How Inclusive Brands Fuel Growth

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Strategy & Business Model Section | 1

How Inclusive Brands Fuel Growth

By Omar Rodríguez-Vilá et al., | Harvard Business Review Magazine | May–June 2024 Issue

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Greta Gerwig’s Barbie grossed more than $1 billion at the box office in about two weeks. Only 53 films have ever hit that mark (adjusted for inflation). The 2023 movie, which features themes of women’s empowerment, multiculturalism, and inclusiveness, was a divergence from the narrow social and demographic representation of the original tall, thin, white doll that Mattel introduced in 1959.

Years before the movie phenomenon, leaders at Mattel had grown concerned that perceptions of Barbie were out of sync with the demographic trajectory of its domestic market. 

While adoption was slow at the start, Mattel’s leaders went on a road show armed with market data to help retailers create the right commercial environment for the more inclusive offerings—one in which diverse dolls were featured prominently, rather than on a bottom shelf. Eventually, the in-store environment began to change, and so did sales. Today, Barbie comes in 35 skin tones, 97 hair types, and nine body types. Mattel’s Hispanic, red-haired Barbie became a bestseller. The company also has dolls representing people with disabilities, both physical and cognitive. Mattel’s inclusion strategy affected all areas of the brand—product design, distribution, and commercial activities—and coincided with a period of significant growth. Barbie revenues increased 63% from 2015 to 2022—before the boost from the film.

Barbie’s evolution illustrates that marketplace inclusion can help brands capture untapped markets. Mattel’s combination of market orientation, business practice transformation, and intentional representation is at the core of what it takes to become an inclusive brand, which the authors define as one that serves the needs of historically underrecognized communities (HUCs) in ways that help a brand win and make its customers feel seen. In studies they have conducted over the past two years, they found that the perception of inclusion can materially change customers’ likelihood to purchase and willingness to recommend products and services. 

Drawing on their research, the authors created a framework for increasing marketplace inclusion that focuses on three areas: seeing the market, which is about incorporating inclusion into market definitions, market intelligence, and strategies for growth; serving the market, which involves developing and adapting products, packaging, and other commercial practices to address the needs of specific underrecognized communities more effectively; and being in the market, which looks at customer experience and corporate advocacy.

Inclusive brands are intentional in defining their customer base, developing product offerings, and taking action in the market in ways that serve historically underrecognized communities. By serving the needs of HUC consumers, they unlock new sources of business value. At the same time, they cultivate inclusivity in the market and nourish a greater sense of representation, respect, and belonging in our society.

3 key takeaways from the article

1. Greta Gerwig’s Barbie grossed more than $1 billion at the box office in about two weeks. Only 53 films have ever hit that mark (adjusted for inflation). The 2023 movie, which features themes of women’s empowerment, multiculturalism, and inclusiveness, was a divergence from the narrow social and demographic representation of the original tall, thin, white doll that Mattel introduced in 1959.
2. Barbie’s evolution illustrates that marketplace inclusion can help brands capture untapped markets. 
3. A framework for increasing marketplace inclusion could focuses on three areas: seeing the market, which is about incorporating inclusion into market definitions, market intelligence, and strategies for growth; serving the market, which involves developing and adapting products, packaging, and other commercial practices to address the needs of specific underrecognized communities more effectively; and being in the market, which looks at customer experience and corporate advocacy.

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Topics:  Diversity, Inclusion, Marketing