Case Study: R&R, Hbs Case Harvard Case Solution & Analysis


There were many barriers and obstacles but the one which was most concerning, was advertising and he did not have the budgets to start business with giants like Parker Bros. To overcome this hurdle he had agreement with the publisher that he would pay 20% to him on each sale for having the market rights of the game. To overcome this hurdle Bob Reiss made a sets of plans, first of them was to give sales commission to departmental stores and gift stores for selling, for each item they were giving them 7% sales commission.In order to make a mark in market and to promote the game in public they decided to put ads in TV guide, they tried to convince big departmental stores that their name will appear in the game and in return they would have to sell their products in all branches of their store.

In that hustle, they had success in convincing one of America’s biggest store chain with 2100 outlets. The second part in this plan was to provide 5% ad allowance if they are to put their games in newspapers ads and catalogs.The also started a free media publicity as the publisher of TV guide tried to approach all the famous morning and nights shows of TV channels and he gave them samples of game just to call out their name in their shows and spread a word of mouth. The other obstacle which they faced was presence of too many similar games in the market or not finding something new and interesting. They tried to make their game unique and something which public had not experienced before so that people would not lose interest in it.The other obstacle was to manufacture the product in minimum time as per demand but to tackle that they got help from a Swiss colony and they made the process of shipment faster as they packed their boxes as well in order to ship quickly and due to connections of Sam Kaplan; they got a supplier in cheaper prices. There was another problem of their cash flows and payment collection for them as he and Sam couldn’t go to every place to collect the bill as they did not have enough resources to manage that they decided to use Heller Factoring to check credits, making sure payments are collected and paid to Trivia.


The approach would not have come out as a success for Parker bros or Milton Bradley if they didn’t not have strong contacts in the market which Bob Reiss and Sam Kaplan had at that time and the kind of market knowledge they both had was un match able, their each and every step was perfect as they knew it that to start a big project with lesser budgets, they needed some street smartness and risk taking.The design of the product could solely cost up to 250,000 dollars as mentioned in the case and adding all the advertising and marketing expense to it, overall it would have costup to 1 million dollars. Bob Reiss and Sam Kaplan did all without having to spend millions, their efforts only cost 50,000 dollars just because of their strong connections in each and every segment of the market. Large manufacturing firms have a knack of spending big in all segments from advertising to manufacturing and even if they are to start a small project like this initially they will still put millions in to it. There is no harm in doing this as this will surely help them in long run once the product becomes a success. But the reason behind being conservative for a startup is lack of uncertainty over the success of product, what if the product fails big time in that case you will end up facing big loss so investing lesser initially is the right way to go........


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