...Toy industries used to manufacture toys which consisted of elements which were harmful and hazardous for health. With the onset of globalisation and spread of education parents became aware about the risks associated with the toys manufactured for children consisting of harmful chemicals. To save their market image the major toy industries took this matter seriously and recalled their products. This turned into a great opportunity for toy industrialists to manufacture toys which were environment friendly as well as for safe for children. “Robert von Goeben” took full advantage of this market scenario and established Green Toys Inc. In partnership with “Laurie Hyman”. The founders of Green Toys look after the different segments of the industry. Robert von Goeben responsible for production side of the business and Hyman as a marketing expert looked after the marketing of the products and consumer retention. This essay is about the strategies implemented by the Green Toys Inc. in order to create, diversify and sustain their market share in the toy market. There are several key methods responsible for excelling in the world toy industry. However, three factors play a vital role in the success of a toy company. The most important one is to target a particular segment of society and to retain it to create a consumer base. In 2010 Mattel successfully implemented this method and was able to increase sales of its brand “Barbie” by marketing it as a fashion statement which amused...
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...characteristics of the toy industry: 1. Seasonal Demand Demand for toys is usually correlated with festive celebrations in a country. One close example is Christmas day which falls in December annually. Coincide with this celebration, significant portion of the toy’s annual sales usually happen towards the end of the year especially in those countries that are dominated by those that celebrate Christmas. The impacts of the seasonal pattern towards the industry are critical as most manufacturers have to consider several factors that lead to sales. The huge demand at certain period of time requires thoughtful planning and smooth execution as minor mistakes can lead to loss of millions of sales value. Just imagine within short period of time toy manufacturers have to produce millions of toys. This requires good management of supplies and synchronization between supplies and production as to minimize costs and ensuring efficiency. Not to forget issues of quality management and lastly the impacts or magnitude of logistic management to the toy manufacturers. 2. Stiff Competition Basically the toy industry consists of many players. As stated in the case, there are 880 companies operated in the industry in 2002. This is 10% lesser than 1997. There are few Key players in the industry such as Mattel, Hasbro, RC2, JAAKS Pacific, Marvel and Lego. In term of sales only two companies managed to register USD1 billion marks, the company are, Mattel and Hasbro. The combined sales of this two...
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...seasonal industry : There is continues changes in trends, media, fashion and technology that can affect play preferences of end users and cause sudden shift in demand of Jots products. According to what mentioned in TIE “The success of the toy sector is dependent on satisfying customer needs. As children’s wishes for toys change rapidly, the industry needs to constantly introduce new products to meet these changing desires. The toy industry invests heavily in market analysis, R&D and the protection of intellectual property. The toy industry is one of the most dynamic business sectors in Europe: approximately 60% of toys on the market each year are newly developed products. In 2011, more than 90% of toy companies operating in Europe put new products on the market. This compares to less than 40% in other industry sectors”. The current trend in toy sales is towards electronic toys and computer assisted learning, electronic toys and merchandise from popular films and TV programmes have seen reasonable growth. As level of sales depend on how customers will perceive the products the company`s level of sales will be negatively affected if it unsuccessfully anticipated those preferences. As result Jot will end up with underproduction of highly demanded toys and the overproduction of toys that do not complement with consumer play preferences. However, fashion trends are difficult to predict and toy retailers can be left with large volumes of unsold inventories if the toys are unpopular...
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...Capabilities Group 1 – Phase 2 Report Overall Situation: As the world’s largest toy company, Mattel is a seasoned veteran within the industry. It is well known for brands like Barbie, Fisher Price, American Girl, and Hot Wheels and, moreover, new product lines like Max Steel and Monster High have quickly found success. Despite its command of the toy industry, Mattel faces competition from companies like Hasbro, JAKKS Pacific, and LEGO. Nonetheless, Mattel is poised for continued growth through expansion and investment into developing markets like Latin America, Russia, China, and India and, further, through its acquisition of smaller, more specialized companies. Mattel must better monitor its product quality and brand image in these developing markets and, moreover, strive to better deliver on its vision and promise of creating the future of play. Issues: • Vision: Mattel has a strong vision, “creating the future of play” and despite successful toys, does not necessarily deliver on the “future” element of that vision. • Technology: Mattel has its “toys and dolls” tradition but needs to successfully integrate technology moving forward; this is an extension of the above issue. Fig., 2. • Competition: As with most consumer goods, shoppers are looking for the next “it” thing. Thus, Mattel will continue to face tough competition from rivals and new entrants. Fig., 10. • Economy: As with any economic downturn, sales have struggled. Figs., 5, 9. • Image: In 2007, Mattel recalled more than 18...
