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Pricing Decisions — Chapter 9
McDonald's Australia: no lightweight, p266
Q1. Is the salads plus menu a product line extension, a modified product or a new
product for McDonald's?
The McDonald's phenomenon started with the opening of the first McDonald's store in Des
Plaines, Illinois, USA, in 1955 (MacPac, 2006). However, it wasn't until 1971 that this
phenomenon was introduced to Australia with the opening of the first store on Australian
shores in Yagoona, NSW, in 1971 (MacPac, 2006). On 26 September 2006, it was revealed
that McDonald's ranks No. 318 on FORTUNE'S list of the World's Largest Companies (CNN
Money, 2006), and is one of the largest employers of people in Australia, employing more
than 56,000 people nationwide (MacPac, 2006).
With approximately 31 % of Australians aged 14 and over having purchased McDonalds in a 4
week period (Roy Morgan International, 2006), it is obvious that McDonald's has had to
evolve to respond to changing consumer tastes to remain competitive. In response to the
trend of Australians becoming more health conscious, the Salads Plus Menu was launched
as a new product in 2003, which included eight products with no more than 10 grams of fat
per serve (Pride et al., 2006, p266). The introduction of the Salads Plus Menu was classified
as a new product as the products offered were not only different and distinctly better, but they
were also viewed as new in the context of the restaurant chain (Pride et al., 2006, p232).
With this new product launch, McDonald's was attempting to attract not only new customers,
but to attract former customers and retain existing customers (Pride et al., 2006, p266). It
provided enhancement to the marketing mix and assisted McDonald's in identifying a new
niche market.
It was a risky move for McDonald's, as 95% of new products never reach the market with less
than 3% of those that do surviving for 5 years (Pride et al., 2006, p232). To minimise the
possibility of these outcomes, before any new product is introduced, it goes through the
j
Seven-Phases of the New Product Development Process (Pride et al., 2006, p232). The
phases are as follows —
1.
Idea Generation — which is defined as "seeking product ideas to achieve objectives"
(Pride et al., 2006, p232). McDonald's was able to generate new product ideas
from many sources including - internal sources (such as marketing managers,
researchers, and sales personnel), through intraorganisational devices such as
brainstorming and incentives, through external sources outside the company (such
as customers, complaints received, competitors, advertising agencies, and market
research organisations), and through research and development undertaken by
McDonalds (Pride et al., 2006, pp232-233);
2.
Screening - which is defined as "choosing the most promising ideas for further
review" (Pride et al., 2006, p233). Once the new product ideas had been
generated, McDonalds was able to focus on the ideas that had the greatest
potential, which were selected for further review, in this case it was the Salads Plus
Menu. McDonalds then analysed its overall ability to produce and market the
Salads Plus Menu (Pride et al., 2006, p233). Other factors considered during this
phase were the wants of the consumers and possible environmental changes
(Pride et al., 2006, p233);
3.
Concept Testing - which is defined as "seeking potential buyers' responses to a
product idea" (Pride et al., 2006, p233). During concept testing, the concept is
briefly described to the test audience and then a series of questions is presented
(Pride et al., 2006, p233). McDonalds actively sought out responses, and tested
initial reactions, from the public to the new Salads Plus Menu idea;
4.
Business Analysis - which is defined as "assessing the potential of a product idea
for the company's sales, costs and profits" (Pride et al., 2006, p234). During this
phase McDonalds sought market information to help predict the potential sales,
costs and profits of the Salads Plus Menu (Pride et al., 2006, p234).
5.
Product Development - which is defined as "determining whether producing a
product is feasible and cost effective" (Pride et al., 2006, p234). This was the
phase where the number crunching for the Salads Plus Menu began and the
2
feasibility of the idea was assessed at length. The cost of production was analysed
to ensure that the Menu could be produced at a reasonable price while ensuring a
profit for McDonalds. Based on all this information, prototypes were developed
(Pride et al., 2006, p234), as were computer generated images relating to items on
the new menu. The Salads Plus Menu was in this Product Development phase for
nine months (Pride et al., 2006, p266);
6.
Test Marketing - which is defined as "introducing a product on a limited basis to
measure the extent to which potential customers will actually buy it" (Pride et al.,
2006, p235). McDonalds used this phase to select appropriate test areas in
different geographical locations to test the sales performance and weaknesses of
the new Menu, and in doing so, lessened the risk of product failure (Pride et al.,
2006, p235);
7.
