Phil&teds Buggy Company

Phil&Teds Buggy Company

Introduction

Phil&Teds was established in mid 90s and exciting New Zealand Company. This company focuses on what are parent needs for their baby? Such as stroller and car seat (Phil&Teds, 2011). In last 10 years, there has been growth of their product, where the company products sell in 54 counties but before it was only four countries and the annual retail sales in 2010 was $150 million (Carter, 2011). This case study provides some issues and analysis based on theories and concepts related to marketing strategy.

Defining the Issues

The market for baby products have grown promptly, continue investment has been done without meeting the existence demand (Womack, 2006); hence, the market attractiveness for the industry has increased and firms are focusing in fulfil the needs of the segmented market and the final customer: babies. Therefore, innovative approach was adopted by Phil&Teds, instead of targeting the same market as the competitors did, the firm shifted to a market not taken into account, the parents, attractive them through "the adapt & survive strap line™ (2009, pp. 365)".

Maintaining its leading position is a goal as well as increase market share in the international buggy industry, Phil & Teds released new products diversifying its portfolio by adding a new baby clothing brand called Mokopuna Merino. As a result, Phil & Teds gained a significant increase in sale volume in 2006 and successfully becoming "the leading exporter of nursery products." (Vickers, 2009)

Phil&Teds outsourced the complete production to manufactures in China, reducing labour and operations costs, recognizing that efficiency and effectiveness were achieved when concern to the exporting market. However, the product quality is a concern presented for Phil&Teds as being dependent on the distribution directly from the manufacture in China to market (Vickers, 2009).

Analysis

Market not targeted: opportunity to growth

Social changes have been developing during the past century (Crompton, 2002) modifying the external environment and therefore, the lifestyle of the customers. New demographic trends are now growing (Global Industry Analyst Inc, 2009), women are more willing to be part of the working environment without leaving aside their responsibility of homes and families and continuing with their commitment towards child education (Crompton, 2002) thus, the request of products with quality, child safety and care has create a favourable market for the nursery industry (Global Industry Analyst Inc, 2009). Phil&Teds didn't let go this opportunity and decided to enter into the industry of baby nursery products targeting the parents instead of babies as final consumer.

Phil&Teds