HND市场LandelToys案例DEC.docx
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HND市场LandelToys案例DEC.docx
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HND市场LandelToys案例DEC
DE3C34:
Marketing:
AnIntroduction
LandelToys—Acasestudy
Backgroundinformation
TheLandelToyCompanyhasaworkforceofover1,000basedinthreedifferentsitesin
theUK.Thecompanywasestablishedintheearly1980sanditsmarketingactivitiesare
co-ordinatedfromitsheadquartersinChester.
TheoriginalLiveandLearnToyCompany—thenamechangedtoLandelin1986—
producedalimitedrangeofwoodentoysaimedatthepre-schoolmarket.Itsrangeof
productswasoriginallylimitedtowoodenbuildingbricks,simplewoodenjigsawsanda
limitedselectionofwoodenanimals.Asthecompanybecamemoreestablished,the
productrangewasexpandedtoincludedolls’housesandwoodentrainsets.
Intheearlydaysthecompanysoldthroughsmall,independenttoysshops,butdespite
numerousattempts,itwasunabletopersuadeanyofthelargechainstorestostockits
products.Despitethis,thecompanymaintainedareasonableturnover,anditslowly
expandeditsproductportfoliotoincludearangeforthe5–8yearoldmarket.
Disenchantedbyitsinabilitytobecomeacceptedbyanyofthelargerchains,the
companytoyedwiththeideaofmailorderselling.Acataloguewasproducedand
distributedthroughsomeoftheleadingSundaynewspapers,andalthoughsalesincreased,
thiswasnotaparticularlysuccessfulventure.
Mailordersellingwasdroppedafteronlyayear,butitdidservetobringthecompany’s
nametotheattentionofthepublic,andmoreimportantlytothetoyindustry.The
company’simageofhighqualitytoys,madefromnaturalproducts,appealedtothe
increasinglyvocalenvironmentallobby,andatlast,aleadingdepartmentstorechain
agreedtostockLandel’sproducts.ThisprovedtobealucrativeagreementforLandel,
andithelpedthecompanyexpandduringthelate1980s.
Thecompany’sbigbreak,however,camewhentheWelshlanguageTVchannelSC4
introducedananimatedseriesfeaturinganassortmentofanimalcharacterscollectively
knownasthe‘CountryCousins’.Againstfiercecompetition,Landelwonthecontractto
makealimitedrangeofmerchandisefeaturingthecharacters,andthepopularityofthe
seriesresultedinsaleswhichwerewaybeyondLandel’smostoptimisticexpectations.
Followingthesuccessof‘CountryCousins’,ITVdecidedtogivetheseriesnational
airing,andintheleaduptothenationallaunch,Landelexpandedanddevelopeditsrange
ofmerchandise.Atthesametime,thecompanyalsointroduced‘CountryCousins’books
andtothisend,itacquiredanailingpublishingcompanyinExeter.
LandelToys—Acasestudy
ThiswasLandel’sfirstventureintopublishing,butbyretainingtheexistingexpertise
withinthenewlyacquiredcompany,andthroughitsownestablisheddistribution
network,thisbecameahighlyprofitablepartofthecompany’sportfolio.
Thebooksweresoldprincipallythroughtoyshopsanddepartmentstoresaspartofthe
overall‘CountryCousins’package,andbyconcentratingonitsestablishedtoyretailers
ratherthanbookshops,Landeldidnotneedtoemployanyadditionalsales
representatives.Thisprovedtobeasuccessfulandcosteffectiveapproach,whichisstill
employedatthemoment.
Asthebusinesscontinuedtoexpand,Landelboughtoverasofttoymanufacturerwhich
wasinitiallydevotedtotheproductionof‘CountryCousins’figures.
The‘CountryCousins’phenomenonreacheditspeakinthelate1980s,andalthoughthe
companyisstillturninginreasonableprofits,therearegrowingconcernsforitsfuture
security.Thesuccessof‘CountryCousins’,however,hasgivenLandelafootholdinthe
market,andhavingfirmlyestablisheditsbrandnameandidentity,Landelproductsare
stillstockedbysomeofthemajortoyretailers.
Althoughthesalesof‘CountryCousins’merchandisearedeclining,therangeisstillan
importantpartofLandel’sbusiness.Therangecurrentlyincludeswoodenfigures,cuddly
figures,woodenplayhousesandscenery,aseriesofthirty‘CountryCousins’story
books,a‘CountryCousins’Annualwhichhasbeenproducedeachyearsince1986,
‘CountryCousins’stationery,pencilcases,notepads,cardsetc,and‘CountryCousins’
toiletries,includingsoap,shampoos,sponges,bathsaltsetc.
Inadditiontothe‘CountryCousins’range,Landelstillproducesitstraditionalwooden
jigsaws,woodenanimals,woodenbuildingblocksandvariousotherwoodentoysaimed
atthepre-schoolmarket.
Amajorturningpointinthepopularityofthe‘CountryCousins’rangecamein1998
whenITVdecidedtodroptheprogrammesfromitsschedules.Thepopularityofthe
serieshadbeenwaningforanumberofyears,anditsdemisehadbeeninevitablefor
sometime.Intheyearfollowingtheprogramme’swithdrawal,salesof‘CountryCousins’
merchandisefellto40%ofthe1992peak.