Commercialisation - which is defined as "deciding on full scale manufacturing and
marketing plans and preparing budgets" (Pride et al., 2006, p236). Based on the
feedback received and observations made during the Test Marketing phase,
necessary changes were made to Salads Plus Menu before the product fully
entered the market in August of 2003 through an aggressive marketing campaign
(Pride et al., 2006, p266).
All these phases increased the chance of success for the New Salads Plus Menu and helped
identify any weaknesses or faults before vast amounts of money were spent on production of
the new product idea.
C3
Q2. Describe the positioning of the salads plus menu?
Product positioning is defined as "creating and maintaining a certain concept of a product in
the customers' minds" (Pride et al., 2006, p242). This product positioning is relative to not
only to their competitor brands, but also to their own products, and whose aim is to make that
product "top of mind" at the time of the purchase decision (MG1 702/2702: Developing and
Managing Goods and Services, week 8 notes, 2006).
j
McDonald's major competitors in Australia include KFC, Subway, Hungry Jack's and
Domino's Pizza (Roy Morgan International, 2006). With this in mind, through the launch of
their Salads Plus Menu, McDonald's focused on positioning itself away from the other
competitors (versus competing head on with another brand) while avoiding cannibalisation of
its existing market through the attribution of different traits (healthy fresh food) to the new
Salads Plus Menu (MG1702/2702: Developing and Managing Goods and Services, week 8
notes, 2006). McDonald's correctly identified that almost three quarters of Australians aged
25-34 years and those aged 35-49 years purchase fast food. in a 4 week period (Roy Morgan
International, 2006), with McDonald's attempting to target parents as well as teenagers with
their new range of Salads Plus options (Pride et al., 2006, p266).
Negative publicity also affects the positioning of McDonalds, and in turn the Salads Plus
Menu, in the marketplace. Such negative publicity has appeared in the form of the dismissed
case of Pelman v McDonalds. lawsuit of 2003 (where two children claimed they were harmed
by consuming McDonald's fare) (Morris, 2006), and the highly controversial film "Super Size
Me" (which looked at the legal, financial and physical costs of America's hunger for fast food)
(Super Size Me, 2006). These negative experiences have prompted McDonalds to
increasingly push the Salads Plus Menu as a healthy fresh food alternative in the eye of the
consumer, in order to help negate the damage.
yam.
The introduction of the Salads Plus Menu demonstrated that McDonald's understands its
customers and can adapt to meet its customers' changing needs (Pride et al., 2006, p32).
Other initiatives that reflect this adaptability, specifically to the obesity epidemic, include the
4
Tutorial Group - Julie Carmody, Tuesday 2-3pm
commitment by McDonald's Ireland to reduce the salt content of their French fries by.50%
(Ireland Online, 2006). Further in September 2006 McDonalds Australia made the
commitment to increase nutritional labelling on their products with Percentage Daily Intake
(%Dl) information, which is due to come into effect this month (Knowles, 2006).
McDonalds is attempting to position itself as a "protector of the environment', through
initiatives such as reduced energy consumption, improved energy efficiency, exploration into
solar power, reduced water pressure to minimise water loss, and recycled paper cups
(MacPac, 2006). These initiatives show that McDonalds, and the Salads Plus Menu, are
practising what they preach and promoting a healthier way of life.
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Q3. Assess McDonald's strategy for differentiating its product from those of its
competitors in the fast food industry.
Product differentiation is defined as "creating and designing products so that customers
perceive them as different from competing products" (Pride et al., 2006, p238). New
products, including the Salads Plus Menu, predominately need to be differentiated so that the
new product can lead to an additional source of revenue for the company. The Salads Plus
Menu would ideally be perceived as different not only from its competitors, but also from
McDonalds other products so as to avoid cannibalisation of its existing market, and so the
Salads Plus Menu has its own special space in the minds of the consumers (MG1702/2702:
Developing and Managing Goods and Services, week 8 notes, 2006). Areas of differentiation
that companies must consider when offering products for sale include (Pride et al., 2006,
p238) —
1.
The quality of the product (and the consistency of that quality) — where quality is
defined as "the overall characteristics of a product that allow it to perform as
expected in satisfying customer needs" (Pride et al., 2006, p239);
2.
The design and/or features of the product — where product design is defined as
"how a product is conceived, planned and produced" (Pride et al., 2006, p240), and
where product features are defined as "specific design characteristics that allow a
product to perform certain tasks" (Pride et al., 2006, p240); and
3.
