...Fisher-Price Toys, Inc. Fisher-Price, a toy company that was founded in 1930, was known for its durable, safe, high-quality, and fun products sold at low to moderate prices, and had established itself as a leading producer of toys over the years. In fact, 82.7% of participants in a Redbook study named Fisher-Price the brand of pre-school toys that they buy the most often. In the summer of 1970, marketing vice president Jack Asthalter found himself confronted with a difficult decision: whether to produce a new ATV Explorer toy. Ashalter’s production staff had just informed him that the ATV Explorer could no longer be profitably distributed at the preconceived price of $12, and would need to be sold at a price of $18.50 after markups. Asthalter was unsure whether there would be sufficient demand for the ATV at this new price, as all concept tests and market research sessions had been conducted with the idea that the ATV Explorer would be sold at a retail price of $12. Additionally, because most of Fisher-Price’s toys were priced below $5, internal opposition would need to be overcome in order to manufacture the toy. Ashalter had several options: produce the ATV Explorer and sell it at $18.50; lower the price by removing a part but in the process sacrifice quality, going against traditional company policy; market and advertise the ATV Explorer as a single item rather than as part of a line of toys; milk the ATV Explorer and increase the price by $.50 or a $1 and use the added...
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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 ...
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...market leader- although it is true that the competition has increased over the years for Mattel, the current market capital is 8.67B. The question about whether they will bw able to retain this position or not, however, is debatable. Strong brand equity – Building brand equity requires significant effort. Mattel has both single brand and multi brand identity. (Phillips, 2003) Loyal customer base – Mattel has been in the market since the 1950’s. They have a large and loyal customer base. (Warner, Aug 5, 1996) Wide range of products - Mattel believes its products are among the most widely recognized toy products in the world. Mattel’s portfolio of brands and products are grouped in the following categories: Mattel Girls & Boys Brands - Including Batman , and Kung Fu Panda products, and games and puzzles. Fisher-Price Brands — Collectively Core Fisher-Price, Fisher-Price Friend and Power Wheels. American Girl Brands —including Just Like You, the historical collection, and Bitty Baby. Strong distribution line – Mattel is believed to have a cost effective, efficient distribution line. Corporate responsibilities - Mattel has implemented several projects aimed at reducing energy and water use, shrinking product packaging, and reducing waste, according to the firm’s 2009 Global Citizen Report. Mattel has also established the Mattel Foundation, which promotes philanthropy and community involvement among...
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...1. Estudia el mercado de los juguetes: juguetes de moda, presentaciones en las tiendas, catálogos, precios, marcas, publicidad, etc. Estudio de los márgenes en jugueterías: La media anual de una juguetería es de un 35,5 % aunque en la temporada de navidad esta media se puede ver incrementada en un 10-15 %. No todos los proveedores dan los mismos márgenes de beneficio. Las marcas mas fuertes son Mattel (que absorbió a Fisher-Price). Y Hasbro, ambas son de EEUU, tienen productos similares y sus margenes de beneficio rondan el 12 %. Mattel abarca marcas como Fisher-Price, Tyco, Polly Pocket, Barbie, y algunos juegos de mesa. Estas marcas ofrecen descuentos a las grandes superficies, debido al volumen de compra de éstas, mientras que al detallista no ofrece facilidades. Hasbro tiene entre sus marcas a Playskool, Actino Man, Sindy y una amplia línea de juegos (MB entre ellos). Los proveedores de juguetes importados, como el caso de Atosa dejan mas margen de beneficio al comerciante en algunos casos hasta el 60%. Famosa es una casa española y lleva marcas como Spiderman, Barriguitas, Nancy, etc.... Luego hay otras marcas como Lego que no ofrecen descuentos ni al detallista ni a los grandes almacenes, y tiene un servicio post-venta muy bueno, ya que dan la posibilidad de hacer devoluciones, servicio de financiación y van a los comercios y montan escaparates y stands a los comerciantes. He observado 3 catálogos de distintos comerciantes (Toys’rus, Juguettos y Juguetecas)...
