Chapter 14

Marketing Channels and Retailing.

A huge part of what FUHU does is align itself with partners that share their love of providing to kids the best products available and the use of the Nabi 2 is instrumental in delivering the content from the partnerships that FUHU has reached. These partnerships not only enable a mutual relationship but are a huge part in driving the sales of its signature tablet and spreading the sustained visibility that these companies want. These companies are at the forefront of their respective industries in providing extraordinary content to kids. From INC 500 magazine the CEO had mentioned he wanted another 4 million Nabi 2 in the hands of kids for this upcoming Christmas buying season. With companies like those below these projected targets are more than well within reach for the targets  they have set for themselves. It would be good to reiterate FUHU mission;
Our Mission

Fuhu's mission is to be the world’s leading designer, seller and innovator of thoughtful consumer products and services for children, sold through the world's biggest and best retailers.

Chapter 6

Consumer Decision Making

Consumers in mature market places make their decisions predominantly off known and responsible peers reviews and industry members that are respected by the media. Strong records of following standardized guidelines that can be held up to public scrutiny are important especially for a product line offered by Fuhu. This scrutiny comes in the form of awards and the process of evaluation that goes into these reviews. Off these reviews consumers make their decisions. The following awards illustrate this below:

 

 National Parenting Publications Awards (NAPPA) has been the go-to resource for the best products for families. NAPPA's team of independent expert judges and family testers (parents and kids) select the most entertaining, appealing, safe, educational, age-appropriate and enduring products as Gold winners.

The TRUSTe Children's Privacy Certification specifically applies to websites and apps that are fully or partially targeted towards children under the age of 13 and certifies that a busness is compliant with the Children's Online Privacy Protection Act (COPPA) Rule. TRUSTe is the largest FTC-approved COPPA Safe Harbor certification provider.

PC Magazine Editors' Choice is awarded to products and services that stand out from and above similar products in their categories. There is no external nomination process: The products under consideration are those that have been reviewed by the expert analysts in PC Magazine Labs. PC Magazine Editors' Choice Awards includes best products from the thousands tested in PC Labs.

Mom's Best Award recognizes the best of the best in children's products, toys, apparel and media as evaluated by moms. Mom’s Best Award winners have earned the greatest endorsement that a product could receive - the mark of approval from their toughest critics, moms!

CH. 5.Developing a Global Vision.

Why Fuhu is poised to develop a sound global position?

Founder John Hui has a strong history in the computing landscape that rivals many of his peers. This history gives a indication of the future of the the relationship with Foxconn and marketing to the Chinese market.

                Mr. Hui was a principal founder of E-machines, Inc. during the mid 1990s. Mr. Hui recognized the strong potential for the sub-$1000 PC market in the US, and personally lent his credit and retail relationships on behalf of the start up company. The company went public on the NASDAQ exchange during March 2000. Mr. Hui participated as a founder and director of this company until December 2001, when he took the company private in a transaction valued at $152 million. Following this, Mr. Hui was key in further developing the company’s strategic and supply relationships. E-machines was successfully sold to Gateway, Inc. during February 2004 for cash and stock consideration in excess of $230 million. At that time, E-machines was tracking at more than $1.0 billion in revenues and run one of the most profitable, efficient PC organizations in the industry. Following this venture, during 2006, Mr. Hui acquired Packard Bell BV, a European computer distributor.

           Fuhu presently has just north of 100 employees. A small to medium sized firm by any standard. Their aspirations far outweigh their size. The scope of their marketing is strategically sound. The plan to attack the lucrative Chinese market shows how a new company goes after new markets right away rather than waiting for the product to mature in say past instances.The relationships built from the days Mr. Hui ran E-machines he already has a inner working on relationships in Chinese manufacturing circles. As noted in the chapter relationships are key in developing business deals.

          The article below from THE DIPLOMAT details this trend,   

  

Half a Billion: China’s Middle-Class Consumers

By  Dominic BARTON

May 30, 2013    

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China’s society is changing beyond all recognition. At the heart of the most sweeping social and economic transformation the world has seen is the rise of a powerful new – largely urban – middle class. China’s urban middle-class population alone, if considered as a country, is larger than the entire U.S. total population today. The pace of change has been extraordinary. As recently as 2000, only 4 percent of urban households in China were middle class; by 2012, that share had soared to over two-thirds. And by 2022, China’s middle class should number 630 million – that is, three-quarters of urban Chinese households and 45 percent of the entire population. The rise of the middle class is essentially an urban phenomenon. Average per capita urban income in China is roughly triple that in the countryside – and there are set to be 170 million new urbanites between now and 2022.
By 2022, we expect China’s middle class to be consuming goods and services valued at $3.4 trillion – 24 percent of GDP. This has enormous significance for U.S. businesses. It is imperative that companies get to know the new Chinese middle-class consumer in intimate detail.

 

 

CH. 4

The Marketing Environment

Social Factors: The tablets engage kids in using the apps as a everyday tool to help with chores. Which is really comparative to experiences on facebook and instagram.

Demographic: The generation the tablet is geared towards is knows as the generation Z.

 

 

 

 

 

 

 

Economic factors : Nabis are priced where parents could take advantage of the options available.

Technological factors : it would be interesting to see FUHU adopt some experimental elements to their products.

Legal : ungoing legal issues with TOYS-R-US.

Competitive Factors : Nabi was the first tablet made exclusively for kids. As other companies prove first to market helps in brand recognition and customer loyalty. The only issue they may face is the lack of continued innovation on FUHU part

 

CH. 3

Ethics and Social Responsibility.

Ethical behavior in business

TOYS-R-US and FUHU are currently locked in a court battle over breach of trade secrets stemming from the NABI original foray on the market. TOYS-R-US signed a exclusive contract with FUHU to sell the NABI. The stores numbering 1640 in all would have been a marketers best possible dream. They only ordered 15,00 more NABI literally 9 per store. The following Christmas season TOY-R-US released the

TABEO with similar specs to the NABI. The case is still in ligation as

CH.2

Strategic Planning for Competitive Advantage.

FUHU ON :
MARKET PENETRATION.

• Nicklelodeon NABI tablet sold at Walmart.
• Dream tablet for DREAMWORKS SKG.
• NABI preloaded with DISNEY videos sells only at BestBuy.

 
MARKET DEVELOPMENT.

• China launch later this year through connections with Foxconn.
• Foxconn has 1.4 million employees making products for industry leader Apple Inc.



NABI JR

DIVERSIFICATION

• 5" NABI JR. ($99)
• 10" NABI XD ($249)
• NABI 2 ($199)



NABI 2

MARKETING MIX

PRODUCTS ARE VISIBLY BRIGHT AND ATTRACTIVE TO YOUNG USERS.



 





BRIEF HISTORY:

FUHU Inc. announced  plans to deliver premium content in 2009 via widgets. After a unsuccessful  launch they revamped their product. FUHU then introduces the Nabi entertainment system to rave reviews in the Christmas season of 2011. After a breach of a trade secret agreement with TOYS-R-US  the Nabi 2 released. This propelled them to this years award as no. 1 on
 Inc TOP 5000 FASTEST-GROWING PRIVATE COMPANIES in AMERICA.

 

MISSION STATEMENT: FUHU IS COMMITTED TO CREATING SOLUTIONS THAT ARE SOCIALLY RESPONSIBLE, MADE RIGHT ANDDEDICATED TO THE INTELLECTUAL DEVELOPMENT OF CHILDREN.