The support services for the product — where customer service is defined as
"human or mechanical efforts or activities that add value to a product" (Pride et al.,
2006, p241).
V
With McDonald's major competitors in Australia including KFC, Subway, Hungry Jack's and
Domino's Pizza (Roy Morgan International, 2006), it is clear that McDonalds chose to
differentiate its Salads Plus Menu based on a number of factors involving all areas listed
above. Firstly, McDonald's hoped to create a competitive advantage with their new Menu by
creating a healthy fast food alternative, unlike their major competitors. McDonalds
differentiated their image by focusing on the freshness and quality of the produce used to
1.1
create the new Menu and by emphasising the health component with the produce being low
in fat. This in turn affected the packaging of the Salads Plus Menu which was redesigned to
reflect how McDonalds wanted the product to be perceived. McDonalds decided to make the
new Menu items fresh while you wait, adding to the healthy image and level of style
associated with the Menu items, while differentiating themselves on the basis of the service
experience (Pride et al., 2006, p246).
McDonalds used its brand "McDonalds" to offer customers the same level of quality and
consistency with the new Menu all over the world — so the same level of expectation could be
experienced in one country to the next, and offered that consistency over time (ongoing
menu). McDonalds further ensured that the price was in line with customer expectations so
as not to limit their customer base
McDonalds offered support services for the product through the McDonald's restaurants
having convenient hours of operation, as well as adequate parking (Pride et al., 2006, p241).
By doing all this, the McDonalds Salads Plus Menu was able to differentiate itself from its
major competitors in Australia and appeal to their target market, that being parents as well as
teenagers (Pride et al., 2006, p266).
,
7
Q 4. How do the service characteristics create challenges for McDonalds? Identify &
discuss 3 only.
In today's environment, the element of service is of increasing importance. Service can be
defined as a "product involving a deed, a performance or an effort that cannot be physically
possessed" (Pride et al., 2006, p245). McDonalds offers a mixture of both tangible goods and
intangible service. So important is the service element that McDonalds must focus on certain
service characteristics on an ongoing basis that may create challenges for the company so as
to minimise their negative impacts. The service characteristics are as follows (Pride et al.,
2006, p246) —
1. Perishability — which is defined as "the inability of unused service capacity to be
stored for future use" (Pride et al., 2006, p247). McDonalds must delicately
balance supply and demand in respect of their service capacity and plan for
demand that fluctuates according to the time of the day, the time of the week
and the time of the year (Pride et al., 2006, p248);
2. Heterogeneity — which is defined as "Variation to quality" (Pride et al., 2006,
p248). It is a challenge for McDonalds to maintain a consistent quality of
service delivery due to the very nature of human behaviour (Pride et al., 2006,
p248). This variation of quality can occur from store to store or even within the
same store. McDonalds has aimed to minimise variability in service quality
through the introduction of employee awards, including the "Employee of the
Month" to encourage employees to deliver high quality service (Pride et al.,
2006, p248). Further, a large percentage of the annual turnover is invested in
training and development of staff to provide the tools for improved performance
and to standardise the service delivery (MacPac, 2006). Further, different skills
are involved in working in McCafe versus the general restaurant. Each McCafe
staff member must be specifically trained, including the art of making espresso
coffee (MacPac, 2006). Therefore the level of training differs even within the
same store; and
8
3. Customer contact — which is defined as "the level of interaction between
provider and customer needed to deliver the service" (Pride et al., 2006, p249).
McDonalds strives to strike a balance between lowering costs without
compromising the level of customer satisfaction (Pride et al., 2006, p251).
Satisfied employees lead to satisfied customers,. therefore McDonalds must
continue to meet the needs of the employees by providing adequate training, so
as to reduce the problems that customer contact can create and to reward high
quality service behaviour to ensure that it is repeated (Pride et al., 2006, p249) .
It is important that McDonalds not only identify these areas of challenges when managing
their services as products, but they should be at the forefront in the development and
management of the marketing mixes for their services (Pride et al., 2006, p250).
f
Er7
Reference)P "
• CNN Money. (2006). McDonald's ranks No. 318 on FORTUNE's list of the World's
Largest Companies.
[Online]. Available:
http://money.cnn.com/2006/09/22/news/companies/mcdonalds.fortune/index . htm
[2006, October 1 ].
• Ireland Online. (2006). McDonalds commits to 50% salt reduction.
