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PREFACE
I am pleased to present the M.Phil. Thesis report on "A
Comparative Analysis of Marketing Strategies of Chinese goods
verses Indian goods-With especial reference to Toys Indstries!efore my respected readers. It is a hmle attempt from my part
to #dge Toys Indstrial ehavior for their Marketing Strategies in
foreign contries-With especial reference to Toys Indstries $China
%s India&.
'angage of the report is simple and lcid. Attempts have een
made to arrange the s#ect matter in a systematic and (ell-knit
style. )fforts have also een made to deal (ith all topics precisely
and gently.
I e*press thanks to all those prolific teachers and e*perts of
management+ )specially ,r. Anil Mishra Sir $My M.Phil.ide&
(hose theories and ideas have een incorporated in this thesis
report.
,espite of this it is very difficlt to e perfect to the core and
mistakes do creep in for (hich I e*tend my apology and carve the
hospitality of the readers to point them ot. Their criticism and
sggestions for the improvement in ftre are (elcomed.
SAI')/,0A PAT)'
ACKNOWLEDGEMENT
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Preparing a thesis of this nature is an arduous task and I was fortunate
enough to get support from a large number of persons. I wish to express
my deep sense of gratitude to all those who generously helped in
successful completion of this report by sharing their inaluable time and
knowledge.
It is my proud and preiledge to express my deep regards to Respected
,r. Anil Mishra Sir $My M.Phil.ide& Aisect 1niversity+/ear 2hopal
for allowing me to undertake this thesis work.
I feel extremely exhilarated to hae completed this pro!ect under the ableand inspiring guidance of "iss #angeta "am$ #he rendered me all
possible help and guidence while reiewing the manuscript in finalising the
thesis report.
I also extend my deep regards to my teachers$ family members$ friends and
all those whose encouragement has infused courage in me to complete the
work successfully.
SAI')/,0A PAT)'
M.Phil Aisect 1niversity
/ear 2hopal$M.P.&
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CERTIFICATE
,ate3
The M.Phil thesis report titled 4A Comparative Analysis of
Marketing Strategies of Chinese goods verses Indian goods-With
especial reference to Toys Indstries ! has een prepared y
Shailendra Patel+ nder the gidance and spervision of ,r. Anil
Mishra Sir $My M.Phil. ide& Aisect 1niversity +/ear 2hopal
+ for the partial flfillment of the degree of M.Phil.
Signature of the Signature of Signature of
Supervisor(Guide): Head of the the examiner
Department 3
DECLARAT!" #$ THE CA"DDATE
Date:
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I declare that the thesis report titled 4A Comparative Analysis of
Marketing Strategies of Chinese goods verses Indian goods-With
especial reference to Toys Indstries ! is my o(n (ork condcted
nder the spervision of ,r. Anil Mishra Sir $My M.Phil. ide&
Aisect 1niversity +/ear 2hopal. To the est of my kno(ledge the
thesis report does not contain any (ork+ (hich has een
smitted for the a(ard of any degree+ any(here.
% SHAILENDRA PATEL
".P%I& #tudent
AI#EC' ()I*ER#I'+
TABLE OF CONTENTS
&refa'e A'no*edgement Certifi'ate De'*aration +, the Candidate
5. Introdction6. 'ine of 7#ectives8. 0esearch methodology9. ,ata analysis and interpretation:. Self designed advertisement
Prodct profile
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Script for advertisement
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Advertisement of e*isting rand;. <indings=. Conclsion>. Sggestions?.
'imitations
#i+*iograph, Appendix
-ormat of .uestionnaire
INTRODUCTION
,elcome to the colorful world of teddy bears$ singing dolls$ miniature
pianos that play nursery rhymes$ battery operated cars and stuffed dogs
and rabbits that walk$ talk and shake hands. In one word- 'oys. 'oy
merchants of yester years gae shape to the creatie fancies and dreams
of young ones and growups alike. 'he world market has seen arious
upheaals due to changing consumer preferences$ new fads$ technologicaladances and trade liberali/ation. Countries like China hae mareled the
world with their low cost manufacturing expertise while at the same time
astonished them with their 0uick imitation$ leading all the gigantic players of
the world to act on their feet and formulate strategies to counterattack them
and safeguard their shares. India too has seen a shift in focus from
traditional board games like Chess 1#hatran!2 and &udo 1Paasa2 and sports
like cricket to ideo games and consoles$ pu//les$ and "onopoly. 'he
traditionally scattered market has shown signs of consolidation with the
entry of companies like Reliance A3A4 and "ahindra 5 "ahindra who are
both expanding the market and adding sheen to it. India as a deeloping
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economy is a hotspot for ")Cs like "attel and %asbro which hae now
become household names with 6arbie and "onopoly respectiely. 6ig
retailers of the world which exclusiely cater to this segment include 'oys R
(s and %amley7s$ which house the best brands of the world and add a
serice dimension to toys. 'his document discusses the arious classes of
toys$ the current global scenario for toys$ how China has affected the global
toy industry$ India7s market and its growth prospects.
