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Market channel - Innovative Toys

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Yutong Zhou

on 2 May 2013

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Transcript of Market channel - Innovative Toys

Member channel selection process: Question Three Discuss: Finally Compare Supermarkets & Retail stores
Should issue in supermarket
Obstacles exist in supermarket
Other channel members available Presentation Overview Innovative Toys Inc. Case Brief Question one Discuss About Innovative Toys Inc

Distributing toys through supermarket

Marketing research report
Supermarket executive attitude
Consumer perception Do you think Innovative
should attempt to market
the infant toy line through
Evidence Price acceptable High product quality Fit in criteria to be a desirable GM product Question two Discuss Could Innovative toys achieve
6 times
turnover rate
P.A. in supermarket? perception Breaking point

Any other channel selection? Question two Discuss What are some of the major obstacles Innovative might face if it does attempt to sell infant toy line through supermarkets? Poor Quality Poor selection offer Customers are unlikely buying infant toys in supermarket Question Three Discuss: Why do we choose The Baby Gallery?
Selling all about the baby products
Double channel: physical store & online store
Large range of the baby products
The main customers are parents or women in pregnant Question Three Discuss: Why do we choose Angel Maternity?
The main customer is women in pregnant

Market coverage: more 20 stores in Australia Question Three Discuss: Why do we choose Cotton On Kids?
All kids’ products
Large market coverage (90 shops in Aus.)
Main customers are mother and women in pregnant
More than 50 types of kids products
Double channel (physical store & online store) Question Three Discuss: Cotton On Kids Question Three Discuss: Main customers of infant toys
Parents (Mothers)
Women in pregnant Question Three Discuss: Angel Maternity Question Three Discuss: The Baby Gallery 1. Finding
members 2. Applying selection
criteria to determine
the suitability of
prospective channel
members 3. Securing the
prospective channel
members as
actual channel
members what other kinds of retail outlets might be appropriate for the infant toys line? Challenging supermarket environment Pay- to- stay fees Limited shelves space Display far from entrance 1. Case brief

2. Questions Discuss

3. Conclusion By Qiu Siyun & Yutong Zhou 1.Margin potential - 33.3% Margin ave.
selection criteria New GM products Innovative toys performance 2.Turnover must be over 6 times 3.Impulse Buying favorable 4.Size favorable 5.Women shopper favorable 6.Stability favorable Exhibit 11 Maximum amount Consumers are willing to spend on unplanned purchases of infant toys in supermarket Thank you ! Exhibit 10 Reasons given for not purchasing infant toys in supermarkets Exhibit 8 Likelihood of consumer buying infant toys in supermarkets in future if such toys were of high quality and low price Exhibit 6 Consumer ratings of quality of infant toys sold in supermarkets Tiffany & Yutong
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