A toy company very popular for their toys for teens and children build their top-of-mind and...

Transcribed Image Text:

A toy company very popular for their toys for teens and children build their top-of-mind and reputation as the go- to toy store for a very pleasurable experience. Their biggest USP over competition was the personal feel and warm ambiance that provided a very unique instore experience. An unspoken rule passed down by the founder was to let children play even if the parents don't pay. To please consumer taste and to diversify their target segments, the company incrementally added new products, modified existing ones and introduced new product lines via acquisitions. While this grew their market share, as the toy company tapped into both millennials and an older tech savvy audience, evidence suggests that the diversification resulted in confusion in the customer minds and dilution of the overall brand image. Their awareness is still high; however, sales have been slowly declining primarily from their most profitable lines of toys for teens and children. Over the past two years, the decline has accelerated to double digits. The category slightly grew in this time which showed a bigger loss in the toy companies market share. Competitors have turned up the heat, and the category leader turned to discounting toys during the holiday season. The rise of e-commerce also posed unforeseen threats from new entrants coming into the market relatively quickly and cost effectively. The toy company already has a tie-up and is listed within an ecommerce site as a short-term solution. The loss in share is also evident in lower footfall into the store which is reducing from the warm ambiance the store is known to have. The company's marketing department did not go through a restructure to support their diversification of the product lines. Advertising for the lines targeted at millennial and older generation are missing the audiences pulse by a wide margin. Marketing the core products for teens and children also hasn't changed much over the years. Marketing budget has not been cut despite the turbulence the company is going through. The company is about to introduce new products for this seasons lines and have come to ask you for your help with a strategy and recommendation in combating the declining sales and bringing back the lustre of the old days. Develop a proposal that includes your take on competitive spends, category and market share data, CRM and GA360 A toy company very popular for their toys for teens and children build their top-of-mind and reputation as the go- to toy store for a very pleasurable experience. Their biggest USP over competition was the personal feel and warm ambiance that provided a very unique instore experience. An unspoken rule passed down by the founder was to let children play even if the parents don't pay. To please consumer taste and to diversify their target segments, the company incrementally added new products, modified existing ones and introduced new product lines via acquisitions. While this grew their market share, as the toy company tapped into both millennials and an older tech savvy audience, evidence suggests that the diversification resulted in confusion in the customer minds and dilution of the overall brand image. Their awareness is still high; however, sales have been slowly declining primarily from their most profitable lines of toys for teens and children. Over the past two years, the decline has accelerated to double digits. The category slightly grew in this time which showed a bigger loss in the toy companies market share. Competitors have turned up the heat, and the category leader turned to discounting toys during the holiday season. The rise of e-commerce also posed unforeseen threats from new entrants coming into the market relatively quickly and cost effectively. The toy company already has a tie-up and is listed within an ecommerce site as a short-term solution. The loss in share is also evident in lower footfall into the store which is reducing from the warm ambiance the store is known to have. The company's marketing department did not go through a restructure to support their diversification of the product lines. Advertising for the lines targeted at millennial and older generation are missing the audiences pulse by a wide margin. Marketing the core products for teens and children also hasn't changed much over the years. Marketing budget has not been cut despite the turbulence the company is going through. The company is about to introduce new products for this seasons lines and have come to ask you for your help with a strategy and recommendation in combating the declining sales and bringing back the lustre of the old days. Develop a proposal that includes your take on competitive spends, category and market share data, CRM and GA360

Answer rating: 100% (QA)

Solution Here are some recommendations for the toy company to combat declining sales and restore gro... View the full answer