{"id":4416,"date":"2014-05-08T19:35:13","date_gmt":"2014-05-08T19:35:13","guid":{"rendered":"http:\/\/www.marketingteacher.com\/crayola-swot\/"},"modified":"2014-05-08T19:37:50","modified_gmt":"2014-05-08T19:37:50","slug":"crayola-swot","status":"publish","type":"post","link":"https:\/\/marketingteacher.com\/staging\/5483\/crayola-swot\/","title":{"rendered":"Crayola SWOT"},"content":{"rendered":"<h1>Crayola SWOT &#8211; Crayola (Binney &#038; Smith), a subsidiary of Hallmark, Inc.<\/h1>\n<h2>Corporate History<\/h2>\n<p>Crayola Manufacturing is a 120 year old company that makes safe, dependable art supplies for children. Because most consumers have never heard of Binney &#038; Smith, the Crayola maker changed its name in 2007 to reflect its brand name. Crayola has many different lines of products; as well as services, which vary from just crayons and markers. Would you like a lesson on <a href=\"https:\/\/marketingteacher.com\/staging\/5483swot-analysis-marketing-tools-from-marketing-teacher\/\">SWOT<\/a> analysis?<\/p>\n<h2>Weaknesses<\/h2>\n<ul>\n<li>In addition to its inkTank line, Crayola serves the professional   market with its Portfolio Series collection of color pencils, oil   pastels, and acrylic paints. Because they are most well known for   children&#8217;s art products, they have yet to achieve high market share in   this division, and most art professionals do not use Crayola products.<\/li>\n<li>Crayola launched an unsuccessful line of children&#8217;s&#8217; clothing in the   1980&#8217;s, and it was scaled back to include only newborn layette sets. In   2007 they launched a test market campaign for Crayola branded bottled   water, which was also unsuccessful, as consumers were hesitant to buy it   because they anticipated that the water would actually taste like   crayons (which it didn&#8217;t).<\/li>\n<li>Also in the late 1980&#8217;s sales began to decline due to increased   competition and the company began to slip into saturation, they began a   campaign to increase demand by urging parents to purchase a &quot;fresh box.&quot;<\/li>\n<li>Crayola&#8217;s attempt to build a solar power plant was sidelined in   2008. They intended the power plant be used to help run their   manufacturing facility in Pennsylvania, however, they have run into   problems finding partners to make it a reality.<\/li>\n<li>Crayola still ranks behind in sales and market share in their marker   product line. In 2007, Sanford Sharpie had a 31% market share, with   sales (at Wal-Mart) of $56 million, while Crayola had a 22% market   share, with sales of $37 million (at Wal-Mart).<\/li>\n<\/ul>\n<h2>Opportunities<\/h2>\n<ul>\n<li>In 2009 they introduced two innovative lines of products for babies   and toddlers; including products that allow babies to explore colors   even before they can use a crayon. The products for toddlers are large   enough so that they can grasp them, and even color in the bathtub, which   allows for easy clean up, therefore appealing to the primary purchaser,   parents.<\/li>\n<li>In July 2009 Crayola launched a school social media campaign on   Twitter and Facebook. It is geared towards moms (their core purchaser)   and features innovative ways to be creative and save money during back   to school shopping.<\/li>\n<li>In the spring of 2009 they created a summer wellness campaign to   encourage children to play outside more.<\/li>\n<\/ul>\n<h2>Threats<\/h2>\n<ul>\n<li>With the advent of computers and web based learning, sales of   crayons are projected to decrease as children leave behind hand held art   supplies at a younger and younger age. It&#8217;s called KGOY-kids growing   older younger, and many companies have suffered because of it, most   recognizable is Mattel, the maker of Barbie dolls. In the 1990&#8217;s the   average age of a child in their target market was 10 years old, and in   2000 it dropped to 3 years old. As children reach the age of four and   five, old enough to play on the computer, they become less interested in   toys and crayons and begin to desire electronics such as cell phones   and video games. Crayola is slowly falling victim to the same phenomena,   how will they innovate to overcome this?<\/li>\n<li>In the downturned economy, parents and schools are spending less on   school supplies. A survey from Deloitte found that 64% of consumers said   they would spend less on school purchases. Nationwide, parents plan to   spend an average of $548 to send their children back to school; and   estimates range from a decline of 7.7%, forecast by the National Retail   Federation, to as much as 12% in 2009, according to America&#8217;s Research   Group.<\/li>\n<\/ul>\n<h2>References<\/h2>\n<p>Anonymous. (Jul 28, 2009). Crayola Launches &quot;Creativitycast&quot;   Back-to-School Social   Media Campaign on Twitter and Facebook. Business Wire. New York<\/p>\n<p>Baxter, C. (May 7, 2009). Crayola solar project in Forks Twp. stalls:   Company says it&#8217;s   still looking for better partners for field of panels to power its   plant.  McClatchy &#8211; Tribune Business News. Washington.<\/p>\n<p>Crayola LLC. (2000). <a href=\"http:\/\/www.crayola.com\/\">Official   crayola website<\/a>. Retrieved June 16, 2009<\/p>\n<p>Hajewski, D. (2009). Parents spending less on back to school items.   McClatchy Tribune News.<\/p>\n<p>Hallmark Buys Crayola Maker. (August 10, 1984). St. Petersburg Times.<\/p>\n<p>Hoovers. (2009). Crayola, LLC. Retrieved on August 9, 2009 from   ProQuest Database.<\/p>\n<p>&quot;Top Marker Brands, 2007.&quot; MMR, September 2, 2007, p. 22, from   Information Resources Inc. Market Share Reporter 2009. Gale, 2009.    Reproduced in Business and Company Resource Center.   Farmington Hills,   Mich.: Gale Group, June 2002<\/p>\n<p>Perrault and McCarthy. (2004). Chapter 14: Promotion. Basic  Marketing: a Global-Managerial Approach. McGraw Hill: New York<\/p>\n<p class=\"note\"><strong>Disclaimer: <\/strong><br \/>This case study has been compiled from   information freely available   from public sources. It is merely intended to be used for educational   purposes only.