Thursday, April 21, 2011
So You Failed In China, Now What?
My Sophomore year, I attended a presentation by Mattel discussing the marketing initiatives for Barbie's 50th birthday. The crow jewel of the marketing strategy was the brand's expansion into China and the Shanghai superstore I discussed in my previous post. My favorite professor that year was also a former Mattel marketing executive who was responsible for much of the strategy behind bringing Barbie to China, so needless to say it certainly caught my attention when I read about how unsuccessful their strategy was after only a couple years. Around this time I also came across a Harvard Business Review article about "7 Remedies for a Bad Strategy Hangover." Although it's directed towards the individual, I think the same ideas easily translate for companies like Barbie, Best Buy, Home Depot, and any other company who has failed overseas. I know leaders at those companies heeded the advice of #7, to move quickly and get out of the bad strategy fast, but I'm curious if they followed any of the other suggestions.
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Was the professor Patrick Henry? He teaches 451 and 454 in the Entrepreneur Program and I know he was the head of marketing at Mattel. It would be interesting to know. Thanks
ReplyDeleteThe professor was actually Therese Wilbur who teaches 440 and 445. She has in charge of Mattel's global marketing when she worked there.
ReplyDeleteGoogle’s failure in China is more than enough reason to export business to other countries in East Asia. One may employ similar tactics as in the Cold War, i.e., containment. If a business wants to win the Chinese market, then it will need to win the neighbors in its immediate vicinity. Afterwards, one may target China because by the time one starts their business there word of mouth from the neighboring countries will have the image of the aforementioned.
ReplyDeleteSorry I'm a little confused. Where they starting to sell Barbie dolls in China or were they moving manufacturing of the Barbie dolls to China? When one hears about anything moving to China you sort of assume it's the production component.
ReplyDeleteHowever, concerning actually selling Barbie in China it seems like there would be a few major issues that would keep this initiative from being viable. First of all it seems like there would be a HUGE cultural barrier. Do little Chinese girls want to play with a doll that looks absolutely nothing like them or anyone they see on a daily basis? A doll is supposed to be a girls friend but how can little girls relate to something that looks nothing like them?
I'm just a bit confused as to what their strategy was going in.