Learn Something New Every Day

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Learn Something New Every Day!
www.leapfrog.com
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Created By
Lex Fogle
Danielle Lengle
Ashley Shellenberger
www.leapfrog.com
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Mission Statement

• Create fresh, engaging, effective learning
  experiences that inspire and delight kids over
  and over again - that's the LeapFrog promise. And
  that's what we do by developing individualized,
  age-appropriate learning products for use at home
  or in school, around the world.

www.leapfrog.com
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Table of Contents

• History of Leap Frog - Ashley
• Resources Ashley
• Labor Market Ashley
• Specialization Ashley
• Target Market - Lex
• Substitute goods - Lex
• Type of good (Normal, inferior) Lex
• Consumer Choice Danielle
• Costs (short run .. Etc) Danielle
• Patents - Danielle

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History of Leap Frog
1995 Company begins! Founder Mike Wood 1st
product Phonics Desk
1996 Phonics Bus created. Products diversified.
1997 First portable learning device, Leaps
Phonics Pond
1998 Math and geography added to product line.
1999 Leap Pad learning system become best
seller! Sales in 25 countries!
2000 Products named best in PC Magazine.
2001 Product becomes portable, now handheld.
Sold in the Middle School market.
2002 Leap Frog One Stop Learning Center For
all of your fun, curriculum needs.
www.leapfrog.com
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Resources
Land Headquarters in California, Offices in
Texas, Illinois, Hong Kong, England, New
York.

• 71, 000 sq. ft. office space in Emeryville,
  California for headquarters
• Engineering and research are housed in a
  14,500 sq. ft. facility in Los Gatos, Ca.
• An Austin, Texas plant (3,500 sq. ft.) for
  training
• U.S. consumer segment is managed in a
  2,000 sq. ft. office near Chicago

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Labor

• Over 500 full-time employees
• Majority (357) work in California Headquarters

Leap Frog does not use child labor!
www.leapfrog.com
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Specialization

• 80 in sales
• 50 in engineering
• 190 in development
• 70 in logistics/operations
• 100 in marketing and finance.

www.leapfrog.com
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Products

• Leap Frog Enterprises has a variety of
  educational toys specifically tailored to
  different age groups.
• They have over 100 different products of
  educational toys and within those products there
  is a medley of different models with different
  goals.

www.leapfrog.com
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Resources (cont.)
Capital

• Leap Frog products are distributed
  internationally reaching 25 countries in five
  different languages.
• Main offices are located in Emeryville,
  California.
• Other facilities in Texas, Chicago, Great
  Britain, Hong Kong and China

www.leapfrog.com
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Target Markets
Two principle markets exist, individual consumers
purchasing through retail stores or from online
retailers and educators purchasing from teaching
supply companies.

• Leap Frog products are targeted at both students
  and teachers.
• Their products are intended to be used inside and
  outside classrooms, so students can continually
  learn.

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Substitute Goods

• Playskool
• Fisher Price
• Learning Curve
• Little Tikes

Learning Resources
Such companies sell toys for children that aid in
education and the learning of basic skills such
as reading, mathematics, geography and the basic
learning of ones colors and numbers.
www.leapfrog.com
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Complements
LeapFrog learning products are designed to build
self-confidence by providing age-appropriate
activities that challenge and motivate children.

• Batteries

• Sports

• Kids Furniture

• Books

• Games

www.leapfrog.com
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Leap Frogs products are
Normal Goods!
19.99
59.99
At 19.99 for a product for your infant, or
59.99 for your middle school student. The
demand for this product will increase as the
consumers income increases.
www.leapfrog.com
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Consumer Choice

• Consumers demand more around holiday seasons and
  also during the school year, when children are in
  school and potentially in need of added
  assistance. Children do not view the products as
  purely educational, so they can be used as gifts.
  
• The demand curve can be inelastic for some
  consumers due to the products ability to aid in
  the learning process.

www.leapfrog.com
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Costs

• Wages of employees
• Prices of input goods
• Packaging/shipping costs to ship merchandise
  from warehouse to consumers included in price of
  the good sold
• Advertising costs of commercials, and
  programming when first aired in-store displays
  and promotions as incurred

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Costs (cont.)
Research and development! This can be
considered both an implicit and explicit cost.
It is implicit because the company gains
knowledge from the research without paying
anything out. However, the worker must be paid,
this it is an explicit (variable) cost.
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Costs (cont.)

• Leapfrog produces at the point where its Marginal
  Cost (MC) is equal to its Marginal Revenue (MR)
  MC MR this is the point where profits can be
  maximized.

www.leapfrog.com
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Patents
What is a patent? A temporary grant of monopoly
rights over a new product or scientific
discovery. Normally lasting 20 years.
The members of our technology team develop
reliable products that stand up against one of
the toughest customers - an active
child! Leapfrog has patents on various aspects
of their products
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Patents (cont.)
NearTouch TechnologyNearTouch technology is a
touch-sensory, radio frequency technology that
makes LeapFrog's LeapPad books and Explorer
Globe come alive.
TrueSpeak TechnologyLeapFrog's proprietary
TrueSpeak technology is what makes every LeapFrog
product sound so good. And that can make a huge
difference when children are learning how to
understand word sounds. The articulate, friendly
and real-sounding voices enable clear
pronunciation, proper syllable accents in words
and proper inflections in phrases and sentences.
www.leapfrog.com
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