Toy Company Fair...Sort of -Edited-For Appy

8/8/2019 Toy Company Fair...Sort of -Edited-For Appy

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Birla Institute of Technology, Mesra

(Noida Campus)

MBA 1st Semester

MANAGEMENT OF MANUFACTURINGSYSTEMS

T OPIC OF THE PROJECT

Role of various Managers in aToy Manufacturing Company

Submitted to : Submitted by:

Mr. B.K. JHA Mandeep Dua (4501)Garima (4505)

Aparajita Minocha (4518)

Mahak Chopra (4520)


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Pranav Mittal (4536)

INTRODUCTION TO THE TOY INDUSTRY

Industry Overview :

The toy manufacturing industry includes about 900 companies withcombined annual revenue of$5 billion. Major companies include Mattel, Hasbro, and MGAEntertainment. The industry ishighly concentrated: the top 50 companies hold 75 percent of themarket.

The industry doesn't include manufacturers of video game or computergame software.

Competitive Landscape :Growth in the population ofchildren age 12 and younger drivesdemand. The profitability ofindividual companies depends on identifying market trends andmarketing effectively. Largecompanies can offer a wide selection of toys, and have scale advantagesin purchasing,manufacturing, distributing, selling, and marketing. Small companiescompete effectively byspecializing in a product segment, such as educational toys, or responding

faster to market trends. The industry is labour-intensive.

Toy manufacturers face increasing competition from electronicentertainment for children,including video games, the Internet, TV, and other consumer electronics.Products, Operations & TechnologyMajor product segments for toys produced in the US include non-electronic toys(transportation toys and sets); electronic toys and games (video gameconsoles, excluding

game cartridges and software);children s vehicles

(scooters, wagons,excluding bikes); modeland collector sets; and non-electronic games and puzzles . Non-electronic toys account for35 percent of revenue; electronic games and toys, 20; and childrensvehicles, 15. Other productsinclude dolls; stuffed animals (also known as "plush"); action figures; anddoll clothing,accessories, and play sets.

The manufacturing process for toys differs depending on the type of toy.

Blow- or injection-moulding uses air or pressure to force heated plastic into shapes, like


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dolls and action figures. Die- casting moulds heated metal into shapes,like cars and trains. Spray painting adds colour to toys and components.Companies use various printing processes to produce game boards andgame components. Producing toys like dolls and stuffed animals is labour-intensive, and may require

sewing, stuffing, or hand painting. Companies may source toycomponents from multiplethird party manufacturers, and assemble a toy at a separate facility. Forexample, a company may buy a dolls body parts from a vendor, thenassemble, paint, dress, and package the doll at a separate facility.

Most companies produce toys through third party contractmanufacturers in the Far East,primarily China, due to low production and labour costs. Mattel, thelargest US toy company, owns production facilities in the Far East andMexico. Due to lengthy transport time, most companies must producetoys well in advance of when customers take delivery. Some largeretailers place positional orders over a year in advance. Companies usecustomer estimates, historical trends, and market conditions to scheduleproduction. Actual shipments can vary greatly from forecasts, resulting ininventory excesses or shortages. While most companies use warehousesto store inventory, many deliver large shipments directly to majorretailers.

Major raw materials include toy components, plastic, resins,paperboard, fabricated metal, zinc alloy, fabric, and electroniccomponents. Depending on the toy, companies may be sensitive to pricefluctuations in the plastic and oil-based resin markets. Some companiessource almost all components from third parties. Large companies mayhave contracts for key toy parts. Technology has greatly influenceddemand for electronic toys and toys that respond to and interact withchildren. As children gravitate toward video games and consumerelectronics at younger ages, toy manufacturers have integratedcomputers into traditional toys to improve play value and remaincompetitive. For example, sensors and computers allow robotic dogs to

move.

Although the toy industry tended to be based on small cottage

manufactories at first, the rise of the middle class in London created a

demand that led to rapid expansion of the industry in the mid-18th

century. At this point economies of scale started to come into effect, and

a number of very large manufactories were built, leading to the common

use of the term "factory".

These factories typically had a number of designers that could be called

on for any sort of work, while different parts of the building werededicated to mass production of different sorts of goods. These early


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factories were an early step on the road to the assembly line, and an

important factor in the creation of the Industrial Revolution.

