Answered: CASE STUDY QUESTIONS 1. Analyze…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Crayola's YouTube channel features colorful videos on
Crayola products and instructions for creative projects
where they can be used. The company's Facebook
presence features a live chat series with experts and
creative celebrities called "Inside the Crayon Bax."
Crayola wants to stimulate conversations around cre-
ativity so parents can learn from each other and un-
derstand how to build creativity in their children.
Crayola's core parent audience is turning to the
web for gift and usage ideas, comparing prices, and
reading reviews before making purchases. Crayola
wants to be first in mind as a source of $20 artsy toys
and mess-proof gifts. The company focuses heavily
on search, social media, and digital display, to help
parents find the Crayola products needed for their
children's school supplies or gifts. Crayola closely
CASE STUDY QUESTIONS
1. Analyze Crayola's problem. What management,
organization, and technology factors contributed
to the problem?
2. What competitive strategies is Crayola pursu
ing? How does digital technology support those
strategies?
tracks activity on its online channels through Google
Analytics to make sure it is getting the most out of its
marketing and ad campaigns.
Crayola's website has been thoughtfully designed
for children, parents, and educators. It features free
ideas for crafts, printable coloring pages, and even
advice on how to remove stains. The website also can
be used for ordering Crayola products online. Thanks
to its new array of products and services, Crayola has
experienced better growth, and its future looks as
bright as the vibrant colors of his iconic crayons.
Scarce www.crayola.com, sed March 28, 2014; "Crayola
SWOT www.marketingteacher.com, ad March 23, 2018; and
Jan Coen, "Cryola's Colorful Evolution, Think May, July 2012
3. What people issues did Crayola have to address in
designing its new technology-based products?
4. How has digital technology changed Crayola's
business model and the way it runs tus business?

Transcribed Image Text:INTERACTIVE SESSION ORGANIZATIONS Digital Technology Helps Crayola Brighten Its Brand Crayola is one of the world's most beloved brands for children and their parents. The Easion, Pennsylvania-based company has been noted for high-quality, non-toxic crayons, markers, pencils, modeling clay, creative toys, and innovative art tools that have inspired artistic creativity in children for more than one hundred years. You can find Cray- ola products nearly everywhere, including schools, offices, supermarkets, drug stores, hospitals, theme parks, airports, gas stations, and restaurants. The Crayola crayon box became part of the col- lective history and experiences of generations of Americans, and a symbol of the color and fun of childhood. But today, that Crayola crayon box is not as iconic as in the past. The popularity of Crayola crayons is under assault-not by Crayola's traditional competitors (Faber-Castelli, Dixoniconderoga, and MEGA Brands), but by changing umes. There has been a profound technological and cultural shift in how children play. Children and their families are being bombarded with increasingly sophisticated forms of entertainment, many of them digitally based. Digital products are starting to sup plant physical ones in the world of children's play as well as in other areas of work and everyday life. With the advent of computers and web-based learning, chil- dren are leaving behind hand-held art supplies at an increasingly younger age. The phenomenon is called KOCY, standing for "Kids Growing Older Younger." As children reach the age of 4 or 5, when they become old enough to play with a computer, they become less interested in toys and crayons and prefer electronics such as video games and digital tablets and smart. phones. Crayola is not immune to this problem. Will Crayola become a dinosaur from a different era? Not likely, thanks to the company's forward- looking management, which embarked over a decade ago on far-reaching changes in leadership, organiza- tional culture, and the product development flanc. tion. The organization restructured around consumer Insights and needs rather than specific product lines. Vicky Lozano, Crayola's VP of Corporate Strategy and her team recognized that Crayola's purpose has always been to nourish originality and to help parents and teachers raise creative and inspired children. Crayola's broader mission is not just to put crayons and art materials in children's hands but to help children learn and play in colorful ways. The question they asked was not, how can we sell more crayons? Instead they asked, what kinds of expert- ences and technologies should Crayola embrace? Crayola has reframed its business model, introduced a new innovation process for product development, and created new products and revenue streams. The company has been transformed from a manufacturer of crayons and art tools into a trusted source of tools and experiences for creative play. Crayola is using digital technology, but not to re- place its core crayon business. Instead, it's integrat ing the old and the new. The company now offers a new range of products like the Marker, an all-in-one digital pen, crayon, and penal, designed for use with the Color Studio HD 1Pad app. It's like a traditional coloring book, but includes new interactive sounds and motion. Lights, Camera, Color! is another digital application that allows kids to turn their favorite pho tos into digital coloring book pages. Tech toys such as the Digital Light Designer, a 360-degree domed draw ing surface, encourage Imaginations to run wild with colored LED lights. Children can play updated ver- sions of their favorite games or animate and save up to 50 pieces of their own artwork. Crayola found that par- ents are looking for toys that are less messy than tra dicional markers or fingerpainis. These digital toys are *100 percent mess-proof," and technology has helped Crayola make its other products less messy as well. In designing new digital products and experiences, Crayola has drawn on its extensive knowledge of child development. It understands how digital tech- nology can play a part at different ages. For instance, the My First Crayola line is targeted specifically at one-year-olds; while Crayola Catwalk Creations is designed for "tween girls who like expressing them- selves through fashion. Crayola also understood that it had to change the way it markets its products as well as the products themselves and has been investing more and more in digital marketing. These intatives include online advertising, promotions, social media pushes, and other digital activation programs that allow Crayola to connect with parents and educators invested in rais ing children's creativity level. Social media has proven especially effective and Crayola has a presence on Facebook, YouTube, Pinterest, Twitter, and Instagram.

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