R & R Case Study

1. What factors created the opportunity?

a. Demand for “Trivia” products were on the upswing, and had yet to reach the U.S.

b. Success of Trivial Pursuit in Canada was crucial

c. Reiss’s experience in the logistics and lead time concerns of manufacturing in the toy industry

d. Reiss’s personal connections

i. Kaplan (Equity)

ii. Helen Factoring (Billing & Accounts Receivables)

iii. Swiss Colony (production and shipping)

iv. Suppliers for books, boards and boxes

2. What were the barriers/obstacles/risk that had to be overcome?

e. Advertising (Did not possess the Advertising budget of larger companies, i.e. Parker Bros.)

f. Public’s interest in Trivia Games declining (Over saturation can/will occur rapidly)

g. Manufacturing with little lead time

h. Cash Flow

i. Sales

j. Competition (mainly Trivial Pursuit)

3. How did Reiss overcome these obstacles?

k. Advertising Strategy

v. Offering incentive(5% ad allowance) to dept. stores for placing ad in print

vi. Free media publicity

l. Ensured product would be available for sale before “fad” of Toy/Game had occurred

m. Utilized personal experience and intelligence to create an efficient product design (booklet, instead of cards)

n. Business Partner Kaplan

o. Sales Strategy

vii. Price Point was set significantly lower than Trivial Pursuit

viii. Targeted major Dept. Stores and mass merchandisers, yet distinguished them (different sales reps for each)

p. Competitive Strategy

ix. Different concept (dealing with TV trivia, rather than general trivia of Trivial Pursuit)

x. Lower Price Point

xi. Unique relationship with TV Guide, which provided significant credibility and exposure

4. How successful was Reiss?

q. Extremely successful, as his ROI on investment was assumed to be high...