OUR OBJECTIVE :

Our project deals with The Role of various Managers of the M.A.G.organization and the Management as whole.How each manger helps in making the Brick a successful product forChildren of all age groups.We have covered the Profile of the Organization, the Role of CEO and the

Various managers of the Organization.

COMPANY PROFILE :

The Founder or CEO of the M.A.G. Toy Company started this organization in 2008with a

Aim: that good play enriches a childs life and its subsequentadulthood.

With this in mind, the M.A.G. Group has developed and marketed a widerange of products, all founded on the same basic philosophy of learningand developing through play. True to its motto Only the best is goodenough the M.A.G. Group has emphasized the importance of highquality.Childs play is an ever-changing world, and the companys productdevelopment departments therefore work systematically with theevolution of familiar play themes and product lines based on researchamong children and parents into things like play habits, family patternsand housing conditions. Added to this is the fact that a combination ofsystematization, logic and unlimited creativity activates learning through

play in a very special M.A.G. way which in an age of increasing demandsupon the childs learning and ability to solve complex problems catersuniquely for tomorrows child.

The M.A.G organization deals with Production of Blocks Toys or popularlyknown as Bricks.


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Bricks Creativity- Childhood. They go together like Mickey Mouse and

Disney, wizards and Harry Potter. These bricks have been a part of

childhood for more than three generations. Nearly everyone under 50 has

played with these building blocks of imagination. There is no telling how

many engineers and scientists were spawned by these plastic building

blocks.

These toy bricks can be easily transformed into buildings, space ships,

cars, boats, trains and a myriad of other toys. The key is that the child

gets to assemble the toy from the basic building blocks. Each toy can be

assembled, disassembled and reassembled in enough new shapes and

forms to tickle the imagination and stretch the youngsters creativity.

Bricks have become The Building Blocks of Fantasy.

Bricks here are more than just building blocks. They are learning toys.

They build on favourite themes and childrens stories and allow the childto exercise his or her own imagination and creativity.

Offshoots of the basic brick include such toys and themes such as

Robotics, Star Wars, Harry Potter and many other building toys and kids'

games. It is truly amazing what a few bricks and a full measure of

imagination will produce.

THE M.A.G. GROUP:

Chief Executive Officer


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Role Of the Management Covered One by

One :

Role of CEO:

A CEO or the chief executive officer is the person who holds the company

together. So before starting off with anything we need to summarise therole of the CEO in a company.

The CEO is mainly responsible for creating a vision for the company, and

aligning the internal and external functioning of the company to this

vision.

1 The CEOs need to have integrity and vision and act as a positive role model.2 CEOs must understand that returns need to exceed their cost of capital.

3 Successful CEOs identify trends in demand well ahead of their competitors.4 Successful CEOs spend a lot of time hiring good people.

Production Manager Finance Manager Materials Manager Marketing Manager


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5 Successful CEOs are good at asking for, and listening to advice from others.

The five key attributes that need to be taken care of by a CEO are: Leading and encouraging people

Understanding the numbers Staying ahead of the trends Selecting and retaining good people, and Listening to others.

Leading and Encouraging Others

General Colin Powell once said the ripple effect of a leaders enthusiasmand optimism is awesome. He also talked about the importance of apositive attitude saying we can change things here, we can achieveawesome goals, and we can be the best.For early stage companies with limited resources, this type of proactive

attitude may mean the difference between success and failure. The CEOneeds to clearly articulate and communicate the vision and values of thecompany.Powell also said great leaders are almost always great simplifiers. The

easier it is for everyone to understand the vision, the greater chance of

acceptance and gaining commitment to it.

Understanding the Numbers

The first goal of the CEO is to make sure the company makes money, sothat the financial rewards can be shared with investors and staff. The

quote by a prominent CEO of a growing company I want my business tobe the best investment for my investors shows very strong alignmentbetween the CEO and the investors. In order to deliver strong financialperformance, great CEOs understand that there after tax returns mustalways exceed their cost of capital.Successful CEOs have a very strong focus on cash flows.

This means monitoring the cash conversion cycle.One CEO, appointed to turnaround a failing company, focused on all cash

movements and signed every cheque. This may seem extreme, but for a

cash starved company where every dollar is critical,it may be the

difference between survival and the liquidator. For larger companies,different systems are required.

