1. Market Potential: The maximum reasonably attainable under a given set of conditions
- Analysis for Marketing Planning (Third Edition) – Lehmann and Winer – Page 124
2. Secondary Research/Data: Research data already gathered for another purpose
- Analysis for Marketing Planning (Third Edition) – Lehmann and Winer – Page 130
3. Primary Research/Data: Research conducted specifically to address a certain situation or answer a particular question
- Analysis for Marketing Planning (Third Edition) – Lehmann and Winer – Page 131
4. Substitute Products: A product that has been differentiated or has upgraded quality
- Readings in Strategic Marketing: Analysis, Planning, and Implementation – Weitz and Wensley – Page 95
5. Competitive Advantage: over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices
- Marketing Strategy: A Decision-Focused Approach (Seventh Edition) – Walker and Mullins – Pages 40-41
- Google Search - What is competitive advantage in marketing?
6. Alternative Corporate Growth Strategies (based on Exhibit 2.5): An alternative corporate growth strategy which involved current markets and new products
- Marketing Strategy: A Decision-Focused Approach (Seventh Edition) – Walker and Mullins – Page 41-43
Time Warner’s DC Entertainment and Warner Bros. Studio have joined with Mattel and Lego to create a new line of super hero toys. They plan to unleash a line of toys named DC Super Hero Girls. In order for the companies to successfully sell the new line of toys, they should focus on research and strategy.
These companies most likely looked into Alternative Corporate Growth Strategies. Each company is well-known in their own way and by joining together they created a strong multi-company partnership. They chose to focus on product development, which includes: “product improvements, product-line extensions, and new products for the same market” (Walker and Mullins). Based on the article, Mattel and Legos are expanding their product line with DC branded products.
The new Super Hero products could be considered Substitute Products due to the variety of toys on the market. There are multiple lines of dolls, from Barbie’s1 to Bratz1. Substitute products should be able to, “upgrade the quality of the product or differentiate it somehow” (Weitz and Wensley). A whole new and unique line of products for girls is created by combining the Super Hero brands with the doll makers.
The companies first need to understand their Market Potential. It is, “key to clearly define your market before endeavoring to conduct research” (Forbes). Market Potential is used to help determine the companies’ target market. What age range? What ethnicity? What type of household income? These are questions that need to be answered before conducting any type of research.
Research is the next important step in determining whether or not the product will be successful. Primary research is conducted by the company that wants that specific information. Secondary research is research conducted by other companies. The companies should first consult Secondary Data. They can research the success of similar products, such as, the Barbie Wonder Woman Doll (2) or Monster High Dolls (1).
After referring to the secondary data, the companies can start to develop their own Primary Research, such as, surveys and interviews. Because the companies are selling toys, I would recommend focus groups of both children and parents. The children can be introduced to the products and parents can be questioned about things, such as, price points. These companies can follow the example of other companies and use a, “private network…to help create products, test marketing campaigns and stir up buzz” (WSJ). These sites are similar to social-networks, where customers create profiles. The sites tend to be cheaper and more effective because they can, “draw on the participants in a much broader and deeper way than they could in an offline setting” (WSJ). “Companies use them to administer polls, chat in real time with consumers and even ask members to go to the store to try out specific products” (WSJ).
Once the companies have gathered their research, they can begin to interpret their data and develop a Competitive Advantage strategy. These companies need to use their resources to give customers, “a good reason to purchase from it instead of its competitors” (Walker and Mullins). Competitive advantage builds on what a substitute product offers. “Competitive advantage is a function of either providing comparable buyer value more efficiently than competitors (low cost), or performing activities at comparable cost but in unique ways that create more buyer value than competitors and, hence, command a premium price (differentiation)” (The Economist). After reviewing the primary and secondary data, the companies will be able to determine how to develop the best strategy for them to sell the products.
1. http://play.mattel.com/
2. http://www.amazon.com/Barbie-Collector-Batman-Superman-Justice/dp/B015CY8RS0
- "Barbie Collector Batman v Superman: Dawn of Justice Wonder Woman Doll." Amazon. Web. 27 May 2016. <http://www.amazon.com/Barbie-Collector-Batman-Superman-Justice/dp/B015CY8RS0>.
- "What Is Competitive Advantage In Marketing?" Google. Web. 27 May 2016. <https://www.google.com/search?sourceid=chrome-psyapi2&ion=1&espv=2&ie=UTF-8&q=what%20is%20competitive%20advantage%20in%20marketing&oq=what%20is%20competitive%20advantage%20in%20mar&rlz=1C1KMZB_enUS566US566&aqs=chrome.0.0j69i57j0l3.6453j0j7>.
- Lehmann, Donald R., and Russell S. Winer. Analysis for Marketing Planning. 3rd ed. Web. 27 May 2016. <https://blackboard.temple.edu/bbcswebdav/pid-4996740-dt-content-rid-52170875_2/courses/51201652400/316201531621_ImportedContent_20150422032019/Market Potential and Forecasting R11(1).pdf>.
- O'Connor, Shawn. "Step 3 for a Successful Startup: The Importance of Market Research." Forbes. Forbes Magazine, 23 Apr. 2013. Web. 27 May 2016. <http://www.forbes.com/sites/shawnoconnor/2013/04/23/step-3-for-a-successful-startup-the-importance-of-market-research/#332b9f807596>.
- "Play at Mattel.com, Where We Are Creating the Future of PLAY!" Play at Mattel.com, Where We Are Creating the Future of PLAY! Web. 27 May 2016. <http://play.mattel.com/>.
- Steel, Emily. "The New Focus Groups: Online Networks." The Wall Street Journal. 14 Jan. 2008. Web. 27 May 2016. <http://www.wsj.com/articles/SB120027230906987357>.
- Stock, Kyle. "Superheroes for Girls." 18 May 2015. Web. 27 May 2016.
- "Competitive Advantage." The Economist. The Economist Newspaper, 2008. Web. 27 May 2016. <http://www.economist.com/node/11869910>.
- Walker, Orville C., and John Mullins. Marketing Strategy: A Decision-Focused Approach. 7th ed. Web. 27 May 2016. <https://blackboard.temple.edu/bbcswebdav/pid-4996745-dt-content-rid-52170886_2/courses/51201652400/316201531621_ImportedContent_20150422032019/Strategy Decisions and Marketing Implications R2(1).pdf>.
- Weitz, Barton A., and Robin Wensley. Readings in Strategic Marketing: Analysis, Planning, and Implementation. Web. 27 May 2016. <https://blackboard.temple.edu/bbcswebdav/pid-4996744-dt-content-rid-52170885_2/courses/51201652400/316201531621_ImportedContent_20150422032019/Competitive Forces Shape Strategy R8.pdf>.