Академический Документы
Профессиональный Документы
Культура Документы
Sonam Thakur
BBA IV SEM II YEAR
ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate
enough to get support from a large number of persons. Iwish to express my
Sonam Thakur
BBA IV SEM II YEAR
CERTIFICATE
Date:
has been
Signature of the
Supervisor:
Signature of
Head of the
Department:
Signature of
the examiner
is my
Sonam Thakur
BBA IV SEM II YEAR
INTRODUCTION
Welcome 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: Toys. Toy
merchants of yester years gave shape to the creative fancies and dreams
of young ones and grow-ups alike. The world market has seen various
upheavals due to changing consumer preferences, new fads, technological
advances and trade liberalization. Countries like China have marveled the
world with their low cost manufacturing expertise while at the same time
astonished them with their quick 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 (Shatranj) and Ludo (Paasa) and sports
like cricket to video games and consoles, puzzles, and Monopoly. The
traditionally scattered market has shown signs of consolidation with the
entry of companies like Reliance ADAG and Mahindra & Mahindra who are
both expanding the market and adding sheen to it. India as a developing
economy is a hotspot for MNCs like Mattel and Hasbro which have now
become household names with Barbie and Monopoly respectively.
Big
retailers of the world which exclusively cater to this segment include Toys R
Us and Hamleys, which house the best brands of the world and add a
service dimension to toys. This document discusses the various classes of
toys, the current global scenario for toys, how China has affected the global
toy industry, Indias market and its growth prospects.
CATEGORIZATION
HISTORY
A toy is any object that can be used for play. Toys are associated
commonly withchildren and pets. Playing with toys is often thought to be an
enjoyable means of training the young for life in human society. Different
materials are used to make toys enjoyable and cuddly to both young and
old. Many items are designed to serve 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 interactive digital entertainment, such as
a video game. Some toys are produced primarily as collector's items and
are intended for display only.
The 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. The origin of the word "toy" is unknown, but it
is believed that it was first used in the 14th century.
Toys, and play in general, are important when it comes to growing up and
learning about the world around us. The young use toys and play to
discover 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, discover their identity, exercise their
minds and bodies, explore relationships, practice skills, and decorate their
living spaces.
Little horse on wheels, Ancient Greekchild's toy. From a tomb dating 950900 BCE,Kerameikos Archaeological Museum, Athens
A boy with a hoop. Hoops have long been a popular toy across a variety of
cultures.
Most young humans have been said to play with whatever they can find,
such as pine cones and rocks. Toys and games have been unearthed from
the sites of ancient civilizations. They have been written about in some of
our oldest literature. Toys excavated from the Indus valley civilization(30001500
BCE)
include
like
birds,
and
them to sacrifice the toys of their childhood to the gods. On the eve of their
wedding, young girls around fourteen would offer their dolls in a temple as
a rite of passage into adulthood.
toys are made from have changed, what toys can do has changed, but the
fact that children play with toys has not changed.
Entertainment Ltd. They are also in an association with Spin Master Ltd.
which according to NPD is the third largest toy company in North America.
Mahindra and Mahindra Mom & Me outlets across the city are operated
by Mahindra which hosts educational toys for children. It also has the
marketing rights for Lego brand of toys and soft toys from Disney. Some
small players are: Prasid Toys Pvt Ltd. Delhi based Little Genius Toys Ltd.
(Wooden Educational Toys) Leo Plast
EFFECT OF CHINA ON INDIAN TOY INDUSTRY
From a 2,000 players a few years ago, barely 800 survive today, it is
believed that nearly 40 per cent of toy companies have shut shop since
Chinese products started flooding into the Indian market. Even as the
unorganized sector has been most hit, some of the other players like
Mattel, Funskool (joint venture between MRF Tyres & Hasbro Intl),
Mahindra Intertrade (markets the Lego and Disney range of toys) and a few
others are forced to fight back with a string of innovative strategies.
