Retail Landscape
•Tough trading environment
•PDI and Consumer expenditure increasing
•Growing Supermarket dominance – Tesco, Asda/Walmart
•Price deflation
•Quality designs sell well
•Level of personal debt increasing in U.K
Demographics
Projected resident population
Females
2002
2006
2011
1-4
1,341,000
1,317,000
1,328,000
5-9
1,819,000
1,795,000
1,703,000
Source – National Census Office
PDI and Consumer expenditure
PDI
£bn
Consumer expenditure
£bn
2003
760.7
718.5
2004
802.9
755.2
2009
1,039.1
971.7
Source - Mintel
Value of retail sales of Childrenswear
by sector 1999 - 2004
£million
1999
2003
2004
Girlswear
2,510
2,840
2,897
Boyswear
2,089
2,200
2,244
Babywear
1,095
1,310
1,336
Childrenswear
5,694
6,350
6,477
Source – Euromonitor/Drapers Record
Situational analysis
•Barbie products are superior in quality
(Source-Asda/Walmart)
•When merchandised correctly with good POS Barbie sells well
despite intense competition from rivals
(Source – all retailers surveyed)
•Retailers prefer to push own brand because they make more margin
•Price deflation- retailers are having to reduce prices to drive volume
(Source - Woolworths)
•Retailers are not keen on paying license fees
(Source – Clarks)
•Pos for Barbie products in store is universally poor.
Situational analysis
Price deflation
•Current economic data reveals a slowdown in retail sales as
consumer confidence continues to be affected by record levels of
personal debt and slowing house price growth
•These conditions dictate that it may be those retailers with a strong
value based proposition that will ultimately succeed
•Asda/Walmart and Woolworths are ideally placed for this situation
which inevitably leads to price deflation across the sector
Situational analysis
Price deflation
Kidswear market shares 2003-2004
Top 10
Next
Georgeat Asda8.6%
Tesco
M&S
Woolworths
Adams
Mothercare
Primark
Debenhams
BHS
2003
2004
9.9%
10.7%
9.2%
4.7%
5.8%
5.6%
5.0%
3.5%
3.3%
3.4%
3.0%
Source – TNS/Drapers Record
6.2%
5.5%
5.5%
4.9%
3.6%
3.6%
3.4%
3.0%
Swot analysis
Strengths
•No 1 Girls licensed brand
•No 1 property for girls 3-8
•Barbie is highly regarded for its quality
•Barbie has heritage and a wholesome appeal
•Still No 1 girls global entertainment property
•Innovation
Opportunities
•Direct to retail
•Create more theatre in store
•To develop more compelling designs
•Teen range
•Adult range
•Placing product in appropriate outlets
(Debenhams)
Weaknesses
•Failed to prevent emergence of
Bratz
•Slow to respond to competition
•Poor POS in stores
•Lack of control in maintaining
standards of merchandising,
optimum display in all retail outlets
Threats
•Price deflation trends
•Shrinking market as girls
mature earlier
•Reduced royalties
•Economic recession – oil
price increases which
impact on consumer
spending
Primary research
•Retail audits of Asda, Woolworths, Barratts, Adams,
Sports Soccer, Debenhams, BHS, and Mothercare
•Interviews with Mothers, Store Managers, fashion department
managers
•Interviews with Industry experts in retail companies, licensing
managers and fashion buyers and intermediaries for licensed
product
Store visits - Asda
Store visits – Asda
Main findings
•The kidswear section in store is very popular
•The Barbie products sell very well – quality is
very good and it is perceived as value for
money
•The Barbie range flies out when it is placed on
an end
•No knowledge of future Barbie promotional
campaigns
•More POS would be beneficial to highlight the
product which is mixed in with their own brand
– George.
•Fashion manager thinks that the product
range should be in Debenhams and would
have partial success in M & S. Next own brand
too strong. Barbie range would sell well in
Tesco but she hopes it never happens.