CA'E48RI9A'I8)
HISTORY
A toy is any ob!ect that can be used for play. 'oys are associated
commonly withchildren and pets. Playing with toys is often thought to be an
en!oyable means of training the young for life in human society. 3ifferent
materials are used to make toys en!oyable and cuddly to both young and
old. "any items are designed to sere as toys$ but goods produced for
other purposes can also be used. For instance$ a small child may pick up a
household item and :fly: it through the air as to pretend that it is an
airplane. Another consideration is interactie digital entertainment$ such as
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a ideo game. #ome toys are produced primarily as collector ;s items and
are intended for display only.
'he origin of toys is prehistoric< dolls representing infants$ animals$ and
soldiers$ as well as representations of tools used by adults are readily
found at archaeological sites. 'he origin of the word :toy: is unknown$ but it
is belieed that it was first used in the =>th century.
'oys$ and play in general$ are important when it comes to growing up and
learning about the world around us. 'he young use toys and play to
discoer their identity$ help their bodies grow strong$ learn cause and effect$
explore relationships$ and practice skills they will need as adults. Adults use
toys and play to form and strengthen social bonds$ teach$ remember and
reinforce lessons from their youth$ discoer their identity$ exercise their
minds and bodies$ explore relationships$ practice skills$ and decorate their
liing spaces.
4eometric 'iles of Froebel#et$ Allow the child to use his?her creatiity to
create mosaics$ patters$ architectural buildings
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&ittle horse on wheels$ Ancient 4reekchild;s toy. From a tomb dating @B
@BB 6CE$erameikos Archaeological "useum$ Athens
A boy with a hoop. %oops hae long been a popular toy across a ariety of
cultures.
"ost young humans hae been said to play with whateer they can find$
such as pine cones and rocks. 'oys and games hae been unearthed from
the sites of ancient ciili/ations. 'hey hae been written about in some of
our oldest literature. 'oys excaated from the Indus alley ciili/ation1DBBB
=BB 6CE2 include small carts$ whistles shaped like birds$ and
toy monkeys which could slide down a string.
'he earliest toys were made from materials found in nature$ such as rocks$
sticks$ and clay. 'housands of years ago$ Egyptian children played
with dolls that had wigs and moable limbs which were made from stone$
pottery$ and wood. In Ancient 4reece and Ancient Rome$ children played
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with dolls made of wax or terracotta$ sticks$ bows and arrows$ and yoyos.
,hen 4reek children$ especially girls$ came of age it was customary for
them to sacrifice the toys of their childhood to the gods. 8n the ee of their
wedding$ young girls around fourteen would offer their dolls in a temple as
a rite of passage into adulthood.
A display of Roman toys$ including seeral that would be familiar
to childrentoday- a doll$ dice$ rattles$ and toy dishes for playing house
As technology changed and ciili/ation progressed$ toys also changed.
,here as ancient toys were made from materials found in nature
like stone$ wood$ andgrass$ modern toys are often made from plastic$ cloth$
and synthetic materials$ oftentimes powered bybatteries. Ancient toys were
often made by the parents and family of the children who used them$ or by
the children themseles. "odern toys$ in contrast$ are oftenmass
produced and sold in stores.
'his change in the nature of toys is exemplified by the changes that hae
taken place in one of the oldest and most uniersal of human toys< dolls.'he earliest and most primitie dolls were simple wooden carings and
bundles of grass. Egyptian dolls were sometimes !ointed so that their limbs
could moe realistically. 6y the early Bth century there were dolls that
could say :mama:.GH 'oday there are computeri/ed dolls that can recogni/e
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and identify ob!ects$ the oice of their owner$ and choose among hundreds
of preprogrammed phrases with which to respond. H 'he materials that
toys are made from hae changed$ what toys can do has changed$ but the
fact that children play with toys has not changed.
MAJOR INDIAN PLAYERS
9apak 4ames- It is a part of the Reliance Anil 3hirubhai Ambani 4roup.
