Mini Case Study 1:
A legendary company which is very successful in reacting adequately to the changing market environment is Mattel, Inc. with its Barbie Doll. Since its launch in the year 1959, Barbie has been a best-selling fashion doll. The doll is known by millions of people all over the world and especially young girls wish to own one Barbie at the very least. One main reason for Mattel’s success has been the continuous redefinition of its brand.
1. Please use relevant information on the history of Barbie you can find under www.barbiecollector.com to demonstrate how Mattel, Inc. modified its doll to effectively respond to changing environmental factors.
2. Outline the steps involved in the analysis of Mattel’s initial strategic situation and select appropriate tools for the steps you chose.
Answer:
1. Mattel has been very successful in redefining the brand continuously. Many examples can be found in the history of Barbie:
Ø Barbies with changing professions: stewardess, model, nurse, astronaut, etc.
Ø Barbies reflecting different ethnical groups: afro-american, Hispanic, Arabic, Asian, etc.
Ø Barbies following the current lifestyle: Fashion Barbie, Fitness Barbie, Baywatch Barbie, etc.
2. Different steps helped Mattel to build up its strong brand.
Ø The analysis of the global environment: Mattel has been successful in detecting changes in society, macroeconomics, politics, law, technology to align its marketing strategy accordingly. Changes in the society (e.g. the image of professions), in macroeconomics (from a luxury doll to a doll for everyone), in politics and law (dolls with a dark skin during the civil war in the US), technology (dolls able to speak). One promising method to analyze those factors could have been the PEST analysis (or PESTLE).
Ø The analysis of the relevant market: Market characteristics (changes in income), customer analysis (Barbie as a collector’s item; Barbie meets new friends from different ethnical groups).
Mini Case Study 2:
The Gap, Inc., a well-known American clothing and accessories retailer based in San Francisco, California, was founded in 1969. Gap, Inc., which has about 150,000 employees and operates in over 3,100 stores worldwide in (2007), is the largest specialty apparel retailer in the U.S., and the second largest apparel retailer in the world. Especially with regard to customer segmentation, GAP Inc. seems to be very successful and therefore, it is worth to explore this company in more in detail. For more information, please have a closer look at the company’s webpage under www.gapinc.com.
1. Please outline how the company is structured with a special focus on which brands are owned.
2. What is Gap’s segmentation strategy? Specify which segmentation criteria are used for the different brands and how the marketing strategy for the brands differs.
Answer:
1. Gap Inc. wants to appeal to unique markets by developing multiple formats and designs. The company has four primary brands: Gap, Banana Republic, Old Navy and Piperlime.
Ø Banana Republic can be seen as high-level / upmarket brand. The Banana Republic stores try to convey a more sophisticated image for an upscale customer seeking "modern, accessible luxury". To set itself apart from Gap as a more upmarket brand, Banana Republic occasionally buys and refurbishes historic buildings for its retail locations.
Ø GAP as a medium-level brand and the GAP stores appeal to a broader demographic segment. Its target customers are younger generations.
Ø Old Navy is the basic brand. Customers largely are fashion oriented yet price conscious teens to adults. Old Navy is designed to appeal to families and younger customers by emphasizing "fun, fashion, and value" through a store experience that aims to deliver "energy and excitement". In addition to clothing, Old Navy also sells a variety of accessories such as shoes (their flip-flops are very popular), handbags, etc. With regard to advertisement campaigns the following can be said: The most notable aspect of Old Navy's television advertisements is, that they are kitschy, satirical and have a retro feel to it. In sharp contrast to the Gap's advertisements, Old Navy's feature dynamic family members sporting their clothing line while engaging in wholesome family activities, such as barbecuing.
2. A combination of segmentation criteria is used by Gap, Inc.: sociodemographic characteristics (e.g. customer age, income), psychographic variables (e.g. lifestyles, attitudes), behavioral patterns (e.g. consumption patterns, price sensitivity), and benefit-related aspects (e.g. quality-consciousness), … Gap distinguishes clearly between the three brands Banana Republic, GAP, Old Navy, and most people even don’t know that the three brands belong to the same company. Ad campaigns and store locations are adapted to the unique image of the different brands ad their intended positioning.