'Barbie Goes To China\r'

'The impact of the recent global financial crisis is vividly seen in the reaction that consumer strike offs and retail stores are having with weigh to their survival. In Europe, the reaction has been drastic, with automobile manufacturers offering coarse discounts and trade ins just to boost their gross revenue. In the united States, manufacturers have slashed their prices and offered massive discounts. While in that respect is nonhing fundamentally wrong with reducing winnings margins to increase or improve earnings, this could be a problem in the long run because it preempt result in a deterioration of the deformity range of mountains.The conundrum that exists instantaneously is the decision that companies must watch regarding improving expenses in the short term and brand go for in the long run. The article entitled, Barbie Goes to China, provides and interest take on this puzzle that companies are now facing. Using the example of Barbie, the authors cite the struggle s that Mattel has had in the American mart. It shows that at that place has been a decline in Barbie sales because of the image that has been attached to the brand. There is no elbow room for Barbie to change the way that she is perceived.This in turn affects the marketability of Barbie, specially in the United States market. Instead, what the article suggests is that the focus should be on maintaining the brand image. Citing the moves that other companies have done, the ferocity falls on being able to exact amongst sacrificing brand image and maintaining a profit. some(prenominal) companies have decided to do a blend and offer discount sales for sealed items patch keeping other items full priced. In coitus to Barbie and Mattel, in that respect is a unique opportunity for the telephoner to capitalize on the growing Chinese market and create a new brand image for itself.From a marketing standpoint, there are twain important lessons that can be gleaned here. The first is that there is nothing wrong with trying to survive, particularly when the economic crisis has promised to be deep and widespread. In an effort to balk a total loss, companies have capitalized on the populace’s perception and reduced their prices while presumptively offering the same quality goods they have continuously provided. In the same vein, they have tried to cheer the image by putting less ferocity 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(prenominal) layers of customers and the top tier and loyal customers are not averse to supporting their favorite brands. Top brands much(prenominal) as Mattel need to understand that during uncertain quantify the one thing that you can count on are the loyal customers. They are willin g to drop down the overpriced goods as long as they astound what they want. This is what brands need to take advantage of.While there is certain merit in these assertions, it is wise not to allow for the economic fundamentals that are applicable. It can be said that the loyal clientele will constantly be there but this is not constantly the case. The reaction is so much more diametrical when one examines an in ductile good and one examines an elastic good. Demand 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 owe payments, it is a whole different dynamic and the lessons somatic in this article may no long-lasting hold.\r\n'