Henry Tam Case Analysis

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The Henry Tam case is in the course packet. Make sure to pay attention to both the case text and the exhibits when you prepare your analysis. 90% of the score will be based on content, as discussed in the critical thinking grading rubric. 10% will be based on style. While it will be okay to fill in the table below with bullet points, each bullet point should be a full sentence. The analysis should be comprehensive, yet concise; there is no minimum or maximum word count. Grammatical and spelling errors will lower your style score. Total value: 22 points.

1A. Please analyze the opportunity:

Customer value
1. Who is end user and purchaser/decider? Is this a Pro or con and why?

The target market is something the team struggles with throughout the case. The students (Henry and Dana) believe the ideal market is the education market (i.e. elementary school aged children), however the founders believed they should be going after the entertainment market (i.e. junior high and above). Both have sound reasoning for their opinions; however I tend to side with the students that the best approach in the beginning would be to go after the education market because of the inherent benefits available. I will be answering the questions based on the standpoint their target market is the education market.

In the education market, the end user would be younger children (elementary school aged children) with the decision maker being their parent or their music teacher at school. By targeting the younger students, MGI can help develop a sense of love and passion for music at an early age in a child, which opens up avenues for more advanced puzzles as the child progresses and becomes older. I think of McDonald’s marketing of the Happy Meal as a way to attract a customer at a young age and then condition that customer to graduate to different products as they become older. The same consumers then bring their own children back to McDonald’s and the cycle starts all over. MGI has the same opportunity to gain a lifelong customer that would lead to a product with very durable profits. As the child becomes older and their skills advance, they will be able to transition to higher end products. At which time, they will also become both end user and decision maker.

However, in the beginning the decision maker will be either their parents or their music department at school. The decision maker has an increasing appetite for “edutainment” (as it is referred to in my house) where the child is being educated while being entertained. As parents we prefer for our daughter to watch shows like Dora the Explorer, The Backyardigans, Go Diego Go, and other Nick Jr. programs; which at the start of every show explain what benefits the child will learn while watching the show (i.e. appreciation for music, foreign language skills, problem solving, etc.) over mindless cartoons like Spongebob Squarepants.

Based on these reasons I believe their end user and decision makers to be a strong benefit for their product.

2. What is important to each? Is this a Pro or con and why?

The following are important to the end user:

• Challenging, yet fun – While the end user wants to have fun and feel as they are being entertained, they also desire to be challenged. In the case Alex states “When I first saw it, I thought it was a very smart way to teach.” He continued, “As a musician, I appreciate it a lot.” This is beneficial to their product because the way they have differentiated themselves from the competition lends to a challenging, yet fun product.

• Simple – Since the target audience is elementary school aged children, the product has to be easy to use both from a command and reading level. This presents a challenge to MGI because depending on when the end user picks the game up, the reading and hand eye coordination levels could be different from the game level. That could lead to the...
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