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Kids being the target audience of any child-family product is a gigantic misnomer in the marketing world. They may want it, but you're actually trying to sell the product to their guardians and hope they buy it for their kids. Why? Because their guardians generally control the income and are the decider of what to buy for them, so they're the true target audience of "kids' products."
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It always amazes me how watered and dumbed down a lot of the toys for MLP are. And I have seen this for other shows as well. I'm not sure if its dumbed down for the kids or the consumers, but its usually pretty ugly how the products are marketed which often boils down to "oh look! Shiny cute pretty horses with accessories!" OR "Rawr! Awesome buff and high speed and action macho toyz!"
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@Cwanky Cost has a lot to do with it. For FIM, creating cheaper products (most of them in slave labor nations like China) saves money and helps build a better profit.
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