Fisher-Price Toys, a producer of quality toys for preschool children has to make a decision on whether to introduce a new riding toy (ATV Explorer) to the market. The company is faced with the difficult situation of whether to price this product higher than the usual price for Fisher-Price products. The company was unsure that customers would be interested in the product at a higher than usual price.
* Fisher –Price ranked 3rd in a brand awareness survey. Three-fourths of all toy purchasers recognized the company as a leading producer of preschool toys. * Strong brand-name company reputation. Fisher-Price is considered the best known brand of preschool toys. (64.7%) * Fisher-Price has effective product testing and strong advertising and marketing programs * Fisher –Price had a product that is a lot different from those of their rivals. They produced toys that were durable and withstand a good deal of punishment. * Their products were moderately priced compared to their rivals. * Fisher-Price has a distinctive competence in making specialty toys in the wood lithograph variety. * Fisher-price has a better product quality relative to its rivals. Even though other manufacturers had developed similar toys, their products were either too fragile or expensive to attract substantial customer acceptance. * They target the right customer base. Corporate advertising was carried in women’s magazines such as Good Housekeeping, Woman’s Day, etc. Research shows that mothers and grandmothers purchase about three-quarters of all pre-school toys. * Fisher-Price has a larger market share for pre-school toys than its rivals. According to a baby products study, 82.7% of respondents said Fisher-Price is the brand of preschool toys they buy most often. (Exhibit 16). Internal Weaknesses
* Fisher-Price produces toys for preschool children. Preschool toys account for only 2% of toy...