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Casablanca Kids
Lisa Giguere, David Rose
published: 2006 | Case Study | Small Business/Entrepreneurship
Subject Area: Marketing; Small Business/Entrepreneurship; Business Policy/Strategic Management
Key Issues: Consumer buying behaviour; Marketing coverage strategy; Positioning; Marketing mix decisions
Case Description: Casablanca Kids is a small,
Toronto-based private record label whose products include children's
music. The company has titles from well-established children's artists
including Sharon, Lois and Bram and has won numerous consumer choice
awards. Despite these strengths, the company also faces some
challenges. Casablanca Kids has limited financial resources for any
marketing initiatives, the company has no current television presence
to assist in promoting the product line (none of Casablanca Kids'
signed artists has a regular television program at this time) and they
are very reliant on a single act with 50% of total Canadian sales
volume attributed to Sharon, Lois and Bram. The primary channel of
distribution for Casablanca Kids' product in Canada is through two
large music distributors, EMI and Universal, who sell the product to
mass merchants and to wholesalers who distribute to smaller, specialty
retailers. The mass merchants are not usually very interested in
stocking children's music given their goal of maximizing sales per
square foot. For the majority of buyers, children's music can be
classified as an unsought good. As many consumers purchase children's
music on impulse or in response to a low price, the mass merchants feel
that this product would not be very profitable for them. Despite this
situation, future opportunities for Casablanca exist in the area of
establishing new distribution channels, targeting new
customers/markets, offering new technological formats and creating new
products.
# Case Pages: 7
Case Number: 010085-G
Teaching Note: yes
revised Jul 4/06
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