Introduction New Heritage Doll Company operates in doll industry, proposing products with unique storylines. Two project proposals will be considered during the firm’s capital budgeting meeting in October. The first one called Match My Doll Clothing Line is an expansion of an existing product line, consisting in matching girl and doll clothes. The second on is Design Your Own Doll, which will allow users to create a customize doll. The committee could decline both projects, so vice president Emily Harris should decide which project to support. She should consider NPV, IRR and payback metrics together with corporate goals to take the best decision Projects’ Description Match My Doll Clothing Line (MMDCL) is a successful existing line. Since it is a seasonal line for warm weather only, the proposal is to create “All Seasons Collection”. Marcy McAdams, the line’s brand manager believes project’s success, because of existing popularity of the line and moderate risk. She argues that new products will be profitable as existing ones, and that the company could obtain some discounts from suppliers lowering costs. She also forecasts a relatively large initial investment, but 35% of it is tax deductible. McAdams thinks these expenditures will be recovered quite easily because of the line’s popularity. Design Your Own Doll (DYOD) is an innovative project, and it represents a new opportunity of profit. It is pretty risky because it is different from existing products, but the company’s
Emily Harris is the Vice president of New Heritage Doll Company’s production division. In mid-September of 2010 she was trying to decide on project proposals for the company’s capital budget meeting in October. Of the proposals presented to her, two of them stood out based on their innovation and ability to strengthen the division’s product lines. The first project, Match My Doll Clothing Line Expansion (MMDC), would extend the warm weather products to an all-weather clothing line. The second project, Design your Own Doll (DYOD), would start with a website where customers would choose the doll’s features, color, etc. and then the dolls will be made to order. The
We observed non-viable cost patterns due to high customization and low unit orders by retailers for specialty branded doll #106, hence the management should look at better sales & marketing strategy to take bulk orders
The first project proposal is Match My Doll Clothing line expansion consisted of expanding matching doll and child’s clothing and accessories. The second project proposal is Design Your Own Doll by creating customizable “one of a kind” doll features through the company’s website. The project selection criteria would base on quantitative and qualitative analysis. The quantitative analysis would base on the evaluation of discounting cash flow forecasts to determining the Net Present Value (NPV), Internal Rate of Return (IRR), and the Payback period of each proposed project. The qualitative analysis would include the potential project value of the company’s overall strategy, innovation, key project risks, and the project interdependencies to the whole company.
Evaluating the risks, calculating the probability of success, and factoring in the projected profit from sales will provide a clearer NPV to be compared with other projects in the
Of the hundreds of named brand clothing that form part of the retail and fashion industry I chose to compare, for my analysis, Abercrombie & Fitch, Forever 21, American Eagle, and H&M. These stores are prominent, well-known for selling apparel, shoes, and accessories by the means of offering sales and promotions to their customers. This is a clever strategy for attracting customers, allowing them to believe that they bought goods at affordable, convenient prices – and not to mention the prestigious name prescribed to the clothing brands. Using keyhole.co as my main source, I obtained relevant and valuable information regarding the status of these brands. My intentions were to compare a period of 14 days, however, due to the limited access that I received from my free trial, the program only allowed me to see fewer of the dates than I anticipated. I want to take this opportunity and mention ahead of time that due to the various and distinctive products that are sold from these stores, when looking for the “spending capacity” I decided to focus on shirts/ jeans for men and women and compare the prices among them since each of these retailers carry those items and as a way to make this report easier to contrast and comprehend. Also, when approaching the section of “setting”, I screen-shotted some of the images on Instagram and made them into a collage to separate the type of clothes and trends that each of these brands sell currently. In the following modules
At the age of eleven, when I should have been crafting friendship bracelets and experimenting with makeup, I troubled my parents and impressed my friends by taking on a colossal doll creation project. No longer interested in the plastic that lined the shelves: Bratz, Barbies, and Polly Pockets I wanted to own the exquisite Ball-Jointed doll, a rare doll with complete mobility and life-like features. As a storyteller only interested using realistic elements, I knew my friends and I had to have these dolls one way or another. With the sticker price being $800, I had no other choice but to create my own.
The women's apparel market is highly competitive. With the launch of a new active-wear line from Harrington Collection's, more and more competitors will start to realise the potential value in in producing an active-wear line of their own. The active-wear market is growing so rapidly (expected to double turnover from 2007 to 2009), that eventually all of Harrington's competitors would likely be expected to launch a line of their own, relying on existing brand loyalty and high-scale advertising campaigns to capture market share and move units.
new clothing product line aimed at matching doll and child clothing and accessories covering all four
The Match My Doll Clothing line currently consists of a small selection of matching doll and child clothing sets for warm weather. Having become quickly successful after having been spotted in the hands of celebrities children’s arms, the brand manager of the line felt it was the perfect time for the line to expand.
One of the benefits of expanding the MMDC’ line is that the line has already demonstrated the commercial viability of the matching doll and child clothing model. The concept has a proven track record and now the company has only to further build on this successful model. Furthermore, the recent positive publicity engendered by the celebrity sightings, will create an even greater demand for the product, and will allow for the maintenance of premium pricing. We believe that the expanded line will be at least as profitable as the existing line.
In mid-September of 2010/ Emily Harris, vice president of New Heritage Doll Company's production division, was weighing project proposals for the company's upcoming capital budgeting meetings in October. Two proposals stood out based on their potential to strengthen the division's innovative product lines and drive future growth. However, due to constraints on financial and managerial resources, Harris knew it was possible that the firm's capital budgeting committee would decline to approve both projects. She also knew that New Heritage's licensing and retail divisions would promote compelling projects of their own. Consequently, Harris had to be prepared to recommend one of her projects over
Through studying the entire retail toy industry, we have been able to understand the complexity of the industry in which Toys "R" Us operates. Upon completion of the analysis, we realized that the industry is growing stably,
In the past, the toy business was just an annex of the publishing industry. Little effort was invested in toys which were not even mentioned strategic plans. Now the toy industry is the second-highest profit maker in Marvel, generating over $20 billion in sales in 2003. The toy business is very promising in the future. However its percentage in revenue will still remain stable or slightly decrease, just as publishing will do, because licensing has such a strong possibility for growth. In addition, while the toy industry competition is too fierce to permit further achievements.
This report is about the situational analysis of the Toy R US Company. This company is currently facing some drop in sales, possible reasons and potential solutions are provided in this report. All the detailed analysis are given here. Report has suggested that company lost its main perspective which it famous at the first point. This is main outcome of the report. There are many other reasons as well which are causing the decline of the company. There is a lot of room for improvement which can be tackled, implementation plan is also given in this report along with the possible and potential full recommendations. So lets’ start with the report.
Considering NEXT’s product orientation, the organization sells moderately priced clothing and target customers are stylish women and men from 20 to 40. It also updates low price fashion products frequently. It shows that the price of NEXT products is acceptable for the public.