Barbie Goes To China

The impact of the recent global financial crisis is vividly seen in the reception that consumer shits and retail stores atomic number 18 having with regard to their survival. In Europe, the reaction has been drastic, with automobile manufacturers religious offering huge discounts and trade ins just to boost their gross sales. In the United States, manufacturers catch slashed their prices and offered massive discounts. While on that point is zilch fundamentally wrong with reducing profit margins to increase or advance earnings, this could be a problem in the long run because it bath result in a deterioration of the brand material body.The conundrum that exists right a expressive style is the decision that companies must make regarding improving expenses in the short experimental condition and brand image in the long run. The article entitled, Barbie Goes to China, provides and interesting ride on this puzzle that companies are now facing. Using the example of Barbie, the authors consult the struggles that Mattel has had in the American market. It shows that in that location has been a decline in Barbie sales because of the image that has been attached to the brand. There is no room for Barbie to change the way that she is perceived.This in turn affects the marketability of Barbie, especially in the United States market. Instead, what the article suggests is that the nidus should be on maintaining the brand image. Citing the moves that early(a) companies have done, the strain fall on being able to choose surrounded by sacrificing brand image and maintaining a profit. Several companies have decided to do a motley and offer discount sales for certain items while keeping other items full priced. In relation to Barbie and Mattel, there is a unique prospect for the company to capitalize on the growing Chinese market and bring in a new brand image for itself.From a marketing standpoint, there are two important lessons that can be gleaned here. The first is that there is noaffair wrong with trying to survive, particularly when the economic crisis has promised to be mystifying and widespread. In an effort to prevent a total loss, companies have capitalized on the publics perception and reduced their prices while presumably offering the same quality goods they have always provided. In the same vein, they have tried to protect the image by putting less emphasis on the profit margins and more emphasis on their products.It is also in this part where the brand image that has been created is crucial because it could be detrimental to the brand in the long run. The second lesson to be learnt here is that there are other options. There are several layers of customers and the top tier and liege customers are not averse to supporting their favorite brands. Top brands such(prenominal) as Mattel drive to understand that during uncertain times the one thing that you can count on are the loyal customers. They are uncoerced to overlo ok the overpriced goods as long as they get what they want. This is what brands need to take advantage of.While there is certain merit in these assertions, it is sweet not to forget the economic fundamentals that are applicable. It can be said that the loyal clientele will always be there only when this is not always the case. The reaction is so much more different when one examines an inelastic good and one examines an elastic good. take on can be inflexible to changes in income if the good is inelastic but it can flexible when it comes to elastic goods. When people need to decide between Barbies and Guccis and buying food or paying their mortgage payments, it is a livelong different dynamic and the lessons embodied in this article may no longer hold.