In
first quarter 2017, Hasbro's revenue exceeded Mattel's for the first time in 17
years. (2017) Mattel's worldwide sales
fell 15%; gross profit fell by 28% versus year ago. Sales for Barbie fell 12%. (Bond, 2017)
I wish
I could say that I was surprised.
Back
in the fall of 2015, Mattel created a new campaign for Barbie with a heavy
empowerment angle that was very well received by my students. You can read their comments here...
In
2016, Mattel introduced a variety of Barbie dolls with different body shapes
and things seemed to be headed in the right direction. But in January 2017 they announced that they
were beginning a new campaign targeting Dads.
Oh. Oh.
The Pareto
Principle, usually referred to as the 80/20 rule tells us that for any brand,
20% of the users account for 80% of the sales.
We target these heavy users in marketing because the easiest sale to get
is to get someone who is already using the brand to use it more. Next comes
converting users of competitive brands.
Their audience profile tends to be the same as current heavy users. And, if you finally do get to new users, they
too will tend to be similar to current users.
Targeting
people outside of the 20% only makes sense if you can identify a niche segment
that has a higher level of interest in the brand and can be efficiently reached
through media, because even if you can win them over, they are likely to spend
less money than the heavy users.
Unfortunately
I could see no evidence in the creative that ran for the campaign that the
company had any compelling insights into the behavior and feelings of Dads that
warranted a change in target. Rather, I
was concerned that the commercial was a step back in terms of female
empowerment and was unrealistic and therefore unrelatable. You can check it out here...
So
what to do now? I'd start by checking
out this video for Moschino Barbie. They
are definitely on to something. The doll
is currently selling for $325 on eBay.
(2017,
April 24) Hasbro heads for the loo and
business booms. heraldcourier.com. Retrieved
April 27, 2017, from
Bond,
J. (2017, April 22) Toy Maker Mattel
Sales Slump in 1Q 2017, and it's the Same Old Story. ragingbull.com. retrieved April 27, 2017, from
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