9apak 4ames operates in two categories J 4ame C3 5 'oys. It is the
leader in 4ames C3 in India. It holds licenses for leading kids properties
from Cartoon )etwork$ )ick$ 3isney$ Pogo etc as well as represents some
of the leading global toy companies in India. 'he product distribution is
across all toy stores and retail chains in the country through the traditional
mom J n J pop outlets as well as large format key account stores. ,e had
the opportunity of seeing some of these toys with &andmark outlets across
the city. It acts as the merchandi/ing and licensing arm of 9apak 3igital
Entertainment &td. 'hey are also in an association with #pin "aster &td.
which according to )P3 is the third largest toy company in )orth America.
"ahindra and "ahindra J "om 5 "e outlets across the city are operated
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by "ahindra which hosts educational toys for children. It also has the
marketing rights for &ego brand of toys and soft toys from 3isney. #ome
small players are- Prasid 'oys Pt &td. J 3elhi based &ittle 4enius 'oys &td.
J 1,ooden Educational 'oys2 &eo Plast
EFFECT OF CHINA ON INDIAN TOY INDUSTRY
From a $BBB players a few years ago$ barely BB surie today$ it is
belieed that nearly >B per cent of toy companies hae shut shop since
Chinese products started flooding into the Indian market. Een as the
unorgani/ed sector has been most hit$ some of the other players like
"attel$ Funskool 1!oint enture between "RF 'yres 5 %asbro Intl2$
"ahindra Intertrade 1markets the &ego and 3isney range of toys2 and a few
others are forced to fight back with a string of innoatie strategies.
Compared with an aerage Rs D per kg a Chinese toy maker spends$ an
Indian manufacturer spends Rs K per kilogram for raw materials. %igh
excise duties and taxes including local taxes that ary greatly add to their
woes. Indian companies hae not made efforts to market their products in a
planned manner and while some Indian companies are trying to combat the
threat from Chinese toys by slashing prices by =B to =L< others are
strengthening their distribution skills in smaller towns$ where the reach of
imported toys is still limited.
INDUSTRY GROWTH
Finding the right niche J marketing limited to premium segment Indian
consumers are gradually becoming less price sensitie$ but are ready to
pay for something they beliee has a alue proposition. 'hey are reali/ing
that toys help in the all round deelopment of a child. 'ake the MKbillion
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"attel Inc. for instance$ after a runaway success with 6arbie$ %ot ,heels
and Fisher Price$ it has introduced the %arry Potter range of toys which
caters to the premium segment. ,ith its Fisher Price range$ "attel is also
launching deelopmental actiities along with toys associations$
pediatricians and playschools to educate parents on how toys help the child
in understanding the adult world better. 4lobalisation J 4o 4lobal Act
&ocal Almost all ma!or players$ hae launched an indigenous range of
competitiely priced soft toys range$ to cater to the growing market.
"ahindra Intertrade$ for instance$ launched #oft ,onders$ to cater to the
economically sensitie customers. #imilarly$ "attel has launched #tar
6eanies for Indian market and Funskool has launched soft toys. Act Faster
than the Fastest 'hese players hae also spruced up legal actiities
against spurious products and taken actions to make the igilance stricter.
'hey try to bring in designs faster than the Chinese can imitate. For
instance$ once the market gets flooded with fake products with "ickey or
3onald moties$ be it on cups$ bottle$ plates$ tiffin boxes etc$ "ahindra
Intertrade would 0uickly launch "ickey in sportswear and shift the demand.
#uch marketing skills a range of strong brands hae enabled them
withstand the Chinese threat and allowed them to play a crucial role in
growing the market.
TRENDS
Online Buying
In BB> when "attel registered on Indiatimes$ Rediff and 6aa/ee$ they
discoered that when kids did not look for toys online$ their parents 1on the
lookout of discounts2 did. Also online shopping for toys accounted for
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approximately L of total sales$ that is Rs =.> crore in BBBK.
"all practice "alls are an undisguised blessing for the toy makers. In a
mall one gets better shelf space to exhibit products$ and the entire range
can be displayed with the add ons which then hae a good chance of being
sold to the potential customers. 6etter sales tracking is another adantage
one gets from the malls. In BB$ "attel opened two =$BB s0 ft 6arbie
stores in "umbai. Approximately DL of the sales for Funskool and "attel
take place at the malls. Fusing Entertainment with toys "attel has
produced fie moies to promote its existing range of toys$ whereas
Funskool$ its rial has been using existing moies like batman to create a
new range of toys for itself. 'oys for "en "attel has also launched toys for
men. It featured models of premium cars including 6", K> Ci$ Ferrari
#caglietti< and ,illiams and Renault in its %otwheels Collectibles< haing a
price ranging from Rs @@@ to Rs =$@@@. Changing 3emographics
3emographic ariables like greater diorce rates$ due to which kids get two
sets of toys< increased buying power per child due to income families<
and increasing inolement of grandparents are all influencing the growth
rate of the toys.
