Digital Technology Helps Crayola Brighten Its Brand Crayola is one of the world's most beloved brands help children learn and play in colorful ways. The for children and their parents. The Easton, question they asked was not, how can we sell more Pennsylvania-based company has been noted for crayons? Instead they asked, what kinds of experihigh-quality, non-toxic crayons, markers, pencils, ences and technologies should Crayola embrace? modeling clay, creative toys, and innovative art tools Crayola has reframed its business model, introduced that have inspired artistic creativity in children for a new innovation process for product development, more than one hundred years. You can find Cray- and created new products and revenue streams. The ola products nearly everywhere, including schools, company has been transformed from a manufacturer offices, supermarkets, drug stores, hospitals, theme of crayons and art tools into a trusted source of tools parks, airports, gas stations, and restaurants. and experiences for creative play. The Crayola crayon box became part of the col- Crayola is using digital technology, but not to relective history and experiences of generations of place its core crayon business. Instead, it's integratAmericans, and a symbol of the color and fun of ing the old and the new. The company now offers a childhood. But today, that Crayola crayon box is not new range of products like the iMarker, an all-in-one as iconic as in the past. The popularity of Crayola digital pen, crayon, and pencil, designed for use with crayons is under assault-not by Crayola's traditional the Color Studio HD iPad app. It's like a traditional competitors (Faber-Castelli, DixonTiconderoga, and coloring book, but includes new interactive sounds MEGA Brands), but by changing times. and motion. Lights, Camera, Color! is another digital There has been a profound technological and application that allows kids to turn their favorite phocultural shift in how children play. Children and tos into digital coloring book pages. Tech toys such as their families are being bombarded with increasingly the Digital Light Designer, a 360-degree domed drawsophisticated forms of entertainment, many of them ing surface, encourage imaginations to run wild with digitally based. Digital products are starting to sup- colored LED lights. Children can play updated verplant physical ones in the world of children's play as sions of their favorite games or animate and save up to well as in other areas of work and everyday life. With 50 pieces of their own artwork. Crayola found that parthe advent of computers and web-based learning, chil- ents are looking for toys that are less messy than tradren are leaving behind hand-held art supplies at an ditional markers or fingerpaints. These digital toys are increasingly younger age. The phenomenon is called 100 percent mess-proof," and technology has helped KGOY, standing for "Kids Growing Older Younger." As Crayola make its other products less messy as well. children reach the age of 4 or 5 , when they become_ In designing new digital products and experiences, old enough to play with a computer, they become less Crayola has drawn on its extensive knowledge of interested in toys and crayons and prefer electronics child development. It understands how digital techsuch as video games and digital tablets and smart- nology can play a part at different ages. For instance, phones. Crayola is not immune to this problem. the My First Crayola line is targeted specifically at Will Crayola become a dinosaur from a different one-year-olds; while Crayola Catwalk Creations is era? Not likely, thanks to the company's forward- designed for "tween" girls who like expressing themlooking management, which embarked over a decade selves through fashion. ago on far-reaching changes in leadership, organiza- Crayola also understood that it had to change the tional culture, and the product development func-__ way it markets its products as well as the products tion. The organization restructured around consumer themselves and has been investing more and more insights and needs rather than specific product lines. in digital marketing. These initiatives include online Vicky Lozano, Crayola's VP of Corporate Strategy advertising, promotions, social media pushes, and and her team recognized that Crayola's purpose other digital activation programs that allow Crayola to has always been to nourish originality and to help connect with parents and educators invested in raisparents and teachers raise creative and inspired ing children's creativity level. Social media has proven children. Crayola's broader mission is not just to put especially effective and Crayola has a presence on crayons and art materials in children's hands but to Facebook, YouTube, Pinterest, Twitter, and Instagram. Chapter 3 Information Systems, Organizations, and Strategy 99 Crayola's YouTube channel features colorful videos on tracks activity on its online channels through Google Crayola products and instructions for creative projects Analytics to make sure it is getting the most out of its where they can be used. The company's Facebook marketing and ad campaigns. presence features a live chat series with experts and Crayola's website has been thoughtfully designed creative celebrities called "Inside the Crayon Box." for children, parents, and educators. It features free Crayola wants to stimulate conversations around cre- ideas for crafts, printable coloring pages, and even ativity so parents can learn from each other and un- advice on how to remove stains. The website also can derstand how to build creativity in their children. be used for ordering Crayola products online. Thanks Crayola's core parent audience is turning to the to its new array of products and services, Crayola has web for gift and usage ideas, comparing prices, and experienced better growth, and its future looks as reading reviews before making purchases. Crayola bright as the vibrant colors of its iconic crayons. wants to be first in mind as a source of $20 artsy toys and mess-proof gifts. The company focuses heavily on search, social media, and digital display, to help parents find the Crayola products needed for their Sources: www.crayola.com, accessed March 28, 2018; "Crayola children's school supplies or gifts. Crayola closely swOT," www.marketingteacher.com, accessed March 29, 2018; an Jon Coen, "Crayola's Colorful Evolution," Think Play, July 2012. CASE STUDY QUESTIONS 1. Analyze Crayola's problem. What management, 3. What people issues did Crayola have to address in organization, and technology factors contributed to the problem? designing its new technology-based products? 2. What competitive strategies is Crayola pursu- 4. How has digital technology changed Crayola's ing? How does digital technology support those strategies