Staying ahead of the Trends

Successful CEOs identify trends in demand well ahead of theircompetitors. This can result in either an opportunity to build a prosperousbusiness venture, or a costly experience if the trend disappears or fail tomaterialise. Trend opportunists need to anticipate when to change theirbusiness model or simply move on to the next opportunity. This is where

CEOs with strong industry experience are likely to be more successful.Due to their expertise and familiarity with the industry, these CEOs had


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the ability to recognise trends or patterns as they develop. They also havethe ability to fill in the missing elements, and this early recognition allowsthem to exploit the opportunity ahead of their competitors.Colin Powell said you dont know what you can get away with until youtry.It is worthwhile pursuing a trend providing the market is of sufficient

size (greater than $100 million), and there is strong customer acceptance(customer orders in hand). Acceptable financial returns (returns greaterthan the cost of capital) also need to be present. To remove some of theuncertainty, the opportunity may need to be developed on a staged basiswith specific go or no go milestones.

Selecting and Retaining Good People

Successful CEOs spend a lot of their time hiring good people. How do youpick the right people? If ten different CEOs were asked that question,there would probably be ten different answers. The majority of CEOswould probably say the qualities they look for include personality,intelligence, motivation and experience. The various rules for pickingpeople may be look for intelligence and judgement, and most critically, acapacity to anticipate, to see around corners. He also suggested that youneed high energy drive, a balanced ego, and a drive to get things done.

Thats a fairly comprehensive set of requirements.Retaining talented staff is a major challenge for CEOs, especially in thoseindustries where skill shortages exist. CEOs must continually assess theirtalent resources. People who are good in the early stages of a companysdevelopment may not be the right people for a larger company withdisciplined processes and procedures. One recurring comment from CEOs

in growth companies is that they have not brought in new people quicklyenough. For smaller companies, this is a dilemma.Sales need to be generated before adding to the back office positions.Unfortunately, the additional back office positions may be critical for theorder fulfilment process and the ongoing support of the customer.

Listening to Others

Successful CEOs are good at asking for, and listening to advice fromothers. One prominent CEO suggested that if you are building a businessyou cant know everything, so dont be afraid to ask.A lot of executives rely on a mentor for advice. In fact, 46% of the mostsenior executives, and 47% of the other executives/managers reportedhaving a mentor or role model in the company. Mentors not only act asimportant sounding boards, they are important for developing careers andcapabilities.

Successful CEOs create a climate where power and responsibilities areentrusted to intelligent and enthusiastic people. They encourage and


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empower people, but still keep a close eye on the financial detail. Withoutthe financial returns they know they wont be able to attract talentedpeople or secure funding from investors. CEOs need to establishdirection, build commitment, ensure execution and create change. Thismay sound a tall order but many successful CEOs accomplish it.

Role of Production Manager:

A production manager is involved with the planning, coordination and

control of industrial processes. A production manager ensures that goods

and services are produced efficiently; that they are of the right quality,

quantity, and cost; and that they are produced on time, to the satisfaction

of the customer, at the right price. The scope of the job depends on the

nature of the production system: jobbing production, mass production,

process production, or batch production. Many companies are involved in

several types of production, adding to the complexity of the job. Most

production managers are responsible for both human and material

resources.

Typical Work Activities

The exact nature of the work will depend on the size of the employing

organisation. However, tasks typically involve:

Overseeing the production process, drawing up a production schedule;

Ensuring that the production is cost effective;

Making sure that products are produced on time and are of good quality;

Working out the human and material resources needed;

Drafting a timescale for the job;

Estimating costs and setting the quality standards;

Monitoring the production processes and adjusting schedules as needed;

Being responsible for the selection and maintenance of equipment;

Monitoring product standards and implementing quality-control

programmes;

Liaising among different departments, e.g. suppliers, managers;

Working with managers to implement the company's policies and goals;


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Ensuring that health and safety guidelines are followed;

Supervising and motivating a team of workers;

Reviewing the performance of subordinates;

Identifying training needs.

A production manager is involved in both the pre-production (planning)

stage as well as the production (control and supervision) stage. A large

part of production management involves dealing with people, particularly

those who work in your team. Production managers are also involved with

product design and purchasing. In a small firm you may have to make

many of the decisions yourself, but in larger organisation planners,

controllers, production engineers and production supervisors will assist

you. In progressive firms, the production manager's role tends to be moreclosely integrated with other functions, such as marketing, sales and

finance.

