M: Business 3rd Edition by O. C. Ferrell, Geoffrey Hirt, Linda Ferrell

Exercise 6

The title for toy fad in 2010 went to Silly Bandz, the company credited with beginning the U.S. craze for stretchy bracelets. Yet for all of its popularity, it is uncertain whether Silly Bandz is a fad (something that quickly ascends in popularity and just as quickly vanishes) or a trend (something with lasting relevance). Silly Bandz founder Robert Croak is determined to make Silly Bandz last through multiple product lines, licensing deals, and more.

Silly Bandz was born when Croak visited a Chinese trade show and discovered rubber bands shaped like animals. He decided to make a sturdier version into a bracelet. Croak believed that kids would be drawn to collecting and trading these bands. In terms of marketing, Croak claims that everything was done virally via social media sites like Facebook, YouTube, and the Silly Bandz website. Although Croak has no publicist or marketing plan, this hasn’t seemed to deter the product’s success. In 2009 the company sold 100 packages per week. One year later, it was selling roughly one million packages weekly.

The question is whether this item has a future. Retailers have begun cutting back on Silly Bandz, with 7-Eleven reporting a 97 percent drop in sales since its peak. Croak wants to extend the product’s life by introducing related products and improving existing ones. He has signed deals with Marvel Comics and Justin Bieber to represent Marvel’s characters and Bieber’s likeness in Silly Bandz form. The company has introduced Silly Necklaces, Silly Ringz, and Silly Caribinerz. Croak is also in talks with Zoo Games to develop a videogame. Will these efforts be enough to extend the brand for years to come? Or will Silly Bandz soon become a product beloved only by collectors?

Can you think of ways to extend the Silly Bandz brand?

Step 1 of 2

SB definitely made its mark and grabbed lot of people’s attention. The faster it took off in the market, it quicker it subsequently trailed off in popularity. However, management can explore opportunity even when SB is on the wane. If the management can recognize the consumers who jumped on SB, it can do a better job of maximizing its reach to those different consumers.