Fisher-Price Toys, Inc.

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Fisher-Price Toys, Inc. (June 5, 1985) Marketing Management Company Background: Fisher-Price Toys, Inc. was founded in east Aurora New York, in 1930 with idea that wooden blocks with lithographs applied to them would be sold as educational toys for preschoolers. Herman G. Fisher, president of the company had the idea of interactive toys. Mr. Fisher established the corporate creed that each Fisher-Price toy must have five qualities: intrinsic play value, ingenuity, strong construction, good value for money, and action. Problem: in August 1970, Jack Asthalter, marketing vice president of Fisher- Price was facing a difficult situation when his production staff told him that the cost of the mold on new ATV Explorer toy would make the intended $12 retail price impossible to meet. It has to be sold at $18.50 retail price after mark up. However, concept test had promised a substantial demand for the new riding vehicle at $12 price. (54.9% spend too much on toys- exhibit 8). SWOT ANALYSIS Strengths: * 20 Largest toys firms accounted for 58% of total sales * High profit margin( 40%-60%,Exhibit 1) ) in Prestige items with minimum advertisement * Five qualities set by Herman Fisher: intrinsic play value, ingenuity, strong construction, good value for money, and action. These are still observed today * Introduction of six new toys every year in the company * Increased volume in $3and $5 toys while decrease in volume in$1 and $2 toys * Sales rose to $32million (Exhibit 1) * Fisher Price has its own R&D facility * Fisher-Price operated a licensed on-premise nursery for 2 to 3 years and 4 to 5 years old by trained teachers. * Advertisement targeted only to

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