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...------------------------------------------------- As a wide range of cheap Chinese products flooded the Indian market, some local industries were adversely affected, while others benefitted by using these products as raw materials. Discuss the advantages and disadvantages of allowing Chinese products into India. Providing trade data, give examples of industries that benefit and those that are affected by Chinese imports. How can the Indian industries that are threatened by cheap Chinese imports deal with the threat? Introduction It is never less than a challenge to attempt to understand the cultural factors which influence a nation’s conduct in the international arena. When that nation is China and the subject of introspection is its relations with India, such an endeavour can at best be fraught with far too many variables. The two have had the longest uninterrupted existence as nations. Their combined size and population makes them the largest geographical and human resource mass on the planet. India and China have had cultural, religious and trade links going back centuries in history. They also came into being as nation states almost simultaneously in this century, They also share a past of colonial and imperialist subjugation from which freedom had to be won with a major struggle, Paradoxically enough, the two countries fought a war with each other over disputed frontiers. That conflict episode, the continuing border dispute between the two countries and China’s rapid...
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...CASE: MATTEL AND TOY RECALLS Toy Industry Our presentation started with the industry introduction. Based on the case, toy industry was growing if we compared the results with the previous year. In 2007, the global toy market was around $71 billion business. Though 36% of the market was on the hands of North America, the growth pace was slower than Asia. Especially in China and India it was estimated that market would increase 25% more than previous year. The toy industry in USA had about 880 companies. Dominant players were Mattel, Hasbro, RC2, JAAKS Pacific, Marvel, and Lego. Moreover, big retailers were entering to the market under their own brand names creating threat for existing toy companies. Toy market categorized many segments in USA market, among them infant/preschool toy segment was the largest and stagnant. Noticeable growth occurred in youth electronics and video games. Production of the toys concentrated in China with 60%. Company Information Mattel, Inc. founded by Harold Matson and Elliot Handler at a garage in 1944. The company name was generated by using letters from founders’ last and first names. Mattel’s first products were picture frames and doll house furniture. Barbie doll was introduced in 1959 and Ken product followed it. With these products, Mattel guaranteed its growth. Hot Wheels product established Mattel’s position as an industry leader. Company’s products were organized in 3 different business groups: Mattel Girls & Boys Brands, Fisher Price...
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...range of toys backed up by IPRs launches 5 new goods per year the products are unique due to new technology electronic chip components. new designers bought in each year leading to innovation understanding and commitment between outsourced manufacturers good system of CAD CAM, between co. and manufacturer ------------------------------------------------------------------------------------------------------------- Only focused on two age groups They are not confident about catering to other age groups and responding to rivalry. Loan financed business, risk of raising money when required. The design and production process is long all manufacturers are small and only in China nowhere else no manufacturer dedicated alone to Jot. Handling other customers too focus is mostly put on the Unit price for manufacturers to meet gross profit req. delivery system is slow to asia http://www.scribd.com/doc/124131757/swot-analysis-sample-of-toy-industry http://www.cimaglobal.com/Documents/Student%20docs/2010%20syllabus%20docs/T4/T4%20AS%20analysis.pdf ==================== PEST ------------------------------------------------- http://businessworld-asif9ca.blogspot.ae/2011/07/pestel-analysis-unilever-global.html http://ec.europa.eu/enterprise/sectors/toys/ http://kimarketingintl.com/hot-new-toys-trends-from-toy-fair-2012/ http://www.key4communications.com/en/toys/analisis/the-european-toy-industry_91.html ECONOMIC The European Union is the largest toy market...
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...more than the toy truck that we all grew to love. Mound Metalcraft was created in 1946 in the small town of Mound, Minnesota by Lynne E. Bake, Avery F. Crouse and Alvin F. Tesch. The first products produced by the young company were two versions of a metal tie rack, and the founders had originally planned on manufacturing garden equipment. The former occupant of their building, Streater Company, had made and patented several toys. Mr. Streater was not interested in the toy business and approached the three men at Mound Metalcraft. The three men at Mound Metalcraft thought they might make a good side business to complement their other products. After some slight modifications to the design by Alvin Tesch and the addition of a new logo, the word Tonka, which means “great” or “big”, was born and the company began selling metal toys. Soon enough, this became their primary business and in 1955 the company changed their name from Mound Metalcraft to Tonka Incorporated. Fast-forward 30-years, Tonka had become the 5th largest toy company in the United States with sales exceeding 293 million a year and net profit of 22 million, which was unprecedented in the toy industry at the time. In 1983, the top five toy companies in the United States were responsible for 32.7 % of total sales. By 1986, that number had reached 44.2 %. Nonetheless, capturing market share was no easy task, with over 800 toy companies in the United States. Only the largest of these toy companies were...
