Paper Example on Johnson Toy: Jungle Jim, the Jogger - A Christmas Innovation

Introduction

Johnson toy being located in Biloxi, Mississippi, is a family organization that main operation is to manufacture and sell toys throughout the united states. However, the toy business is very seasonal, and the majority of sales made by the organization are during the Christmas festivities and spring-summer break. To boost the sales for the Christmas holiday, the organization decided to introduce to the market an innovation doll referred to as jungle Jim, the jogger. The concept of the doll was a successful TV program, and immediately after its invention, it was a hit in the market. In preparation for the following festive season, the organization, therefore, decided to manufacture 10 million of the same dolls to avoid running out of stock. However, the actor characterized as Jim in the show was involved in a sex scandal, and this led to the cancelation of the show. Owing to the unfortunate incident, the doll was no longer famous and nobody wanted to make a purchase. The company is facing a lot of returns from its retailers, which represents substantial financial challenges for the company. In light of this, the company president realized that the company needed to develop a better return policy and consequently recycle the doll effectively to mitigate their losses.

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Question One

It is evident that the company's return policy is not adequately developed; it allowed the retailer to return defective products. The company did not clearly state the maximum or put a limit to the quantity that the retailer can return, and now that the company is facing massive returns saying now to its retailers could end up creating more problems for the company. One of the main reasons as to why the retailers bought large quantities of the jungle, Jim, the jogger, it was owing to the flexible return policy that Johnson Toy company had in place. Hence preventing the retailers from returning the dolls would mean a massive loss in terms of customers. Also, the company does not have a clear and valid recording system that shows the quantities of the items returned, and this makes it very difficult for the company management to estimate the magnitude of the problem the company is facing.

Question Two

The organization policy to allow the retailers to return damaged products can be seen as a marketing technique and a way of maintaining their retailers through the offering of a flexible return policy. This is because the customers are attracted to the fact that the company takes responsibility for their mistakes, and no losses are aide from the damaged products.

Question Three

The most appropriate policy that the company can employ concerning returns is to limit the number of products that can be returned. In this effect, the policy should be as follows

The product qualifies for a return and a full refund if it is defective and cannot function as expected.

In the case of minor damages such as scars or a clack that do not affect the functionality of the product, then the customer would receive a discount on the product.

The quantity of the products that the wholesalers are allowed to return to the company will be limited to 2.8% of the shipment size.

In this case, proof of purchase will be needed to avoid returns of products that have exceeded a month.

In each case, the company employees are to inspect the product to asses the level of damages.

Products that are not damaged will not be accepted back, included are the worn-out goods.

A 2 percent discount of large purchases will remain active for the defective but functioning products

However, additionally, the company recognizes that there are exceptional circumstances that might call for a retailer to return a product. However, the right to define, accept as well as reject a product under the unique circumstance shall be solely held by the company

However, the new policy should not be applied to the jungle Jim dolls, and this is because the policy was not valid at the sale moment. In case the company applies this policy on the doll, then they are most likely to lose a lot of retailers and customers.

Question Four

However, if the policy is effectively adopted by the company, then all the terms and conditions ought to be printed and sent to all the company retailers as well as dealers. Then all the retailers and buyers will be required to refer to the policy before making returns. The company of the policy should also be sent to the returning department and trained on what is required in following the policy.

Question Five

The statement should be as follows

Dear loyal customers

Through the present statement, the Johnson toy firm would like to communicate to you the new changes that have been made to the company return policy concerning defective products. However, it is essential to note that the company will keep on the policy of accepting the returns for the defective products, but this criterion should be met for the product to be returned:

The product qualifies for a return and a full refund if it is defective and cannot function as expected.

In the case of minor damages such as scars or a clack that do not affect the functionality of the product, then the customer would receive a discount on the product.

The quantity of the products that the wholesalers are allowed to return to the company will be limited to 2.8% of the shipment size.

In this case, proof of purchase will be needed to avoid returns of products that have exceeded a month.

In each case, the company employees are to inspect the product to assess the level of damages.

Products that are not damaged will not be accepted back, included are the worn-out goods.

A 2 percent discount of large purchases will remain valid for the defective but functioning products

However, additionally, the company recognizes that there are exceptional circumstances that might call for a retailer to return a product. However, the right to define, accept as well as reject a product under the unique circumstance shall be solely held by the company

Question Six

The company distribution, as well as the accounting department, should work together to keep clear records of the products shipped to the retailers. This record will be useful in counterchecking in the event the retailers return products found to be defective, and this will be beneficial to the organization as it will help the company prevent the retailers from returning shopworn or dead stock products. The departments should be extra vigilant when accepting the returned products and ensure that the criteria for returns are met. Exceptional circumstances, as well as any exceptions, should be approved by the management.

Question Seven

The policy that would be favored by the logistics would differ from the one that is appropriate for the company. The reason for this is that the logistics manager seeks the most straightforward policy that does not put the organization at a loss. However, the fact is that loss and failure are part of the business operations and the company should be capable of facing the mistakes

Question Eight

The company should not affect the new policy for the already sold stock. However, I do think that the company should withhold taking in returns until they have established the number of dolls in stock and the one already sold. However, this should not be financial since failure to accept the dolls can create additional problems for the company. After taking the stock, then the company should accept all the returns. The company also needs to find alternative ways to put the returned dolls to use. For instance, the company would recycle the dolls by making other toys. However, it is essential to note that the company will face losses, but the company should try to improve the situation and not to further worsen it.