CONTENT

1. INTRODUCTION:
- Product Introduction and Its Primary User ..........................3-4

2. REASONS FOR WITHDRAWAL:

- P.E.S.T Analysis (Political, Social and Economic factors)........5-6

- S.W.O.T Analysis (Weaknesses) ...................................6

3. CAN THE PRODUCT BE RE-INTRODUCED IN THE

MARKET?
- S.W.O.T Analysis (Strength, Opportunities and threat............7-8

4. CONCLUSION ………….................................9

6. REFERENCE ……………................................10-11
(1) INTRODUCTION:
Product Introduction and Its Primary User

Fashion doll is a plastic object that resemble very closely to a human being which is
primarily designed to be dressed to reflect fashion trends. It is made both as toy for
children to play with and as collectibles for adult collectors. The dolls are usually
modeled after teen girls or adult women. “Barbie” is a fashion doll created and
manufactured by Mattel, Inc. which is an American toy-company that was produced in
Year 1959. It is the figurehead of a brand of Mattel dolls and accessories, including other
family members and collectible dolls. (Wikipedia contributors, 2010).

Barbie doll, with perfect features and body proportion was marketed as a glamorous
teenage fashion model. It is created in such a way that different design or modals of the
dolls have their own fashionable clothing and accessories. Additionally, her swivel waist
enable her to dance, her joints (legs and hands) are movable, her hand can hold
accessories such as phone and there is a mechanism which allowed her to swing a golf
club or a racket. These were such great hit that young girls were highly attracted to it.
They take happiness in dressing and redressing the dolls and can spend hours together
playing with it.

A brand new Barbie doll’s design or modal is like a new product being launch in the
market which requires different marketing and advertising strategies. Barbie dolls were
marketed worldwide and were one of the most phenomenally successful toys on the
market with the key market in Latin American, Japan and European. It contributes a
significant part of the toy fashion doll market for fifty years. (Wikipedia contributors,
2010).

Despite of the success Mattel had for many modals of its dolls, the company experieced
a total failure in one of the products in 1997. During that time, Mattel collborated with
Nabisco- a former U.S. bakery product and snack food company to cross promote the
Black Oreo Barbie as (Fig. 1).The doll was launched and marketed as a companion for
little girls who could play with during free-time or after class and share the Oreo cookie

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“American’s favorite cookie” with. Black Oreo Babie is an African-American doll
manufactured using the same mould from the white barbies. In that way, the black doll
has a white features. An Oreo Cookie (Fig. 2.) is made of two chocolate wafers that
surround a creamy white icing. The cheerful black Oreo Barbie was sold in packages
printed with pictures of Oreo cookies and her clothing was inscribed with the word “Oreo”.
(David Palley, 2006). However the term “Oreo” is an offensive term in the African
American society which implied that they are white internally and vice versa, black on
the surface like the chocolate sandwich cookies itself. This is the main factor that leads
to the failure of the product.

Fig. 1. Mattel Oreo Fun Barbie. Fig. 2. Photo of Oreo cookies

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(2) REASONS FOR WITHDRAWAL:

- P.E.S.T Analysis

Political and Social Factors

While it was understood what Nabisco and Mattel were trying to do in cross promote the
doll, the Oreo cookie line and creating as diverse a lineup of dolls for it as possible, they
have overlooked the consequences by naming the black doll ‘Oreo’. It turned out to be
controversial due to a negative construal of its name. ‘Oreo’ has another implication in
the Black community way beyond just being a normal snack. By calling an African
American ‘Oreo’ is a provoking word. It means that you are calling them white on the
inside and black on the outside which is the same as accusing them of being a sellout of
their own race. It is an image that is so deep-rooted in the African-American community's
mind that it can’t be accepted. In addition, creating the black doll with white features will
naturally lead the people to the thinking of an attempt to remove the African-ness of the
African Americans.

Black Americans are the largest racial minority, contributing close to 13% of the total
population of the United States of America. In the past, they were treated as slaves and
were often been discriminated by the whites which lead to extreme cruelty, violence and
sometimes resulting in deaths. However, after a political movement (the civil right
movement) between 1954 to 1968 which was directed at removing racial discrimination
against African Americans, they finally got their freedom as well as social equality.

While toys are very influential, the black adults will be wise enough not to support the
Oreo barbie that is seen as racist and buy it for their kids. White young girls normally
does not favour and will not choose black doll. In one of the Clark’s doll studies, a group
of black kids and a group of white kids were told to choose a baby doll that they think
looked the most like them. The white children happily chose the white doll. However,
seven of the sixteen black children also chose the white doll. (Eula Biss, 2009)

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Therefore, apart from other dolls’ collector which consist of the minority, the primary
market for the black dolls are mainly the black young girls. From the above, social factor
will cause low sales volume which will result the manufacturer to recall the unsold
products.

As Oreo Barbie has a mocking and insulting effect towards the blacks and if it is not
withdrawn, it may lead to civil unrest and protest. Violence and crime like setting fire to
the dolls, as well as the shops selling them, are very likely to occur. Barbie may even get
banned from the black Americans. Furthermore, the company may even get themselve
in legal issues if the problems really arise considering Civil Rights Act of 1964 that
banned discrimination in the United States.(Wikipedia contributors, 2010). Therefore,
political factor is also a critical factor which will result in failure of a new product.

Economic factors

The Black Oreo Barbie was launched in Year 1997, which was the year that Asian
financial crisis began.(Wikipedia contributors, 2010). The crisis exerted pressure on the
economy of the US. Although the market did not collaspe, it was seriously hit. Launching
of a new product during this situation may not a wise choice. The crisis has led to a
significant drop of the consumer’s confidence. When confidence is low, consumer tend
to save more than they spend and they will only spend on daily necesssaties like food
rather toys like dolls. This contributed to another reasons for the low sales volume of the
product.