<\/p>\n<p>They produce 3 billion crayons a year, plus craft and character licensed activities. This <a href=\"https:\/\/marketingteacher.com\/staging\/5483swot-analysis-marketing-tools-from-marketing-teacher\/\">SWOT analysis<\/a> is about Crayola. Crayola began as Binney &amp; Smith back in 1885 when Joseph Binney   partnered with his son and nephew. Binney and Smith sold their first   Crayola crayons in 1903, when a box of eight cost only a nickel. The   small business began in New York and moved to Easton, Pennsylvania   (where they remain today), producing the dustless chalk. In 1958 the   Crayola 64-crayon box, which included 16 new colors and a built-in   sharpener, made its debut on the &quot;Captain Kangaroo Show.&quot; This Crayola   box &quot;became part of the collective history and experiences of   generations of Americans, and a symbol of the color and fun of   childhood.&quot; Crayola estimates that the average U.S. child wears down 730   crayons by age ten. And, in the same spirit, the Smithsonian   Institution&#8217;s National Museum of American History placed an actual 1958   Crayola 64-crayon box and an assortment of 20th century Crayola   advertising in the permanent collection of the Division of Cultural   History.<\/p>\n<p>The company&#8217;s products are packaged in many languages and are sold   worldwide. Safety in art materials was the main focus for Crayola   resulting in non-toxic colors. Crayola also has a creative factory and   offers services for creative minds to run free and party space   availability with all of their branded products. In 1984 Hallmark   purchased Crayola and has kept the company on top of their industry with   products ranging on a wide scale from markers, pencils, chalk,   watercolors to silly putty and even ornaments and die cast collectables.<\/p>\n<h2>Strengths<\/h2>\n<ul>\n<li>Crayola is a recognized and highly trusted brand name and logo. In   fact, 98 out of every 100 Americans recognize it. Children age 2-10,   their target market, love Crayola products and have selective demand for   it. Children demand the products and then influence their parents to   purchase them. The Crayola brand name is synonymous with high quality   and high brand loyalty.<\/li>\n<li>They are a global company, with a wide spectrum of individuals who   use Crayola products all over the world.<\/li>\n<li>Crayola has built up a highly successful distribution system. Their   products are available everywhere, including grocery stores, drug   stores, Internet sales, hospitals, doctor&#8217;s offices, schools, gas   stations, airports, theme parks, hotels and restaurants. They sell   retail and also in bulk to organizational buyers at a lower cost.   Schools all over the US and in other countries like The UK, Canada,   Australia, and Mexico all utilize Crayola art materials.<\/li>\n<li>Crayola&#8217;s website is geared for children, parents, and educators.   They provide free ideas for crafts and printable coloring pages. The   website is used for booking, ordering, promotional information,   marketing, and more. Crayola even provides advice on how to remove   stains on their official website.<\/li>\n<li>Crayola is well-established due to their innovation (keeping the   company out of saturation and decline). Crayola has been in service for   many years and knows how to cater to the needs of the consumer. Crayola   is constantly building new products and the growth targets many   individual needs. Crayola also developed art products that emphasized   international diversity by launching Crayola My World multicultural   crayons. The company hoped that by using crayons, markers, paints, and   modeling compounds that reflected the variety of skin tones, children   would build a positive sense of self as well as respect for cultural   diversity.<\/li>\n<li>Crayola&#8217;s price range is reflective of their core target market,   middle and lower upper class Americans; and their products are priced   competitively with their major competitor, Rose Art. The consumer feels   that the price reflects the quality.<\/li>\n<li>Crayola uses all non-toxic, child-safe materials that are cost   effective and efficient. They use a variety of colors with fun memorable   names, which appeal to children and adults. Crayola is environmentally   friendly as well. They have scented products for sensory skills. They   have easy grip products for motor skills.<\/li>\n<li>They have licensing deals with major children&#8217;s characters,   including all Disney characters, and Nickelodeon characters, which   increases their appeal to children.<\/li>\n<li>The majority of their retail promotion consists of television   commercials, magazine ads, and point of purchase displays. Their   promotion impacts and targets children primarily and foremost, however,   it is a pull strategy to create an influence purchase by the parents. In   most large retail stores, Crayola has their own aisle!<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Crayola SWOT is one of 50+ FREE examples of SWOT analysis on Marketing Teacher.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[13],"tags":[],"class_list":["post-4416","post","type-post","status-publish","format-standard","hentry","category-swot-analysis-examples"],"_links":{"self":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4416","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/comments?post=4416"}],"version-history":[{"count":0,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4416\/revisions"}],"wp:attachment":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/media?parent=4416"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/categories?post=4416"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/tags?post=4416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}