Alongwiththedeclineindemand,thecompanyhashadtochangeitspricingpolicies.
Duringtheboomperiodoftheearly1990s,thepriceofthe‘CountryCousins’rangewas
setatapremium,butinordertomaintainsales,thecompanywasforcedtoreduceprice
toamuchmorecompetitivelevel.Retailersandothermiddlemen,realisingthestrength
oftheirnegotiatingposition,havebeenabletoforceLandeltoaccepttheirtermsand
prices,andwiththedeclineindemand,Landelhashadlittlealternativebuttoaccept.
LandelToys—Acasestudy
Thecompany’s30-strongsalesteamhasbeenchargedwiththeresponsibilityof
maintaininggoodrelationswithexistingoutletstoensuretheircontinuedpatronage.On
occasionsthispatronagehasbeenhardwon,andinrecentyearshasinvolvedmoreand
moreprice-cuttingtoensurethattheexistingstorescontinuetostockLandel’srange.
Theindustryisbecomingevermorecompetitive,andwithoutaleadingproductrange,
Landelisbeingforcedtocutpricestoretainitsdistributors,andtomaintainitspositionin
themarketplace.
Thereducedpricetotheretailer,however,isnotalwaysreflectedinthepricechargedto
thefinalconsumer.AlthoughLandelissellingtothemiddlemenataconsiderably
reducedprice,theretailersaretendingtosellatpricesonaparwiththosechargedduring
theheightofthe‘CountryCousins’boom.
Assalesofitstraditionalrangehasdeclined,thecompanyhasbecomeinvolvedinthe
‘ownlabel’business,and10%ofitsoutputisnowsuppliedtotheForToysretailchain
whichsellstheproductsunderitsownname.TheassociationwithForToyshasbeen
goodforLandel,andthereisthepossibilitythatthisrelationshipwillbefurther
developedinthefuture.
ForToysisanexpandingcompany,andalthoughthisrelationshiphasbeenvitalto
Landel,ForToyshasforcedthemanufacturertoproduceatlowerandlowerpricesover
theyears,andbecauseofalackofordersfromothercustomers,Landelhasbeenforced
toaccedetothesedemands.Atthesametime,theproductionof‘ownlabel’merchandise
mayhavecontributedtothereduceddemandforLandelbrandedproducts.
Thedecliningdemandfor‘CountryCousins’hasalsonecessitatedotherchanges.Cuddly
toys’production,whichwaspreviouslyexclusivelydevotedto‘CountryCousins’figures,
hasnowbeenadaptedtoproducearangeofmorethanfortydifferentstylesandtypesof
bearsandothercreatures.Manyoftheseare‘ownlabel’productsforForToysstores.
Otheralterationstotheproductmixincludetheintroductionoflargertoyssuchasplay
houses,climbingframesandslides.Thecompanyislookingtofindawayofgaining
accesstopotentialbuyerssuchasplaygroups,nurseriesandevenlocalauthoritiesaswell
asitsestablishedconsumermarket.
Thepublishingsideofthebusinesshasalsohadtoadapttothepost‘CountryCousins’
boom.Arangeofchildren’sstationeryisavailableinanumberofdifferentstyles,and
thisisbeingcontinuallyupdatedtomeetthechangingneedsofthemarket.Anewseries
ofpre-schoolbookshasbeenproduced,includingarangecalled‘DollytheDolphin’for
whichthecompanyhashighexpectations.Thecompanyalsohasplansfor‘Dollythe
Dolphin’cuddlytoys.
Anewrangeofself-readingbookshasalsobeendeveloped,andthecompanyhasbeen
tryingtoencouragelocalauthoritiestobuythemfortheirschoolsandlibraries.
Duringtheearly1990sthecompanydidnotneedtoinvesttooheavilyinadvertisingand
promotionasthepublicitygeneratedbythe‘CountryCousins’TVserieswassufficientto
keepthecompany’smerchandiseinthepubliceye.
LandelToys—Acasestudy
Inadditiontothispublicity,thecompany’spromotionalefforthadbeenprincipallyaimed
atretailersandothermiddlemen,andthishadprimarilyinvolvedpersonalsellingthrough
thesalesteammakingregularvisitstoestablishedclients.Itwasbelievedthatby
targetingthemiddlemen,andbygettingtheproductsintoasmanystoresaspossible,
saleswouldinevitablybegenerated.Theemphasisonthesalesteamhasbeenmaintained,
butinrecentyearsthishasbeensupplementedbyadvertisinginchildren’scomicsand
magazines,andbyalimitedamountofadvertisingonChildren’sTV,particularlyinthe
runuptoChristmaseachyear.
Thecompanymustnowadjusttothepost‘CountryCousins’boom,andalthoughsome
changeshavealreadybeenmade,furtherdevelopmentsarerequired.Todothis,itis
necessarytodevelopthecompany’smarketingmix,butbeforethisispossible,the
companymustcarryoutsomeresearchtodiscoverthemostappropriatecourseofaction.
Todate,thecompanyhasnotfelttheneedtocarryoutextensivemarketresearch,and
muchofitsdecision-makinghasbeenbasedoninformalfeedbackreceivedfromitssales
team,andfromsecondarymaterialderivedfromtheindustrytradeassociation,and
similar
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