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Passion for Learning

In: Business and Management

Submitted By jay2mba
Words 1153
Pages 5
Passion for Learning
Helping Kids Become Amazing Students


Presented to

Professor Ganesh N. Prabhu


Indian Institute of Management, Bangalore

On July 26, 2011

Submitted By

Case Group – 2J:
Arit Kumar Mondal 1011084
Rajarshi Sarma 1011194
Nirupam Das 1011258


The toy distribution industry in USA is dominated by top five retailers (50% market share). Sales are seasonal towards the last quarter of the calendar year. The industry is attractive and the per capita contribution to toys is increasing. There has been a growing interest in the educational toys segment where educational value is the primary purchase driver.


In 1993, over 40% of the Americans used mailed catalogs for purchases. Catalog consumers were well educated and had high incomes. Catalog sales were driven by mailing size, response rate & average order amount. Volume discounts, coupons & free gifts served as incentives. New products were extremely important in children’s catalog.


PFL’S market positioning is of a direct-mail company offering 100% educational products for 6-12 year old children. Its first catalog mail in 1994 resulted in a disappointing response rate of 0.77% which resulted in a loss of $145000 on revenues of $54000. There was also increasing competition from specialty chains focused on educational toys and big discount retailers. The firm also faces immediate challenge of designing its 1995 holiday catalog. Repositioning of the firm with the objective of breakeven in the short term and sustained profits in the long term is another major challenge.


The three repositioning options have been analyzed using Porter’s…...

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