1. Shoppers See Red at Elmo Shortage By Erin Beyer, Ryan Kozar and Denise Burkholder

2. Tickle Me Elmo Originally released in September, 1996 1998 – Walks and talks 1999 – Sings and plays guitar 2000 – Acts and speaks like a 3 year old 2001 – “Tickle Me Elmo Surprise” with 5 tickle spots 2002 – Sings and dances to the chicken song in his chicken costume 2003 – “Hokey Pokey Elmo” 2004 – Sings and spells out E-L-M-O to the tune of Y.M.C.A. 2005 – Sings and dances to “Shout”

3. The 2006 T.M.X. Elmo Will be released by Mattel as the 10-year anniversary of the original Tickle Me Elmo. “Slaps its leg and keels over in a fit of laughter when tickled” Secret until September, 2006. Hopes of being this year’s holiday must-have.

4. Effects on Price Low Supply and High Demand leads to High Prices –$39.99 regular price Supply Shortage leads to Gray Markets –T.M.X. Elmo being sold on eBay for prices over $100

5. Effects on Retailers Shortage? –Manufacturers limiting production to create shortages –Ex. Microsoft and Xbox 360 Customer Complaints –National Retail Federation –Retailers, NOT manufacturers, must deal with complaints

6. Forecasting Fallacy Forecast falls short Toymaker says more will be made available. Customer response

7. Sources Article http://money.cnn.com/2006/09/29/news/companies/elmo_s hortage.reut/index.htm?postversion=2006092918 Pictures http://www.boekmij.nl/pics_normaal/elmo.jpg http://xbox.about.com/library/graphics/officialxbox360.jpg http://www.fisher- price.com/fp.aspx?st=8001&e=sesstProduct&selCat=ses ame&pid=35910