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Mattel Is Trying Several Different Strategies to Sustain Brand Growth

question 144

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Mattel is trying several different strategies to sustain brand growth in slow markets. It has developed a line of high-fashion clothes to be sold under the Barbie label as well as a perfume for preteen girls. In another move, it announced Barbie would "spend some time apart" from Ken, her long-term male doll companion. What is Mattel doing to the Barbie brand in order to grow?


Definitions:

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and tax.

Variable Costing

A method of accounting that encompasses just the variable costs associated with manufacturing—such as direct materials, direct labor, and variable manufacturing overhead—as part of the product costs.

Unit Product Cost

An assessment of the total expense incurred to produce a single unit, incorporating direct costs like labor and materials, as well as indirect costs.

Year 1

A term typically used to refer to the first year of operation or the initial year in a specific timeframe.

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