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...1) Estrategia de mercadotecnica: Producto: Caracteristicas que buscan las ninas que tenga su muneca: 1) Que este de moda y que sea la mas innovadora, para obtener reconocimiento en su circulo social. 2) Que cuente con una amplia variedad de accesorios y ropa. 3) Que muestre un rostro de ternura caracteristico de los bebes. 4) Que sea lo mas real posible con mecanismos que les permitan reproducir la satisfaccion de las necesidades fisiologicas de los bebes. Principales marcas de Mattel> Little Mommy: Despues de Nenuco, es la marca mas recordada por las ninas. Cuenta con una amplia linea de accesorios. (Pertenece a Fisher Price – seguridad y calidad). Miracle Baby: Cuenta con muchos accesorios , como babero, sonaja y mamila, ademas de que cuenta con caracteristicas fisiologicas. Otras marcas: Princesa Alexa y Bebe Estrella> Ofrecen caracteristicas unicas como certificado de nacimiento y adopcion, aparte de contar con accesorios innovadores. Bebe estrella es percibida como la muneca mas abrazable. Niveles de producto> Base: Es el concepto principal de cuidar algo que es suyo. Estimulan las emociones de las ninas relacionados a la maternidad, que imitaran las actitudes de sus madres. Se desarrolla el respeto, reponsabilidad y cuidado de algo que les pertenece. Real: Las distintas caracteristicas que tienen las muñecas son de textura de cuerpo suave o duro, variedad de tamanos, cabello imitacion natural, y amplia variedad de ropa y accesorios...
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...Everyone has a toy that they loved to play with while they were growing up. However, most did not realize that these toys were building blocks for their development. There are numerous toys that are being sold in stores, like Toys R Us and Babies R Us that are amazing for kids. Toys are able to stimulate perceptual abilities, motor skills, etc. with bright lights, animal sounds, bright colors, and various shapes. The toys I picked to analyze are, Fisher-Price Bright Beats Dance & Move Beatbo, VTech Busy Time Activity Cube, Fisher-Price Classic Xylophone, and Fisher-Price Wood 40-Piece Learn and Grow Blocks. The Fisher-Price Bright Beats Dance & Move Beatbo is a very colorful and interactive toy. This toy is for the age’s 9-36 months. I believe this is an...
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...The year is 1945, when the toy company Mattel is born. Along with truly great toys, this company gives a lot to the community and environment as well as being the world's leading toy company. Mattel is the worldwide leader in the design, manufacture, and marketing of toy products. The company's major brands include Barbie, Hot Wheels, Matchbox, Fisher-Price, and American Girl. With headquarters in El Segundo, California, Mattel has offices and facilities in 36 countries and sells its products in more than 150 nations throughout the world. In 1945, Ruth and Elliot Handler and Harold "Matt Matson develop this new company out of their garage workshop located in Southern California. Although the first products they create are simply picture frames, Elliot takes the left over pieces of these frames and put them to use to make dollhouse furniture. These dollhouse furniture pieces were just a side business for Elliot though. Harold Matson soon sells out his partner, and, being confident from the success of the dollhouse furniture, the Handler's decide to turn the companies' emphasis on toys. In the year 1947, the "Uke-A-Doodle is the first, in a line if musical toys. In 1948, Mattel is incorporated in Hawthorne, California. During the year 1955, Mattel becomes involved with "Mickey Mouse Club . This very popular show soon become the major spot of advertising for Mattel, which revolutionized they way the toys were marketed. It also introduced they another great product, the "Burp...
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...Toy Project Rainforest Melodies and Lights Deluxe Gym Introduction Fisher-Prices’ Rainforest Melodies and Lights Deluxe Gym is designed for babies from birth up until twelve months. There is a soft quilted blue and green mat with animals resembling a rainforest for your baby to lie on. At each corner of the mat are four arched stakes that meet in the middle, one of them supported by a stuffed giraffe. At the point of connection and hanging throughout are links allowing you to hang rainforest themed toys such as an elephant, monkey, or a toucan. This toy measures 29.3 inches by 23.8 inches. Play time and tummy time will be extra fun with the Fisher-Price Rainforest Melodies & Lights Deluxe Gym, which features ten activities and twenty minutes of music, rainforest sounds and colorful lights to keep your baby entertained (ToysRUs, 2014). This toy requires three double A batteries in order to operate. This toy is designed to help develop sensory skills and promote growth. This deluxe toy has pieces that can either be attached to the links or detached for interactive play. There are two modes of play: Lay & Play and Tummy time. Lay & play sets off music and colorful lights from your baby’s movement. The second mode, ‘Tummy time’ plays twenty minutes of either music or rainforest sounds and is designed for when the baby is laying on its stomach. In addition to the two modes, there are many activities, including a mirror used for peek-a-boo and an elephant...
