ATV Explorer

By: Daniel Fernandez, Marcin Gluc, Alicia Garabedian, Asma Dhorajiwala,

Steve Gibala

Look in the background• Founded in 1930• “Kids not only want toys to play with, but toys to

play with them.” – Herman G. Fisher• Hired outside Management help company grow• Bought out by Quaker oats for 50 million

Strengths

• Brand Awareness– Largest Market Share 64%– Most Often Purchased Brand 82.7%

• High Quality Products– Intrinsic play value, ingenuity, strong construction, good value for

the money, action • Management Structure

– Pro Management structure from diverse industries– Financial and Resource backing from Quaker oats

• Research and Development– Onsite Nursery School where products could be tested– Evaluated by corporate engineers and behavior scientists

Weaknesses

• Conservative Management Structure– Reluctant to produce products beyond $5 ceiling – Reluctant to depart from product line positioning

• High Initial Cost to develop products– $161,000 per mold, 500,000 unit capacity– $18,000 for tooling

Opportunities

• High Number of Potential Clients – Americans are growing more affluent– Willing to spend money on high quality and good

value products– Increasing numbers of 1st born children

• New Advertising and Positioning – Differentiate high price products from low cost– Explorer further TV advertising

Threats

• Playskool– Dominates riding toy market

• 6 products in 1970

• Small, unknown Firms– Produce low quality riding toys– $3 -$4

• Seasonal Nature of Business– 53% dollar sales– 45% unit sales – November and December

Positioning Statement

To the parents/guardians of two to five year olds captivated by innovative riding vehicles, The ATV

explorer is a high quality interactive children’s riding vehicle that encompasses the values that

meet Fisher Price’s criteria of a complete toy.

Target Audience

To the parents/guardians of two to five year olds captivated by innovative riding vehicles…• Not too young, not too old• Targeted to parents/guardians because they

are the actual purchasers• Not all children are interested in riding

vehicles• 72% of toy purchasers are parents

Frame of Reference

The ATV explorer is a high quality interactive children’s riding vehicle…• Durable• Complex figuration• Moderate price

Unique Point of Difference

…. that encompasses the values that meet Fisher Price’s criteria of a complete toy.

• Qualities: Intrinsic play value– Intrinsic play value– Ingenuity– Strong construction– Good value for the money– Action

Maslow's Theory

- Child is happy; therefore, I am happy.

- Feel like I have done my job correctly as a parent.

- My child loves me because we can play together.

- My child is exercising while playing.

- Playing is essential to the healthy development of my children.

Break Even Analysis

• Break Even Sales in Dollars = [Fixed Cost / Unit Contribution Margin]

• 66,296 =[179,000 /2.70]• Break Even Point of 66,296 units

Communication Approach

Single Product Launching StrategyPrestige Item that offers high margins to retailers but require elaborate point-of-sale promotionsTV Storyboard Commercial to create buzz demand for ATV Product

High vs. Low Involvement

• Low involvement products are products which are bought frequently with a minimum of thought & effort because they are not a vital concern nor have any great impact on the consumer’s lifestyle– What will parents care about?• Toy is enjoyable for child• Safe, durable & high quality

Major Implication

• Riding toys – highest approximate dollar sales of all toys at retail

• Higher priced items controlled largest portion of dollar sales

• Economy is booming – discretionary income is increasing for families

• Gradual spike in price• Hand-me-down toy