Innovative Toys Inc. Case Analysis
Innovative Toys Inc. Case Analysis
Innovative Toy is entering the infant toy market by distributing through supermarkets. It is important to analyze if our potential supermarket channel, Big Tiger, and Innovative Toys can find a place where there is a win-win situation and where both companies are pursuing the same objectives. It is important to analyze the pros and cons of spending the marketing budget on trade promotion or advertising. It is important to note that the success of Innovative toys and a future launch of a second product next year rely on the success of the product we will launch first in Big Tiger supermarkets. I have carefully analyzed the various matters that affect the decision of which toy to introduce first, the supersoft, plush, safety ball or a specially designed teething toy.
The supermarket channel, even though not a common channel for toy distribution, is growing general merchandise sales because these goods offer them higher profit and less hassle (no need for refrigerators, non perishable, etc.). Our company and specifically our infant toy are a great fit to the supermarket’s general merchandise needs. We can offer an attractive margin. This will be a major reason for Big Tiger to want to carry our toys. Supermarkets are highly sensitive to the margins. Supermarket executives have started to realize that toys have good potential as general merchandise, especially interested in proven brands. Studies have shown that there is more impulse shopping in this distribution channel than in any other. Impulse shopping has varied towards a more scrutinized shopping, where factors such as quality and value are being analyzed. Since Innovative Toys is a known and trusted brand it will be more compelling for them to carry our infant toy. We are a proven brand and most mothers are familiar with our brand. Our toys are extremely safe and of high quality, and we are also perceived as such. These are additional advantages for Bigger Tiger, who
Innovative Toy is entering the infant toy market by distributing through supermarkets. It is important to analyze if our potential supermarket channel, Big Tiger, and Innovative Toys can find a place where there is a win-win situation and where both companies are pursuing the same objectives. It is important to analyze the pros and cons of spending the marketing budget on trade promotion or advertising. It is important to note that the success of Innovative toys and a future launch of a second product next year rely on the success of the product we will launch first in Big Tiger supermarkets. I have carefully analyzed the various matters that affect the decision of which toy to introduce first, the supersoft, plush, safety ball or a specially designed teething toy.
The supermarket channel, even though not a common channel for toy distribution, is growing general merchandise sales because these goods offer them higher profit and less hassle (no need for refrigerators, non perishable, etc.). Our company and specifically our infant toy are a great fit to the supermarket’s general merchandise needs. We can offer an attractive margin. This will be a major reason for Big Tiger to want to carry our toys. Supermarkets are highly sensitive to the margins. Supermarket executives have started to realize that toys have good potential as general merchandise, especially interested in proven brands. Studies have shown that there is more impulse shopping in this distribution channel than in any other. Impulse shopping has varied towards a more scrutinized shopping, where factors such as quality and value are being analyzed. Since Innovative Toys is a known and trusted brand it will be more compelling for them to carry our infant toy. We are a proven brand and most mothers are familiar with our brand. Our toys are extremely safe and of high quality, and we are also perceived as such. These are additional advantages for Bigger Tiger, who