PRODUCTION PROCESS OF BRICKS:

Where do the bricks come from, and what makes them stick together?

Now it is time to learn lots of brick basics as well as how Master Builders

and devotees make enormous creations out of tiny bricks.

Most of the brick pieces have two basic components -- studs on top andtubes on the inside. A brick's studs are slightly bigger than the spacebetween the tubes and the walls. When you press the bricks together, thestuds push the walls out and the tubes in. The material is resilient andwants to hold its original shape, so the walls and tubes press back againstthe studs. Friction also plays a role, preventing the two bricks from slidingapart. This stud-and-tube coupling system uses an interference fit --a firm, friction-based connection between two parts without the use of anadditional fastener.

All of the basic elements use this principle to stick together. They come ina range of shapes and sizes, including wheels, windows, doors and studless tiles. But the basic elements are all variations on the basic brick.

Now we come to the part where we deal with the actual production part ofthe bricks.

All of the basic brick elements start out as plastic granules composedprimarily ofacrylonitrile butadiene styrene (ABS). A highly automatedinjection moulding process turns these granules into recognizablebricks. The making of a LEGO brick requires very high temperatures andenormous pieces of equipment, so machines, rather than people, handlemost of their creation.


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When the ABS granules arrive at brick manufacturing facilities, they're vacuumed into

several storage silos. The average brick plant has about 14 silos, and each can hold 33 tons of

ABS granules. When production begins, the granules travel through tubes to the injection

moulding machines. The machines use very accurate moulds -- their precision tolerance is aslittle as 0.002 millimetres.

The machines melt the granules at temperatures of up to 450 degrees F (232 degrees C),

inject the melted ABS into moulds and apply between 25 and 150 tons of pressure. After

about seven seconds, the new brick pieces cool and fall onto a conveyor. At the end of the

conveyor, they fall into a bin.

The injection-moulding

process uses large, heavymoulds that are

manufactured in

Germany.

Moulded elements fall

into bins and wait for a

robot to carry them to

the assembly hall.

When the bin fills, the moulding machine signals a robot to pick it up and carry it to an

assembly hall. In the assembly hall, machines stamp designs onto bricks and assemble

components that require multiple pieces, like minifigures, also called minifigures. The

machines assemble the components by applying precise amounts of pressure to specific parts.


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Machines assemble components that require several pieces, like minifigures

From there, the elements go into packages, as we'll see in the next section.

Testing and Packaging

If you've bought a brick set -- whether it's a box of assorted bricks or a set meant for buildingsomething specific -- you've probably noticed that the box includes several bags of bricks

rather than a large pile of loose elements. These bags are part of the automated packaging

process, and they help make sure that the right pieces go into each box.

Finished brick elements

wait to go into

packages in a storage

facility.

Quality assurance testing

ensures that the brick parts

are durable and will stand

up to lots of play.

During the packaging process, bins open and close automatically, dropping precise numbers

of bricks into each polypropylene bag. A machine weighs these bags to make sure their

contents are correct. If a specific bag's weight is incorrect, an operator can replace that bag,

rather than having to discard an entire set.

At the end of the process, packaging operators fold the boxes, add any necessary pieces and

make sure that the machines haven't made any mistakes. The sealed boxes are stored and

shipped around the world. Quality assurance testers also perform numerous inspections and

tests on the brick set elements. Machines perform drop, torque, tension, compression, bite and

impact tests to make sure the toys are sturdy and safe. Technicians use a measuring beaker to

determine whether pieces could cause a choking hazard for small children. In the nextsection, we'll look at what you can do with all those finished bricks.


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Building with Bricks

Basic bricks are full of 90 degree angles, but finished products aren't limited to squares. With

enough 90 degree angles close enough together, you can make objects that incorporatespheres and curves. With enough bricks, you can build pretty much anything.

You can make a 2 x 2 brick with three 2 x 2 plates or a 2 x 4

brick with three 2 x 4 plates. Or, you can combine 2 x 2 bricks

and plates to make a 2 x 4 brick.

Brick sets need not be limited to just the basic bricks. New sets include customized pieces

like wings, sails and masts. Some sets may be designed for constructing models that resemble

action figures. These sets would let you turn a simple brick creation into a machine by adding

studs, axles, motors and gears, and some sets may even let you build programmable robots.

