Ace Toys Case Study Solution

8/7/2019 Ace Toys Case Study Solution

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Case Study The Rigors of Relationship Marketing

SUBMITTED BY:-

Group Number 4(CRM-5)

Members:-

Eshan Bhateja- F39(Group Leader)Rana Shamsher Jang-F-44

Mansur Alam- G-20

Pratibha Sehgal- G-34


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y Ace Toys Blondie Dolls 60% of theTurnover

y Manufacture Market 80 types of Toys

y Target age group 3-13

y 150 types of Blondie Dolls

y Market growth 12% - Ace growth 15% 199596

y Falls to 12% in last 2 yrs

y Efforts of Relationship Marketing ofBlondie Friends Club Failed

y Sridhar Venkitesan hired as Vice-

President(Marketing)

AceToys


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STRENGTHS WEAKNESSES

Market Leader with 9% share Limited understanding of TargetCustomer

Foreign Collaboration La Belle Inadequate Range of Products

inadequate range & diversity of dolls

Non-toxic plastic and no rough edges(Safety & Quality)

Fluidity of End-User Segment girls growup to become adults

High Margins of 35% from PremiumProducts

Predominance of Unorganized Sector


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OPPORTUNITIES THREATS

80 % Sector Unorganized -> Large MarketPotential

Competition from Video Games,Amusement Parks, TV & PCs

Ability to influence Industry Structure Accelerating Rate of ProductObsolescence

Emergence of New Advertising Media Declining Sales of Flagship Brand

Growing Market in Toy Accessories Stiff Competition from Trans nationals


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y 5 times more expensive to get a new customer thanretain an old one.

y Difference in Marketsy West toys for entertainment and mental developmenty East toys to keep child preoccupied.

y More toys sold through gift-shops than through

dealers or exclusive outlets.

y High Margins of 35% should have lead toincorporating and expensive and focused approach forsales promotion like advertising.


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y Relationship Marketing steps :-

Identifycustomers

Make eachmember feelimportant

Target userswith

frequentconsumption

Target groupshould besmall andfocused


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y Advertising helps in bringing about customer awareness,relationship marketing brings in buyers.

y Promotion and dealer support is more important for toybusiness than advertising.

y The success of relationship marketing depends largely on acompanys perception of its sales transaction.

y Relationship marketing helps you to know your customersmore intimately, which can help you to redesign products andfine-tune marketing operations.

y Nestle spends more than 1.5% of its turnover on Maggie clubwhere as shopper shop spends roughly 1.7%.


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y

Revive the club and make sure it hits bulls eye this time.

y Can be done through : Rigorous number crunching & thorough market research

Make the club a dynamic entity More rewards and some more rewards

Partner with non-competing product

y Play a big role in a little girls world


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y Certainly YES!

y If ace toys want to establish itself in the market andstay ahead from competition in future, then it needs

various schemes like the Blondie friends club.y It is well known that the Indian toy market is in a early

stage as people are slowly changing their perceptiontowards western world where toys are means for

entertainment and learning.


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y The backbone of any relationship marketingprogramme is a customer group who are very close to itand are easily excited by the incentives and rewards. In

the Blondie club, the members will demandimmediate gratification, constant attention, andperennial excitement

y Indeed, the best way to expand the Club will be to

focus onCu

stomer RetentionS

trategyand afocused group of customers who are ready to buy itsproducts


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y Need to come up with some innovative ideas likeorganizing different sorts of cultural and sportsevent in schools.

y They also can provide free passes to Amusementparks .

y It should increase its product lines.y In order to revive the relationship marketing drive

the Club can think of giving its members partinggifts as they enter adulthood and pass on themembership to any other child who would be thenew brand ambassador for the company.


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y Pampering the customer is the most essential incase of Relationship Marketing.

y As the target customers are Children and theyneed lots of pampering which can easily beachieved through gifts and other incentives .


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y Bringing a consultant is not a great idea as it wouldbring a clash in decision making. Mr. Venkitesan

has a great experience in relationship marketing and

that would certainly come handy in developing astrategy for ace toys in developing a gameplan forrelationship marketing.

A task force could be set up to oversee this job of CRM

and the advice of a consultant may be taken forreplying and reviewing the Blonde club magazine

Documents

Ace Toys Case Study Solution