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...Marketing Mix MKT/421 February 11, 2013 Ron Stripe Marketing takes a day to learn. Unfortunately it takes a lifetime to master – Phil Kolter. Marketing involves so much more than simply selling a product or service. It involves planning and preparations that requires an organization to connect with their customers on a much deeper level. A marketing mix is one of the most valuable tools an organization can utilize to create such a connection. The marketing of an organization includes so many variables; therefore, it is necessary to categorize these variables by product, price, place, and promotion, which are the 4P’s of the marketing mix. These categories are the framework for just about every successful organization in today’s market. An organization like Fisher-Price understands how important a marketing mix is to compete in a market that is saturated with developing young minds; which in fact, was the driving force behind their refreshing new approach to stay connected with today’s moms. The Marketing Mix What is a marketing mix and how does it affect an organization? The answer to this question is what all business owners and managers need to know to contend in the highly competitive market of this day and age. The term "marketing-mix," was first coined by Neil Borden, the president of the American Marketing Association in 1953. It is still used today to make important decisions that lead to the execution of a marketing plan. The various approaches that are used...
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...About Mattel Mattel, “the world’s premiere toy company,” began in Southern California in a garage workshop that manufactured picture frames. When the company started selling dollhouse furniture made from picture frame scraps, they realized the market potential and decided switch to toy manufacturing. In 1959, Mattel created their most popular toy, the Barbie doll. Inspired by paper dolls, Barbie was a three dimensional doll with which “little girls could play out their dreams.” Throughout the decades Mattel has continued to create and market popular toys, (Hot Wheels and He-man) merge with successful manufacturers, (Fisher Price and Tyco) partner with children’s program companies, (Disney, Sesame Street, and Nickelodeon) obtain licenses and rights to manufacture popular lines (Cabbage Patch Dolls and Harry Potter merchandise) and acquire other companies (Pleasant Company). Since its conception, the Mattel Company has done a lot to make sure it is considered a trustworthy company for children and the community. The corporation established a children’s charity, called the Mattel Children’s Foundation. In 1997 the company created the Global Manufacturing Principles, making them the first company to create a framework to ensure manufacturing would be conducted through consistent standards on a global level. In 1998 they started a $25 million multi-year donation to the UCLA children’s hospital, which is now called the Mattel Children’s Hospital at UCLA. However, Mattel has not...
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...Toy Store Visit Simon Swipe Simon Swipe is a toy that represents memory. This fast action game has increasing pattern combinations of colors, lights, and sounds. You need to be able to remember, and repeat by swiping the right combinations. I see this game fitting into the three components of Long term memory. Episodic, where audio and visuals are used. Semantic, where solving and figuring order. Procedural, where knowing the step by step order. But, I also see it as staying in working memory. This is a game with many combinations and one player or multiplayer options. Remembering these patterns past the point of game play is highly unlikely. .Lego Creator- Tree House Lego Creator is a toy that represents constructivism. This three-in-one toy allows children to be hands on and build a different place of liking at their discretion. Lego Creator transforms from Tree house to a Lakeside hut and then to a two-floor barn. The experience and interaction with the toy allows children to see for themselves the reality of having a tree house, lakeside hut, or even a barn. Deluxe Get Better Check-Up Center (Disney) Deluxe Get Better Check-Up Center is a play center that represents social development. This toy is equipped with pretend elements such as x-ray, check-up table, and tools that, in the real world, would help a veterinarian with diagnosis. It comes with The Big Book of Boo Boos, where bandages are used to help heal the sick. This toy helps to structure social development...