The above elements bear little resemblance to a 2 x 4 brick.

So, if you want to build something really impressive, you can buy a kit that includes all the

pieces and step-by-step instructions on how to put them together. Or, you can buy lots of

bricks in a variety of shapes and sizes, and figure out how to build them yourself. Building

from a kit is pretty easy.

Role of Finance Manager:


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1.To make investment decisions.2. To make financing decisions.3. To ensure a positive cash flow; so that cash inflows

exceed cash outflows.4. To ensure profitability; so that income exceed

expenses.5. To manage solvency.

Role of financial manager in the various functional areas are:

In planning - the role is to estimate the budget.In organising- the role is allocate the money.In staffing -the role is to determine the salaries and wages.Controlling and directing -the financial manager role is to allocate verifyand direct the funds in the right ways for the effective output.

The financial manager is responsible for planning, organizing, directing,controlling and evaluating the operations of financial and accountingdepartments. The role of financial managers is as follows:

- Development and Implementation of financial policies and systems- Establishment of performance standards- Preparation of various financial reports for senior managers

The main task of a financial manager is to supply investment advice alongwith financial planning services. Basically the financial manager helps theconsumer to maximize their net worth via appropriate asset allocation.

Financial managers usually use stocks, bonds, mutual funds and insuranceproducts to fulfil the requirements of a client. Quite a few financialmanagers accept a commission imbursement for the different types offinancial products which they negotiate for, even though "fee-based"development is gaining popularity in the market.

One of the vital services which financial managers supply is theretirement planning. The financial managers have high scale knowledge inthe field of budgeting, forecasting, taxation, asset allocation, etc. Financialmanagers may even help their client in investing for both long term aswell as short term basis.

Some of the main functions of a Finance Manager includes setting upfinancial goals, planning strategies to reach these goals, keeping a high

check on profits and loss, preparing financial reports, investing funds,monitoring cash flows, advising the rest of on mergers and acquisitions,


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accounting and auditing, developing certain kind of procedures in order tominimize financial risk and establishing lending criteria. In short, financialmanagers handle all the financial dealings and accounts of the company.

The whole lingo is to add value to the company by setting the right

financial goals. They handle all the financial accounts with rigorousauditing. They decide on how much of the company's profits should bereturned into investment and also how much should be reinvested into theorganisation. Financial managers are pillars to your new organisation or astep to the growth of your organisation.

Finance Managers do lots of thinks and look all the financial parts of thecompany. They are responsible for allocating financial resources of thecompany. They also activity take part is budgeting, risk management andfinancial reporting. Other important finance manager tasks are have aneye on profits and loss, make financial reports, making certain plans tolessen the financial risk and so on.


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Role of Materials Manager:

To provide materials, mechanical parts and processes engineering support

to business unit projects as required. To contribute to the Materials and

Processes team mission of assuring the quality of materials and processesused in products.

Main functions:

1) Act as the responsible materials engineer for one or more

project/product teams, as necessary acting as the single contact point for

the resolution of all materials and processes issues.

2) Satisfy internal customers (projects, product teams, manufacturing,

AIT, procurement, design office, PA.) through the application of specialist

materials and processes knowledge. To assure performance of planned

activities, on time and with respect to the governing product assurance

requirements.

3) Instigate and manage to completion materials and processes selection,

development, evaluation and qualification programmes.

4) Participate in risk reviews at all stages of product design, development

and manufacture, ensuring that materials and processes risk retirement

plans are carried through.

5) Prepare declared materials and processes lists and ensure that

adequate materials and processes qualification has been achieved by

CDR.

6) Review and approve subcontractor/supplier materials and processes

documentation. To monitor the technical performance of subcontractors

and suppliers and participate in audits.

7) Maintain awareness of developments in the field of materials and

processes.

As you know , the fundamental objectives of the Materials Management function ,often called thefamous 5 Rs of Materials Management, are acquisition of materials and services :

of the right quality

in the right quantity

at the right time

from the right source

at the right time


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The broad Materials function has the following as identified and interlinked sub functions:

Materials planning and control: Materials required for any operation are based on the sales forecasts andproduction plans. Planning and control is done for the materials taking into account the materials not availablefor the operation and those in hand or in pipe line. This involves estimating the individual requirements ofparts, preparing materials budget, forecasting the levels of inventories, scheduling the orders and monitoring

the performance in relation to production and sales.