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...G.I. Joe has been a brand in the market for toys since its launch in 1964 with $3 billion in sales over the last 20 years, with 16% of the market share. Despite the brands success the GI Joe is positioned as a physical product, as appose to an all-encompassing brand and the toy market has volatile sales depending upon trends created by consumer demand. Hasbro is now challenged to take the G.I. Joe brand to the next level and market it in such a way that will allow the brand continues to thrive while preserving the brands legacy. One major issue facing G.I. Joe besides their competitor Barbie (Mattel) is that the industry has changed drastically in the last decade. The target customer for G.I. Joe is a shrinking market due to technologically savvy youths who prefer playing electronic games as opposed to playing with action figures. In addition, lifecycles within the industry are also getting weak, with 70% of sales belonging to toys released within the last 3 to 4 years. Manufacturers have also adopted a more short-term goal oriented strategy based on the creation of the “instant gratification” attitude among their target market. Retailers have joined manufacturers in shifting their strategies to focus on multipurpose department stores as the primary location to purchase toys, with the top five players comprising 75% of sales of toys in 2003. This has a major effect on one of Hasbro’s core strengths (see appendix) a unique relationship with retailers which is a key asset to...
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...Relevant Facts Toys “R” Us first told the public about their decision to enter the Japanese toy market in 1989. A lot of critics worried that Toys “R” Us would not be successful in this new and foreign market. They raised several issues that they believed proved the Japanese market was not ready for the marketing and retailing strategy that Toys “R” Us offered. They stated that the Japanese culture and beliefs were too different from that of the United States and Europe for Toys “R” Us to be successful. Toys “R” Us incorporates a “category killer” strategy (Johansson 181). In this marketing strategy they use mass advertising in order to make brand recognition, which in turn helps consumers remember and want to shop at their store. They also discount some of the popular items at certain times which give the consumer the impression that everything at their store is inexpensive or discounted. Some critics said that this strategy would clash with the Japanese consumers, since Toys “R” Us competes on price and the Japanese culture links quality with price. Another concern was that Toys “R” Us Japan would not be able to get ample permission and space to build their large toy stores. Toys “R” Us has a policy that none of their stores can be less than 3,000 square feet. This is a problem when entering the Japanese market because they have laws against big stores and land is so expensive. Also some Japanese toy manufacturers said that they would not sell directly to Toys “R” Us, but...
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...in new locations. Financial Ratios: Short-term solvency or liquidity, ratios: Current Ratio = current assets / current liabilities 1.4469 Quick Ratio = current assets – inventory / current liabilities .8654 Cash Ratio = Cash / current liabilities .5403 Long-term solvency, or financial leverage ratios: Total debt ratio = Total assets-total equity / total assets .4412 Debt-equity ratio = total debt / total equity .7895 Equity multiplier = total assets/total equity 1.7895 Asset utilization, or turnover, ratios: Inventory turnover = cost of goods sold / inventory 5.3466 Days’ of sales in inventory = 365 days / inventory turnover 68.2677 Receivables turnover = sales/ accounts receivables 56.4504 Days’ sales in receivables = 365/ receivables turnover 6.4659 Total asset turnover = sales/total assets 1.5587 Capital intensity = total assets / sales .6415 Profitable Ratios:...
