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Group members Sanjaana Soft Toys

Register Number Index Number D.W Pathinayake 2010/ICT/083 10020837 H.B.K.A Karunarathne 2010/ICT/082 10020829

B.J Lakmali

2010/ICT/075

10020756

W.A.L.T.C Weliwita

2010/ICT/072

10020721

J.K.A.P Gihan

2010/ICT/068

10020683

eBusiness Technologies ICT2013 Group No - 7

T.G.E Perera

2010/ICT/100

10021002

Road map
Introduction Business Environment Supply Chain SWOT Analysis / P5 Analysis Competitors Business Strategies Suggested eBusiness model

Introduction
Founded in 2007 Stuffed toy manufacturer Small sized business Owner Lasanthi Rathnayake. located at Bemmulla, (gampaha District) Current number of employees - 12

The mision
Their mission is to bring the Teddy Bear to life. Their icon, the Teddy Bear brings to mind warm thoughts about our childhood, about friendship, about trust and comfort, and also about love. Sanjaana teddy Bear Workshop embodies those thoughts in how they run our business every day.

Company Environment
Staff and the Management No of Machine Operators - 08 R & D Operators 02 Quality Control Staff - 02

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Management
Established In 2007 Location Production Plant Magalegoda (Gampaha District) Warehouse Veyangoda Market Share Current Distribution Center Third Party Siyarasa Confactory

Market Strategy

Marketing Segmentation
Targeted segments Children (02-12)Teenagers (13-19),young adult parents (25-40) Females Preschool and schooling children, professional, Academics, Housewives Rs 15 000-30 0000 above 50 0000 Central, North, east, southern etc. Urban Suburban Lower, middle, upper Achievers Be excitement, childish Special day(birth days),Regular Joy, happiness, affection Positive Medium

Segmenting variables Demography Age Gender Occupation Monthly income Geographic Region Density Psychographic Social class Lifestyle Personality Behavioral Occasion Benefits Attitudes towards products Loyalty status

Positioning

Porters Generic Strategy

Differentiation Strategy
Cost Leadership
Differentiation Accessibility Availability Range of choice High Quality Island wide Coverage Differentiation Focus

Market Scope
Broad Targets

Narrow Targets

Cost Focus

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Who are the suppliers???

Who are the business partners???

Who are the dealers???

Who are the financial partners???

Who are the customers???

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Supply Chain
Cash flow

Competitors
B2B
B2C Distributor Retailer Customer

B2B

B2B

Supplier

Manufacturer

Product flow

Small factories

Well Known Companies

SWOT Analysis

Can be seen in Ja-ela Nittambuwa

DSL Lanka Private Limited Indika Dayananda Industries Dee Pee Toys Queens Soft Toys Viskam Creations The Tamarind Tree Private Limited

Strengths
Availability of skilled manpower. Innovation Skills. Availability of basic raw materials. Manufactures more than 40 types. Efficient manufacturing process. Well established demand for soft toys. less overhead costs. Maintaining Quality Parameters. Demographic Market Segmentation.

Opportunitie
Better supports from toy shops and supermarkets. Growing local market and buying capacity of customers. Possibility of extending distribution to Colombo area. Possibility of extending production to overseas.

Weaknesse Information Technology is not s

used as a strategic tool. Not using web for any purpose. Minimal expenditure on brand building and advertising. Maintaining manual quality systems.

Threats
Inconsistent raw material prices. Huge Competition. Aging Technology. Lack of Government support. No direct link to end user.

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Porters Five Forces

Bargaining Power of Suppliers

Why Bargaining Power of suppliers is High? few suppliers and lot of buyers Sanjaana Soft Toys is not a major buyer o How to Overcome?
Product Differentiation Backward Integration Reduce Monopoly of Suppliers Supply Chain Management (SCM)

Bargaining Power of Buyers

Rivalry among Existing Firms

Why Bargaining Power of Buyers is High?

Low switching cost Educated Buyers Substitutes Purchase in high volume

Competition is High Competitors are numerous Consumer switching costs are low Competitors are strategically diverse o How to face High Competition?

But their power sometimes can be low o How to Avoid? Value Added Product Differentiation Forward Integration Product Development Value Added Product Differentiation. Marketing. Targeting Niche Markets etc

Threat of New Entrants

Threat of Substitutes

Why Threat of New Entrants is High?

Proprietary materials, technology not in use Low switching cost No Government Policies Sometimes New Entrants may not be an issue o How to Avoid?
Strengthen Entry Barriers

Substitutes Rubber Toys,Wooden Toys

Why Threat of Substitutes is High?

Substitutes may be cheaper Substitute product quality Consumer switching costs are low. Superior Performance

o Strategies to reduce Threat

Product Diversification. Market Diversification. Product Bundling.

Cost Leadership etc.

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Suggested Strategies

Suggested Strategies Continued.

Expand Product Line

Analyze the competitors Talk to audience Advertise their products Set sales goals

Pricing strategies
psychological pricing strategy discounted pricing strategy

Marketing / Advertising
Media advertising
Magazine advertisements TV advertisements

Cost Leadership
Price is the most critical thing Cost cutting is a technique
Stop outsourcing embroider import raw material directly

Cash promotions
Discounts

E-Transformation

E-Transformation Counted.

Currently using approach Traditional Model

Suggested Approach
Direct to Customer model

Disadvantages
High commission fees No communication with customers Credit sales

Advantages
Cash sales No retailer commission fee Direct communication with customers Proactive decision making

Prototype Demonstration

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