Purchasing: Basically, the job of a materials manager is to provide , to the user departments right material atthe right time in right quantity of right quality at right price from the right source.

To meet these objectives the activities undertaken include selection of sources of supply, finalisation of terms ofpurchase, placement of purchase orders, follow up, maintenance of relations with vendors, approval ofpayments to vendors, evaluating, rating and developing vendors.

Stores : Once the material is delivered , its physical control , preservation , minimisation of obsolescence anddamage through timely disposal and efficient handling, maintenance of records, proper locations and stocking isdone in Stores.Inventory control : One of the powerful ways of controlling the materials is through Inventory control. Itcovers aspects such as setting inventory levels, doing various analyses such as ABC , XYZ etc ,fixingeconomic order quantities (EOQ), setting safety stock levels, lead time analysis and reporting.

Materials Management's scope is vast. Its sub functions include Materials planning and control, Purchasing,Stores and Inventory Management besides others.

Materials management can thus also be defined as a joint action of various materials activities directedtowards a common goal and that is to achieve an integrated management approach to planning, acquiring,processing and distributing production materials from the raw material state to the finished product state.

The Materials Management applications must provide the company withcapabilities for managing and controlling the State's purchasing and

accounts payable policies and accounting for the inventoried assets.

These functions include Purchasing, Accounts Payable, Fixed Assets, and

Inventory which are completely integrated within the Materials

Management system, as well as with the General Ledger and Budget

Control process.

The Materials Management portray the following fully integrated process.

Figure 5. Overview of Current Materials Management Process


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Through shared vendor and policy information, Purchasing and Accounts

Payable functions can freely communicate without the usual control issues

associated with duplication of files and batch interfaces. Accounts

Payable shares purchase order information from Purchasing and updates

the invoiced-to-date amount on the purchase order real-time. Receiptsare entered and referenced to a purchase order number, ensuring

accurate posting of deliveries to each purchase order line. Receipts that

cannot be identified or that do not fit matching criteria are identified,

placed on hold, and reported for buyer action. Each receipt is checked for

proper delivery points and verified that the quantities received and the

receipt date are within tolerances already defined on the purchase order.

Another receipt requirement, inspection of goods, is handled through

dock-to-stock tracking. This feature tracks the inspection of materials

according to a table of routing and inspection areas.

The Materials Management systems maintain accounting integrity through

integration with the General Ledger. Distribution entries from purchase

orders, Accounts Payable and Inventory issues and replenishments are

validated directly against the General Ledger. Offsetting cash, assets

accounts, and encumbrances are automated through the accounting rules

or system policies to ensure accounting accuracy.

The integration of the Materials Management functions with the budgetary

control function provides the funds-checking capability required for the

proper working of the company. All Purchasing, Accounts Payable, and

Inventory transactions (commitments, encumbrances, inventory

consumption and replenishment, and expenditures) are checked real-time

to the available funds amount calculated through budgetary control

functions. Real-time funds checking ensure expenditures are kept within

the authorized budget and provide advanced knowledge of the budgetary

status for spending decisions.


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Role of Marketing Manager:

Marketing management is a business discipline which is focused on the

practical application of marketing techniques and the management of a

firm's marketing resources and activities. Marketing managers are often

responsible for influencing the level, timing, and composition of customer

demand accepted definition of the term. In part, this is because the role of

a marketing manager can vary significantly based on a business' size,

corporate culture, and industry context. For example, in a large consumer

products company, the marketing manager may act as the overall generalmanager of his or her assigned product.

Marketing management therefore encompasses a wide variety of

functions and activities, although the marketing department itself may be

responsible for only a subset of these. Regardless of the organizational

unit of the firm responsible for managing them, marketing management

functions and activities include the following:

Marketing research and analysis

In order to make fact-based decisions regarding marketing strategy and

design effective, cost-efficient implementation programs, and firms must

possess a detailed, objective understanding of their own business and the

market in which they operate. In analyzing these issues, the discipline of

marketing management often overlaps with the related discipline of

strategic planning.

