New Hertiage Doll Company

Executive Summary

Mrs. Harris, the present of New Heritage Doll Company, is thinking about choosing one of the projects to enhance the her company’s future and reputation. One of the company’s projects will be called Match My Clothing Line, and the other Design Your Own Doll.

Match My Doll Clothing was design to produce matching doll and child clothing and accessories, had got success for the last winter collection. The brand manager thought it would be better to release an all-season collection apparel as soon as possible in order to concern for the line mainly lay in the relatively large outlays and market research.

Introduction

The New Heritage Doll Company is founded in 1985 and has long history. The management of company pay attention to the doll developing girls’ the imagination and self-image. Design Your Own Doll is a new line with purpose to customize the doll based on the customer’s personal data. The new line target customer pool was their loyal customer. If the project was successful, it would in turn further cemented customer loyalty, also, the new technology would enhance the company’s market sharing and reputation, however, the project was quite risky, especially for its high investment in technology infrastructure and research. Moreover, the line had a relatively long development and payback period, which would increase the risk of the profitability, also if the project was stumbled for some reasons, it would hurt the relationship with the loyal customers.

Key Facts

• Two of the key topics discussed in behavioral finance are the behavioral

Statement of the Problem

The company tends to create some new products to dominate the market. The U.S. retail sales of dolls totaled $3.1 billion in 2008 while the New Heritage Doll Company’s revenue approximately $245 million of revenue, owning less than 10% of market share. There is good reason to believe that the New Heritage Doll Company has a potential future. Based on this assumption, we assume the New Heritage Doll Company’s g (internal growth rate) is not less than 3%(average growth of U.S. dolls market). The data total cash flow of 2021 in Exhibit 1, Exhibit 2 we provided are based on the assumption that the projects will be operated continuity whit a g = 3%.