Case Study: Fisher-Price Toys, Inc.
Case: Fisher-Price Toys, Inc.
1. Basic information 1) 2) Company: Fisher-Price Toys, Inc. (Industry: Child toys) Business dilemma: a rash marketing decision has to be made on carrying out whether a new quality product (product name: ATV Explorer) at exceptional high price or a new less-quality product at moderate price 2. Business dilemma 1) Key problem: (1) price-point: Cost for a projected toy can't be made within budget, resulting in a much higher price ($18.5) than planned. High price disobeys the traditional brand image of the Fisher-Price company –less-than-$5 convention. (2) 2) Marketing strategy: launch the ATV explorer whether as an independent product or as a new product in an existing product line, and corresponding advertising/promotion strategy Fisher-Price must decide quickly before August to catch the sale peak: (1) (2) 3. trade-off between product quality and price; Independence of the product
Case analysis 1) Current Market strategy (“4P” / “4C”) (1) (2) (3) (4) 2) Product → Commodity: innovative products / safe, durable and educational Price → Cost: moderate price / good value for money Place → Channel: Aggressive to increase the market reach and improve sales Promotion → Communication: focused strategies for advertisement and promotion of differentiated range and group of products SWOT analysis (1) Strengths (Internal) 1Internal operation 2 well-run established professional management expertise from diverse industries excellent sales history (continuous sales increase during the last 10 years) effective product testing and marketing programs facilitate internal toy design sound financial condition A leading toy manufacturer with a wide range of quality toys at moderate prices. has relatively good market for specialty toys, which has grown substantially over recent years 3Brand & Reputation (2) the best know brand for toys, has the largest market share (64.7%), and is brought most often (82.7%) Enjoys a reputation for
1. Basic information 1) 2) Company: Fisher-Price Toys, Inc. (Industry: Child toys) Business dilemma: a rash marketing decision has to be made on carrying out whether a new quality product (product name: ATV Explorer) at exceptional high price or a new less-quality product at moderate price 2. Business dilemma 1) Key problem: (1) price-point: Cost for a projected toy can't be made within budget, resulting in a much higher price ($18.5) than planned. High price disobeys the traditional brand image of the Fisher-Price company –less-than-$5 convention. (2) 2) Marketing strategy: launch the ATV explorer whether as an independent product or as a new product in an existing product line, and corresponding advertising/promotion strategy Fisher-Price must decide quickly before August to catch the sale peak: (1) (2) 3. trade-off between product quality and price; Independence of the product
Case analysis 1) Current Market strategy (“4P” / “4C”) (1) (2) (3) (4) 2) Product → Commodity: innovative products / safe, durable and educational Price → Cost: moderate price / good value for money Place → Channel: Aggressive to increase the market reach and improve sales Promotion → Communication: focused strategies for advertisement and promotion of differentiated range and group of products SWOT analysis (1) Strengths (Internal) 1Internal operation 2 well-run established professional management expertise from diverse industries excellent sales history (continuous sales increase during the last 10 years) effective product testing and marketing programs facilitate internal toy design sound financial condition A leading toy manufacturer with a wide range of quality toys at moderate prices. has relatively good market for specialty toys, which has grown substantially over recent years 3Brand & Reputation (2) the best know brand for toys, has the largest market share (64.7%), and is brought most often (82.7%) Enjoys a reputation for