[Online] Available:
http://breakingnews.iol.ie/news/story business island.asp?i=195193468&p=y95y94y7
4/ [2006, September 25].
• Knowles, J. (2006). New nutrition labelling for McDonalds Australia.
[Online]. Available:
http://www.ap-foodtechnology.com/news/printNewsBis.asp?id=70838 [2006, October.
1].
• McDonalds. (2006). Retrieved 25 September 2006.
[Online] Available:
http://www.mcdonalds. com.au/
• McDonalds. (2006). MacPac. Retrieved 25 September 2006.
[Online] Available:
http://www.mcdonalds.com.au/
• Morris, R. (2006). McDonalds Flip-Flops on Food Quality.
[Online]. Available:
http://www.commonvoice.com/article.asp?colid=5896 [2006, September 25].
• Pride, W.M., Elliott, G., Rundle-Thiele, S., Waller, D., Paladino, A. & Ferrell, O.C.
(2006). Marketing: core concepts and applications (asia pacific edition). Milton, Qld:
John Wiley & Sons Australia, Ltd.
• Rose, J. (2006). MG1702/2702: Developing and Managing Goods and Services,
week 8 notes. Retrieved 5 October 2006, from
h tt p://learnicu. 4 cu.edu.au/webapps/portal/frameset . isp?tab=courses&url=%2Fbin%2Fc
ommon%2Fcourse.pl%3Fcourse id%3D_19737_1
i[i
• Roy Morgan International. (2006). Majority Of Australians Have Bought Fast Food In
Last Four Weeks.
[Online]. Available:
h ttp://www.roymorgan.com/news/press-releases/2006/555/ [2006, September 25].
• Super Size Me. (2006). About the Movie. Retrieved 1 October 2006.
[Online] Available:
http://www.su p ersizeme.com/home.aspx?page=aboutmovie
J
11
Bibliography for McDonalds
CNN Money. (2006). McDonald's ranks No. 318 on FORTUNE's list of the World's
Largest Companies.
[Online]. Available:
http://money.cnn.com/2006/09/22/news/companies/mcdonalds.fortunefindex.htm
[2006, October 1].
• Ferret. (2006). Big standards from McDonalds.
[Online]. Available:
http://www.ferret.com.au/articles/f7/OcO458f7.asp [2006, September 25].
• Ireland Online. (2006). McDonalds commits to 50% salt reduction.
[Online] Available:
http://breakingnews.iol.ie/news/stor y business island.asp?i=195193468&p=y95y94y7
4/ [2006, September 25].
• Knowles, J. (2006). New nutrition labelling for McDonalds Australia.
[Online]. Available:
http://www.ap-foodtechnology.com/news/printNewsBis.asp?id=70838 [2006, October
1].
• McDonalds. (2006).
[Online]. Available:
http://www.mcdonalds.com.au/ [2006, September 25].
• McDonalds. (2006). MacPac.
[Online]. Available:
http://www.mcdonaids.com.au/ [2006, September 25].
• Morris, R. (2006). McDonalds Flip-Flops on Food Quality.
[Online]. Available:
http://www.commonvoice.com/article.asp?colid=5896 [2006, September 25].
• Pride, W.M., Elliott, G., Rundle-Thiele, S., Waller, D., Pala ddino, A. & Ferrell, O.C.
(2006). Marketing: core concepts and applications (asia pacific edition). Milton, Old:
John Wiley & Sons Australia, Ltd.
12
• Rose, J. (2006). MG1702/2702: Developing and Managing Goods and Services,
week 8 notes. Retrieved 5 October 2006, from
http://learnicu.icu.edu.au/webapps/portal/frameset . isp?tab=courses&url=%2 Fbin%2Fc
ommon%2Fcourse.pl%3Fcourse id%3D 19737 1
• Roy Morgan International. (2006). Majority Of Australians Have Bought Fast Food In
Last Four Weeks.
[Online]. Available:
http ://www.ro ymorgan.com/news/press-releases/2006/555/ [2006, September 25].
• Roy Morgan International. (2006). 80% Of Americans Have Bought Fast Food In Last
4 Weeks - 45% Have Bought McDonald's In Last 4 Weeks.
[Online]. Available:
htt p ://www.ro y morgan.com/news/press-releases/2006/556/ [2006, September 25].
• Super Size Me. (2006). About the Movie.
[Online]. Available:
htt p ://www.supersizeme.com/home.aspx?paqe=aboutmovie [2006, October 1].
