Barbie and Ken show market segmentation in action

The original Barbie doll, made by Mattel, had blonde hair, blue eyes and long legs. Today, Barbie dolls (and Ken dolls) come in so many sizes, shapes and colours that there is a Barbie or Ken for everybody--market segmentation in action!

Royal dreams? Mattel markets the Dreamtopia Barbie and Prince Ken. A fan of Jurassic World movies? Buy a Claire Barbie or an Owen Barbie. Got a pocket? Barbie on the Go is sized to go with you to school or play or anywhere (see photo above). Want to try on different hair colours? Try the Barbie Colour Surprise Doll, with hair that changes colour when sprayed with water. 

As these products demonstrate, segmentation is not just a matter of age and gender. Mattel segments the market for dolls according to factors such as lifestyle ("on the go" for instance), desire for variety or novelty (Barbie Colour Surprise), interest in a blockbuster movie (like Jurassic World) and royalty fantasy (both prince and princess).

Not that Barbie is alone in the doll world. Bratz, for instance, is a direct competitor. And Barbie also competes with other types of playthings, not just dolls--including videogames and other digital play possibilities. Barbie and Ken have had mixed sales results in recent years. Will further market segmentation have a positive effect on consumer behaviour?

Who's marketing in China?

The Chinese market is large and its economic growth is outpacing that of many major markets worldwide. No wonder so many companies see China as a key market for goods and services. Four examples:

• Reckitt Benckiser recently acquired the baby formula firm Mead Johnson with an eye towards selling more in China, now that the one-child policy has been changed and the birth rate is increasing. RB has marketed other brands in China, recognising the power of global brands that are already established.
  
  
• Mattel, which owns Barbie and other toy brands, is working with Chinese e-commerce giant Alibaba to research the local market and develop appropriate products. 'By combining Mattel's unmatched expertise in childhood learning and development with Alibaba's immense reach and unique consumer insights, our goal is to help parents in China raise children to be their personal best', says Mattel's CEO.
• Shanghai Disney, opened in June 2016, expects to welcome 10 million visitors by the time it celebrates its first anniversary. Just as important, the strong attendance is helping the theme park race towards its break-even point and become profitable soon, banking on the high brand awareness of Disney characters and the entertainment experience of family fun.
• The luxury watch brand Cartier markets in China by leveraging its connection with singer/actor Lu Han and through social media marketing. Celebrity spokespeople are credible and influential here, and world-class status-symbol brands are also coveted.

Movie helps LEGO build profits and brand momentum

LEGO, known for its ubiquitous plastic bricks, has just reported a 12% rise in profits, thanks to the popularity of merchandise related to the animated hit The LEGO Movie. The movie's appealed not just to young fans but also to adults who accompanied youngsters to the theater (often more than once)--noting that the plot and characters were engaging and not just an extended advert for the brand.

On the strength of the rise in revenue and profits, LEGO is now at the top of the toy industry, surpassing long-time leader Mattel by a small margin. LEGO and Mattel will both be using their marketing plans to build brand momentum for the all-important year-end holiday shopping period. Mattel has even purchased Mega Brands, a rival plastic brick company, to enhance its presence in that part of the market.

Can LEGO repeat its move tie-in success with a sequel? Disney/Pixar's Cars multi-movie franchise has been bringing shoppers into stores to buy billions of pounds worth of movie-related products for years. No wonder LEGO is looking ahead to 2017, when Warner Bros. plans to debut the second in the LEGO movie franchise.

Mattel's Monster High Marketing

Sales of Barbie dolls and Hot Wheels toy cars may be down, but Mattel is profiting from higher global sales of its highly successful Monster High brand.

From Draculaura (a 21st century relative of Dracula) to Frankie Stein (yes, related to the famous Frankenstein), Monster High's teenaged characters have costumes, accessories and -- of course -- their own interactive online home featuring videos, games and more.

The target market is preteen and young teen girls all over the world. The brand is being marketed in Spanish, French, Italian, Portuguese (for Brazil) and other languages. Monster High is launching this week in India, for example.

In the UK, Tesco Direct features Monster High in a dedicated section of its site; Argos and Asda Direct also highlight the brand on dedicated pages. The idea is that shoppers can click from one doll to another or conveniently view the many accessories related to each character.

Will Monster High have the longevity of the Barbie brand (now 54 years old)?