Business Plan for Toy Shop

BUSIENSS aim FOR TOY SHOP BUSINESS PLAN KIDZONE TOY STORE Submitted by Ajit Mangarulkar Vishwanath Patil Piyush Borde Kunal Dalal Yogendra Bhosale Rahul Tayade Overview of the Industry INTRODUCTION The toy industry mainly concentrated in and roughly the metropolitan cities of New Delhi and Mumbai in India, is characterized by sm every-scale establishments. Of late, the toy industry has been internationalized. The application of new materials and technologies allow added value to the variety of the toys. Today, the subroutine of toys is unlimited.They atomic number 18 used for decorations by adults and for education & act by babyren. Toys ar too being used for entertainment and claw development. elastic toys, along with soft toys (mainly dolls) and come along games, make up about 80% of the Indian foodstuff in value terms. The change that is discernible is the d ingestfall in Importance of board games ( anformer(a)(prenominal) than puzzles), which involve play by a group of children. Those in the trade argue that, with smaller family size today and the growing incidence of both scoreents working, there is little scope for board games, which families used to traditionally play together.The emphasis these long cartridge clip is much to a greater extent on toys, with which a child crowd out play on his/her own. marketplace Dynamics of the Indian Toy Trade The Indian toy market exhibits some of the characteristics common to any toy market while others mother uniquely the Indian character. Individual toys have a short purport cycle. There is a constant need for novelty. Consumer admirations change rapidly. Resurrection of old toys does non work a new content has to be added or altered. These rules, in general, apply to most toy markets internationally. In addition, the Indian market has its own angularities.Toy gross revenue in India have well defined seasonal patterns concurrent with the festival season. Generally, the prison term t erminus from July to November is the high season with temporary surges in some States in December & March. Toy selling in India often involves selling to 3 individuals simultaneously, videlicet the child, who ordain use the toy, the mother, who is implicated with safety, space to play, etc. and the father who controls the purse strings. The market is also passing price sensitive. This trend has been reinforced by the intromission of large-scale imports of bum and novel toys from china.These have mostly been unbranded, of low priced and in discordent quality toys. The past decade has seen the Indian toy industry making quick strides in terms of harvest-timeion and exports. At present, India produces a wide range of toys, namely plastic and mechanical activity toys, plastic and soft dolls, stuffed toys, board games, puzzles, educational games and toys, metal toys, electronic toys and games. It is estimated that the toy convergenceion in India is around INR 5. 50 billion i n the organized sector and INR 12. 50 billion in the unorganized sector with nearly 20% annual average maturation rate.There are more than 3000 units in the small-scale sector including large deem of units in the cottage sector. Some large/MNCs toy units like the Mattel, Lego and Funskool are also present in India. With international quality toys avail able in India now, the average spending on toys has increased substantially and this process is back up by an increase in disposable income at the customer end. admission To every child, presenting a toy creates a exceptional attachment surrounded by the two. We intend to satisfy the needs of the children mainly aged downstairs 10yrs. y having an KIDZONE as a part of organized sell, catering to almost all the trifling requirements of kids. Service bequeath be angiotensin converting enzyme of our main cerebrate field of forces wherein we intend to have a play n feel the toys regulate attracting the kids to enjoy with toy s. This facility depart give a real cutaneous senses of amusement to children, hence attracting the kids and parents towards it. Thereafter we will also hand over a babysitting facility for parents deceiveping throughout the mall and in the interim the trifling needs of babies will be taken care of.Secondly, we will focus on disintermediation of assurement channel by directly sourcing the und oneness crossways from the toy manufacturers mainly from mainland China & other manufacturers from India. Most significantly we are looking forward to revolutionize the toy industry by having merged quality with fun wherein all the safety issues would be taken care ensuring the source of playfulness not becoming a psychoneurotic item. Above all our long term goal is to make our retail outlets as a brand name well recognized in toy industry and increase the organized retail market dowry in toys segment.Management Team Vishwanath Patil Ajit Mangarulkar Piyush Borde Yogendra Bhosal e Kunal Dalal Marketing Plan SWOT Analysis Strengths Our byplay would convey touch & feel factor to the child We would impart child caring facility in our retention where the parents can go away their child and go for crapping which will in turn run short to sales by having child for more time of days in discloses & can be inclined or fascinated to any of the toy handsome & Growing Population (Market Size data to found out) come along group between 0-8 eld Maximum Loyalty towards shitDemonstration Effect high Margins due to large imports from China, Hong Kong & other countries Wide range of harvest-times to elect Fewer bargains for the produces Increase in disposable income of middle class impuissance Emotional attachment towards toy which pebibytes to non repetitive buying Price sensibility market Safety Issue in terms of lead contain, acerbity of toys etc Individual toy have shorter life cycle & consumer taste changes rapidly Opportunity Untap ped organized sector which consists of only 10% of total toy industry. Better support from governmentDemand for Educational toy in the market Threats Due to large expansion of Mall Culture, there is increase in competition from the players Big Fish with deep pockets will able to sell products at competitive price (Entry of global brands) Marketing scuffle The marketing mix is often summarized as the four Ps Product, Price, Place and Promotion. Product The type of product that would be placed in the retentiveness will be dependent on the age group. During the sign period the store would cater to age group of from the day child is born to 8 eld.The later as the store expands and capital is generated the store would cater to toys catering to people with age more than 8 years and toys for adult. The product that will be defined inwardly age group is as follows 0-24 months Teethers, squeaks, Tomy, balls, soft toys, baby education toys and others. Photos of some of products are aba ndoned beneath. 2 years to 4 years puzzles, cars, Helicopters Photos of some of products are shown below 4years to 6 years Magic tricks, electronic cars and helicopters, electronic gadgets and toys of film stars and other famous personality, famous cartoon character, Barbie & others.Photos of some of products are shown below 6years to 8 years Tricycles, Bicycles, and other ride on toys. Apart from that the melodic toys and electrical operated toys will also be placed in the shelves 8 years to 10 years Board room games, chess and other family games would be the major attraction The stuffed toys and Plush toys would be all time major attraction towards the customers. The above mentioned is only a part of full list of offerings offered by the store. The main unique selling proposition would be the Indian touch in toys.We will also try to procure the toys of famous personalities all time legends like Shahrukh Khan from film industry, Dhirubhai Ambani from business,Narayan Karthike yan from F1 pelt along like all the famous personalities in their respective fields will be incorporated as toys. The toys projected in any of Bollywood and Hollywood industry will also be major attraction for the customers. We will try to innovate and help suppliers to also make customized product if viable and thereby change magnitude the revenues.The key to business will be constant innovation in all product ranges. Price The price of the product sell in the shop will depend on the sourcing and also the total cost of procurement. In the initial years of opening of shop we will not be having competitive pricing further the prices would be at par with other competitors in the market. After years of encounter in the business and due to strong hold with the suppliers, we will be having a bargaining power with the suppliers and will try to sell product at lower prices compared to competitor.We will be having Lowest Prices in the town in one of product everyday to attract as um teen customers as possible. Moreover the product would be selling at par with our costing, so we wont be able to generate from the product sold at lowest prices. The whole list of prices with the name of the product is attached in the annexure 8. Place The majority of the product would be procured from China and also some of the product would be procured from India itself. The main source from India would be Chennai, Noida and Mumbai. The sourcing from China would be in terms of imports via sea route.The cost of procuring of the product is already been included in the financials. The time for procurement of goods would be fetching near around 28 days from the day of placing of assure from China and the procurement from Chennai or Noida will take maximum four days and from Mumbai it would take one day lead time. The toys would be stock in the store itself there wont be any special storage place or another location of the toys. The toys would be right away available to the customer s on demand if stock is available. PromotionThe less perspiration would be required in terms of promotion as the store will be located in Thane East But lock promotion will be required to create a go in the metropolis which would be carried out be two means. 1) sucker Ads in local newspaper. As maximum people in Maharashtra are habituated of reading of local newspaper, so the ads would be attached in local newspaper on repetitive basis. The ads will also be given in other non local newspaper but frequency of ads would differ in both the cases. 2) Advertisement would be carried out in radio set stations. Continuous announcement would be given in all star(p) radio stations like Radio Mirchi and Big FM. ) Distributions of pamphlets would also be one of the marketing strategies for carrying out promotion. As in the initial period it is not possible to be present in all the malls, so distribution of pamphlets in all the malls will be carried out on weekly basis. 