Case Study of G5doll
... has 1. researched and decided on a style of doll. 2. approached financial institutions on availability of money. 3. sought means of distribution. Problems have shown up in all areas. Perhaps, in order to advise people like Ms Baker we should acquaint her with the methods and strategies to be used when introducing a new, or innovative product to streamlined marketing companies. These criteria must be satisfied. Failure in any one criterion can bring disaster to the product. Criteria no.1 is quality. If an article shows a suspicion of inferior design or quality of material, total success is doubtful. Criteria no.2 is time. Many factors in the market place will affect the timing of the launch of a new product. The ideal time would be when the market is hungering for the new style, function or design acceptable to the messes. Criteria no.3 is cost. If the quality is to be maintained, economies of scale is one way of reducing the cost, while still maintaining a workable margin of product. When all 3 criteria are satisfied the product now has great value. This value to the market place will impress financial investor and distribution companies (Crawford & Benedetto, 2004, p.15) In the case of Ms Baker and her G5 dolls, it becomes obvious. She has not met all 3 criteria. Regarding quality, the quality must be such that it is irresistible to the target market. Over and above all other similar dolls presently available. The G5 design suffers when compared with the Barbie range. Some features of the G5 design, such as flexible limbs may be superior to the opposition but I do not think this feature alone is sufficient to create that desire to purchase. These facts put a strain on the availability of finance. If the financer feels that the project may fall short mass appeal, he will be reluctant to support it. Regarding time, unfortunately for Ms Baker she is attempting a launch of her dolls at a time when her biggest rival is celebrating 40 year of success. To make matters worse, Mattel-Barbie is launching, not one, but 40 new style dolls including very similar styles to her G5 range. So the second criteria, time is not to her advantage. Regarding cost, with limited finance and expertise, producing a doll of quality plus appeal would be difficult. When a comparison made between the company Mattel and Ms Baker, we find a revealing ratio of $370,000 to $1,900,000,000. Any advice to Ms Baker to take on Mattel head to head must be avoided. Some avenues are always available, but will need to be planned around the 3 criteria of quality, time, and cost. After evaluating the G5 product using the new product criteria of quality, time, and cost, I found that 1. Quality was inadequate when compared with the cheaper Barbie doll. 2. The timing was inappropriate as it conflicted with the anniversary promotion (40 years and 40 new style dolls) of the Barbie doll. 3. The cost was also unfavorable with the Barbie opposition. Ms Baker has to evaluate her project. Should she continue or forget it? The answer for Ms Baker can be found by applying the “Risk/Payoff Matrix” to her proposed business. The “Risk/Payoff Matrix” is divided into 2 situations and 2 decisions. Situation A : If the product were marketed, it would fail. Situation B : If the product were marketed, it would succeed. Decision A : Stop the project now. Decision B : Continue to the next step. The 2 situations and 2 decisions can match each other into 4 cases. The first case is called “AA”, that is to say, you know your product would fail, and you decide to stop the project now. The second case is “BB” -- your product would succeed, and you continue your business to the next evaluation. The third case is called “AB”, namely, your product would succeed, but you stop the project. The last case is called “BA” -- your product would fail, but you continue your business. “AA” and “BB” are correct decisions because you drop your project that would cost you a great deal of money. Or you continue the project that would make you a considerable profit. On the other hand, “AB” and “BA” are in error because you stopped progress on a product concept that would succeed in eventually. You will lose money invested in your business. Moreover, your competitors may steal your excellent idea for their products. Likewise, “BA” is an error when you continue investing money in the business that would fail. You would lose lost of money and be unable to repay your loans. However, error “AB” is much worse than “BA” (Crawford & Benedetto, 2004, p.162) In the case of G5 doll, we know the G5 doll product would fail from the 3 criteria mentioned above. Thus, Ms Baker should stop her project, otherwise she may get the error with her business. In case of Ms Baker, she would get the error “BA” if she ignores the research and insists in her attempt to conquer a strong competitor like the Barbie doll -- Mattle company. She will not receive any profit from her business. Moreover, she will lose the money that she borrowed from the bank and her mother. Because her research showed that the G5 product would fail. The evidence highlighted in the “Risk/Payoff Matrix” must indicate the “AA” action, namely, STOP NOW !! Because Ms Baker is planning to introduce a new product in the form of a realistic doll. Her plan was to influence young children to accept all nationalities in harmony such as Negro, Arab, Oriental, European. To achieve this the dress of the dolls would reflect various occupations such as Oriental nurse, black model, Arab business girl, Australian surfer, and Chinese ballet dancer plus many male occupations. This attitude is commendable, even altruistic. If it were successful Ms Baker would feel that her efforts woul...