŦ
1nkLA1
1Ŧ In the domest|c market systemat|c
movement away from tang|b|e toysŦ
2Ŧ Matte| must be very carefu| to protect
the|r |ega| and mora| reputat|on
Þroblems
1Ŧ 8reaklna Lhrouah culLural barrlers ln order Lo
markeL Lhelr producLs worldwlde
2Ŧ ueveloplna producLs LhaL wlll recelve aLLenLlon
of adolescenceŦ
3Ŧ 1o reaaln markeL poslLlon
4Ŧ Chlldren leave Lanalble Lovs aL Lhe vouna aae
of seven
5trategy 1
5o|ut|on 1he f|rst and s|mp|est strategy for Matte| |s to ma|nta|n the course of
act|on that |t |s current|y tak|ngŦ Matte| |s a strong company that has
strong brand recogn|t|onŦ 1h|s m|ght [ust be a rut that the company |s |nţ
and they w||| pu|| out on top |n the end
AdvanLaae 1he onlv advanLaae for Lhls sLraLeavţ boLh shorL and lona Lerm ls LhaL Lhev
wlll lncur no addlLlonal cosLsŦ L ls verv expenslve Lo alLer vour producLlon
and Lo produce adverLlsemenLsŦ 1hls wavţ Lhev can use Lhe resources Lhev
have nowţ Lake advanLaae of Lhe learnlna curveţ and Lrv Lo compeLe on
prlceŦ
ulsadvanLaae MaLLel can also sLarL Lo see Lhelr brand recoanlLlon sllp lf Lhe producLs are
no lonaer readllv vlslble or avallableţ and consumers wlll be qulck Lo flnd
subsLlLuLes
1here are Loo manv amblLlous companles LhaL wanL Lo make monevŦ
f MaLLel remalns on Lhe plaLeau where Lhev currenLlv sLandţ Lhev wlll be
overLaken
5trategy 2
5o|ut|on An a|ternat|ve strategy |s for Matte| to expand |nto the e|ectron|cs and web
techno|ogy market
AdvanLaae ShorL 1erm
1Ŧ Lhev wlll aaln publlclLv from Lhelr repeaLed aLLempL Lo enLer Lhe
Lechnoloav markeL
2Ŧ MaLLel wlll be comlna ouL wlLh new producLs whlle explorlna a new
markeL
Lona 1erm
1Ŧ L's a hlahlv arowlna markeL for chlldrenţ lf Lhev wlll noL enLer ln Lhls Lhev
wlll lose monev and share
ulsadvanLaae ShorLŴ1erm
1Ŧ rlsk MaLLel musL Lake ln order Lo pursue such a markeLŦ
2Ŧ 8equlre a loL of monev and man hours Lo perform Lhe research needed
Lo creaLe a producL LhaL wlll appeal Lo Lhe approprlaLe LaraeL markeLŦ
LonaŴ1erm
1Ŧ As prevlous record suaaesL MaLLel could be faced wlLh a publlc LhaL wlll
noL accepL Lhem as a Lechnoloav companv
2Ŧ llucLuaLlon ln Lechnoloav markeL can be a problem
5trategy 3
5o|ut|on AddŴon to and reŴ|nnovate the|r ex|st|ng product ||nes
AdvanLaae 1Ŧ lL wlll creaLe a laraer LaraeL markeL
2Ŧ 1hls also creaLes Lhe opporLunlLv for MaLLel Lo sLrenaLhen Lhelr forelan
markeL Ŧ 8v chanalna ln Lhelr producL MaLLel wlll break down culLural
barrlers and have Lhe advanLaae over oLher nonŴlndlaenous compeLlLorsŦ
ulsadvanLaae 1Ŧ 1he maln rlsk LhaL Lhe companv wlll face ls Lhe lnlLlal re[ecLlon of Lhe
producL bv Lhe consumers due Lo chanae
2Ŧ new producL llnes mav noL be accepLed lnLo Lhe markeL due Lo Lhe
posslblllLv of MaLLel mlsreadlna Lhe markeL's needs and wanLsŦ
5trategy 4
5o|ut|on Matte| to strengthen |ts advert|s|ng efforts |n the|r ma|n product ||nesŦ
Ch||dren's advert|s|ng |s under a |ot of scrut|ny |n today's cu|tureţ so
Matte| needs to be carefu| |mp|ement|ng th|s strategy
AdvanLaae 1Ŧ L helps Lo MaLLel name back ln Lhe mlnds of lLs consumers Ŧ
Speclallv parenLsŦ
2Ŧ 1he adverLlslna has Lo relav en[ovmenL and exclLemenL ln Lhelr new
Lovs
ulsadvanLaae 1Ŧ Plah cosL
2Ŧ markeLlna campalan could poLenLlallv be pulled from Lhe medla due
Lo new resLrlcLlons and reaulaLlons belna placed on Lhe markeLlna
Lo chlldren
3Ŧ Slnce Lhe enLerLalnmenL/Lov markeL ls so saLuraLedţ lL ls dlfflculL Lo
sLand ouL from Lhe oLhers ţ so ln lona run lL can be a pure wasLe of
monevŦ

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