Key Success Factor of Educational Toy Industry - Example

Executive Summary The report examines the feasibility of developing an educational toy which will impart reading and learning skills to people who don’t have English as the native language. The research shows that developing an educational toy which facilitates in the development of a person by improving the reading and writing skills will be successful in the market as it is different from other products which are readily available in the market. This has been aided by the fact that the toy industry is growing at a rapid rate and will provide an opportunity through which the new product will be successful. The chances of the products being successful is further high as Australia has a large population of students who come from different country where English is not a native language and having a tool which will help in the development of a person will be easily accepted. This has been matched by the pricing cues which has been picked and will ensure that all section of the society is able to purchase the same. The organization also looks to develop the other marketing mix and will thereby improve the chances of the product being successful and being easily accepted in the market. Thus on the whole positive signals are found and increase the likelihood of the product being acceptable which will be better understood when a prototype of the same is tested in the market. Table of Contents Introduction 3 Australian Educational Toy Industry 3 Key Success Factor of Educational Toy Industry 4 Target Market 5 Competitor Analysis 7 Targeted Niche Market 8 Product Information 8 Marketing Mix 9 Market Feasibility of the Idea 11 Conclusion 13 References 14 Introduction Organizations to be successful over a longer period of time need to develop products or services based on the customer requirements so that the chances of acceptance of the product or services become high. This requires that organization understand the consumer wants and based on it design their products or services. The report looks to evaluate the manner in which developing an educational toy which will impart reading and learning skills to people who don’t have English as the native language. The main reason which has led towards the development of this idea is the growing demand for a product which facilitates the development of a product which will have ESL. To find out the potential the report looks at the Australian toy industry so that the demand for such tools can be identified. The report then looks to find out the targeted customers, the pricing strategy, the competitors present in the market, and other aspect of the marketing mix which will increase the chances of the products being acceptable in the market. Australian Educational Toy Industry The toy industry is showing a rapid rate of growth and is estimated to be around 84 billion dollars in 2012 (Toy Industry, 2013). The growth in the world toy industry has been replicated in Australia and is estimated to be around 15 billion dollars. The growth in the toy industry has helped in the growth of the economy as it has provided employment to over 250,000 people and is still growing. The different producers of toy have identified Australia as one of the major markets. This has thereby increased the toys which are imported from all places especially China. The availability of products from different parts of the world has intensified the degree of competition and sees the presence of different players like Hasbro, Mattel, JAKKS Pacific, LEGO, and Namco Bandai. The different product offerings by the different players’ include all type of toys including the educational ones. The growth in the Australian toy industry can be seen from the increased spending per child being made in Australia. The per child spending pattern has grown to $486 in 2010 from $401 in 2009 showing an increase in 20% which has been due to the availability of different toys which facilitates the users to simplify their lives. The different toys which are available in the market not only attract children but also grown ups as the different products which are present offers different value to the users. The future for the Australian toy industry shows positive signals as the increase in the spending pattern along with education provides an opportunity through which more and more products will be available and sold (Chawla, 2003). This has been aided by products which are educative and look to attract people of all ages thereby providing the required opportunity through which new and old players can ensure better productivity and growth in the business in the near future. Key Success Factor of Educational Toy Industry The different driving forces and key success factors which has developed the educational toy industry can be identified as follows The change in the perception of customers towards educational toys as it helps to develop the user and provides an opportunity through which the user is able to deal with the environmental factors in a better manner has increased the demand for educational toys The availability of a wide product range based on the different needs and requirements of the consumer has provided an opportunity where every customer looking for an educational toy can find one. The fact that each toy is different and helps the user is one or the other manner has increased the demand for educational toys The pricing methodology that has been adopted for the different educational toys ensures that there are products for each pocket. This ensures that every section of the society is able to find a product according to their requirements and fitting their budget Target Market The organization looks to differentiate the products from those others available in the market by concentrating on educational toys which will help people to develop their writing and reading skills especially those whose native language is not English. Since, the organization looks towards capturing a niche of the toy industry the target market has been selected accordingly and is as (Drummond