13
Fisher Price Online Exercise, p292
Q1. What products has Fisher Price developed and introduced recently? How does
fisher price use its web site to communicate information about its toy range and their
suitability for children of different ages?
Fisher Price was founded in 1930 in New York, USA, by Hermann Guy Fisher, Irving R. Price
and Helen M. Schelle; and in 1993, was merged with Mattel (Mattel, 2006). Fisher Price is
today one of the top 10 most recognised brands in the world and had US sales alone of $1.2
billion in the year 2000 (Fisher Price, About Us, 2006).
Throughout this time, Fisher Price has been synonymous with high quality, innovative toys
and products designed specifically for young children (Mattel, 2006). Fisher Price has
developed many products during this time, the latest of which according to its website include
the following —
1.
Birth to 12 months - Peek-a-BlockS
TM
lncrediBlockTM , Laugh & Learn TM Learning
Home TM , Laugh & Learn TM Learning Table TM , Dance Baby Dance! TM Dancin'
Bandstand TM , Miracles & Milestones TM Musical Panda, Miracles & MilestonesTM
Peek-a-Boo Piano TM , Miracles & Milestones TM Mix & Match TM Musical Mobile,
Miracles & Milestones TM My First Book, Miracles & Milestones TM Magical MobileTM
Gym, Miracles & Milestones TM Take-Along Sensory Swing TM , and the Miracles &
Milestones TM Playful;
2.
18 months and up - Little Mommy TM Doll, E-L-M-O TM , POP-ONZ TM Building System
Pop 'n Twirl TM Building Table, and Learn Through Music;
3.
2 years and up - Rail & Road System Tracktown Railway TM , GEOTRAX
TM
Rail &
Road System High Chimes Clock TM Tower, GEOTRAX TM Rail & Road System Sky
High Suspension Bridge, and the Little People@ Discovery VillageTM;
4.
3 years and up - Doodle Pro TM , and Rescue Heroes® Robotz Off-Road CruiserTM
14
These products are all clearly listed and visible on the Fisher Price website as is the "What's
New" link. Once at the "New Products" page, it is very easy to navigate to the individual
products with individual links to further product information.
Other new products that have recently been developed and introduced by Fisher Price and
have made the news but that do not appear on their website include —
1.
The Fisher-Price Kid Tough Digital Camera launched in the USA in September
2006 (MSNBC, 2006); and
2.
The debut of T.M.X. Elmo in September 2006, which was timed to the 10th
anniversary of Tickle Me Elmo (Thompson, 2006).
These new products by Fisher Price constitute two of the twelve hottest Christmas gifts for
2006, according to Toy Wishes magazine's article of October 4, 2006 (Moore, 2006).
Fisher Price has obviously put a lot of thought into the design of its website, and this is
reflected in the fact that while it is very basic in appearance, it is very easy to read and
navigate through. It feels fun and light hearted, and through its basic appearance Fisher
Price can effectively communicate information without confusion. An example of this is on the
home page for Fisher Price, where there are clearly identified links indicating "toys by age"
and "toys by type". This very clearly and quickly allows Fisher Price to communicate product
information on their toy range and their overall suitability for children of different ages to a
wide audience. In addition to the link indicating "toys by age", Fisher Price also uses a
prominent and visually appealing icon on their homepage that has the same function as the
li nk. This provides the customer with two avenues with which to access this information. The
different age categories contain information on developmental milestones which lead into a
section on age appropriate ways the child should be playing. To add the marketing element,
the next section is "toys that are right for this age" coupled with "top toys for this age". This is
a clever way of communicating and leading into the information about their toy range and its
suitability to the different age categories. In addition to that, there is an "Expert Advice and
Articles" section that offers interaction with an online child care experts to answer questions
15
relating to such issues as family ma tters, sleeping solutions, social / emotional development,
language and lea rn ing, health / safety, playtime and toys as well as offering stand alone
a rticles produced by the child care experts to assist parents and parents to be. This is a great
resource for parents and adds to the credibility of the products and exceeds customers
expectations. Fisher Price does seem to have taken that extra step, and offer a
comprehensive parenting resource site that offers ongoing support. Further to this, there is
an option on the website to receive updates via email on toys, offers and parenting advice.
In addition to the Parenting Resource section, there is a Play and Learn Family Activities
section. This section provides parents and children the opportunity to engage in fun and
educational activities online (Fisher Price, 2006). This is a nice feature and reinforces Fisher
Price's commitment to supporting families.