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...When choosing toys for young children an early childhood educator has guidelines to follow to make sure they are appropriate for a specific age group. First, the toy needs to be developmentally appropriate for the age group in question. This means the toy should be challenging but not frustrating. The complexity of the toy needs to be age appropriate as well. If the child is unable to figure out how the toys works, he or she will not want to play with it they will give up and move on to another toy. The toy also needs to be safe for the intended age group. This means the toy passes the choke test for ages 0-3. There should be no sharp edges that could scratch or cut the child. Any possible eye danger should be considered as well. Another guideline to be considered is whether or not the toy is appealing to a child in the intended age group. The color, shape, and style should be considered and looked at when choosing appropriate toys. Play opportunities with the toy should be open ended, meaning the toy should stimulate thinking within the intended age group. There should also be more than one answer or way to use the toy. In an educational setting, toys should be multicultural but not stereotypical, meaning there should be no biases or prejudices in the classrooms. Weapons should not be included with toys and any aggression should not be encouraged. There are many other ways and guidelines to be considered when purchasing age appropriate toys for children. These should be...
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...global leader of toys design, manufacturing and marketing. Company’s product lines includes the brands such as Barbie®, Hot Wheels®, Matchbox®, American Girl®, Radica® and Tyco R/C®, as well as Fisher-Price® brands family. Mattel has been putting significant focus on corporate responsibility resulted in the recognition in the various rankings, including FORTUNE Magazine's "100 Best Companies to Work For" and Corporate Responsibility Magazine’s "100 Best Corporate Citizens". Despite company's efforts towards the product safety, between August and November 2007, Mattel discovered the serious safety issues related to its products: excess lead in paint of some of Fisher-Price products and unreliably fixed small magnets that could fall out of the toys. These issues could produce a significant harm to the kids and after the internal investigations Mattel decided to issue voluntary recall on potentially dangerous products. This paper offers the analysis of Mattel’s actions in view of social responsibility and ethics. Additionally, it suggests specific roles and responsibilities of other stakeholders such as government, industry organizations, and the society that are also involved in assurance of the safety of children’s toys. Analysis of Mattel’s actions and Suggestions for Improvement Corporate social responsibility assumes that companies hold accountability for any of their actions that impact people, communities and environment. With regards to the safety of toys, this means that...
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...Mattel Toys. Just the thought of those two words brings to mind fun, a trusted brand, and children playing happily. Right? Maybe not. In 2007 there was a massive recall of toys, eighty-percent of which were made in China and coated in leaded paint (Lawrence/Weber). These were toys for little children. Little children usually put toys in their mouths, the toys get slobbered on, the leaded paint chips, little children obviously eat the paint chips and little children get become very ill. While Mattel had policies in place, it did not meet its ethical responsibility to its stakeholders and customers. Mattel has an ethical and corporate responsibility to manufacture a product that is safe for children, to take responsibility when their products are found to be unsafe and to follow government and company regulations to ensure safety. Mattel was believed to be one of the most trusted toy companies around the world that operated in 155 countries. They produced some of the most famous toys for children, such as Barbie, Cabbage Patch Kids, Fisher-Price, and many, many other amazing toys. Beyond concerns about marketing to children, Mattel, Inc. was making a serious commitment to business ethics. For example, Mattel started a code of conduct called "Global Manufacturing Principles” (Mattel.com). These philosophies required all business partners to commit to ethical standards that relate to safety, wages, and adherence to local laws However, recently Mattel was involved in a product...
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...Developing Strategic Capabilities Group 1 – Phase 2 Report Overall Situation: As the world’s largest toy company, Mattel is a seasoned veteran within the industry. It is well known for brands like Barbie, Fisher Price, American Girl, and Hot Wheels and, moreover, new product lines like Max Steel and Monster High have quickly found success. Despite its command of the toy industry, Mattel faces competition from companies like Hasbro, JAKKS Pacific, and LEGO. Nonetheless, Mattel is poised for continued growth through expansion and investment into developing markets like Latin America, Russia, China, and India and, further, through its acquisition of smaller, more specialized companies. Mattel must better monitor its product quality and brand image in these developing markets and, moreover, strive to better deliver on its vision and promise of creating the future of play. Issues: • Vision: Mattel has a strong vision, “creating the future of play” and despite successful toys, does not necessarily deliver on the “future” element of that vision. • Technology: Mattel has its “toys and dolls” tradition but needs to successfully integrate technology moving forward; this is an extension of the above issue. Fig., 2. • Competition: As with most consumer goods, shoppers are looking for the next “it” thing. Thus, Mattel will continue to face tough competition from rivals and new entrants. Fig., 10. • Economy: As with any economic downturn, sales have struggled. Figs., 5, 9. • Image: In 2007...
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