Store visits - Asda
Store visits - Asda
Store visits – Woolworths
Main findings
•Barbie products sell very well
•Barbie quality is strong but perceived to be over priced (‘adult
prices for children’s clothing’ - Departmental Manager)
•Tops and trousers sell very well along with shoes
•Special offer buy one get another half price (price deflation)
•8 year old girls not looking at Barbie range any more
•Stronger sales this year compared to last
•Products with less characters, smaller motifs would sell better
•Barbie range relies too much on the colour pink, which is why it
appeals to very young girls- more use of seasonal colours
needed – lemons, blues, greens etc.
•Good use of visual merchandising – the clothing is neatly
displayed and is appealing
•To appeal to older girls (7-8) the barbie logo needs to be less
prominent. The clothing should be more funky. (the Gloss range
at Woolworths is a good range for older girls)
Store visits - Woolworths
Store visits - Woolworths
Store visits - Woolworths
Store visits – Barratts
Main findings
•Prices and quality of Barbie footwear
similar to the competition
•Barbie products suffering from a
downward trend
•Barbie range always marked down in the
sale
•Competitors create more stand out in
store through POS
•Barbie stock located alongside
competitors – Bratz, Groovy Chick, Own
Brand
•POS for Barbie lacking in quantity and
impact
Store visits – Barratts
Store visits – Sports Soccer
•Location of Barbie products
in store is very poor- in the
corner behind a pillar
•Quality of presentation –
very poor, cluttered and
untidy- difficult to shop
•All Barbie footwear was half
price (£2,49 -£4.49)
•All major sports brands
stocked in store
•Location of competitors’
stock – along the back wall
alongside Barbie products.
Store visits – Mothercare
Main findings
•Perceived as a good quality childrenswear retailer where
Barbie products sell well
•Quality of presentation very good, easy to shop
•Drawback is the lack of POS material
•Competitors products stocked are Disney, Groovy Chick
and own brand
•Price range of Barbie products - £5.99 -£15.99, price
range of competitors’ products - £5-£20
•Location of Barbie stock – by the High Street entrance –
good position, good visibility
•Store ambience – excellent and footfall levels high
Store visits – Adams
Main findings
•Store ambience very poor and footfall low.
•Competitors stocked include Adams own brand,
Cartoon Network, Disney and Groovy Chick
•Perception of Adams is very low.
•Stocking of Barbie products in store would harm
the Barbie brand
•Adams replicates similar shoe designs to Barbie,
such as pink boots and sandals
•Price range of competitors’ stock - £4-£15
Store visits – Debenhams
Main findings
•Store ambience very good but footfall low.
•Competitors stocked include Bratz, Cartoon
Network, Disney, Groovy Chick, J by Jasper and
John Rocha
•Wide variety of clothing products,shoes and
accessories
•Products are not universally pink dominated
•Stocking of Barbie products in store would
enhance the Barbie brand
•Wide variety of colours and styles
•Price range of competitors’ stock - £5-£25
Internet Analysis
George at Asda
Features
•Consumers can browse online but only buy in store
•Consumers can also check availability in their local store
•Map provided to get to store
Limitations
•No ability to buy goods online
•Very few lines on display
•No Barbie prominence
•Static display
Internet Analysis
Woolworths
Features
•Good range of Ladybird products for girls 1-9
•Ability to order and pay online (unlike Asda)
•Store locator
Limitations
•Delivery charge of £3.95 may put off some
customers unless ordering in bulk
Internet Analysis
Argos
Features
•Wide range of Barbie products –dolls
and accessories
•Ability to order and pay online
•Lots of price reductions in Bratz, Disney
and Barbie products
•Barbie – 51 product lines – 12 reduced
•Bratz - 41 product lines – 10 reduced
•Disney –20 product lines – 4 reduced
Although hard line products this is an
example of current price deflation
Internet Analysis
Clarks
Features
•Easy site to navigate
•Wide range of girls shoes, trainers,
seasonal products from age 2-4,4-5,5-7
•Able to click on latest T.V. adverts
Product
•The Barbie product range is perceived to be excellent quality
•The range is also perceived to be slightly expensive
•The product needs to remain top quality and designers need to work harder to
make the products stand out and be distinctive.