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...Hasbro, Inc Strategic Management Project MBA 670 Executive Summary & Introduction Corporate Description Company & Industry Description History of the Firm In 1923, two brothers who migrated from Poland started a small business by selling textile remnants. In 1926, the Hassenfeld’s officially organized what is known today as Hasbro Inc. In the 1940’s, the brother duo expanded by offering pencil boxes and school supplies. By 1950, they were ready to leap into another market by introducing its novelty toy, “Mr. Potato Head”. GI Joe was introduced in 1963 producing revenue sells in excess of 28 million dollars the next two years after Hasbro spent nearly 2 million in TV ads (Miller 1998). In addition to toys, Hasbro develops games most notably Monopoly which was first introduced in 1935. Decades later, Hasbro continues to be innovative with product design, introduction of new products, developing brand recognition to maintain being a leader in the game and toy industry. Ownership Characteristics Hasbro Inc is a publicly traded company in the NYSE. Alan Hassenfeld, Chairman of the Board of Hasbro Inc., owns about 4% in shares of the company; while other corporations such as The State Street Corporation and Barkley’s Global Investors UK Holding LTD are the major institutional stockholders and each own approximately 6% of the company. While there are other private stockholders owning significant amount of shares in the company, most of the...
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...Toys “R” Us Japan Answer1: Is Japan a good market for Toys “R” Us? CAGE Framework Cultural: * Lavish spending on children’s toys and clothes to compensate for constant pressure to excel in school * Greater preference to personal attention and guaranteed repair rather than low prices * But the younger generation owing to a greater international exposure realized that they were paying greater prices for many consumer goods compared to global standard * Cultural shift from taking over parents small shops to experimenting with bolder ventures * Principle of loyalty to manufacturers was strong in wholesaling and retailing Figure1: with the falling birth rate and fewer mouths to feed, the Japanese families are shifting from spending on food to recreation Geographic: * Japan comes as a natural progression after expansion in Singapore and Hong Kong because of cultural similarities and Japan also being a developed economy * Distance is an irrelevant factor considering that there is no exports or procurement of raw materials from other locations Economic: * Figure2 :Geographic Progression The 2nd largest toy market , Japan’s retail sales grew by 94% during 1980’s and GDP is growing at an annual rate of 7% * Falling birth rate allowed parents to focus spending on fewer children * Undercutting and first mover advantage can help them gain greater sales and a competitive advantage Administrative: By sheer numbers the country’s...
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...STRATEGIC FINANCE COLECO CASE TOY STORY Coleco INC. Profile • • • • • • • Name – Coleco Industries Time – the end of 1980s Industry – toys Market - USA Market share – the fifth-largest manufacturer in the USA Head quarter - West HartFord, Connecticut Production line – Cabbage Patch Kids Plush Alf dolls and puppets Couch Potato Pals Play sets (The Flintstones,Sesame Street, Sylvanian Families) • • Company`s issue - annual sales were behind expectations negative equity position of $84 million The challenge - to determine whether the company’s capital could be restructured in a way that would satisfy its creditors without diluting the stock any further than was necessary Product line Economy and Industry Analysis 1988 • the economy - raising • unemployment and interest rates – low • demographic factors favorable • interest rate is decreasing • debt is becoming cheaper Economy Industry • favorable conditions toy industry • approximately 800 toy companies in the United States • diversification for reducing sales and profit volatility - only for the biggest companies Sales of Coleco and its Major Competitors • In millions USD 1400 1200 1000 800 600 400 Coleco Hasbro Kenner Parker Mattel Tonka 200 0 Company Analysis Sales growth 40,00% 30,00% 20,00% 10,00% 0,00% -10,00% -20,00% -30,00% -40,00% 1983 1984 1985 1986 1987 Company Analysis Current ratio 3,00 2,50 2,00 1,50 Very fluctuating 1,00 0,50 0,00 1981...
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...products. Sanrio Company, Ltd., based in Tokyo and with distribution throughout Japan and Southeast Asia, the Americas and Europe. In the Americas today, over 4,000 stores to sell Sanrio character merchandise. This includes Sanrio boutique stores Sanrio merchandise has many different kinds of categories including stationery, school supplies, bags, accessories, room décor, candy, and plush characters. The global toys and games market grew by 2.7% in 2008 to reach a value of $60.8 billion. In 2013, the global toys and games market is forecast to have a value of $69.1 billion, an increase of 13.7% since 2008. Sanrio’s marketing strategy is to raise the sale revenues in the increasing market condition as well as to maintain our loyal customers and attract more male customers; Sanrio will create different kinds of images of products to fit into different range of age, and repackage the old neutral characters such as Badtz-Maru (a male penguin), Keroppi(a frog), Shinkansen (a bullet train) to increase the male market on the seasonal promotion. There are so many competitors in the industry. Therefore, Sanrio’s products must be fresh and various thereby increase the competitiveness. Sanrio’s price strategy is conservative; it sets the price range similar with the main competitors. The promotion budget is around $313000 which includes advertising and...
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