THREATS/HINDRANCES/CHALLENGES
Raw "aterial Costs 'here is a rise in the raw material costs$ due to an
increase in the manufacturing costs for traditional toys "anufacturing Costs
"ost of the traditional toys are made from plastic resin. Petroleum$ whose
price is continuously increasing$ is one of the main components of plastic
resin. 'his has a negatiely impact on the manufacturing costs. Changing
Consumer preferences )owadays$ customers prefer electronic games to
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traditional table games. 'his trend is not beneficial for the traditional game
e0uipment manufacturers.
Revenue ! "#e $i%e G&'e( In%u(")ie( &n% T)&%i"in&l Ty( *+ in,illin(-
Industry BB> BB BBK BBG*ideo 4ames @.@ =B. =. =.@'raditional 'oys .> . .D =.
In India$ toys aren;t perceied as deelopmental. #o toy manufacturers take
adantage of impulse purchasing trends and the pester power of kids
works in adantage for the toy manufacturers.Indian parents perceie
expenditure on toys as a waste of money. Educational games like #crabble
and toys for preschool children and infants are an exception to this belief.
Impact of Recession 8nly when the consumers hae enough disposable
income to afford luxury goods$ they buy toys. A struggling (.#. housing
market$ rising oil prices and other factors hae limited their income. 'he toy
industry was also affected by this trend$ as its oerall reenue decreased.
3eclining profits due to emphasis on product safety Product safety is
another ma!or concern of the toy industry. 'his was discoered when there
was a rising number of product recalls in the second half of BBG. #o while
companies put more focus on their higher margin core brands$ the positie
margin implications from this shift are offset by 0uality and safety testing$
as well as higher costs for raw materials. Competing with large brands
#mall manufacturers which form the bulk of the unorgani/ed sector are
unable to brand and market their products$ which has been a critical
disadantage for them. ,ith a large number of players in the market$ only
the international brands hae a strong brand recall. %ere$ manufacturing
competency isn7t the real concern since most of the branded players
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outsource their re0uirements from Indian manufacturers. %oweer$ lack of
marketing acumen and an expertise to cultiate brands is found to be
lacking in most indigenous companies.
MAR.ETING STRATEGIES
5
6 Art Attack a 'eleision series by %it Entertainment has also entered
the toy market. It showcases 3oIt+ourself arts and crafts in their ideos
and has now made them aailable in 3*3 formats across ma!or stores.
'hey also merchandise their creatie works through books.
8 Cradle catching- In BB$ "attel entered into a partnership with
diaper brand %uggies. 6y this moe$ "attel targeted its potential audience
at their birth place$ and een before they were born at the maternity
homes.,hen the mothers isit the doctor for the first time$ they are gien a
medical file$ as well as well as the information on the different phases that a
child is likely to pass through as it grows which helps in selecting toys from
the Fisher Price range that fits each growth phase ie. crawling$ sitting$
standing$ etc. ,ithin a ery short period of time$ they claimed to hae
targeted KBB$BBB mothers by haing tie ups with DBB pediatricians and B
gynecologists$ across the top six Indian cities. Also$ another innoatie
techni0ue used by "attel is a toy directory which is placed in retail outlets
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that informs parents about the best toy for each age group.
CASE STUDY
"other 5 "e is a Retail store owned by "ahindra 4roup$ which caters tothe need of Pregnant women$ infants$ toddlers$ preschoolers 5 learners.
Its toys section is huge and is gaining popularity day by day. Following are
the details of its toys section-
5 6rands-Fischer price$ Funskool$ "attel$ &ego$ 3isney *tech
6 #egments-#oft toys$ ,ooden toys$ "etal toys 5 Plastic toys
8 Prices- DB BBB
9 Age 4roup B J @ +rs
MANAGERS $IEWS
Following are the points which #tore "anagers told us. 'hey prefer to keep
toys of price range DB to BBB. "other and "e use #AP for inentory
replenishment. 'hey hae kept the toys according to their type 1wooden
toys at one place 5 soft toys at another place2 rather than age group wise
1toys for B yrs at one place2. According to them toys which are able to
connect to Indian traditions are highly in demand$ eg. Indian 6arbies.