and Ensor, 2001) Final User: The organization looks towards selling their products directly to the customers who are in search for educational toys which will help to develop their writing and reading skills especially those whose native language is not English. The company will look to cater to this section of the society directly through their website or through stores where the toys will be exclusively available and looks to target the end users. Wholesale Purchaser: The organization to ensure better penetration in the market also looks to use the already developed network of the whole sellers. The organization looks to sell their products to the whole sellers through which it will be sold to the retailers and finally to the end users. The process of using whole sellers ill help to ensure that the product becomes aware easily and helps to reach over a wide area The organization has thereby determined a methodology where they look to use the traditional method where products are sold from whole seller to retailers to the final user and selling the product directly to the final user. Both the method will be used by the organization to ensure that the cost remains low and provides an opportunity through which the business will be able to gain maximum efficiency (Cook & Dave, 2004). The niche market which the products looks to aim has further been segmented as below Individual: The organization looks towards selling their products directly to the customers who are in search for educational toys which will help to develop their writing and reading skills especially those whose native language is not English. The company will look to cater to this section of the society directly through their website or through stores where the toys will be exclusively available and looks to target the end users Business Houses: The organization to ensure better penetration in the market also looks to use the already developed network of the whole sellers. The organization looks to sell their products to the whole sellers through which it will be sold to the retailers and finally to the end users. The process of using whole sellers ill help to ensure that the product becomes aware easily and helps to reach over a wide area Competitor Analysis The educational toy market is highly competitive due to the presence of different players like Hasbro, Mattel, JAKKS Pacific, LEGO, and Namco Bandai. The different players present in the market have developed their products based on differentiation strategy where the products of each player is different from others thereby ensuring that the customers has a wide range of products to choose from. This has intensified the degree of competition as the products being sold in the market have something for each section of the society. The different players like Hasbro, Mattel, JAKKS Pacific, LEGO, and Namco Bandai have further ensured that they work according to the market fundamentals. This has resulted in the products to be designed in such a manner that it meets the specific requirements of the customers. To be able to attract all section of the society the products has been priced such a manner that there is very little difference between the different offerings made by different players (Chen, 2003). The new product which the organization is considering to launch is slightly different from other products which are available in the market. Since, the new products looks to develop their writing and reading skills especially those whose native language is not English will ensure differentiation from the other players and provide an opportunity through which the product will become successful in the market (Doole and Lowe, 2001). This will thereby increases the chances of the products being acceptable and ensure that the degree of competition is controlled. Targeted Niche Market The product which is developed is slightly different from others in the market as it is aimed to develop their writing and reading skills especially those whose native language is not English. Based on the specification and customer base the organization looks to target around 15% of the customers and slowly look to increase the market size as and when the product gets accepted by the people. Product Information The product which the organization has looked to provide to its targeted customer is base is slightly different from the other products available in the market as it looks to develop their writing and reading skills especially those, whose native language is not English. This has made the organization market their product Quicksmart which will help to improve the learning and reading skills. The product which the organization looks to offer is entirely different and also focuses on a different section of the society. Since, the product looks to develop their writing and reading skills especially those, whose native language is not English it will help to ensure that students and others using the product is benefitted immensely. This will thereby help to develop a platform which will ensure that the users of Quicksmart are able to understand the language better and increase their chances of being successful in the future (Clegg & Walsh, 2004). A complete manual will be provided with the educational toys which will help to guide the user of the educational toy regarding the manner in which the toy can be used. This will be facilitated by passwords to ensure that the toy is used by only authorized person and will reduce the chances of leakage. Further, the toy will also provide a link through which the company can be directly contacted and any changes which are required in the software of any sort of help which the user requires can be provided (Cable & Judge, 2006). This will help to develop the required fundamental in the product which will multiply the experience among the users of the product. The product also looks towards being packed in such a manner that the product doesn’t get destroyed when it is being transported from one place to another. This will reduce the chances of mishandling of the product and will