Crayola SWOT analysis

History
Crayola, a company I know you all know about has been around for nearly 120 years, (debut in 1903). Invented by cousins, Edwin Binney and C. Harold Smith. The crayons were sold for a nickel and the colors were: Black, Brown, Blue, Red, Purple, Orange, Yellow, and Green. The word Crayola was created by Alice Stead Binney who took the French words for chalk and oily and combined them.
Product
Crayola has non-toxic, washable arts and crafts convenience products. On every Crayola package is a “Quality Guarantee”. They have worked to begin developing toys but overall they focus on the development of convenience products, whether that is related to arts and crafts or not.
Target market
The target markets of Crayola include, Mothers: aged 25-40, female, no college to college graduate, any ethnicity, single or married, working or stay at home mother, $30,000-$100,000+ income, any religion. Children: aged 4-12, male and female, K-6th grade, all ethnicities, any religion. Schools: 501(c)(3) non-profit schools
Place
I know you have all seen Crayola products in almost every retail store, and this is because they sell through traditional distribution chains. To schools, office supply retailers and specialty markets. Overseas, Crayola sells their products through the international division. Something interesting is that they own 3 large stores called the Crayola experience, located in Pennsylvania, Florida, and Minnesota. Here, kids can play and create anything they could dream of with all the Crayola materials available.
Price
Crayola’s pricing strategy is penetration, and their products are so elastic. However, Crayola does not control the prices of their products at retail stores or distribute a suggested price list. But they do distribute their products through a retail network and recommend those customers establish a fair price for their products to consumers. Retailers, especially during the back-to-school-season, may drop their prices on certain products. However, their standard box of 24 crayons goes for around $1.15, and other products vary according to size and style of product.
Promotion
Crayola has advertisements on television and some social media pages.. During the “Back to School” season discounts and in-store displays are plentiful. Every time Crayola introduces a new color or retires an old one, press releases are sent out and press coverage is plenty. However, because they are an established household name, not much promotion is needed; their product is selling itself at this point in time. When they do promote they use a various amount of styles of advertising, whimsical, elementary, and even art made by kids to truly explain their brand promise, that kids should be able to create anything with their products, be anyone they want to be.
People
When it comes to issues related to their products, customers are able to contact Crayola through their various amounts of platforms on their website, by phone call, email, and other messaging systems, in order to reach the company’s customer service board that takes complaints and other questions and answers them to their best ability. This is because there are no real Crayola stores besides the few experience locations, therefore there are no employees that truly sell the products, and most of it comes from customer service.
Strengths
Crayola is a trustworthy, household name. The company has a reputation for being family friendly. Crayola has a lot of brand equity; therefore little marketing needs to be done. Crayola has also penetrated the global market, with labels printed in 12 different languages. They have a strong and clear website, targeted directly towards their target market. Also, they continue to constantly create new products, while creatively improving their current materials.
Weaknesses
Some mothers feel that Crayola does not give enough “bang for their buck.” Also, Crayola’s products are mostly arts and crafts related. In today’s world, mothers have less time to spend doing arts and crafts projects with their children, and even less time to do the clean up. On a different note, Crayola has not always had a very strong presence in emerging economies, but that continues to change and evolve.
Opportunities
Crayola has the opportunity to acquire new companies, such as Rose Art. Also, they can always grow in terms of markets and products. Crayola is already operating in other countries, but could increase activity. Crayola is also expanding their product line, but should take into consideration the popularity of technology.
Threats
Being number one means that Crayola is the target of competition. Price competition is also a threat, especially in today’s economy. Because Crayola is global, they also face political pressures in other countries. Also, while coloring has always been something for children, with current changes in our society, children have begun to focus more on electronic games rather than picking up a crayon or colored pencil.
Brand Promise
Overall, at Crayola, their purpose is to help parents and educators raise creatively alive kids. First, by believing that we can help unleash the originality in every child by offering tools that inspire kids to express what they’re thinking. Crayola products give colorful wings to the invisible things that grow in the hearts and minds of children. Crayola continues to brighten up our world day after day.
Thank you and do you have any questions?