Texas Instruments
Background
In 1982, Texas Instruments (TI) began to expand its product line beyond hand-held calculators to handheld learning aid products (LAPs) for the children’s market. Over the next decade, TI launched LAPs
designed to teach children simple math problems (Little Professor), spelling (Speak & Spell), and shapes
and sounds (Teddy Touch & Tell).
By the mid-1990’s, TI found increased competition in the LAP market. New competitors entered the
hand-held LAP market, such as VTech who produced products such as the Little Smart Alphabet Desk
(for learning the alphabet) and Small Talk (for learning shapes, and words). Substantial competition was
also emerging from computer software companies, such as Broderbund and Learning Company, which
became famous for educational software such as “Reader Rabbit” and “Playroom” for the children’s
market.
Further developments in the laptop and tablet market have added to competition in the LAP market. By
2010, prices for computer tablets had decreased to the point where they were viable to serve as learning
aids for children.

Magic Reading Desk
In 2010, TI introduced a new LAP called the Magic Reading Desk. The unit looked like a simplified
laptop computer, with five large easy-to-use cursor keys and two round response buttons. Ten different
learning games could be inserted into the LAP, all intended to develop pre-reading and reading skills in
children aged 3–7. The Magic Reading Desk was more versatile than competing hand-held LAPs
because different games could be inserted. It also provided an advantage over educational software
reading products because a personal computer was not necessary for its use. Compared to tablets, the
Magic Reading Desk was less complicated to use, more durable, and less costly (with a retail price of
$31.99). TI sold the Magic Reading Desk to major retail stores and chains through the TI sales force.

Expanding Sales to the Educational Market
TI management believes that it has an opportunity to expand sales of the Magic Reading Desk from
consumer markets to educational institutions such as schools and daycare facilities. The Magic Reading
Desk is very easy to use, durable, reliable, and needs only rechargeable batteries for its upkeep. TI could
distribute the product through specialized audio-visual dealers that deal with educational markets,
though their suggested margin of 30% off retail would require TI to sell the Magic Reading Desk at a
higher price than regular retail markets in order to remain reasonably profitable. TI management is
projecting a price of $49.99 for the educational market.
A remaining issue is how the Magic Reading Desk should be branded for the educational market:
4a. One option is to use the same name, Magic Reading Desk, used in the consumer retail market.
Packaging in the consumer retail market includes the brand “Texas Instruments” in small script
across the top of the package; thus, the Texas Instrument name appears as an endorser.
b. A second option is to use a new name for the product, such as Reading Tutor, and omit any
reference to Texas Instruments as an endorser.
c. A third option is to combine a new name, such as Reading Tutor, as a subbrand with the Texas
Instrument name—e.g., Texas Instrument Reading Tutor.

Questions
1. Consider the three branding options. Using your knowledge of brand architecture, how would
you label each of these options—branded house, house of brands, subbrands, or endorsed
brands? Explain why you are assigning these labels to each option
2. Consider the three branding options for expanding sales into the educational market. Which
branding option do you recommend for the educational market—and why? In your answer, be
sure to evaluate the advantages and disadvantages of all three branding options for the
educational market.

Scenario

Company XYZ is a manufacturing company that has being operating on the Industrial Belt in Kingston Jamaica for 25 years. Since the start of their operation, the company’s daily activities have been extremely manual. For the past two years the company has seen a significant drop in revenues and they are unable to track their creditors, and reconcile their accounts receivables and payables. Also, Paul who is the head of the Production Team regularly orders raw materials even when the company has sufficient in its warehouse. He is also unable to tell if their new product that was just released on the market is doing well and in which region it has received its lowest sale. Due to this, Michelle, his manager has labeled him as a poor decision maker, inefficient and unproductive. Michelle now complains that it is very difficult to rely on Paul’s assessments of the Production activities and due to this she is unable think of competitive strategies, properly run the department and think of ways to stay competitive in an already competitive market. In the company’s regularly quarterly report to the Board, Michelle stated that Paul’s actions are causing the company millions in loses and if the financial wounds aren’t cauterized quickly, the company will become a figment of Jamaicans imagination in 2023. The chairman of the board then tasked Michelle to come up with a solution in three weeks to make the company remains viable as they are thinking expanding to the Caribbean in the next five years. Michelle then hired you as a consultant to help the company become automated and modern.

1. Examine the characteristics and limitation of these recommended systems

2. Examine how XYZ can prevent information bias when these systems are implemented

3. Advise XYZ of how to better manage their suppliers of raw materials using technology

4. Examine how XYZ departments can benefit from collaboration and why it is important. Justify your answer