The website also allows the communication of information about its toy range and their
suitability for children of different ages through the ability to click on a product and then email
that product information to a friend. In addition to this, the website has online ordering
capabilities.
Overall, Fisher Price has been ve ry clever in the design of its website, which is designed to
communicate as much information about their products to the widest possible audience while
offering ongoing support to parents and young children.
J ^^
16
Q2. What role do research and an understanding of customer needs play in fisher
price's success? Is this similar to the role of its parent company Mattel?
A look at Fisher Price's Mission statement "To support today's families with young children
through a breadth of products and services that make early childhood more fun and
enriching" (Fisher Price, 2006), indicates that continual research is essential to for this
company to keep their products and services relevant, appropriate and successful. Further, a
fundamental and ongoing understanding of current and changing customer needs is
particularly essential for the success and competitiveness of this company.
While Fisher Price is synonymous with high quality, innovative toys and products designed
specifically for young children, through licensing agreements, the Fisher Price brand also
appears on many categories of children's products including software, books, eyewear, and
bicycles (Fisher Price, 2006). It is obvious that Fisher Price has evolved to meet changing
needs of the customers through the years and has diversified their product range to grow and
expand their business cycle.
Constant research must be undertaken to ensure their products are safe and developmentally
appropriate, while remaining receptive to the latest "developments" in the field. They can do
this by monitoring their competitor's actions, by listening to their customers and keeping true
to their core values. An example of Fisher Price using research to stay true to their core
values included the commencement of the phasing out of the chemical Phthalates in their
plastic teething toys in . 1998 in response to public debate on the subject (Mattel History,
2006), when it was suspected that certain compounds, including two phthalates, caused
reproductive disorders, cancer or genetic mutations (Los Angeles Times, 2006).
In addition, it can be very costly for Fisher Price to neglect their research or to not stay in tune
with their customer's needs. This cost can be in the form of monetary terms and / or damage
to their overall reputation, which directly affect the level of success of the company. An
example of which was evidenced in 2001 when Fisher Price agreed to pay the US
government $1.1 million in the biggest civil penalty ever levied against a toy company to settle
17
charges relating to the failure to notify regulators in a timely fashion of the fact that their
Power Wheels toy cars could catch fire. Not only were the motorised ride on cars recalled in
1998 in response to this action, but Fisher Price also received a lot of negative publicity which
temporarily damaged their overall reputation in the eyes of the public and potentially
compromised their long term success (CNN Money, 2006).
Further, in 2005, Fisher Price released a "Little Mommy Bath Baby Doll", that came with a
bottle whose parts posed a choking hazard for young children. These hazardous parts came
to the attention of, and were identified by, the World Against Toys Causing Harm
Organisation (W.A.T.C.H) (Wong, 2006). This failure to properly research the characteristics
of this toy caused a drop in consumer confidence for Fisher Price products and was in
deference to its core values.
As recently as 8 th October 2006, an article revealed that Fisher Price had still not totally
phased out the chemical phthalates from their products (the phasing out of which began in
1998), and a promise was made that all its products would comply with the European Union
rules (that being the total ban of phthalates in products for babies and toddlers) by the end of
this year (Los Angeles Times, 2006). Further research and a commitment to this area of
development would have ensured that Fisher Price did not receive this negative publicity
which could damage its reputation and long term success.
As can be seen above, it is essential for Fisher Price to commit to ongoing research and to
continue to have an understanding of customer needs in order to remain successful.
As for Fisher Price's parent company, Mattel, the same is relatively true. Mattel's family of
products include Barbie, Hot Wheels, Fisher Price, and American Girl. Their vision is to be
"The World's Premier Toy Brands — Today and Tomorrow" (Mattel, 2006). Mattel are listening
to their customer's needs by ensuring that all Mattel products are designed and manufactured
to meet or exceed all applicable safety standards from around the world (Mattel, 2006). While
it is important for Mattel to commit to ongoing research and to continue to have an
understanding of customer needs in order for the individual units to be successful on an
18
Q3. Find Fisher Price's mission statement. Are fisher price's web site design and key
features consistent with the vision and positioning of the company? Why or why not?
Fisher Price's Mission Statement is "To support today's families with young children through a
breadth of products and services that make early childhood more fun and enriching" (Fisher
Price, 2006).
