New Project - Sonam - Toys

8/13/2019 New Project - Sonam - Toys

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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





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.&





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:





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



Script for advertisement



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





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

http://en.wikipedia.org/wiki/Play_(activity)

http://en.wikipedia.org/wiki/Child

http://en.wikipedia.org/wiki/Pet

http://en.wikipedia.org/wiki/Play_(activity)


http://en.wikipedia.org/wiki/Pet





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

http://en.wikipedia.org/wiki/Video_game

http://en.wikipedia.org/wiki/Collectible

http://en.wikipedia.org/wiki/Prehistoric

http://en.wikipedia.org/wiki/Infant

http://en.wikipedia.org/wiki/Animal

http://en.wikipedia.org/wiki/Froebel

http://en.wikipedia.org/wiki/Video_game

http://en.wikipedia.org/wiki/Collectible

http://en.wikipedia.org/wiki/Prehistoric

http://en.wikipedia.org/wiki/Infant

http://en.wikipedia.org/wiki/Animal

http://en.wikipedia.org/wiki/Froebel





&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

http://en.wikipedia.org/wiki/Ancient_Greece

http://en.wikipedia.org/wiki/Kerameikos

http://en.wikipedia.org/wiki/Athens

http://en.wikipedia.org/wiki/Hoop_rolling

http://en.wikipedia.org/wiki/Human_being

http://en.wikipedia.org/wiki/Game

http://en.wikipedia.org/wiki/Indus_valley_civilization

http://en.wikipedia.org/wiki/Cart

http://en.wikipedia.org/wiki/Whistle

http://en.wikipedia.org/wiki/Monkey

http://en.wikipedia.org/wiki/Clay

http://en.wikipedia.org/wiki/Ancient_Egypt

http://en.wikipedia.org/wiki/Doll


http://en.wikipedia.org/wiki/Ancient_Rome


http://en.wikipedia.org/wiki/Kerameikos

http://en.wikipedia.org/wiki/Athens

http://en.wikipedia.org/wiki/Hoop_rolling

http://en.wikipedia.org/wiki/Human_being

http://en.wikipedia.org/wiki/Game

http://en.wikipedia.org/wiki/Indus_valley_civilization

http://en.wikipedia.org/wiki/Cart

http://en.wikipedia.org/wiki/Whistle

http://en.wikipedia.org/wiki/Monkey

http://en.wikipedia.org/wiki/Clay

http://en.wikipedia.org/wiki/Ancient_Egypt



http://en.wikipedia.org/wiki/Ancient_Rome





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

http://en.wikipedia.org/wiki/Terracotta

http://en.wikipedia.org/wiki/Bow_and_arrow

http://en.wikipedia.org/wiki/Yo-yo



http://en.wikipedia.org/wiki/Dice

http://en.wikipedia.org/wiki/Rattle_(percussion_instrument)

http://en.wikipedia.org/wiki/Dish_(food)

http://en.wikipedia.org/wiki/Rock_(geology)

http://en.wikipedia.org/wiki/Wood

http://en.wikipedia.org/wiki/Grass

http://en.wikipedia.org/wiki/Plastic

http://en.wikipedia.org/wiki/Cloth

http://en.wikipedia.org/wiki/Battery_(electricity)

http://en.wikipedia.org/wiki/Mass-produced


http://en.wikipedia.org/wiki/Retailing

http://en.wikipedia.org/wiki/Egypt

http://en.wikipedia.org/wiki/Toy#cite_note-6

http://en.wikipedia.org/wiki/Terracotta

http://en.wikipedia.org/wiki/Bow_and_arrow

http://en.wikipedia.org/wiki/Yo-yo



http://en.wikipedia.org/wiki/Dice

http://en.wikipedia.org/wiki/Rattle_(percussion_instrument)

http://en.wikipedia.org/wiki/Dish_(food)

http://en.wikipedia.org/wiki/Rock_(geology)

http://en.wikipedia.org/wiki/Wood

http://en.wikipedia.org/wiki/Grass

http://en.wikipedia.org/wiki/Plastic

http://en.wikipedia.org/wiki/Cloth

http://en.wikipedia.org/wiki/Battery_(electricity)



http://en.wikipedia.org/wiki/Retailing

http://en.wikipedia.org/wiki/Egypt

http://en.wikipedia.org/wiki/Toy#cite_note-6





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

http://en.wikipedia.org/wiki/Toy#cite_note-VanPatten-7

http://en.wikipedia.org/wiki/Toy#cite_note-VanPatten-7





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





"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





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





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





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





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





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.





.

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.





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.





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





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





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





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





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





&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





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





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





"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





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.





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.







Hi(")y



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.









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

http://www.economics-papers.com/tag/china-market










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.


http://www.economics-papers.com/tag/marketing







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