Compared with an average Rs 35 per kg a Chinese toy maker spends, an
Indian manufacturer spends Rs 65 per kilogram for raw materials. High
excise duties and taxes including local taxes that vary greatly add to their
woes. Indian companies have 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 10 to 15%; others are
strengthening their distribution skills in smaller towns, where the reach of
imported toys is still limited.
INDUSTRY GROWTH
Finding the right niche marketing limited to premium segment Indian
consumers are gradually becoming less price sensitive, but are ready to
pay for something they believe has a value proposition. They are realizing
that toys help in the all round development of a child. Take the $6-billion
Mattel Inc. for instance, after a runaway success with Barbie, Hot Wheels
and Fisher Price, it has introduced the Harry Potter range of toys which
caters to the premium segment. With its Fisher Price range, Mattel is also
launching
developmental
activities
along
with
toys
associations,
pediatricians and playschools to educate parents on how toys help the child
in understanding the adult world better.
TRENDS
Online Buying
Changing Demographics
Demographic variables like greater divorce rates, due to which kids get two
sets of toys; increased buying power per child due to 2 income families;
and increasing involvement of grandparents are all influencing the growth
rate of the toys.
THREATS/HINDRANCES/CHALLENGES
Raw Material Costs There is a rise in the raw material costs, due to an
increase in the manufacturing costs for traditional toys Manufacturing Costs
Most of the traditional toys are made from plastic resin. Petroleum, whose
price is continuously increasing, is one of the main components of plastic
resin. This has a negatively impact on the manufacturing costs. Changing
Consumer preferences Nowadays, customers prefer electronic games to
traditional table games. This trend is not beneficial for the traditional game
equipment manufacturers.
Revenue of the Video Games Industries and Traditional Toys ($ in billions)
Industry
Video Games
Traditional Toys
2004
9.9
22.4
2005
10.5
22.2
2006
12.5
22.3
2007
18.9
21.2
disadvantage for them. With a large number of players in the market, only
the international brands have a strong brand recall. Here, manufacturing
competency isnt the real concern since most of the branded players
outsource their requirements from Indian manufacturers. However, lack of
marketing acumen and an expertise to cultivate brands is found to be
lacking in most indigenous companies.
their birth place, and even before they were born at the maternity
homes.When the mothers visit the doctor for the first time, they are
given 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. Within a very short period of time,
they claimed to have targeted 600,000 mothers by having tie ups with
300 pediatricians and 50 gynecologists, across the top six Indian
cities. Also, another innovative technique used by Mattel is a toy
directory which is placed in retail outlets that informs parents about
the best toy for each age group.
CASE STUDY
Mother & Me is a Retail store owned by Mahindra Group, which caters to
the need of Pregnant women, infants, toddlers, pre-schoolers & learners.
Its toys section is huge and is gaining popularity day by day. Following are
the details of its toys section:1Brands:-Fischer price, Funskool, Mattel, Lego, Disney V-tech
2Segments:-Soft toys, Wooden toys, Metal toys & Plastic toys
MANAGERS VIEWS
Following are the points which Store Managers told us. They prefer to keep
toys of price range 350 to 5000. Mother and Me use SAP for inventory
replenishment. They have kept the toys according to their type (wooden
toys at one place & soft toys at another place) rather than age group wise
(toys for 0-5 yrs at one place). According to them toys which are able to
connect to Indian traditions are highly in demand, eg. Indian Barbies.
1Maximum complaints they receive are against Chinese toys and toys
manufactured in China.
CUSTOMERS VIEWS
We received the following feedbacks from customers.
1Most of them buy toys once a month.
2Fishcer price is preferred by most of them
3Most of them prefer plastic toys over metal & Wooden toys
4Most of them are not in favour of Chinese toys despite of the low of
cost.
5Most of them were in favour of interactive toys.
6Some Customers stressed the need of toys, which inculcate the values
over the page. They can be a very efficient means of connecting holistically
with the technology savvy kids.
