Fisher Price Case Study

I. Problem Fisher-Price is planning to launch a new ride tamper, the ATV Explorer. The retail scathe was originally set at $12. With however investigation into the types of molding, additional cost were revealed, increasing the retail equipment casualty from $12 to $18.50. This new pricing model for the Explorer is a lot higher(prenominal) than the usual moderate pricing that Fisher-Price has set in the past, typically pricing below $5 for product lines. Will customers unflurried buy the Explorer at a higher price? II. Situational Analysis Strengths: The ATV Explorer is a top quality travel nobble that is stylish, safe, durable, and educational. While testing the ATV prototype in glasshouse schools, the goldbrick commanded 20-min attention span of youngsters and a high aim of double usage from kids 2-5yrs. The ATV prototype has been receiving remarkable acceptance from get by and parents. F-P has a strong trade name reputation, 64.7% of people verba lise Fisher-Price was the best-known dirt for preschool toys. Fisher-Prices product line has true strong acceptance; 82.7% of customers buy Fisher-Price brand preschool toys, and 60.5% buy expert one brand most often. 66% of Fisher-Prices sales are from items priced $5 and up. Fisher-Price has had introductory success with higher priced items (Creative Coaster: $6.95 retail, Family Farm: $13 retail, and bleed House:$14 retail). Weaknesses: sign 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 increasing). It is believed by some that a moon-themed toy may be outdated.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 down the stairs is decreasing in the upcoming years. Opportunities: Fisher-Price planned advertising cypher for 1970 has more than duplicate to 1,100,000 from two years prior. The com! pany has had new success with TV...If you sine qua non to get a full essay, entrap it on our website: OrderCustomPaper.com

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