The paper “ The Success of the KiddieLand Company” is a great variant of a case study on marketing. KiddieLand is a retail store that deals with toys, and it is located in the Midwest. The headquarters of KiddieLand is located in Chicago, which is also a distribution center, while the second distribution center is located in Columbus. Generally, KiddieLand has 70 stores located in six regions. The company sells a range of toys emphasizing brand name toys and KiddieLand brand. The company has numerous competitors, but the success of the company is attributed to aggressive pricing, a comprehensive product line, and self-service. The company is intending to introduce Super Gym Outdoor Children’ s Exercise Centre valued at $715, packed in three boxes with a weight of $450 pounds; this will be a heavier and expensive toy that they will sell.
Moreover, the company was profitable that year and the employees will have additional bonuses, this also shows that the market share of the company is improving. Thus, the new toy was a major concern to the organization, and the management team came together to strategize on the appropriate approach to sell and deliver the product.
Since the toy is heavy, the managers looked for alternatives to fulfill delivery requirements. One of the options was for Super Gym to deliver the toy to the customer's address but was not possible because of requiring ten units by the manufacturer to deliver the toy. KiddieLand had already committed to 400 Super Gym toys but the major problem was delivery. The management formulated five alternatives, which are purchasing a two-wheeler, utilize the service of a local trucking company, stocking the product at the two distribution centers, and using the track to deliver, charge the consumer or negotiate with Super Gym manufacturer. They analyzed these options.
The cost of a two-wheeler trailer was $2100 ($1800+$250+$50) but bumpers of most of the new autos do not support trailers and this option is associated with numerous losses. The second option was using the trucking company that charges $38.21 per set within 25 miles with an additional $1.50 per mile for a distance of more than 25 miles. However, this option of charging the customer a flat rate of $40 was also analyzed.
In addition, this option was not viable because the truck used for delivery is large for the fourth option. The fifth option backfired because the manufacturer said that it was not possible to deliver the toy to the customer's address directly since they require consignments of ten units. Answers to QuestionsAdvantages and disadvantages of purchasing a two-wheeled trailer for each storeAdvantagesThe company can ship the toys anytime they want or a customer wants. Additional income can be earned from delivery chargesThe trailer can be used to deliver other toys to the customer and also transport toys between the storesDisadvantagesThe two-wheeler trailer is expensive since the product has not been tried e. g.
the customers have not bought them or are not aware of the product. The company should place into consideration local authority regulations and provisions of two-wheeler trailerAdvantages and disadvantage of having local trucking companies deliver Super GymAdvantagesUsing a trucking company is cheaperIt does not require extensive capital since when a consumer purchase a product it is directly transported by the companyMany Super Gym toys can be transported in a single deliveryDisadvantagesThe delivery can be possible only twice a weekTrucking companies use large trucks thus it may cause discomfort to homeowners or neighborhoodsSome customer may require the toys urgently but the trucking company may not be availableSome customers may argue why to pay for transport costs, and the product will be delivered after some days. Advantages and disadvantages of stocking Super Gym at the distribution centers and using the track that delivers Super Gym to these stores deliver to the customerAdvantagesCustomer demand per region is not known, thus, stocking the product at the distribution center ensures that the product can easily be delivered to a consumer in any region. The cost of transporting from the manufacturer to the store will decreaseUsing the delivery truck ensures that the product is delivered to the customer instantlyAdditional profits may be made because the customer will be paying for transport costThe company can easily control the operation of the truck since it owns itDisadvantagesTransporting a single toy to a customer will not be beneficial to the company since the company may likely spend more.
It will be beneficial if more than one set of the toy is transportedSometimes, the location of the distribution center may be far relative to other retail stores and thus may cause inconveniencesThere may be a conflict of interest in using the truck because the original aim of the truck is to deliver the toys to the retail stores but not to transport the product to the customerAdvantages and disadvantages of charging consumers for home deliveryAdvantagesThe company will not incur any costsThe company may benefit from the charges and thus increase the company revenueThe company will be able to decide the type of means of delivery e. g.
either by using the trucking company or using the company’ s truckDisadvantagesThe customer will see this is an additional expense doubled up with the expensive toyThe number of sales will likely be small since the customer will decide to purchase another type of toyThe customer may see the $40 delivery cost to be high, and maybe the consumer leaves near the retail storesBest alternativeThe best option that the company may employ is charging the consumer for delivery.
The $40 per set is fair and may increase the revenue of the organization. Even though the customer may see it as an additional cost, but the end justifies the mission. Nevertheless, this approach will ensure that the product reaches the customer promptly. Improving on this option is purchasing a small van that can deliver the Super Gym to the consumer. This small van will be cheaper to maintain and at the same time cannot cause extensive damages to the subdivision or homeowners.