In support of the Mission Statement, Fisher Price's Values include offering "products and
services consumers can trust to improve their family's lives" (Fisher Price, 2006). This is
further reinforced through Mattel's vision which is to be "The World's Premier Toy Brands Today and Tomorrow" (Mattel, 2006). The Fisher Price website design and key features
reflect these core concepts and are consistent with the vision and positioning of the company.
Not only is the site easy to navigate, but it offers a wide range of products and services
geared towards enriching young children's lives. It supports parents through the many
additional features of the site including parenting advice and has a light-hearted and fun feel
to the website, which is evidenced by the "Games Online" section. The website and features
convey a level of superiority and boost confidence in their products and credibility. Fisher
Price does seem to have taken that extra step, and do not just utilise the website for
conveying product information, but really offer a comprehensive parenting site that offers
ongoing support.
Overall, Fisher Price has been very clever in the design of its website, and through the use of
its key features, which are designed to communicate as much information about their
products to the widest possible audience while offering a level of support to parents above
that which would be expected. The addition of the Parenting Resource Section and the Play
and Learn Family Activities section serve to sustain the image of Fisher Price as being
associated with high quality, innovative toys and products that support today's families.
20
ongoing basis, their specific Mission Statement is "Mattel's (the "Company") Board of
(
Directors (the "Board") strives to ensure good corporate management and governance. It
selects, monitors, evaluates and supports the Chief Executive Officer and oversees the
--
development and pursuit of corporate policies and strategies. It serves the Company's
stockholders through a strong commitment to the effective and ethical management of the
Company in a manner which optimizes sustainable long-term profitability and is responsive to `VI
the legitimate interests of other corporate constituencies, such as employees, customers,
suppliers and the communities in which the Company operates" (Mattel, 2006). As can be
seen from the Mission Statement, Mattel's focus is centred more around their internal
f
management, governance and profitability versus Fisher Price whose focus is on the external
market.
Therefore, while ongoing research and an understanding of the needs of the customer are
important to both Fisher Price and Mattel, Fisher Price can channel all their efforts into their
company only while Mattel must share their efforts with their many companies and brandings.
19
-
[Online]. Available:
http://www. marketwatch.com/news/sto ry/story.aspx?quid=%7B3210B972-9964-4E09BC8C-F0C257686023%7D [2006, October 5].
• MSNBC. (2006). Mattel builds buzz with Elmo makeover.
[Online]. Available:
http://msnbc.msn.com/id/l4853580/ [2006, September 25].
• Pride, W.M., Elliott, G., Rundle-Thiele, S., Waller, D., Paladino, A. & Ferrell, O.C.
(2006). Marketing: core concepts and applications (asia pacific edition). Milton, Old:
John Wiley & Sons Australia, Ltd.
• Thompson, C. (2006). Fisher Price unveils T.M.X Elmo.
[Online]. Available:
http://www.businessweek.com/ap/financialnews/D8K7UM680.htm [2006, September
25].
• Wong, G. (2006). 10 most dangerous toys.
[Online]. Available:
http://money.enn.com/2005/11/17/news/midcaps/dangerous toy s/index.htm [2006,
September 25].
22
Reference
r
• Chatterjee, C. (2006). Our Daily Faves.
[Online]. Available:
http://www.parenting.com/parenting/article/0,19840,1532523.5,00.html [2006,
October 1 ].
• CNN Money. (2006). Fisher-Price fined $1. 1M.
[Online]. Available:
http://money.cnn.com/2001/06/07/news/fisherprice /index.htm! [2006, September 25].
• Fisher Price. (2006).
[Online]. Available:
http://www.fisher-price.com/au/default.asp?donotpup=l [2006, September 25].
• Fisher Price. (2006). About Us.
[Online]. Available:
http://www.fisher-price.com/au/hr/aboutus.asp#3 [2006, September 25].
• Los Angeles Times. (2006). Banned Elsewhere, Compounds Still Used In U.S..
[Online]. Available:
http://www.latimes.com/features/health/medicine/la-medumpingside8oct08,1,5354806.stor y ?colt=la-health-medicine&ctrack=1 &cset=true
[2006, October 9]
• Mattel. (2006). Mattel History.
[Online]. Available:
http://www.mattel.com/about us/histor y/default.asp?f=true [2006, September 25].
• Mattel. (2006). Corporate Social Responsibility.
[Online]. Available:
http://www.mattel.com/about us/Corp_ Responsibility/default.asp [2006, September
25].
