Johnson Toy Company

Edwin White, Brad Carman

Embry-Riddle Aeronautical University

Overview
Section I
History

Section II
Return Policies

Section III
Marketing

Section IV
Proposed Policy for Returns

Section I History of JTC

75 Years in business Third generation Amy Johnson President Lori Johnson Vice Press

Section I History of JTC

Manufactured a doll after a popular television show and called the doll Jungle Jim Jogger Sold out of these dolls before Christmas. Made a commitment to produce 10 million Jungle Jim Jogging dolls. The actor of the television show was involved with a widely publicize sexual misconduct at a Valentines party. Retail stores want to get rid of the products JTC would have to pay penalties to suppliers because they had to cancel the production of Jungle Jim dolls.

Section II Return Policies

Several different techniques and none of them are clearly defined.
accept all returns from the retailers if the product is defective.
Bigger accounts JTC take the customers word if the product is defective or not based on an honor system.

Will take back an item if the product is a slow mover.

Slow moving or defective products that are returned is given to the sales associate
redistribute the product to other stores that they are involved with

Section II Return Policies

Sales associate to account stock
hoping that the sales associates are keeping an accurate record of their merchandise. JTC was mixing returns with outgoing items Pilferage and theft

Section III Marketing

JTC has over 4.5 million dolls in inventory The success of the company relays on the action they take with the Jungle Jim Jogger Doll. develop something new using all of the unassembled parts.
Maybe they will use a different head on the dolls. Repeat customers

Needs of the customers. How to minimize cost

Section IV Propose Return Policy

Return of merchandise for credit or exchange will not be accepted under any conditions unless a return authorization form obtained from and signed by JTC regional manager. To return items the following information will be included the signed copy by JTC regional manager, the invoice number and the price of the merchandise returned. A minimum of 15% restocking charge will be added on all returned merchandise unless it is for reasons caused by JTC. They cost for workers to repair merchandise as necessary to return the merchandise into saleable condition will be make in addition to the 15% for restocking charge.

Section IV Propose Return Policy Cont

All returns must be shipped prepaid and insured. If a return is made because of an error by JTC, the carrier fees will be credited. Returns will be credited at wholesale or current wholesale cost, whichever is lower. All claims must be made within three week of invoice date. Exceptions will be made by management for big accounts because of the amount of money that is involved.
Looked at close to ensure that both companies will be able to meet in the middle. Merchandise is undamaged and could be sold else where around the world. Only 20% of the stock will be returned with no questions asked.

Policy Letter
Johnson Toy Company 5555 Pee Wee Hermin Rd. Biloxi, Mississippi 94536 February 12, 2008 Dear Johnson Toy Company Customer: Recently Johnson Toy Company has experienced a high volume of returns on certain items. Many of the returns have come under false claims of damage. The situation warrants that Johnson Toy Company must adopt an official return policy effective immediately. Returns of merchandise for credit or exchange will not be accepted under any conditions unless a return authorization form obtained from and signed by JTC regional sales personnel is enclosed with the items. A minimum 15 percent restocking charge will be made on all returned merchandise unless it is for reasons caused by JTC. Cost for work or repairs necessary to put returned merchandise into new, saleable condition will be made in addition to the 15 percent restocking charge. Include the invoice number and the price of the merchandise returned. Returns must be shipped prepaid and insured. If a return is made because of JTCs error, carrier fees will be credited. Returns will be credited at your wholesale or current wholesale cost, whichever is lower. Claims must be made within three weeks of invoice date. Sincerely, Amy Johnson President

Internal Return Policy

Inspect returns Return authorization Account for inventory

Logistics Return Policy

Track returns
Sales Personnel Shipping service Warehouse receiving

Account for inventory

Redistribute Repair/modify Destroy

Unsold Dolls
Weigh options Prioritize buyers Analyze costs Uphold agreements where possible Seek alternatives

Summary
Section I
History

Section II
Return Policies

Section III
Marketing

Section IV
Proposed Policy for Returns

Questions?