5 "aximum complaints they receie are against Chinese toys and toys
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manufactured in China.
CUSTOMERS $IEWS
,e receied the following feedbacks from customers.
5 "ost of them buy toys once a month.
6 Fishcer price is preferred by most of them
8 "ost of them prefer plastic toys oer metal 5 ,ooden toys
9 "ost of them are not in faour of Chinese toys despite of the low of
cost.
: "ost of them were in faour of interactie toys.
; #ome Customers stressed the need of toys$ which inculcate the
alues necessary in human society 5 were against the toys$ which
resembles the iolent figures or creature.
ANALYSIS 0 COMMENTS
From the information proided by store "anagers 5 feedbacks from
customers we analy/ed that the 'oy Industry has a bright future ahead but
only if it meets the challenge of proiding
5 6etter 0uality Interactie toys$ which not only make learning easy butalso help in cultiating the alues necessary in human society.
6 &ight weight Plastic toys as they are easy to handle 5 more resistant
to wear 5 tear.
8 *alue for money$ as most of the parents feel toys oerly priced.
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.
TOYS OF THE FUTURE
ELECTRIC POP UP BOO.S
Electronic Popables by Nie Oi is a popup book that lights up as you interact
with it$ producing the most beautiful and dynamic popup pages eer. As
you begin to go flip through the book open pages$ pull tabs$ press
pressure points and fold ob!ects different &E3 lights will blink away on all
oer the page. 'hey can be a ery efficient means of connecting holistically
with the technology say kids.
HORI1ON HYDROCAR TOY
'he hydro car is a case in point. It does not depend on batteries or
electricity. #urprisingly this car produces its own energy$ running entirely
on water. It is not only %ydrocar7s functionality$ but also its trendy$
scientific design that sets it apart.SCRIBBLE BOTS
#cribble 6ots is !ust a concept at the moment$ but the idea is that children
can connect with their friends through the official website and share their
drawings$ artwork and also the artistic process. 'he #cribble bots toy can
record and recreate moement so anyone with a scribble bot can
download your drawing and their scribble bot will draw it right for them$
then and there.
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TOUCH SENSITI$E $IDEO GAMES
(sually$ a lot of people do not see any fun in playing with buttons and
!oysticks. 'his concept of touch sensitie games employs touch sensitie
silicon that simulates the terrain in a game$ empowering the users to feel
their way through. )o ma!or ideo game manufacturers are using
technology 0uite like this as of now$ but we could see such technology
being used in the future.
PARROT AR DRONE 2UADRICOPTER
Flying helicopter toys meets handheld ideo games with the Parrot AR
3rone Ouadricopter. 'his isn;t a simple chopper that flies around the
corner and crash because you can;t see it. 'his deice has a builtin
camera that lets you see eerything from an iPhone or other similar
smart phones. #ince !oysticks are outdated$ this toy uses tilting
gyroscopic controls$ tilting the AR 3rone as you tilt the iPhone.
MINDFLE3
Remote controls are a thing of the past. 'oys of the future use mind
control "indflex is a telekinetic obstacle course that uses brainwae
actiity to moe a ball. ,e;re not really sure how it works$ but we like to
beliee it;s because we hae scifi like psychic powers.
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MILO
'he next biggest innoation in the toy world does not belong to the genre
of barbies or remote controlled cars or thought controlled machines$ but a
irtual best friend. 6y late B=B$ "icrosoft would release a new addon for
the Qbox that will replace controllers with your own body. "ilo is a irtual
boy who can hold a conersation$ tell when you;re happy or sad$ and
eentually build a relationship with you and your family members.