• Mattel. (2006). Governance Guidelines.
[Online]. Available:
[2006, September 25].
ui
http://www.mattel.com/about us/Corp Governance!cLde_asp
• Moore, A. (2006). This season's must-have toys.
21
http://www.mattel.com/about us/history/default.asp?f=true [2006, September 25].
• Mattel. (2006). Corporate Social Responsibility.
[Online]. Available:
http://www.mattel.com/about us/Corp
[2006, September
25].
• Mattel. (2006). Governance Guidelines.
[Online].Available:
http://www.mattel .com/about_us/Corp_Governance/ciuide.asp [2006, September 25].
• Moore, A. (2006). This season's must-have toys.
[Online]. Available:
http://www.marketwatch.com/news/sto ry/story.aspx?quid=%7B3210B972-9964-4E09BC8C-F0C257686023%7D [2006, October 5].
• MSNBC. (2006). Mattel builds buzz with Elmo makeover.
[Online]. Available:
http://msnbc.msn.com/id/l4853580/ [2006, September 25].
• Pride, W.M., Elliott, G., Rundle-Thiele, S., Waller, D., Paladino, A. & Ferrell, O.C.
(2006). Marketing: core concepts and applications (asia pacific edition). Milton, Qld:
John Wiley & Sons Australia, Ltd.
• Stuff. (2006). Review: Fisher-Price Star-Station.
[Online]. Available:
http://www.stuff.co.nz/stuff/0,2106,3811684al8335,00.html [2006, October 1].
• Wong, G. (2006). 10 most dangerous toys.
[Online]. Available:
http://mone y .cnn.com/2005/11 /17/news/midcaps/dangerous toys/index.htm [2006,
September 25].
24
Bibliography for Fisher Price
• AdNews. (2006).
[Online]. Available:
http://www.adrews.com.au/ [2006, September 25]
• Canton Rep. (206). Old-fashioned toys still remain popular among toddlers.
[Online]. Available\
[2006, October 4]
• Chatterjee, C. (2006). 'Our Daily Faves.
[Online]. Available:
http://www.parenting.com/parenting/article/0, 1 9840,1 532523_5,00. html [2006,
October 1].
• Chicago SunTimes. (2006). Glad tidings for retailers.
[Online]. Available:
http://www.suntimes.com/business/87788,CST-FlN-retail08.article [2006, October 9]
• CNN Money. (2006). Fisher-Price fined $1. 1M.
[Online]. Available:
http://money.cnn.com/2001/06/07/news/fisherprice /i ndex.htm/ [2006, September 251.
• Fisher Price. (2006).
[Online]. Available:
http://www.fisher-price.com/au/default.asp?donotpup=l [2006, September 25].
• Fisher Price. (2006). About Us.
[Online]. Available:
http://www.fisher-price.com/au/hr/aboutus.asp#3 [2006, September 25].
• Los Angeles Times. (2006). Banned Elsewhere, Compounds Still Used In U.S.
[Online]. Available:
http://www.latimes.com/features/health/medicine/la-medumpingside8oct08,1,5354806.story?coll=la-health-medicine&ctrack=1 &cset=true
[2006, October 9].
• Mattel. (2006). Mattel History.
[Online]. Available:
23
MG1702/MG2702: Written Case & Online Exercise: Assessment Feedback Sheet
I
Tc 2 - 3
Student Name:
35 Marks
Poor
Fair
Average
Good
1
Excellent
Content - Case Study
> Breadth and depth to answers. Sound
justification (when required). Relevance
Explanation & application of marketing
concepts
>
Scope and quality of research
Zp
120
Content - Online Exercise
> Breadth and depth to answers. Sound
justification (when required). Relevance
>
Explanation & application of marketing
concepts
>
Scope and quality of research
Process
15
15 Marks
J
Presentation & Layout
>
>
Assignment is professionally presented
Figures, tables, appendices are neat,
accurate & labelled
/4
Communication Style
>
â
Sentences & paragraphs are well
constructed; clear & concise ideas
d
The assignment demonstrates a good
grasp of the standard writing
conventions (i.e. spelling, punctuation,
grammar)
/4
Referencing
â
>
1
APA conventions are correctly applied
when citing sources in text
The reference list is presented
alphabetically using correct APA syntax
TOTAL ASSESSMENT
ADDITIONAL COMMENTS
/7
S3
150 Marks
_Z!3
5 MARKS