Fisher price is famous for manufacturing quality toys at moderate prices. Fisher price is the best known brand for toys. It enjoys the largest market share of around 65% in the industry. It is also leading in terms of most bought brand. Recently it is expecting to launch a new toy that is ATV (All-Terrain vehicle) Explorer in the market. The toy is safe, durable, and educational, and satisfies all the fisher price guide posts.
Objective
The objective of this paper is to analyze whether Fisher price should launch its new toy product ATV Explorer. Here, we are analyzing the factors that are in favor of new launch and the risks involved into it.
Analysis and Answering the question
Concept tests revealed that people are ready to buy this product and there is a lot of positivity in the market due to Fisher-Price brand and quality assurance. Following factors insist the firm to go with launching ATV explorer:
(1) Market Growth: The market of riding toys is increasing rapidly. So sooner, the firm can expect a very high demand for ATV explorer in the market. The report of published by A.J.Wood Corporation reads that there is 22% of market is captured by riding toys.
(2) Customer Psychology: Customers perceive products of Fisher price as value for the money. They also find toy products of Fisher price are safe, qualitative and durable. It gives an extra edge to new product launch.
(3) Personal Income Growth: There is a substantial growth in the personal income in last 10 years. And same trend is expected to be followed in coming years. As income and expenses increase parallel, so there is high chances that the people who were not buying toys for their children, will start buying. Again it will increase the number of buyers in the market.
(4) Brand loyalty: Fisher piece toys are famous among masses and more than 60% people are brand loyal. So it is expected that existing customers of Fisher price will also buy this new product of Fisher price.
(5) Increase in the user of the product: As the first birth babies are expected to grow in near future. It is a good sign for the company because this will increase the demand for ATV explorers in middle term period.
However, there are certain things that go against the idea of ATV Explorer launch for Fisher Price. These are:
(1) High degree of competition: The market competition is very high in toys segment. There are already some existing competitors like Playskool, Mattle, and Creative Plaything etc. As the market grows, few more new players are expected to enter into the market with cheaper prices and better technology. At that point of time, Fisher Price will have to come with better market strategy, technology and competitive prices.
(2) Decreasing number of under six years age: Under six years age children are the biggest user of the product of Fisher- Price. And obviously, ATV explorer is also prepared after considering their requirements. As it is expected that the number of fewer than six years children will decrease in near future, so there might be a lower demand in near future.
Following statistics go in favor of Fisher price:
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Particulars
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percentage
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Riding toys (Including bicycles)
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22% of total toys sale
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Popularity
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75%
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People agree that toys are good for children
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95%
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Best known brand
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65.7%
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Brand Loyalty
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60.5%
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Fisher price brand purchased more often
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82.7%
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The statistics shown above shows that 22% of total toys sale is consist of riding toys. As Fisher Price is also going to launch its product in riding toys segment so this statistics can help the firm in analyzing future demand. Fisher Price is popular among 75% of buyers and 66.5% buyers agreed that it is the best brand for them. 90% people agreed that toys are good for the overall development of the children. So we can see that people are positive towards buying toys for their children. 60.5% of the buyers are brand loyal. It means fisher price can expect that at least 60.5% of its customers will keep on buying toys from them only. It was also found that 82.7% of fisher Price brand is purchased more often.
Conclusion
The innovation, sleek design, durability, ease of use will bring a boom in the toys market if ATV explorers were launched. It will also increase the profitability, strength the financial, increase the market share, increasing the brand loyalty for Fisher Price. So this is a good idea to launch the product into the market and get the benefit of innovation and already existing brand value.