Lt Presentation

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Lt Presentation

  1. 1. Strategic Marketing Recommendations presented by: Bianca Mundes, Epifani Sylvianie Setiadi Natalee Wood, Olivia Whitty
  2. 2. Little Tikes Big Picture <ul><li>U.S. Toy industry intensely competitive </li></ul><ul><li>Not attractive for small entrants & challenging for incumbents </li></ul><ul><li>Mattel/Fisher Price, Hasbro & Nintendo dominate </li></ul><ul><li>Step 2 closest threat - undercut value by improving product attributes and price </li></ul><ul><li>Key consideration of recommendations: </li></ul>ENSURE LITTLE LIKES MAINTAIN AND BUILD DIFFERENTIATION
  3. 3. Game winners and breakers <ul><li>Cost containment in the face of lowering manufacturers’ margins </li></ul><ul><li>Depth and breadth of product offering </li></ul><ul><li>Distribution with powerful retailers </li></ul><ul><li>Keeping ahead of changing end user trends </li></ul>
  4. 4. Salient strategic insights <ul><li>Leverage strong brand & differentiate through perceived quality + innovation </li></ul><ul><li>Cost savings crucial: address high product development costs while remaining on-strategy </li></ul><ul><li>90’s baby boomlet & broadening parent roles increasing current demand & buyer needs </li></ul><ul><li>Growth strategy crucial: Industry growth and economy slowing + discount retailer pressures eats manufacturers margins </li></ul>
  5. 5. Lead with product strategy to achieve goals <ul><li>Core Problem: What product strategy and subsequent marketing mix should Little Tikes pursue given their financial objectives and the increasing rivalry in the industry? </li></ul><ul><li>Goals </li></ul><ul><li>Increase sales by 15% </li></ul><ul><li>Combat direct competitive activity from Step 2 to retain domestic market dominance </li></ul><ul><li>Develop relationships with key mass retailers to ensure greater support of product range </li></ul><ul><li>Reduce costs </li></ul>
  6. 6. Strategic alternatives <ul><li>Develop the product offering to include a range of licensed products </li></ul><ul><li>Reduce the locally made product so there are greater inventories of the top sellers, and invest in overseas production of smaller toys </li></ul><ul><li>Pursue low cost strategy by moving production of entire range off shore, switch to high injection moulding and reduce customer service investments </li></ul><ul><li>Work with Rubbermaid to achieve better raw material costs through their economies of scale </li></ul>
  7. 7. Decision criteria
  8. 8. Pursue combination of 1 & 2 <ul><li>The combination </li></ul><ul><li>Addresses cost containment </li></ul><ul><li>Preserve existing customers/brand </li></ul><ul><li>Serve new markets efficiently </li></ul><ul><li>Addresses retailer power </li></ul>NOTE: Intentional not to address video games market growth
  9. 9. Target market Product Promotion Distribution Price Implementation
  10. 10. If things don’t go as planned…
  11. 11. Thank you. The end.

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