- S.W.O.T Analysis

Weaknesses

Poor reputation of Barbie dolls in the Islamic and muslim countries affect the company’s
ability to market the black Oreo Barbie worldwide. The dolls are seen as a threat to
morality and is offensive to Islam and Muslim with negative quality like shameful
postures and revealing clothes. The dolls may not necessary have to be recalled if it can
be accepted in these countries. Poor Product name and poor collaboration formed
additional weak points that resulted to the withdrawal of the products.

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(3) CAN THE PRODUCT BE RE-INTRODUCED IN THE MARKET?

The Black Barbie doll with the name “Oreo” can’t be re-introduced in the market based
on the above mentioned reasons. However, the concept of cross promoting can still
work in the current market. A Black Barbie doll with a new name and strong collaboration
can still be successful despite of new entrant.

S.W.O.T Analysis

Strength

‘Barbie’ is a strong brand name globally and has been a significant part of the toy
fashion doll market for more than 50 years. Being pioneer and the long history for
producing fashion dolls give the company the ability to forecast the demand and develop
a supply chain that bests suits that demand. As the market leader, it has the resources
(brand equity, trademark, installed customer base) and it has the ability to utilize the
resources effectively like launching the product faster than its competitors. This can
develop a competitive advantage over its rival.

Opportunities

A company that possess superior resources and capabilities will still have to select a
good timing to launch and advertise the product which is a critical factor to determine the
success. In recent years, Barack Obama, an African-American has become America first
Black president in history. It creates opportunities for the black doll to be reintroduced in
the market again using Obama’s wife, the first black lady as new role model. In addition,
it can also satisfy and fulfill the needs of those young girls yearning for the African
American dolls all these years

Threats

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In 2001, Bratz dolls were introduced and it poses stiff competition to Barbie’s dolls.
Barbie has then begun to decline in popularity and in the year 2005, its sales had
decreased by 30 percent in the United States, and by 18 percernt outside United States.
(Wikipedia contributors, 2010). With superior and advanced technologies these days,
games on mobile phone and computer seems to be more attractive. The expectation
and preference of young girls on plastic dolls may slowly change. However, based on
the strength of Mattel mentioned earlier, the threats are still not significant to affect the
success of the new products (ie: Black doll) for at least now. Despite of that, it cannot be
overlooked and the company should seriously start to plan to cater to the new demand in
the near future.

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(4) CONCLUSION

For more than fifty years, Mattel has much success with its popular fashion Barbie dolls.
However, it has suffered total failure collaborating with Nabisco in cross promoting
during 1997 in one of its black doll named Oreo Barbie. As doll has great impact and
influence towards young girls and for the fact that it resembles human being, parents will
definitely be more cautious in choosing the type and design of dolls for them. Mattel’s
insensitivity on the name of the black doll raised political and social issues that resulted
poor sales volume. The weaknesses of the product as well as the economic crisis further
contributed to the failure of the product.

Re-launching the failed black doll should not pose any problems given the strength of
the company. By having a black man as the president in America creates opportunities
to launch the black doll once again. Similar name of the failed doll collaborated company
should not be use and this may help to increase the success rate.

However it seems that every product has a life cycle and in recent years Barbie doll has
begun to decline in popularity due to recent technological trends and stiff competition.
Today young girls have become more interested in mp3 players and i-pods rather than
playing with dolls. As the toy market leader, the company should see the changing
demand and start to plan and prepare to cater for the future needs of young girls.

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REFERENCE

(1) David Palley, 2006. Mattel Oreo Fun Barbie. [electronic print]
Available at: http://en.wikipedia.org/wiki/File:Oreo_Fun_Barbie.jpg
[Accessed 24 April 2010]

(2) Eula Biss, 2009. Relations. [Online]

Available at: http://www.identitytheory.com/nonfiction/biss_relations.php
[Accessed 25 April , 2010]

(3) Fritz Saalfeld, 2007. Photo of Oreo cookies. [electronic print]

Available at: http://en.wikipedia.org/wiki/File:Oreo.jpg
[Accessed 24 April 2010]

(4) QuickMBA, 1997-2007. Pest Analysis, [Online]

Available at: http://www.quickmba.com/strategy/pest/
[Accessed April 24, 2010]

(5) Wikipedia contributors, 2010. African American. Wikipedia, The Free Encyclopedia.
[Online] (Updated 24 April 2010)
Available at:http://en.wikipedia.org/w/index.php?title=AfricanAmerican&oldid=357941668
[Accessed 25 April , 2010]

(6) Wikipedia contributors, 2010. 1997 Asian Financial Crisis. Wikipedia, The Free
Encyclopedia. [Online] (Updated 21 April 2010)
Available at:
http://en.wikipedia.org/w/index.php?title=1997_Asian_Financial_Crisis&oldid=3574274
41
[Accessed 26 April , 2010]

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(7) Wikipedia contributors, 2010. Barbie. Wikipedia, The Free Encyclopedia. [Online]
(Updated 03 Mar 2010)
Available at: http://en.wikipedia.org/w/index.php?title=Barbie&oldid=357776778.
[Accessed April 23, 2010]

(8) Wikipedia contributors, 2010. Fashion doll. Wikipedia, The Free Encyclopedia.
[Online] (Updated 03 Mar 2010)
Available at: http://en.wikipedia.org/w/index.php?title=Fashion_doll&oldid=347685615.
[Accessed April 23, 2010]

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