Duncan yoyo marketing plan assignment

The first modern yo-yos were introduced to the United States by Donald Duncan in the 1920s. The yo-yo began to become very popular in the late 1940s to 1960s, marketing strategy following the innovative use of TV advertising. In period of time, almost every kid in US had a yoyo. The yo-yo boom unfortunately ended when Duncan went bankrupt in the late 1960s, expensive lawsuit to protect the yo-yo trademark from competitors forced the Duncan family out of business. Flambeau Products, who made Duncan’s plastic yo-yo models, then took over the company and still owns it to this day (Duncan Toys Company A Division of Flambeau 2008).

One of Duncan’s successful marketing strategies was in 1995, TV advertisement with the “ Video Boy” commercial which airs nationwide. Commercial positioned yo-yo as the more exciting option to video games and swiped the globe including Australia, Britain and Japan to become yo-yo hotspots. In 1997, Duncan enters into a licensing agreement with Coca-Cola, producing 18 different designs and in 2002, Duncan purchased the assets of Playmaxx Inc and officially securing its position as the number “ one” Yo-yo manufacturer in the world (Duncan Toys Company A Division of Flambeau 2008).

Political forces/ Legal and regulatory influences Australia has declared a new safety standard to limit heavy metals and lead in young children’s toys. The Consumer Affairs Minister of Australia explains that the new standard will take effect January 1, 2010, this will replace the existing Trade Practices Act that bans lead in playthings. This regulation has been noted by Duncan when manufacturing its products (Bureau Veritas 2009). Economic Trends Since the global recession, Australia has been affected and our countries real gross domestic products have declined (Uren 2008).

This can have an effect on the way people in this country spends its money. This could mean more parents or adults will want to spend their money on useful items, food and everyday needs, instead of buying their children toys to play with. Demographic Trends Statistics show that fewer than 25% of primary school kids who get allowance save their money, and more than 82% of these children are influencing their peer groups to go out and spend their allowance on toys or games (Finance First Partnership 2009). Technological Changes

The target market for this product are school children between 8 to 12 years old, therefore their positioning of a product or a brand usually depends on the popularity of the products influenced by their peers pressuring them into following the trend and associating that standard to their purchase (Makagosa & Mohube 2007). Duncan’s “ Yo-yo Light Keychain” is positioned in the high popular and affordable price position in targeted consumer’s perception shown in Figure 1. 5. 2Price: Use the price-skimming concept (McDonnell, 2008) to introduce the product at the higher price of $22. 95.

This price is higher than most yo-yo’s original product, however, comparing to other yoyo products in the market, the Duncan’s new product is unique with differentiation features and still falls under the affordable range price for the targeted market. This price will be reduce down in price accordingly as market growth slows to increase market share. Under the perception map (Figure 2); it is perceived by the targeted market that Duncan’s product is fairly at the range of highly quality product with reasonably affordable price. 5. 3Place: The product will be directly distributed into popular retail toy tores (such as Toys “ R” Us and MR Toys Toyworld) in the first six months, then increase market share by diversifying into department stores (such as Target, K-mart and Big W) at decreased price. Another direct distribution is made through internet purchases on the Duncan’s online store. 5. 4Promotion: The promotion of this product is heavily based on different advertisement methods. The product will gain its initial exposure through print media such as catalogues and Kid’s magazines (such as dolly and K Zones) to increase its popularity among the targeted consumers.

Further recommendations, Duncan need to constantly coming up with new products by integrating the newest technology today to its products’ style of design and features. This in the long term will allow Duncan to further increase in the market share and maintain a sustainable position in the Australian Market. 10. 0 REFERENCE LIST ABC. 2003. Fads. http://www. abc. net. au/gnt/history/Transcripts/s936574. htm (accessed May 12, 2009) AbsoluteAstronomy. 20009. Yo-Yo. http://www. absoluteastronomy. com/topics/Yo-yo (accessed May 10, 2009) Bureau Veritas. 2009.

Australia Issues New Safety Standard Limiting Lead and Heavy Metals in Toys. http://www. bureauveritas. com/wps/wcm/connect/bv_com/group/home/about-us/our-business/our-business-consumer-products/regulatory_bulletins/toys_australia_lead/? presentationtemplate= bv_master/CPS_full_story_presentation (accessed May 10, 2009) Chong, J. (2009) Economy to go backwards in 2009/10. http://news. smh. com. au/breaking-news-business/economy-to-go-backwards-in-200910-20090512-b1sf. html (accessed May 6, 2009) Duncan Toys Company A Division of Flambeau. 2007. Discover the pulse. http://www. yo-yo. com/news_det. asp?