4) All this pro motion will in turn lead to Word of mouth marketing 5) In later stages of business the viral marketing will also be carried out. OPERATION PLAN localisation The location selected for opening an outlet is THANE (Maharashtra). Thane is the largest city in the state of Maharashtra and the The city is witnessing a major construction boom and population increase.A rising focus of education, information technology and scientific industries, Thane remains the cultural and commercial affection of Maharashtra, and much of western India. The main reason behind selection of this city is the city is developing stage & we witness tremendous hazard in the coming years. The real estate boom will be going to come in the city so we dont wont to miss the opportunity to be there within couple of years. The reason for selection of the city is its proximity to MUMBAI. The proximity to the city will help in reducing the transportation cost and increasing overall efficiency and savings in operations .Type of Building The location of the shop would be in the shop in Thane (East). Amount of Space The heart of space essential would be around 2000 sq feet of area which would be more or less compared to any retail chains. The amount of space needed would be targeted in malls in the basement near around the entry of Reliance and Big Bazaar shops. We targeted the basement due to its cost effectiveness. The shop would be lease for 5 year period for the initial direct and then if needed would be bought out. The general lease rental of the area in Thane (East) is around Rs. 30000 per month. Other DetailsThe business hours of the shop would last from 10am to 10pm as major. We see the quantifys to be getting extended at weekends. Moreover the timing would be subjected to the change. Lead Time The main source of supplier would be from the Shantou in China and from Shanghai in China. The other supplier from India would be the Hanung toys in Noida, Mattel Inc. in Chennai and also the Funs kool India Ltd in Chennai. The cost of transport of consignment from China to India ranges from 428 USD to 600 USD depending on the date of rolling. The other cost of transportation from Mumbai to Thane would be around 2000 INR.The cost of procurement of consignment from Mumbai to Thane would be is 3000INR and from Delhi/Noida it is around 8000 INR. So the lead time if calculated to import from toys from China would be around one month and from procurement from India only it would take around one week from farthest place i. e. Chennai in India for procurement of toys. Sales adhesion Due to prime location of the shop in the malls we expect the sales to be reaching high in the weekends and also in the festivals. This routine comes from the fact that out of 15000 people visiting Thane East daily on an average, around 82% are parents and remaining are youth.So out of 82% of total population we average that around 35% of parents would be with child who comes for the shopping. As ment ioned that we shall be a unique adventure in the shop as a contend area in particular allotted for the kids to play with the toys which ever they demand out of majority of samples placed in playing area. The other advantage is that the child would be taken care of specially trained employees and all this package would come for free. We expect the shopping time taken by any parents would be around 1 hour.So we provide facility for parents to leave their child to play in the shop and if they want they can buy the toy. We rely on the fact provided by the doctors that one hour is enough for a child up to 6 years to get addicted with the toy. Hence as a child gets addicted to play with the toy, they would force parents for purchase of same toy. We only expect 75 customers to get converted out of minimum 1500 people visiting per hour (which is around just 5% of total customers visited in the mall. ) The other antecedent for increase in the sales would be the festivals and also the Val entines solar day for the youth.The shop target customer is up to 14 years but due to presence of Splush toys and also teddies and fur toys which stand attraction for the youth, so we expect the sales to increase in valentine day. Personnel In order to manage the day to day operations we along with three partners have decided to keep the following personnel for smooth operations. In order to reduce our fixed expenses we have restricted ourselves to six employees in the initial three months of our operations. However with time and requirement we shall keep increasing the strength. chassis of employees * Store Facilitators-02 Store Manager-01 * Housekeeper-01 Financial Details Projected start up cost Projected start up cost Security Deposits periodic RentSalary to StaffPurchase of ToysFurniture and StationaryReserved 100000 30000 20000250000 50000 50000 essence Start Up Cost 500000 Sources of Fund 50% fund from Partners50 % fund from State Bank of India 250000250000 Total Fund i ncrease 500000 Projected Balance Sheet Liabilities Rs. Assets Rs. Capital 500000 Furniture ComputerStockCash DepositeCurrent assets 50000 20000250000 50000100000 30000 Total 500000 Total 500000