Case Study_Brain Baby_PRMSB_Jan22

pdf

School

University of Winnipeg *

*We aren’t endorsed by this school

Course

STRATEGIC

Subject

Marketing

Date

Feb 20, 2024

Type

pdf

Pages

Uploaded by MasterJellyfish3964

1 Author: Camila Jerger Copyright 2022 Camila Jerger CASE STUDY: BABY BRAIN, INC Read the following case study and answer the questions. Baby Brain Inc. is one of the top children's toy manufacturers in the country, specializing in educational toys and games for babies and kids under 13. Since they were founded 30 years ago, the company has been focused on bringing innovative toys to educate children. The company's mission is: “ To nurture and build children's imagination through toys and games that educate and prepare them to be the best they can be .” Their vision is " To become the most innovative company in the global educational toy market by 2025 ". The company commits a big part of its profits to Research & Development, and Baby Brain’s toys are so smart that they are even used by some of the top schools in the country as part of their curriculum. They have a broad product mix, which includes digital products, such as online educational games, to smart building blocks for babies, with different sounds, scents, and textures. Baby Brain is well-respected in its field, with hundreds of free endorsements from brain researchers, psychologists, pediatricians, and teachers. The company was recently featured in a top business magazine as one of the most innovative companies in North America. Baby Brain is deeply focused on quality, and since its early days its operation has been vertically integrated. The company manufactures each part of their toys, with no outsourcing, using the best, environmentally sourced materials, resulting in a pricey end-product. Baby Brain's success recently attracted a number of competitors. The company used to be able to launch a product and have it on the market with no direct competition for at least 12 months. Today, this time has been reduced to 2 months, meaning that in 60 days there will be a copy of their product on the shelves, made with inferior quality and performance, available for sale at a fraction of their price. The company is having trouble keeping up with the fast response from competitors, and their profits have been consistently going down over the past year. After a strategic planning session, a few different strategies are being considered. The first strategy would be to establish a partnership deal with another major toy company, Colourful Play, so Baby Brain will have more financial resources to speed up research and product launches. Colourful Play is the largest global player in the toy market and was recently involved in a controversy due to its outsourced production. It was uncovered that the company’s toys were being produced in poor working conditions, in unsanitary facilities, and even employing children. After this scandal, Colourful Play promised to audit its suppliers and is now considering partnering with Baby Brain to restore its credibility and reputation in the marketplace.

2 Author: Camila Jerger Copyright 2022 Camila Jerger Colourful Play wants Baby Brain to develop a series of products for them for a total of 20 million dollars. Colourful Play’s proposal is to use Baby Brain's name in the package and all advertising using the sentence: " Developed by the genius brains behind Baby Brain ." Colourful Play also made clear that they will be manufacturing the new products that will be developed as a result of this deal in their outsourced facilities. The second strategy is to invest in more advertising to increase consumers' awareness of their product and highlight their quality and uniqueness. One proposed tactic is to hire a well-known celebrity to endorse their products, similar to what George Clooney did with Nespresso. Baby Brain was recently approached by Mark Stephens, a controversial Oscar-winning actor. Mark has just started a family and had a baby boy after years of being portrayed by the media as a "party animal" and binge drinker. He is interested in changing his image and being seen as a family man, as he tries to land more serious roles in movies and TV shows. Since Mark Stephens is seeking an image change, he would only charge one-third of his usual fees to endorse Baby Brain’s products, which means that Baby Brain would get a global celebrity for a fraction of the cost. Mark made it clear on initial discussions with the company that he is looking to sign a contract for a minimum of 5 years, since he wants to be associated in the long-term with a family-oriented brand. The third strategy involves in-depth customer knowledge. The company's new marketing director believes Baby Brain does not know enough about their customers, and that could be a powerful source of new ideas. A deeper understanding of its customers will help the company focus its product development and advertising efforts and target them to their key consumers. Based on previous market research, the company knows that:  Baby Brain’s products are more expensive than their competitors, but their customers associate the higher price with better quality.  Buying their toys is seen as a "good education practice" by parents, as well as a symbol of status.  Given the high quality and durability of the products, often parents pass on the toys to siblings, other family members, friends or even re-sell them online.  The company has not been actively advertising its products but has a strong presence on social media.  Their distribution channels are retail (specialized educational toy stores), their own website, and Amazon. The fourth strategy is related to strengthening the relationship with Baby Brain’s customers: the parents. The company wants to generate loyalty amongst parents who buy their products for their kids, and to inspire them to continue buying products during all phases of the children’s growth and development, from baby to teenager. One of the suggested tactics is to develop a rewards or loyalty program, something they’ve never done before.

3 Author: Camila Jerger Copyright 2022 Camila Jerger Questions You were hired as a Strategic Marketing consultant to help Baby Brain define its next steps. You were asked to provide feedback on the strategies that are being analysed and consider implications to the company’s brand and reputation. These are the questions the company’s CEO expects you to answer. Make sure you answer each of them using a professional tone and applying your strategic marketing knowledge. 1) What are the pros and cons of the strategic partnership with Colourful Play? Are there any reputational risks for Baby Brain? How can the company mitigate those risks? Be specific and explain each of the pros and cons and any reputational risks you may identify and how the company could mitigate those. 2) What are the pros and cons of the endorsement deal? If the company decides to do the endorsement deal with Mark Stephens, are there any reputational risks to their company and brand? How can the company mitigate those risks? Be specific and explain each of the pros and cons, reputational risks and how they could mitigate those risks. 3) What elements of value (out of the 30 elements discussed in class 4) should Baby Brain focus on? Explain how each element you enlisted applies to Baby Brain’s case. 4) How can Baby Brain develop in-depth customer knowledge? As a marketing consultant, what would be your recommendations on what they should do to better understand their customers? 5) Would a loyalty or rewards program work for Baby Brain? Why or why not? 6) Considering all four suggested strategies, which do you believe makes more sense to Baby Brain given their current situation of increasing competition and lower revenues? Think about everything you read on this case study and provide your recommendation to the company CEO on what the company should do.  Individual case study, worth 25%  Due Feb 10, 2022, 11:59pm  Accepted format: word/ pdf, maximum of 5 pages (excluding cover page), font 12 (Calibri, Arial, or Times New Roman). Spacing can be single or double.  The assignment will be marked based on o Application of strategic marketing concepts learned in class & critical thinking o Organization, formatting, objectivity and relevancy of information o Responses to the questions must address this specific case and not be generic o Spelling and grammar. If citing, use APA style

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Case Study_Brain Baby_PRMSB_Jan22

Related Documents