Indian toy industry is slowly developing and climbing the progress
steps locally as well as globally The very word toy makes you
remind of your childhood. They are categorized into many types
like the major rulers in India are the plastic toys which capture
80% of the toy industry and is said to earn a profit of
approimately !0"#0% every year. $nother types of toys
available in the market are fabric toys paper toys and wooden
toys metal toys and &I' toys (containing arts and craft toys) that
are manufactured mostly by the cottage industry. *owever out of
these the metal toys are considered to be sharp toys which are
harmful for children and a hindrance in their safety that is why
these toys are known to be slowly loosing it+s popularity. $nother
popular category of toys seen today are educational toys and
activity toys which help build the mind and body of the child then
there are soft toys electronic toys battery operated toys and
board games like chess and monopoly. Toys these days are
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popular not only with kids but adults have also entered this field
through the medium of sports and games. Today many sports and
games are been played by the adults at national and international
levels representing their country and nation. $lso ultimately it is
the adult+s decision of which toy to buy for their child. ,hile the
end user is a child the mother is the decision"maker and the
father holds the financial strings. -arents now"a days also prefer
to play with their child in order to interact well with the child. o
they are seen to playing boards games and other toys with their
children. The Indian market is vastly different from that of
overseas where toys are bought as a child+s development aid
i.e. they are considered to be e/uivalent to books. ut in India
the scene is different. 1ontent and /uality are the major
drawbacks here. 2nlike other developed economies amount of
toys spent per child in India is very low. The metros and +$+
category town account for most of the branded purchase and sell
even at higher price points. 3argely the rest of the market is
highly price sensitive and items above 4s.#00 results in planned
purchase and not impulse buying. In 1 and & category towns
unbranded and lower /uality toys sell at average price points
below 4s.!00. *owever the scene over here is slowly changing
but still it will take a few years more.
The 4s.800"4s.!#00crore"estimated Indian toy industries are
dominated by approimately !#50 small and very small producers
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scattered across the country. 6ost of the producers are based in
the &elhi 6umbai 7orthern tate of -unjab 2ttar -radesh and
*aryana also some in the outhern tate of Tamilnadu and in
other clusters across India+s central states. It has a 5 " 90crores
manufacturing base out of which &elhi especially 7oida rules 0
crore markets and 6umbai rules the other !0 crore market. The
:rey market and other small"unorganized sectors dominate the
rest of the markets.6ajor multinationals such as 3ego Toys
dominate the most of this sector. 3ego itself controls 2pto #0% of
the domestic market; another player is 3eo Toys which is largely
credited with pioneering the organized toy market in India.
<unskool Toys is the third largest toy producer. $ll three big
players have linkages with Indian multinationals with a collective
market share of roughly about !=% of entire toy sector. $part
from these three there are many other players like 1hirantan
>nterprise -lastech International -vt.3td. $ries Inc. and many
others who run the toy market in India.
The Indian toy industry is large and growing but it is
disorganized and there are some serious problems to be
navigated which also takes into factor distribution ? marketing
challenge. 6any of these toys are routed through &ubai ?
6alaysia. >ven as the 1heap 1hinese toy market are flooding the
domestic market having said that we do design or modify some
games to reflect Indian taste in them is absolutely true. ome
games we import are slightly modified to Indian interest i.e. we
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have a slightly Indian taste monopoly. ocial relevance is another
factor that is being used.The past one"decade has shown that the
Indian toy industry makes /uick strides in terms of eports and
production. India produces a wide range of toys made of plastic
mechanical activity toy soft dolls stuffed toys board games
puzzles educational games metal and time toys electronic toys
and games etc. It is estimated that the industry volume is 2 @ !
billion in the organized sector and about 2@ !.50 billion in the
unorganized sector. There are more than !000 units in the small
sector and even a large number in the cottage industry. ,ith the
lowering of tariff barriers the market is open now and the Indian
industries are facing the challenge of ensuring their
competitiveness in a sector where both distributors and
multinational competitors are concentrated and form cheaper
products which are mainly from the outh >ast $sian 1ountries.
$ccording to an estimate the global market of toys will touch
more than 2@ !50 billion by #00A and thus realizing it+s
potential the Indian toy industry has correct time opportunity to
put itself on the world map. Indian toys can have major share of
the world market if they are keenly based on the latest
technology and are marketed properly. y some toy industries
domestic market size this year is estimated to is in the range of
4s.500 crore while some think that it is at 4s.!000crores.
3ike many other industries the 1hinese factor is a major issue for
domestic toy manufacturers which has resulted in a chaotic
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market condition. 1hinese and Taiwanese
manufacturers have been innovative and
specializes in novelty items which last
2pto approimately ten months. These
are of cheaper /uality and hence less
epensive which /uickly captures the
interest of the Indian buyer. $s per the
sources last year the 1hinese eported around @ 8 billion worth
of toys. Indian imports this year will be around 4s.!50crore
which is nearly half of the domestic toy market. ut sources say
that 1hinese toys will be an issue for the domestic organizations
for roughly another few more years before the customers will turn
away from poor /uality as the issue is not only cheap toys but
also counterfeits which impact the legal licensee of a toy. $lso
1hinese toys that are currently imported do not have much
content and so the /uestion of threat has not crossed it+s limit as
yet because most importers are first timers and they discard toy
imports due to poor margin. ut if not taken care for 1hinese
products will turn out to be the biggest threat when toys with
good content are made.
