Submitted by: Submitted by tatianed
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Words: 352
Pages: 2
Category: Business and Industry
Date Submitted: 10/28/2012 01:12 PM
FISHER-PRICE TOYS CASE
I. Problem Definition
* Define go-to market strategy for a new product that has:
* high potential sales (very well evaluated)
* price above company´s standard (if it fails retailers will have to bear the burden and relationship/trust with be damaged)
II. Situation Analysis
Fisher Price has traditionally sold quality toys at moderate price.
Research showed optimistic forecast for a new riding toy product at projected price of $12.
Unseen costs resulted in a real projected price of $18,5.
(SWOT)
Strengths
• Brand Equity
• Quality of the products
• Company with focus on Innovation and Design
• High customer loyalty
• Perception of “value for money”
• Established channel of retail and distribution
* Fisher higher-priced entries were selling very well
Weaknesses
• Risk averse environment
• Not open to new ideas on product pricing front
Opportunities
• Growing Market for Riding Toys
• Optimistic forecast for number of first births
Threats
* Fierce competition in the riding toy area
* Playskool had long dominated riding toy market and had 6 such items
* Small/unknown firms were offering products at $3/$4 retail price with strong appeal to many retailers
* Toy sales were becoming more concentrated (discount chains) in last years
ALTERNATIVES
1: Retail Price of $12, fewer features, high margin
PROS
• More adequate/ideal price
CONS
• Inconsistent with company policie (quality/reduce features)
* Product with less features hasn´t been tested and evaluated.
RISK: LOW
2: Retail Price of $18, all features, with single item campaign
PROS
• Historical data suggested effectiveness on TV campaign
* Product has already been tested and well evaluated.
CONS
• Inconsistent with company´s communication strategy (umbrella)
* High price for company´s standards, risks trust with trade
RISK: MEDIUM
3: Retail Price of $12, all features,...