Fischer Price Essay

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The main problem that the Fisher-Price’s marketing vice president is facing is whether or not the company should move onward with the manufacturing of a new ATV Explorer toy. Fisher Price had done extensive research involving kids and their parents. The results of these studies were extremely positive and pointed toward producing this new toy. However, the production costs of this new product were going to go above the amount that was estimated. It resulted in a wholesale cost of $9.20 per unit and a retail price of $18.50. Most Fisher Price toys were usually under $5.00 retail and other competitor merchandises were more expensive. The company knew that retailers and their current consumers would not support the higher marked product. When analyzing this situation, one must first look at the internal strengths. The Fisher Price brand is one of the best known brand names and it scored 75% on the brand awareness in the a survey. Another strength includes the strong culture and personality of the company. Fisher Price has set the goals of play value, ingenuity, durability and good worth. The company also has experience. Fisher Price has many years of building and designing their products and promoting from within and they have a professional management team from several different industries. Also, recent acquirement of the company from the Quaker Oat’s company permitted financial firmness and support. The company had also seen a 742% increase in the last ten years which exemplifies its profitability. Lastly, the company is able to provide variety to the public. On the other hand, Fischer Price has a few weaknesses; one being that the current management is unwilling to welcome change. The managers are very reluctant in pricing any toy that is over five dollars in retail price. Also, marketing has been successful for the company up until this point, but they might need

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