Fisher Price Toys
Based on the research data provided in the case study, Fisher- Price should initiate
the production of the ATV explorer. Fisher- Price has an industry wide reputation of producing high quality toys with strong construction, good engineering and attractive design. Fisher-Price is the best-known brand for preschool toys (64.7%) with a market share of 74.7%. Moreover Fisher Price was also ranked highest at 82.7% in the brand loyalty measure for toys purchased most often. Observing their sales history and the growing market demand for toys I feel that fisher should commence the production by investing in one mould.
For example the Fisher was able to achieve success in the sales of Creative
Coaster and Family Farm even with the price exceeding the $5 barrier. This is because customers believe the quality of the brand and have established their brand loyalty. In order to expand their operations Fisher should be willing to take certain risks. Launching the production of the ATV Explorer will mean that they can meet the market demand for diversified toys by Christmas. People will be looking for new and interesting products during this season and it would be the best time to offer it to them. Fisher could offer a couple of different variations for the product to meet the demands of a larger target market. The ATV explorer as a new, one of a kind product has the potential of attracting new customers to the brand. Based on brand loyalty research it appears as if Fisher almost has Monopoly power over the market of preschool toys. If people are loyal towards the brand and believe in the quality of its products then the price elasticity of
demand for the product would be relatively inelastic and consumers would be willing to pay $18.50.
I do however believe that increasing the retail price from $18.50 to $19.50
might be pushing the threshold. However if
the production of the ATV explorer. Fisher- Price has an industry wide reputation of producing high quality toys with strong construction, good engineering and attractive design. Fisher-Price is the best-known brand for preschool toys (64.7%) with a market share of 74.7%. Moreover Fisher Price was also ranked highest at 82.7% in the brand loyalty measure for toys purchased most often. Observing their sales history and the growing market demand for toys I feel that fisher should commence the production by investing in one mould.
For example the Fisher was able to achieve success in the sales of Creative
Coaster and Family Farm even with the price exceeding the $5 barrier. This is because customers believe the quality of the brand and have established their brand loyalty. In order to expand their operations Fisher should be willing to take certain risks. Launching the production of the ATV Explorer will mean that they can meet the market demand for diversified toys by Christmas. People will be looking for new and interesting products during this season and it would be the best time to offer it to them. Fisher could offer a couple of different variations for the product to meet the demands of a larger target market. The ATV explorer as a new, one of a kind product has the potential of attracting new customers to the brand. Based on brand loyalty research it appears as if Fisher almost has Monopoly power over the market of preschool toys. If people are loyal towards the brand and believe in the quality of its products then the price elasticity of
demand for the product would be relatively inelastic and consumers would be willing to pay $18.50.
I do however believe that increasing the retail price from $18.50 to $19.50
might be pushing the threshold. However if