New Heritage Doll Company Case

1848 Words Apr 5th, 2016 8 Pages
NEW HERITAGE DOLL COMPANY
FINA 6278 Case 1

I.

Executive Summary

New Heritage Doll Company is a U.S based children toy manufacturer with a well-known national brand: the New Heritage. With its existing three divisions, New Heritage proposed two potential investment projects in order to expand its business while the doll industry was facing a relatively low growth rate. The first proposal is the Match My Doll Clothing line expansion, which is to expand a new clothing product line aimed at matching doll and child clothing and accessories covering all four seasons. While it has potential benefits with the current fashion trend of dressing the same between dolls and children, the New Heritage is facing a challenge of entering a
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For this proposal, Marcy McAdams, the proposer strongly believed it should be started without delay as such a product line has already received success from its first launch in early 2010. Meanwhile, the nature of children’s fashion trends could also provide strong support. The probability of quick customer acceptance and longer-term success for the follow-on line could be maximized by McAdams’ projected outlays for R&D, market research and marketing. Moreover, the initial investment could be relatively moderate with a low entry barrier of clothing industry, and the risk of implementing it was expected to be the same as the division’s existing business. However, to enter the clothing industry could be a potential risk as the New Heritage was fundamentally a doll manufacturer. The support of the fashion
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trend could also provide uncertainty as it is fickle and the continuing operation could become a doubt.
The second proposal was targeted existing loyal customers to let them be able to have dolls from their own design. Such an initiative came from several market researches, which suggested that such innovation could increase the girls’ pride with the doll because of the shared features and participation in creating. Meanwhile, the targeted customers are also willing to

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