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Advertising Experiments at the Ohio Art Company Case Solution

Solution Id Length Case Author Case Publisher
2639 1374 Words (6 Pages) Rajkumar Venkatesan, Paul W. Farris Darden School of Business : UV2965
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Ohio during this same 1990s and the whole of 2006, art had been on a roller coaster ride of revenues and net profit. They even succeeded in overcoming the United States' weak economy in late 2001, as well as financial difficulties at wholesaler Kmart Corporation. Ohio has always prided itself on being a toy manufacturer based in the United States. However, the need for lower costs (to compete successfully in the large-scale channel) compelled it to shift most of its toy output. Encouraged by the implications of setups in the Toy Story film series and television commercials, Ohio embarked on a management strategy to pull domestic consumption for the core product through new primetime tv. For this, they applied two different kinds of experiments Etch a Sketch Experiment and the Betty Spaghetty experiment where all of their pros and cons were analysed. The analysis was also made based on the data whether the impact of the Betty Spaghetty campaign if it was expanded nationally at the same time of the year.

Following questions are answered in this case study solution

  1. Were the Etch A Sketch and Betty Spaghetty advertising campaigns effective in increasing sales?

  2. What were the primary differences between the two experiments? 

  3. Project the impact of the Betty Spaghetty campaign if it was expanded nationally at the same time of the year. What would you project if it was expanded nationally in the holiday season?

Case Analysis for Advertising Experiments at the Ohio Art Company Case Solution

1. Were the Etch a Sketch and Betty Spaghetty advertising campaigns effective in increasing sales?

According to the data supplied, the EAS and Betty Spaghetty advertising initiatives were successful in increasing sales. Because the advertisements were running so close to the Christmas season, this must be considered when determining the real impact of the marketing initiatives on sales. Ohio Art utilized Liverpool as their experimental city and other cities as their reference cities (Charleston, South Dakota, Dublin, Ohio, Chicago, Indiana, and Johnstown, Virginia). Ads were displayed in the test city but not in the control cities. Ads aired for three weeks in the test city. During these three weeks, we notice that EAS sales grew from 162 to 240 in the test city of Cincinnati. 

This demonstrates that the EAS advertising effort was successful in raising sales. Another marketing campaign was run by Ohio Art for their new product, Betty Spaghetty. Arizona was the test state for this advertisement. Colour Crazy and Go Glam were the two SKUs featured in the advertisements. These advertisements were tested from June 17 to July 17, 2007. The units sold were 1.8 and 2.2, respectively. California was the control state, and revenues were greater than 2 respectively. Using these statistics, we can compute the increase in sales from Betty Spaghetty. Betty Spaghetty’s sales increased as a result of the advertising effort. As we can see from the above stats and data, we can surely conclude that the Etch a Sketch and Betty Spaghetty advertising campaigns are effective in increasing sales for now and in the future too.

2. What were the primary differences between the two experiments? 

By analysing all the data, the EAS experiment is ideal for evaluating the efficacy of a public relations strategy. In this scenario, the key distinction is between the Betty Spaghetty experiment and the EAS experiment. Before the EAS trial was done, we were provided sales data. We exclusively sell in Betty Spaghetty throughout the trial. That is a realistic fact, of course, because Betty Spaghetty was not available in stores before the television commercials.

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