Kids might like this very much! The picture shows us who are the target audience for their market and obviously it would be profitable if the feedback from consumers are positive.The structure of the product is quite fascinating, which the size is about 40" tall and it's a simirobotic Triceratops that can move its head, mouth, horns and tail in addtion to movement sensors. To what extent I think that the product is profitable or not; let's imagine parents are taking their kids to shopping and the children noticed this Triceratops toy, then they started shouting and crying over it, just to let parents buy it for them. As a result, a market that is selling products especially for kids, they somehow can win the children's heart by certain special, attractive features or appearance; therefore the so called 'pester power' is actually powerful enough to affect a business!
Are there any competition going on at all? Yes, of course. So if the price of the Playskool Triceratops toy goes up, consumers may go to other stores instead of buying it from them; thus we can tell that the demand of price elasticity is elastic. On the other hand, though, this may related to income elasticity of demand as when consumers' income goes down, they would probably lost some profit by comparing to other cheaper stores.
Even though it's true that children likes these novelty toys, but they may get bored of it somedays and then what will happen with the business? Well, I think until then the business will have to lower their pricing to get more profits. OR maybe not; in fact, perhaps they can think of some other new ways to renew or recreate the product to make it interesting for the kids again. Meanwhile, this is also a strategy that a business should keep their ideas fresh.
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