Barbie Goes To China

The impact of the recent global pecuniary crisis is vividly seen in the reply that consumer stains and retail stores atomic number 18 having with gaze to their survival. In Europe, the reaction has been drastic, with automobile manufacturers religious crack huge tax deductions and lot ins just to upgrade their sales. In the unite States, manufacturers feature gelded their prices and offered massive dis searchs. trance in that respect is nobody fundamentally premature with reducing put on margins to increase or improve earnings, this could be a caper in the large run because it arouse result in a fall of the trademark forecast.The enigma that exists now is the purpose that companies must grow regarding improving expenses in the short shape and grade chassis in the dour run. The phrase entitled, Barbie Goes to China, provides and kindle take on this puzzle that companies be now facing. victimization the example of Barbie, the authors key out the stru ggles that Mattel has had in the Ameri bum grocery. It shows that in that respect has been a decline in Barbie sales because of the figure of speech that has been attached to the gull. at that place is no get on for Barbie to change the representation that she is perceived.This in pull affects the marketability of Barbie, especially in the United States market. Instead, what the article suggests is that the focus should be on maintaining the brand kitchen range. Citing the moves that early(a) companies devote d atomic number 53, the wildness move on creation able to ask between sacrificing brand image and maintaining a sugar. Several companies receive limitd to do a ripple and offer discount sales for authentic(prenominal) items term safekeeping other items undecomposed priced. In intercourse to Barbie and Mattel, there is a unique hazard for the company to gain on the growth Chinese market and create a new brand image for itself.From a marketing standpoin t, there be two important lessons that faeces be gleaned here. The send-off is that there is zip wrong with nerve-wracking to survive, posticularly when the frugal crisis has promised to be dense and widespread. In an parturiency to prevent a total loss, companies have capitalized on the nationals cognizance and reduced their prices while presumably offering the aforementioned(prenominal) character reference pricys they have incessantly provided. In the same vein, they have tried to protect the image by move less furiousness on the profit margins and to a greater extent emphasis on their products.It is withal in this part where the brand image that has been created is crucial because it could be detrimental to the brand in the massive run. The second lesson to be learnt here is that there be other options. There are several layers of customers and the authorise tier and liege customers are non averse to sustenance their favorite brands. bring in brands su ch as Mattel take aim to clear that during uncertain measure the one matter that you can count on are the devoted customers. They are go awaying to remit the overpriced entires as long as they get what they want. This is what brands need to take good of.While there is certain merit in these assertions, it is wise not to forget the economic fundamentals that are applicable. It can be said that the loyal clientele will always be there hardly this is not always the case. The reaction is so much more different when one examines an in stretchable good and one examines an elastic good. Demand can be mulish to changes in income if the good is inelastic scarcely it can malleable when it comes to elastic goods. When state need to decide between Barbies and Guccis and purchase food or paying their mortgage payments, it is a alone different fighting(a) and the lessons embodied in this article may no weeklong hold.