Fisher Price Case Study

I. Problem Fisher-Price is planning to launch a new horseback riding tamper, the ATV Explorer. The retail monetary value was originally set at $12. With skillful investigation into the types of molding, additional cost were revealed, increasing the retail legal injury from $12 to $18.50. This new pricing model for the Explorer is much(prenominal) higher(prenominal) than the usual moderate pricing that Fisher-Price has set in the past, typically pricing below $5 for product lines. Will customers unagitated buy the Explorer at a higher price? II. Situational Analysis Strengths: The ATV Explorer is a top quality riding nobble that is stylish, safe, durable, and educational. While testing the ATV prototype in nursery schools, the goldbrick commanded 20-min attention span of youngsters and a high take aim of double usage from kids 2-5yrs. The ATV prototype has been receiving remarkable acceptance from deal out and parents. F-P has a strong trade name reput ation, 64.7% of people verbalize Fisher-Price was the best-known dirt for preschool toys. Fisher-Prices product line has receive strong acceptance; 82.7% of customers buy Fisher-Price brand preschool toys, and 60.5% buy just one brand most often. 66% of Fisher-Prices sales are from items priced $5 and up. Fisher-Price has had earlier success with higher priced items (Creative Coaster: $6.

95 retail, Family Farm: $13 retail, and bleed House:$14 retail). Weaknesses: initial costs of the ATV Explorer toy are to be substantially higher than expected (primarily out-of-pocket to the additional investment in the mold and special tooling costs increasi! ng). It is believed by some that a moon-themed toy may be outdated. The launch of a previous high priced item, the Fisher-Price Circus, was a utter(a) failure ($13.95 retail) The number of children 6 and under is decreasing in the upcoming years. Opportunities: Fisher-Price planned advertising cipher for 1970 has more than duplicate to 1,100,000 from two years prior. The company has had youthful success with TV...If you sine qua non to get a full essay, severalise it on our website: OrderCustomPaper.com

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