R&R Case

671 Words Apr 14th, 2015 3 Pages
1. What factors created an opportunity for Bob Reiss and the "TV Guide Game?”
Reiss had previous experience on the game industry, which provided him with good understanding of that business. He knew about the popularity of trivia-based games in the U.S., the preceding Canadian success of Trivial-Pursuit and he envisioned the transferability of this success to the U.S. market. Reiss also hit the target by adding the TV element to the trivia-based game, in a time when the average U.S. family spent 7 hours in front of the television. Finally, Reiss’ good contacts in different industries allowed him to get a partner, to marshal funds, and to make further contacts to secure the required resources for his enterprise’s success, obtaining large
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In fifth place, Reiss needed to place the game in major retailers. In addition to his reps, Reiss achieved to reach mass merchandisers and retail stores using his personal knowledge of buyers for major chains, and making them aware of the attractiveness that an advertising platform like TV Guide represented.
3. Would this approach have worked for Parker Bros., or Milton Bradley?
The approach of Reiss was to minimize fixed costs and risk, by externalizing many of its game production and marketing functions. This approach would have not worked so well for larger corporations such as Parker Bros or Milton Bradley, with an already stablished large structure and already incurring in higher fixed costs ($250,000 for design and $1M for advertising).
4. How successful (financially) was Reiss? Why was he successful?
Reiss achieved a net profit of $2.75M for its joint venture with Kaplan, departing from an initial expenditure of $50,000. In addition to that, he obtained about another million ($0.94M) by means of R&R’s negotiated commissions (See approximate calculations on annex). Reiss venture was an example of financial success. He managed to obtain a huge ROI, whilst provided benefits to other parties, without having to risk big amounts of own capital, by finding the resources and putting them together.
5. As a result of this success, what should Reiss do now?
Reiss should take into consideration trivia-games decline and retailer…

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