Fisher Price
...ir brand and the qualities of their products will differentiate them. Another concern for Fisher Price is that their relationship with their trade may be adversely affected by a product failure. We believe that that following strategy will advert this situation. The backbone of the strategy is based on recognising the strength of the Fisher Price brand. We recommend that Fisher Price launch the product at the price of $19. This price will allow Fisher Price to: • Maintain the fixed cost mark up which is consistent with their policy. • Provide an incentive to retailers to stock the product by offering them an extra $0.50 per unit mark-up on the retail price. • Provide the necessary cost to finance the intensive advertising campaign described below. The remaining elements of the marketing strategy are aligned with our pricing strategy. Promotion To support the selling of the ATV, we recommend that Fisher Price follow a new 2-step approach of keeping their traditional promotion channel and simultaneously using an additional one: • Product-line: continuing the existing policies, the Fisher-Price product-line will be promoted below-the-line; • ATV: TV advertisement (above-the-line) focusing solely on the product and its benefits. This new strategy will ensure product visibility and establish a connection between ATV and Fisher-Price (regarding product attributes). Place Since some retailers were not at ease with Fisher Price’s high price, some actions were taken to persuade them to sell their product in their stores: • The chosen price ($19) will produce an additional revenue (50 cents) that will go entirely to the retailers • Tv advertisement campaign (as defined above), as the most effective channel to attract people to stores; Plus, we have great beliefs that Fisher Price’s strong negotiable power (as market leaders) will play a key element in persuading the retailers to place their product. Product Fisher-Price will continue to focus on product quality and no compromises will be made. The necessary investments to create ATV concerning design and production will be made. This will include the procurement of the 2 machines to meet the projected demand. There are a few patterns that can be observed while watching the consumers toy-buying behaviour. In the toy market the parents (72%), and the grandparents (11%), purchase the highest volume of toys sold. The child is the final consumer of the product. This is the reason why Fisher Price has to analyse the parents behaviour in order to define the most effective marketing strategy. Buying kids toys is generally a utilitarian purchase, but be...