Case: Fisher-Price Toys, Inc.

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Case: Fisher-Price Toys, Inc.

1. Basic information 1) Company: Fisher-Price Toys, Inc. (Industry: Child toys) 2) 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) 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 2) Fisher-Price must decide quickly before August to catch the sale peak: 1) trade-off between product quality and price; 2) Independence of the product

3. Case analysis 1) Current Market strategy (“4P” / “4C”) 1) Product → Commodity: innovative products / safe, durable and educational 2) Price → Cost: moderate price / good value for money 3) Place → Channel: Aggressive to increase the market reach and improve sales 4) Promotion → Communication: focused strategies for advertisement and promotion of differentiated range and group of products 2) SWOT analysis 1) Strengths (Internal) 1- Internal operation ­ 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 2- Market positioning ­ A…...

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