Case 12 Innovative Toys Inc Consumer Shopping Behavior Channel Design 200 Innovative Toys Q32360442

CASE 12 Innovative Toys Inc. Consumer Shopping Behavior and Channel Design By 200%, Innovative Toys tac developed a new toy line consising of sis high quality ay for indanes, ranging in price from $3.79 to $5.99. Because of the flerce competition for he space in the maior retal channels for infant toys (mass merchandien. dsc0เส toy ค0m and diacount department shores) Insorvative was considering the posbility of weling te new infant soy line through supermackets To appraise the fesbility of using supermarkets to distributie the infans toy lne to study the quertion. The research report felloes Marketing Research Firm’s Report Donald Morison, vice president of marketing, hired an outsile marketing research fir Supermarkets have not played a large role in the distribation of infant soys oe othe classes of toys. In fact, it is estimated that only about 3 percent of total industry toy vol ume is accounted for by supermarkets But in the next several years, substantial chang may be in store for the datribution of toys though supermarkets. The underlying İdr responsible for this changs is the boavy push by the supermarket industry to put more emphasis on the sale of nonfoods, particularly general merchandise, because of the higher margins available. Toys, particularly infant toys might play a prominent role in this overall trend toward more emphasis on general merchandise (GM) by supermarkrts Two basic factors must be present, however, in order to market toys saccesful through supermarket channels: (1) supermarket buyers mast be favorably diuposed so ward toys as an important and profitable GM category, and (2) consumers must be well ing to purchase toys from supermarkets. An analysis of each of these factons Sollows Disposition of Supermarket Executives toward Toys as a General Merchandise Category Several studies show a generally favorable attitude by supermarket executives toward sos as an important GM category. For example, a study of a netionwide panel of supermar ket executives reported in Progressive Grocer yielded the results shown in Exhibit L. N ratings were less than good, while 54 percent of the supermarket executives rated toys is either very good or excellent as a GM category Another study condacted by the research division of Progressive Grocer developed a comperative rating scale to show how toys are rated by supernmarket executives among 30 GM categories. This is shown in Exhibit 2. As indicated, toys do seasonably wel scoring 79 (peg) and 67 (bosed) out of a possible 100. While toys are not rated as hig as light bulbs, disposable lighters, motor oil, and other GM categories, peg toys mairnd ahead of such items as hasic soft goods, batteries, and sunglasses, and boxnd toys rated higher than glassware, photo finishing, hardware, and other inems 572 Show transcribed image text