1. GLOBALIZATION The Example of a Global Product 2. A Global
Product: definition A global product is a commercial product, such
as Coca Cola or the Barbie doll, that is marketed throughout the
world under the same brand name.It is a product whose manufacture,
transport and sales use the new global economic system in order to
ensure minimum production costs and attain maximum profits. Using
the new global economic system - TNCs OUTSOURCE their production to
countries with a CHEAP LABOUR FORCE to reduce production costs -
they IMPORT their RAW MATERIALS from countries often near to their
production sites - PRODUCTION SITES merely assemble the products -
the FINISHED PRODUCT is then transported at a cheap cost by
CONTAINER SHIPS to the retail markets - the RETAL MARKETS are often
in the industrialsed world where the final product is sold at a
high price - the AIM is to make MAXIMUM PROFITS at the LOWEST
PRODUCTION COSTS possible 3. The ADVANTAGES of a global market
approach Economies of scale in production and distribution Lower
marketing costs Power and scope Consistency in brand image The
DISADVANTAGES of a global market approach Differences in consumer
needs and wants for products Differences in consumer response to
marketing Differences in brand and product development and the
competitive environment 4. To what extent can we consider Barbie a
global product ? Barbie is t he most prof it able t oy product in
hist ory. I t was based on a German doll called Bild Lilli but t he
pat ent (brevet ) was bought by Mat t ell in 1964. The f irst
Barbie doll was produced in 1959 . .. and was eit her blond or
brunet t e. Barbie doll is a product of Mat t el. Mat t el, I nc.'
s name is derived f rom Harold "Mat t " Mat son and Elliot Handler,
who f ounded t he company in 1945. I t is based in El Segundo,
Calif ornia and rat es 413t h in t he Fort une 500 index. Mat t el
employs 28 000 people around t he world and has a revenue of around
$6.5 million but t he Barbie doll has never been produced in t he
USA. Mat t el boast s t hat 2 Babie dolls are sold every second.
There are around 50 dif f erent models of Barbie, f amily and f
riends which are sold in 150 dif f erent count ries. So, Barbie' s
global scale is obvious. I t is an immediat ely recognizeable
product all over t he world. I t has const ant ly evolved t o suit
new market s and react t o changing public t ast es. but where and
how is Barbie made ? 5. Producing at a minimum cost : cheap labour
force 1. Barbie has never been made in the USA 2. The first Barbie
dolls were produced in Japan in 1959. Japan had a struggling
economy after WWII and provided a cheap labour force. 3. When the
Japanese economy grew, and thus labour costs, Mattell relocated
production to Taiwan, Hong Kong and the Phillipines. 4. In 1988,
following a labour dispute, Mattell closed two factories in the
Phillipines which employed 4000 people. 5. Today, Mattel runs four
factories in Asia, two in China, and the other two in Indonesia and
Malaysia. 6. Workers work long hours for low wages in huge
factories called sweatshops 7. The average Chinese factory worker
earns around $30 a month. 6. What is Barbie made of and where is
she sold? Barbie is made from plastic resins. Historically, the
major toy producers were Japan and Taiwan. Mattel still buys its
plastic resins from these countries since its factories are in
south east Asia. The oil used in the production of plastic resins
is imported by the Chinese Petroleum Corporation, owned by the
Taiwan state. The petroleum comes mainly from Saudi Arabia, but
also Oman, Kuwait, Iran and the United Arab Emirates. The nylon for
the hair also comes from Japan. Machines and tools are provided by
the USA, Europe and Japan. The paint for the face comes from the
USA. The packaging, a major promotion necessity, uses wood from
Indonesia. The finished dolls and products are then shipped by
container. 40% of production is sold outside the USA, mainly in
Europe and Japan. 7. CRITICISMS of BARBIE and MATTEL The major
critism of the Barbie doll is the effect of its unrealistic figure
on young girls Barbie measures 36-18-33 inches (chest-waist-hips)
which is roughly 90-45-82 cm physically impossible and medically
dangerous. It has led to cases of anorexia and plastic surgery.
Ukranian Valeria Lukyanova had plastic surgery to be a Barbie look
alike. She had facial reconstruction, liposuction, a nose job,
breast implants, and much more ... 8. CRITICISMS of BARBIE and
MATTEL In 2011, Mattel was accused by Greenpeace of destroying the
delicate Indonesian rainforest in order to produce cheap packaging
for Barbie products. Four months later Mattel began a paper
sustainability policy. 9. Fact File (all information given by TCCC)
- over 500 non-alcoholic beverages - present in over 200 countries
- employs roughly 700 000 people worldwide - company associates
worldwide: over 146 000 - 1.8 billion drinks served each day -
operating income $10.2 billion in 2010 - 80% of production outside
the USA