•Barbie is definitely a fashion brand so needs to remain at the cutting edge of
fashion trends
•Some suggestions from Industry experts that the product would benefit from
being ranged alongside dolls (Source – Asda departmental fashion manager)
Price
•Price is an extremely important variable due to
the Walmart effect and price deflation
• Asda and Tesco are closing in on Next and rank
2 and 3 for Kidswear market share and likely to
keep on growing
•Downward pressure on pricing is extreme –
prices cut by 10% at Tesco and 8% at Asda
•Price deflation has caused a realignment in the
rest of the Kidswear market
•Department stores have bucked the trend on
price lowering prices by just 1%
•Sales of Kidswear product are commonplace
•Premium brands still achieving good sales at
high prices
Place
•Barbie has to be sold via supermarket chains because of their sheer
capacity to sell high volumes 24/7 (Tesco worth considering)
•Department store sector is also preferable due to their ability to withstand
downward price pressure (Debenhams would be ideal)
•Woolworths must remain due to size and U.K. coverage
•Independent sector would enable Barbie to be sold at high end prices but
they would have to be large Independent chains due to logistics/volume
•Use of internet sites, catalogue companies (Argos) worth considering
Promotion
•The use of POS within stores has been
highlighted as being universally poor
•There is a need to improve the POS in all retail
outlets used and monitoring is needed on a
regular basis
•Advertorials work well in the Barbie magazine
•More use of posters in store to signpost the
range
•Press coverage needs to be regular and positive
•More theatre needed in store – fashion shows,
dressing up and makeover events
Branding
•Barbie is a fashion brand and needs to be more high profile
•Lots of girls are very conscious of brands at an early age
•For some customers the brand is everything
•Brand names count for a lot because customers like the
exclusivity it offers
•Branding has to be subtle (Barbie needs to have smaller
motifs on the clothing range)
•Exclusivity is a key issue with brands. They should not over
distribute and should ensure their product has a real point of
difference
Positioning
•Positioning is key. Where should Barbie be positioned?
•Barbie is positioned as a fashion brand which is slightly more
expensive than own labels so care must be taken which outlets
are used to distribute so as not to confuse the consumer
•Woolworths and Asda are great for Barbie volume. Tesco would
also fit the bill as would Debenhams
•Presence in Harrods and Selfridges will enable the brand to be
considered as even more exclusive
•Selling via the Independent sector would also increase the
fashionability position
Strategic recommendations
•Consolidate all existing retailers where volume and value is positive
•Work very closely with fashion buyers especially on promotional
aspects in store, such as POS, fashion show events (retail theatre)
•Negotiate new deals with Debenhams, Marks & Spencer and look
at Argos for catalogue/internet channel of distribution
•Take a close look at the Independent fashion retail sector –
approaching only the biggest and best to drive premium product
sales
•Continually support the brand and develop new exciting designs
which delight young girls 3 -8 – a ‘must have’ product
•Monitor the competition on a regular basis
Strategic recommendations
•Phase 2 – conduct focus groups with the target audience and their mothers
to discover what makes them buy, what products they like, their aspirations,
attitudes, opinions
•Continue to talk to industry experts on a regular basis – fashion buyers,
Store personnel, intermediaries, to compile market intelligence
•Move the brand upmarket to make it even more appealing to young girls
and their mothers
•Consider introducing a new range for tweens and teens to rival Bratz
•Consider the use of other colours for the range, such as lemons, blues,
greens to provide more choice and variety
Conclusion
•The kidswear market in the U.K increased 2% in value and 7% in volume
over the past year so there is an upward trend
•Despite possible economic problems caused by the rise in the oil price
and record levels of personal debt consumers will spend money on quality
branded products that are positioned correctly and have distinctive designs
•Barbie sales have suffered in the past 2 years due to the emergence of
Bratz and the increase in the supermarket kidswear market (sales
increased by 38% over past 3 years to £554m)
•The challenge for Barbie is to position itself as a high quality fashion
brand which, by virtue of its distinctive designs, commands number one
position in the minds of its target customers – girls aged 3-8 and their
mothers and is sold in a variety of retail outlets throughout the U.K.