Innovative Toys Inc. Case Analysis Essay

1583 Words Oct 19th, 2013 7 Pages
Innovative Toys Inc. Case Analysis

Innovative Toy is entering the infant toy market by distributing through supermarkets. It is important to analyze if our potential supermarket channel, Big Tiger, and Innovative Toys can find a place where there is a win-win situation and where both companies are pursuing the same objectives. It is important to analyze the pros and cons of spending the marketing budget on trade promotion or advertising. It is important to note that the success of Innovative toys and a future launch of a second product next year rely on the success of the product we will launch first in Big Tiger supermarkets. I have carefully analyzed the various matters that affect the decision of which toy to introduce first, the
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What drives the amount of sales is the fact that in each case, independently of the price, the amount of people that are likely to buy an infant product is higher once they have seen the ad. The amount this percentage increases is probably associated with price, since it is not equal among the prices. This represents up to about $30,000 for the manufacturer’s profits in certain products with certain prices, and up to $95,000 in profits for the retailer, in our case Big Tiger, also for a certain product with a certain price.

By using the money for advertising instead of promotion, we also create awareness in others other than our target market that may indirectly benefit our

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