Amity Business School

Toys Specialty Store

By Nadir Hashmi Abhishek Bathla Arjun Mitra Aamir Saleem Aviratan Kumar

Introduction

Amity Business School

The Indian toy industry is estimated at about 850 million US dollars ie 0.5% of global market. 15% growth is expected, owing to the growing middle class and increasing demand for quality and luxury goods. India has more than 800 toy manufacturers, exporters and suppliers. 60% of the market is handled by Indian manufacturers and foreign companies with subsidiaries in India. The figures for the retail toy trade are similar: As much as 65 per cent, i.e. 547.4 million US dollars, is handled by the non-organized sector, but a shift towards the organized retail trade is clearly recognizable.

Reason for segment Amity Business School

Given the strong appetite for branded toys and high quality products in the metro regions, we wish to set up a toys specialty store - Toys Wonderland The target would be middle income and upper middle income groups. With a market share of 547 million USD, unorganized sector is flourishing, and there is a huge potential for an organized store to cater to affluent and middle class consumers.

Retail Format

Amity Business School

Toys Wonderland is a specialty store that shall focus on providing a number of different products to suit the play needs of children. For children aged two to three there shall be the widest range of toys Since the consumer expenditure focuses around the 6-8 year olds, all related branded and licensed merchandise shall be available. The store size would be approximately 10000 sq feet Proximity to food court shall be preferred.

Store Location and Trade Area

Amity Business School

Store shall be located in Wave city center, sector 32, Noida The primary area would be spread across a radius of 6-8km, with a school, hospital, and several residential complexes in the vicinity. The secondary area would be spread a further 2kms radius. And tertiary area would be upto 12km and cover tourist attractions like Kalindi Kunj, Appu Ghar, Akshardham temple etc The store shall be set up in close proximity to food court, to promote cross buying.

Retail Layout

Amity Business School

The store layout shall be spine type, with a central path running across the store to promote exploring. There shall be grid layout within the different sections to make it easy to spot the merchandise. The sections shall be divided based on age groups, and gender. There shall be a demonstration area in front of the payment counter for electronic toys There shall be two cash counters and a return/demonstration counter, to manage high volume of customers in peak traffic. The store walls shall be bright colored and attractive.

Store Layout

Amity Business School

Retail Price & Communication Strategy

Amity Business School

Trained staff shall be employed, as many first-time buyers will seek advice on what toys are suitable. The higher level of personal service will encourage word of mouth promotion. Leaflets shall be distributed to target potential customers, e.g. in ante-natal clinics, nurseries, doctors and dental surgeries and mother and toddler groups. There shall also be limited TV scroll advertisements during popular cartoon shows, just ahead of festive season to promote the store. Margins shall be around 40% to ensure the coverage of overheads and to allow modest growth The pricing shall be competitive to the organized stores operating within the membership of Toy Association of India.

Merchandise Management

Amity Business School

The merchandise would be sorted in descending order of age groups. Boys Toys shall be provided on the left and Girls Toys shall be on the right hand side of the cash counter. Toys will range from :
Rattles, squeaky toys and balls for babies (0-12 months) Pull-along toys, dolls, finger paints, soft toys and crayons for toddlers (1-3 years) Construction kits, train sets and puzzles for pre-school children (3-5 years) Bat and ball games, pencil sets, coloring sets, craft and hobby kits and musical instruments for children of school age (5 years and upwards). Action figures, play-sets, games and collectables as well as radio controlled and out-door toys for older children.

Amity Business School

Thank you!