thereby improve the relevance and use of the products. In addition to it the color and graphics has been designed in such a manner that it ensures pleasure (Duncan, 2008). The organization also looks to provide warranty and has ensured that in case the product is defective it will be replaced so that the acceptance of the product between the customers becomes acceptable. Marketing Mix The other aspect of the marketing mix is as Price: The organization has priced their products in such a manner that it fits all pockets. The organization has decided to sell the product in different parts and levels where a customer can purchase the different levels as and when required. This will help to ensure that the user has to make minimum investment while purchasing the product. This has been matched by the product that the product has been priced in such a manner that the organization doesn’t look towards very high profits (Chrisan, 2001). The mechanism of designing the pricing in such a method has multiplied the efficiency and increased the chances of the product being acceptable Promotion: To create awareness about the product the organization looks to use different forms of media to advertise their products. In addition to it the organization also plans to provide a trial version of the product so that the user can use it for a fixed period of time and based on their growth and development can choose the product which will be most beneficial for them. To create awareness about the product the organization has looked towards promoting the product in the institutes or universities so that knowledge bout the product can be spread (Chrisan, 2001). The organization also looks to use their website as a mechanism through which they will advertise about their offerings and will thereby be able to generate the required leverage through which the organization gains prominence among the people (Daniel, Charls & Joseph, 2003) Distribution: The organization has determined a methodology where they look to use the traditional method where products are sold from whole seller to retailers to the final user and selling the product directly to the final user. Both the method will be used by the organization to ensure that the cost remains low and provides an opportunity through which the business will be able to gain maximum efficiency. The organization looks towards selling their products directly to the customers who are in search for educational toys which will help to develop their writing and reading skills especially those whose native language is not English. The company will look to cater to this section of the society directly through their website or through stores where the toys will be exclusively available and looks to target the end users. The organization to ensure better penetration in the market also looks to use the already developed network of the whole sellers (Chrisan, 2001). The organization looks to sell their products to the whole sellers through which it will be sold to the retailers and finally to the end users. Thus the organization looks towards developing a process through which the product will be available in the different markets and customers. Conclusion The report thereby shows the manner in which the feasibility of developing an educational toy which will impart reading and learning skills to people who don’t have English as the native language will be successful. The research shows that developing an educational toy which facilitates in the development of a person by improving the reading and writing skills will be successful in the market as it is different from other products which are readily available in the market. This has been aided by the fact that the toy industry is growing at a rapid rate and will provide an opportunity through which the new product will be successful. The chances of the products being successful is further high as Australia has a large population of students who come from different country where English is not a native language and having a tool which will help in the development of a person will be easily accepted. This has been matched by the pricing cues which has been picked and will ensure that all section of the society is able to purchase the same. The organization also looks to develop the other marketing mix and will thereby improve the chances of the product being successful and being easily accepted in the market. Thus on the whole positive signals are found and increase the likelihood of the product being acceptable which will be better understood when a prototype of the same is tested in the market. This will help to test the product and increase the chances of the product being successful in the market. References Cable, D. & Judge, T. (2006). Person-organization fit, job choice decisions, and organizational entry. Organizational Behavior and Human Decision Processes, 67(3), 294–311 Chrisan, P. (2001). Marketing: A Behavioral Analysis, McGraw – Hill. New York Clegg, C. & Walsh, S. (2004). Change Management: Time for a change. European Journal of Work and Organizational Psychology, 13 (2), pp. 217-239 Chen, I. (2003). Understanding Customer relationship management: people, process and technology. Business Process Management Journal, 9 (5), 672-688 Chawla, A. (2003). Marketing Management for Toy Industry. Workshop on Marketing of Educational Institute, Programme and Services Cook, D. & Dave, D. (2004). Structural element of service quality product. International Journal of Business Performance Management, 6 (2), 189-207 Doole, I., and Lowe, R. (2001). International Marketing Strategy. 3rd Edition, Bedford Row, London, Thomson Daniel, C., Charls, L. & Joseph H. (2003). Marketing, 5th edition, south-western. New York. Duncan, T. (2008). Principles of Advertising & IMC, 2nd ed. New York: McGraw-Hill/Irwin Drummond, G. and Ensor, J. (2001). Strategic Marketing, planning and control, 2nd Edition, Butterworth Heinemann. Toy Industry. (2013). Statistics & Facts of Toy Industry. Retrieved on April 21, 2013 from http://www.statista.com/topics/1108/toy-industry/#chapter1 Read More