Traditionally, marketing analysis was structured into three areas:

Customer analysis, Company analysis, and Competitor analysis (so-called

"3Cs" analysis). More recently, it has become fashionable in somemarketing circles to divide these further into certain five "Cs": Customer

analysis, Company analysis, Collaborator analysis, Competitor analysis,

and analysis of the industry Context.

Department analysis is done to develop a schematic diagram for market

segmentation, breaking down the market into various constituent groups

of customers, which are called customer segments or market

segmentations. Marketing managers work to develop detailed profiles of

each segment, focusing on any number of variables that may differamong the segments: demographic, psychographic, geographic,


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behavioural, needs-benefit, and other factors may all be examined.

Marketers also attempt to track these segments' perceptions of the

various products in the market using tools such as perceptual mapping.

In company analysis, marketers focus on understanding the company's

cost structure and cost position relative to competitors, as well as working

to identify a firm's core competencies and other competitively distinct

company resources. Marketing managers may also work with the

accounting department to analyze the profits the firm is generating from

various product lines and customer accounts. The company may also

conduct periodic brand audits to assess the strength of its brands and

sources of brand equity.

The firm's collaborators may also be profiled, which may include various

suppliers, distributors and other channel partners, joint venture partners,and others. An analysis of complementary products may also be

performed if such products exist.

Marketing management employs various tools from economics and

competitive strategy to analyze the industry context in which the firm

operates. These include Porter's five forces, analysis of strategic groups of

competitors, value chain analysis and others. Depending on the industry,

the regulatory context may also be important to examine in detail.

In Competitor analysis, marketers build detailed profiles of eachcompetitor in the market, focusing especially on their relative competitive

strengths and weaknesses using SWOT analysis. Marketing managers will

examine each competitor's cost structure, sources of profits, resources

and competencies, competitive positioning and product differentiation,

degree of vertical integration, historical responses to industry

developments, and other factors.

Marketing management often finds it necessary to invest in research to

collect the data required to perform accurate marketing analysis. As such,

they often conduct market research (alternately marketing research) toobtain this information. Marketers employ a variety of techniques to

conduct market research, but some of the more common include:

Qualitative marketing research, such as focus groups

Quantitative marketing research, such as statistical surveys

Experimental techniques such as test markets

Observational techniques such as ethnographic (on-site) observation


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Marketing managers may also design and oversee various environmental

scanning and competitive intelligence processes to help identify trends

and inform the company's marketing analysis.

Marketing strategy

Once the company has obtained an adequate understanding of the

customer base and its own competitive position in the industry, marketing

managers are able to make key strategic decisions and develop a

marketing strategy designed to maximize the revenues and profits of the

firm. The selected strategy may aim for any of a variety of specific

objectives, including optimizing short-term unit margins, revenue growth,

market share, long-term profitability, or other goals.

To achieve the desired objectives, marketers typically identify one or

more target customer segments which they intend to pursue. Customer

segments are often selected as targets because they score highly on two

dimensions: 1) The segment is attractive to serve because it is large,

growing, makes frequent purchases, is not price sensitive (i.e. is willing to

pay high prices), or other factors; and 2) The company has the resources

and capabilities to compete for the segment's business, can meet their

needs better than the competition, and can do so profitably. In fact, a

commonly cited definition of marketing is simply "meeting needs

profitably.

The implication of selecting target segments is that the business will

subsequently allocate more resources to acquire and retain customers in

the target segment(s) than it will for other, non-targeted customers. In

some cases, the firm may go so far as to turn away customers that are not

in its target segment.

In conjunction with targeting decisions, marketing managers will identify

the desired positioning they want the company, product, or brand to

occupy in the target customer's mind. This positioning is often an

encapsulation of a key benefit the company's product or service offersthat is differentiated and superior to the benefits offered by competitive

products.

Ideally, a firm's positioning can be maintained over a long period of time

because the company possesses, or can develop, some form of

sustainable competitive advantage. The positioning should also be

sufficiently relevant to the target segment such that it will drive the

purchasing behaviour of target customers.


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CONCLUSION:

In the End we would like to conclude by saying that Each Manager plays

and important role in the Organization and its working.

It is the aim of the manager to do the right task in the most effective and

efficient manner to attain the goals or the target set by Organization in

right time.

And we have seen that the Huge Success of Bricks is owed to the Whole

management of the M.A.G. Organization.

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