&>:4>> B< 1B6->T>TIB7
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&egree Bf 1ompetition The degree of competition within the
industry looks at the eternal environment the number of firm
size of the firm and concentration in the industry. 3ooking at the
degree of competition within an industry+s environment it is
understood that it is simply the beginning to analyzing industry
attractiveness. The degree of globalization is another factor that
influence attractiveness if a company entering an industry can
also enter a global market then it is attractive. The etent of
government control also has an influence on the attractiveness of
the industry. The threat of new entry affects the firms already
eisting in an industry and if a new rival can easily get in then the
market becomes more competitive thus firms must put some
barriers to stop others from entering. The eisting leaders should
create a brand identification the new entrants thus will have to
try and take satisfied brand loyal customers away from the
leaders which makes it a difficult task for them to con/uer. The
threat of substitute products also comes into concern. If
substitute products are readily available then the firms are likely
to suffer. ince there are different suppliers in the toy industry
the suppliers have less bargaining power because the buyers can
go to another supplier and so in the toy industries not one
supplier holds a critical component for the toy retailer. The power
of buyers should also be taken as a considering factor when
analyzing the attractiveness of the industries because powerful
buyers etract price concession for product thus reducing industry
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profitability.
Ta arriers Though the government has removed ecise from
most parts of the toy industry the C$T which is 9% and !#.5% for
battery operated toys along with Bctroi which is 9% remains a
dilemma to be solved by the toy manufacturers. The problem is
that major part of the industry is unorganized and these
unorganized players are known to bypass ta ultimately leaving
the burden of taation only on the organized sector. The
organized sector suffers due to this as they have to sell their
products at more prices in the market. *owever toy associations
like T$IT6$ and others are trying their best and are appealing to
the government in eradication of the taes.
INDIAN MAR.ET SI1E 4
6irth Rate D.= per =BBB person 6irth Rate in (rban Area =.K per =BBB
person Income per capita Rs.D$BBB approximately ,hole toy and games
industry is worth Rs.>BB crore Indian 'oy Industry7s si/e1BB2- Rs BB
crores 8rganised sector- Rs =BBB crores (norgani/ed sector- Rs =BB
crores (norgani/ed sector also comprises of companies that heaily import
from China I)3IA) "ARE' #I9E #ource- 3ata collected from )ational
&ibrary
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REASON FOR DECLINE IN SALES 4
Competition from the Chinese market 4oernment regulations for toy
makers Failure to impose ban on low 0uality Chinese toys 6rand
awareness Consistent 0uality assurance #erice deliery challenges
REA#8) F8R 3EC&I)E I) #A&E#
FUTURE STRATEGIES 4
Child and parent relationship program ,ebsite and online order facility
Animated moies promotion )ew Computer games promotion Challenge
innoation with innoation F('(RE #'RA'E4IE#
THE FUTURE 5 TOY SALES FORECAST 4
THE PROSPERING INDIAN MIDDLE CLASS 4
D>L of the middle class families earn between Rs B$BBB and Rs =B$BBB
per annum %igh consumer spirits has led to significant growth in the toys
and games market ey concerns Rising prices$ costs of education 5medical care$ and the decline in share prices 'he toys and games market
in India stood at Rs @. billion in BBG and were expected to reach
Rs D. billion in BB Industry is growing BL annually '%E
PROSPERING INDIAN MIDDLE CLASS
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"aternity hospitals Play schools Pediatrician clinics %igh schools #hopping
malls Amusement parks ,%ERE '8 PR8"8'ES A3*ER'I#E"E)' A)3
PR8"8'I8)# *iral "arketing 6anners 5 %oardings Contests And
Oui//es Print "edia Pamphlets
The Indian Toy Industry There are a few things that go through
every child+s mind and playing with their favourite toy is one such
thing that is on the top of their priority list. >ach child always
looks forward to returning back to hisDher home after school
hours just to be close to their favourite toy and spend time
fiddling or playing with it. ome children preserve it as closely as
if their life would depend on it. $s times have changed children+s
demands for toys have changed too as now they no longer love
the usual run of the mill toys. ince the world has become
techno"centric with each day seeing the introduction of a new
electronic toy or game children too have become fond of the
latest version of their toys. ,ith these changes also have come a
large variety of toys in the industry.
