Introduction-Fishers Price Toys

>A LEADING QUALITY TOY MANUFACTURER FOCUSING MID-MARKET SEGMENT

>UNIQUE SELLING PROPOSITION (USP):
1.VALUE FOR MONEY
2. INGENIOUS
3. DURABLE PRODUCTS
>SUCCESS FACTORS:
1.BETTER PRODUCTS
2.BETTER PRICING STRATEGY
>FACTS AND FIGURES
1.MARKET SHARE 64.7%
2.MOST OFTEN BROUGHT BRANDS 82.7%
3.BRAND LOYALTY 64.5%
4.GROWING SALES IN LAST 10 YEARS

Analysis of toy buying behavior

based on the information in the
case?
Need Recognition:

Information Search:

i)Entertaintment of children
ii)Physical and mental
development
iii)for educational / for spare time
iv) for giving as gift.

i) womens magazine
ii)Television talk shows
and soap operas.

Alternatives:
i)Better price discounts
ii)Better quality of
product:

Purchase decision:
43.0% usually they buy
from discount store
23.6 % from departmental
stores.

Discuss the role of influences in

the process

Rational Analyses

Customers psychology

Increase in personal incomes

In Store Branding:

TV advertising/ in store pamphlets

Should the company launch or

not launch the ATV Explorer?
Explain
why.
The company should launch the ATV Explorer, because it is a unique toy in
the 1970s.

Present statistics of the company show a successful share of Fisher Price toys
in the market, which is 22 percent of total toy market sales.

More than 60% customers are loyal towards Fisher Price toys, which will
increase in future too.

In the markets, 82 % customers purchase the Fisher Price toys.

All the decisions of the company are satisfactory, because the outcomes are
great.

Pricing Strategy

To launch ATV Explorerfrom t $ 12 to $ 18, from retailers to the

customers few recommendations:

Economic prices of the product attract more customers rather

than costly products.

The management should adopt online search strategy to get all

knowledge about the product in the national and international
markets.

The qualities and look of the product make the customer to

purchase it repeatedly.

The Fisher Price Company should know the psychological

behaviour of the customers to increase the demand for ATV
Explorer in future as a selective item for the children.

Currently, the spending patterns of the customers have changed

towards branded items. Now, the customers prefers for a few
branded products rather than many local or low quality goods.
The company should analyse the consumers spending patterns
before tagging the price of ATV Explorer.

Launch Strategy

Fisher-Price has very good brand recognition (64.7%) the

customers would recognize the value and pay for the new toy
with higher price after the initial release.

Fisher-Price has 60.5% brand loyalty with customers Fisher-Price

name coupled with the attractive design and engineering of the
toy would assure reasonable sales even at higherprice.

Fisher-Price should consider starting the production of the ATV

explorer to meet the Christmas rush of thefollowing year.

Target positioning should be mothers as 63 % of them are major

decision makers.

Conclusion:

Since Fisher-Price has good brand recognition, it would be

beneficial for the company to launch ATV explorer. As indicated
above, Fisher-Price should launch the cheapversion of the ATV
explorer to understand the market reactionbefore introducing
the upgraded version as a toy line.

IF the company is ready to launch new version at lower cost for

every customer, it can be an important factor to tackle with the
market competitors.