Transcript Pricing Case Studies: Videos

Pricing: Video Case Analysis
Mr. Sherpinsky
Honors Marketing
Hudsucker Proxy
CASE STUDY:
• In 1958, Wham-O, Inc. began marketing the Hula Hoop in the United
States. Sales of the Hula Hoops sky-rocketed during the year, in the
first months over 25 million were sold, within the year over 100
million.
• In 1994, the film The Hudsucker Proxy portrays a fictionalized account
of the demand for Hula Hoops as they were introduced into the
market.
• Watch this clip from The Hudsucker Proxy and discuss how the supply
and demand for Hula Hoops interacted with prices.
Hudsucker Proxy
From the information presented in the video clip from the Hudsucker
Proxy and the Hula Hoop Case Study can be used to examine the
changes in demand shown in the video. You are walked through three
different supply and demand schedules and shown graphically how the
demand curve for Hula Hoops changed from the introduction of the
Hula Hoops into the marketplace to the height of their popularity in
1958.
Silly Bandz
CASE STUDY:
• Similarly today, Silly Bandz has taken off in sales since the summer of
2008. According to Robert J. Croak, founder of Brainchild Product the
producer of Silly Bandz, from a small warehouse in Toledo, Ohio has
gone from shipping 20 to 1,500 boxes a day.
• In order to gain some background information about the demand for Silly
Bandz, take a look at the following news stories from ABC and USA Today.
http://abcnews.go.com/Nightline/video/silly-bandz-latest-fad-11686769
www.usatoday.com/money/smallbusiness/2010-07-01sillybandz01_CV_N.htm
Silly Bandz
• Using your knowledge of the laws of supply and demand and the Hula
Hoops Case Study, go through the news article and video clip on the
market for Silly Bandz. Then use the Silly Bandz Case Study to
examine whether the current price of $5, for a package of Silly Bandz
represents an equilibrium price. If not, what might the price due in
the future given a continued increase in demand?