Industry Overview
ince +$ction 6an+ replaced +:I Eoe+ and mini"motorbikes and
teddy bears started acting as toys the market has seen a
northward shift in sales of toys. The domestic Indian toy industry
is now worth approimately 4s. !000 crore and this important
fact goes on to rub in the fact that innovation indeed is the order
of the day. Toys unlike in the past are now sold around the year.
$t present 90 per cent of the sale happens during festivals and
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another 90 per cent during fairs and ehibitions. The remaining
#0 per cent is round"the"year sale. The industry is growing at #0
per cent annually and approimately one"third of it is
unorganized. $lso the 1hinese angle as always plays a huge role.
Their toys have flooded the market during the last few years.
old at an average price of 4s.5D" by the hawkers on the city
pavements these innovative toys find tremendous customer
interest. ,hen it comes to electronic and battery operated toys
1hina still rules the roost even though the domestic
manufacturers have hit back at them in some other categories of
toys in the recent times.
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INDIAN TOY INDUSTRY
#i/e of the IndustryIndian 'oy Industry7s market si/e is about Rs.BCrores where =BL constitutes of organi/ed sectors
and @BL constitutes of unorgani/ed sector.
4eographical
distribution "umbai$ olkata$ Chennai$ 6angalore$ Pun!ab$ etc
8utput per annum
Indian 'oy Industry is estimated at Rs.BBRs.=BB
which is dominated by approximately =B small and
ery small producers scattered across the country.
Percentage In ,orld
"arket
'he Indian toy industry is estimated at about B
million (# dollars and until now has generated only
B. per cent of the global market
"arket
Capitali/ation
'he Indian 'oy Industry is of Rs =Bcrore and is set
to grow at L due to rising demand from India and
abroad.
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Hi(")y
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CHINA TOY INDUSTRY
TAITMA has chalked ot the follo(ing line of action for
achieving the desired reslts and attaining all-rond gro(th of the
toy indstry.
To make concentrated efforts to ring all toy manfactrers
nder one common platform of TAITMA. This (ill strengthen the
Association in carrying ot its development efforts.
To make strong representations to the overnment of India to
consider inclding the toy indstry in the list of 4Priority
Indstries! in vie( of its large e*port potential and the toy
indstry@s vital role in laying strong fondation to foster the
gro(th and development of child@s imagination and edcation.
To propagate a code of ethics amongst the manfactrers
against plagiarising others ideas and prodcts.
To seek financial assistance and ssidies from availale fnding
overnment Instittions solely for the gro(th and development
of the toy indstry.$plagiarism of&
To prepare 4Toy Pro#ect 0eport! covering all developmental
aspects (ith facts and figres and e*planation of factal
prolems and recommendations. This (ill strengthen TAITMA@s
representations and demands for gro(th of toy indstry.
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To estalish ,isplay Centres for toys in the leading cities of
India.
To organise for grop advertising in leading local and foreign
ne(spapers and periodicals nder the anner of TAITMA for the
enefit of the memers to assist individal entrepreners to
advertise effectively at a ssidised cost.
To maintain a reference lirary for the enefit of memers y
sscriing to toy trade magaines plished all over the World
to enale them to keep in toch (ith latest developments.
To keep reglar correspondence (ith Indian Trade )massies in
India and to develop mtal trade enefits throgh Toy
Associations aroad.
Marketing Strategies:
With the continuous improvement of the national spending power, the
China’s toy consumption market in fast-growing trend. After china’s entryinto to the WTO, some of foreign toy companies to open up the domestic
toy market have been great progress. China toy market has also been a
certain degree of development, from the current sales data and the
capacity of the domestic toy market potential. Following the Western
developed countries and regions began to strengthen the construction of
tariff barriers, anti-dumping policies and regulations promulgated, makingChina toys sold in the overseas market conditions become more severe.
The toy enterprise in unceasing seeks the China market the breach, in
order to the establishment and the international market match China
marketing status.The thesis focuses on the analysis of Maycheong Toy
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China toy industry status, profession of various competitive forces,
Maycheong Toy in China market business development and the
advantages and disadvantages. To analyze the Maycheong toy in the China
market potential market capacity and made Maycheong toys in China
toy marketing ideas and strategies.There are totally four chapters in the
paper; Chapter one is the introduction background of the thesis. In the
Chapter two it describes on the referenced marketing related theory of
accordingly. Chapter three mainly include on Maycheong toy China toy
industry market analysis, Maycheong toy China market analysis, SWOT
analysis, Maycheong toy marketing problems in China. Chapter four is a
combination of the analysis, for the China market to draw up the toys-
products, channels, sales promotions and pricing, marketing strategies and
future development of proposals and ideas.