Posted at 12.18.2018
Consumer durables are a group of consumer products that don't need to be purchased frequently because they're made to keep going for an extended period of time (typically more than 3 years).
Examples of durable goods are automobiles, home appliances, gadgets, furniture, jewellery, gadgets, kitchen appliances, shoe, toys etc.
The industry considered for analysis here's 'TOY INDUSTRY'.
India has over 800 toys and game titles manufacturers, exporters and suppliers.
Most of the Toy manufacturers in India are from the unorganized sector.
Toys available in India include soft toys, dolls, digital toys, metal toys and games, plastic toys and games, educational gadgets etc.
Firm considered for research is into developing exclusively real wood handcrafted Educational playthings -'Leap n Learn'
The firm is rolling out a line of educational gadgets for children that are fun and helps in healthy development of children.
The company is a prominent manufacturer and exporter of a wide array of simple as well as imaginative Learning Playthings as well as coaching & learning products.
The firm's selection of educational toys and games include Alphabet toys, Numbers toys, Wooden Jigsaw Puzzle, Form and Color toys and games, Eye Hand coordinator Toys, Building Blocks, Wooden Wheel Gadgets, Educational Globe and so many more.
These solid wood educational toys and games are made by using good quality real wood and rubber wood employing non-toxic drinking water centered paints and are examined and accredited to safety standards.
To understand demand & supply and competitive movements in Toys and games Industry in India
To know the impact of Technology on Playthings Industry in India.
To analysis a firm
Its existing position in the market.
Demand and offer existing.
Existing strategies implemented- Marketing, Financial, Warehousing, Trading etc.
Future ideas and prospects of the company.
They are grouped into many types like the major rulers in India are the plastic toys and games which record 80% of the toy industry and it is thought to earn a profit of around 10-20% every year.
Another kind of toys available in the market are fabric playthings, paper toys and games, and wooden toys and games, metal toys and games and DIY gadgets (including arts and build playthings) that are made typically by the cottage industry.
However, out of the the metal playthings are considered to be sharpened toys which are dangerous for children and a hindrance in their security, that is why these toys are regarded as slowly but surely loosing it's level of popularity.
Another popular group of playthings seen today are educational toys and activity gadgets that assist build the mind and body of the kid, then there are very soft toys, electronic toys and games, battery operated toys and board video games like chess and monopoly.
As you know, toys and dolls do not possess a rigid geometric shape, plus they have a lot of moving parts, thus complicating the mould coming up with.
The standard procedures of mould making do not connect with toys industry.
Assembling the imported components and taking advantage of the cheap labour.
Going up fast in the worthiness string, Indian companies transfer moulds to produce and export gadgets.
With the price of moulds increasing constantly, Industry decided to design the moulds ourselves with ideas borrowed from international collaborator.
Next step is to make gadgets for international market segments with this own concepts.
The toys that are imported don't have much content, and do not face any danger.
Most importers are first-timers plus they dispose of toy imports scheduled to poor margins. Generally imports improve the domestic price factors, and they're actually good for companies.
Chinese products may be considered a threat in the foreseeable future when gadgets with good content are imported. But even then margins will not be affected.
Create a profitable company.
Develop progressive, educational gadgets.
Improve the training curve for children by using interactive toys and games.
Ensure BEST VALUE of the merchandise.
Ensure Product safe practices.
The influx of cheaper equipment from China carries on to place pressure on margins as well as enlargement of sales. Hence release large-scale promotions to make consumers aware of advantages of top quality kitchenware equipment.
Employ cost-cutting solutions to further lower prices especially during recessionary pressure.
Investing more greatly in Research and Development in order to make more ground breaking products to contend better.
"Step n Learn" has made a decision to sell direct to the consumer instead of using the traditional layered distribution system that uses wholesalers to sell to sellers.
This creates more work with "Leap n Learn" in conditions of making sales, but it offers better margins.
The organization is having limited customer base and hence as customers are aware of the merchandise and are familiar with Step n Learn's fantastic product line they continue steadily to make purchases.
The first 90 days won't see any sales as the organization will be ramping up creation and establishing sales stations.
The first year is forecasted to truly have a fairly gradual sales forecast because of the simple fact that "Leap n Learn" is a start-up organization.
Growth for yr two and yr three should be rather steep.
After yr four it is forecasted that development will continue, but at a far more sustainable rate than through the second and third calendar year.
" Leap n Learn" will use advertisements and immediate mailings to potential customers.
'Leap n Learn's 'website will be used as the main element marketing tool to deliver the products. It will be a cheap and effective approach to distributing information regarding "Leap n Learn" and its products. The web site marketing strategy is easy and straightforward. Include the URL on all printed material as well as guide it in communications with customers. In order for as many people as possible to find it, "Leap n Learn" will post the site to a wide range of search engines so even in case a perspective customer is not aware of "Leap n Learn" but knows about the product category, they will still be aimed to Jump n Learn's site.
Online purchase will ensure upsurge in demand for the merchandise and ultimately more sales.
Setting up stalls in Exhibitions will also create consciousness and give and impetus to latent demand.
"Jump n Learn" has recognized three keys to success that are instrumental in the sustainability of the business.
The need to develop creative, educational, interesting toys.
To adopt rigorous financial controls.
The need to listen to customer, effectively creating a feedback device for product improvement.
Growing disposable income
Growth of playschools
Large Inhabitants of children
Change in people's perception
Increasing awareness of quality issues
Developing mall culture
The small specific niche market educational toy industry is comprised of two market leaders and several smaller, primarily regional manufacturers.
The two main opponents are:
Jump Frog Businesses and Knowledge Universe. They have a wide product range just like - 'Step n Learn'.
"Leap n Learn" will bank on its two competitive ends (educational and engineering skills) to create educational toys and games that are fun to work with and at the same time successful at building important skills for youngsters.
The major threat experienced by the organization is the influx of low substandard playthings from Chinese manufacturers, furthermore these toys are available cheaply. They may have a variety of electronic toys which can be to some increase a cheap replacement for the firm's product range. Customers are drawn to the cosmetic value of these products and moreover they are available cheap. To gain back the lost market share and shoot newer marketplaces the firm must develop their products so that they can compete with the Chinese language product - pricewise and energy wise.
Preference among parents towards educational toys and games and video games.
Movies and Cartoon Character Toys
Entry of major foreign players.
For near to 50 years, the world's toymakers have been using vinyl fabric to make among the better known & most popular gadgets and children's products. There's reasonable with the choice: vinyl - otherwise known as PVC or polyvinyl chloride - is one of the most thouroughly tested, well-researched vinyl materials available today.
The market for educational gadgets can be split into two distinct segments:
(I) DOMESTIC MARKET
This group is parents or grandparents who are purchasing the toy for a particular child.
This segment is play groupings, schools, daycare centers, etc. , commercial businesses that are buying the product for their clients to work with.
The organization also manufactures solid wood educational toys as per client's features & designs.
These Learning Gadgets are exported to Euro, South East Asian and many other countries of the world.
3, 354, 430
3, 622, 784
3, 912, 607
4, 225, 616
4, 563, 665
3, 456, 765
3, 735, 353
4, 036, 433
4, 361, 825
4, 713, 495
Growing disposable income.
Growth of play colleges.
Large human population of children influenced.
Change in people's perception.
Increasing knowing of quality issue.
National program for development of Toy Industry.
Large level imports of toys and games from China.
Old technology and obsolete design.