HORIZON HYDROCAR TOY
The hydro car is a case in point. It does not depend on batteries or
electricity. Surprisingly this car produces its own energy, running entirely
on water. It is not only Hydrocars functionality, but also its trendy, scientific
design that sets it apart.
SCRIBBLE BOTS
Scribble Bots is just 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. The Scribble bots toy can
record and recreate movement so anyone with a scribble bot can
download your drawing and their scribble bot will draw it right for them,
then and there.
MILO
The next biggest innovation in the toy world does not belong to the genre
of barbies or remote controlled cars or thought controlled machines, but a
virtual best friend. By late 2010, Microsoft would release a new add-on for
the Xbox that will replace controllers with your own body. Milo is a virtual
boy who can hold a conversation, tell when you're happy or sad, and
eventually build a relationship with you and your family members.
FUTURE STRATEGIES :
Child and parent relationship program Website and online order facility
Animated movies promotion New Computer games promotion Challenge
innovation with innovation FUTURE STRATEGIES
THE FUTURE - TOY SALES FORECAST :
THE PROSPERING INDIAN MIDDLE CLASS :
34% of the middle class families earn between Rs 80,000 and Rs 180,000
per annum High consumer spirits has led to significant growth in the toys
and games market Key concerns - Rising prices, costs of education &
medical care, and the decline in share prices The toys and games market
in India stood at Rs 29.8 billion in 2007 and were expected to reach
Rs 35.5 billion in 2008 Industry is growing @ 20% annually THE
PROSPERING INDIAN MIDDLE CLASS
Slide 14:
Maternity hospitals Play schools Pediatrician clinics High schools Shopping
malls Amusement parks WHERE TO PROMOTE? ADVERTISEMENT AND
PROMOTIONS Viral Marketing Banners & Hoardings Contests And
Quizzes Print Media 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. Each child always
looks forward to returning back to his/her home after school
hours just to be close to their favourite toy and spend time
fiddling or playing with it. Some children preserve it as closely as
if their life would depend on it. As times have changed, children's
demands for toys have changed too as now they no longer love
the usual run of the mill toys. Since 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. With these changes also have come a
large variety of toys in the industry.
Industry Overview
cent
annually
and
approximately
one-third
of
it
is
still
rules
the
roost
even
though
the
domestic
History
Rattlers, pull carts, dolls, stackers, building
blocks, stuffed toys, train sets and various toys
are the childs best friend during the long, hot
and dreary summer break. Interestingly these
products have varied range of traditional Indian
toys that are slowly coming back into vogue,
courtesy a makeover. Earlier there was time
when a clay dancing doll from Panruti (Tamil
Nadu) which were shapes of birds, animals
and musicians from Lucknow (Uttar Pradesh)
or a leather horse from Gwalior (Madhya
Pradesh) could amuse a child for hours. Today,
however, the markets are brimming with a
variety
of
factory-manufactured
toys
of
different brands.
As time passed the Barbie doll replaced the humble clay doll, while Lego
took the place of simple wooden building blocks. Like the stackers could be
used to recognize similar objects, the 'pallankuzhi' (traditional board game
played in South India) helps sharpen mental calculation abilities for children
and then the abacus improves mathematics. These days different toys are
recommended for different age groups. Thus children between one and five
years usually amuse themselves with stackers, while pre-schoolers can take
their first steps towards accounts with the help of a colorful abacus. Some
Indian NGO's have taken the lead in reviving the traditional toy-making
industry by creating toys that are a take-off on the traditional ones, but with
To
CONTENTS
PREFACE
ACKNOWLEDGEMENT
CERTIFICATE
INTRODUCTION OF TOYS
HISTORY OF TOYS
RESEARCH METHODOLOGY
CASE STUDY
SWOT ANALYSIS
SUGGESTION
LIMITATION
CONCLUSION
BIBLIOGRAPHY
ENCLOSURES