A Marketing Strategy for Galaxy Toys Inc. to Address the Depleted Sales

Categories: Marketing

Galaxy Toys Inc. is a corporate organization that deals in the production of toys. The business venture was established on the foundations of creativity and innovative ideologies. The company has enjoyed a market share in the toys industry until recently when its sales depleted, with a notable slight increase in sales by 3 percent in January 2017. This case was alarming to the management of Galaxy toys, an aspect that required the company to employ approaches aimed at addressing its failures (Galaxy Toys Inc, 2016).

Given this, the company developed a series of objectives aimed at helping it enhance its market share and increase its productivity and sales. The objective lies in establishing effective approaches aimed at producing the right products that align to the market needs and demands.

Through this, the company was in a position to identify three products for production. These products include the production of 5 million Payload toys also referred to as MMTJE1 primarily for the upcoming festive seasons such as Christmas.

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Secondly, the company saw the need to produce close to 2 million Payloads toys for Christmas this year. Given this, it is essential to consider that the products listed have various requirements, an aspect that poses several challenges to the company. The board however saw the need to produce the Moon Mission and Jupiter Europa 1 toys (Galaxy Toys Inc, 2016). In this case, this paper seeks to develop a SWOT analysis that seeks to establish the strengths, weaknesses, opportunities, and threats the company may encounter in the production of these toys.

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Secondly, the paper will analyze the strengths and weaknesses of these products with the aim of fording a way into the market. Lastly, the paper will develop the company’s short term goals and objectives as well as a recommendation for the company.

Galaxy Company SWOT Analysis

Strengths of Galaxy Toys

  • Increased Production of Toys

The organizations increase in the production of its products is considered as one of its major strengths, an aspect that enables the company meet its existing demands for their toys. Additionally, this results to the assimilation of new technologies and equipment’s to enhance the manufacturing of its products. Given this, the company’s toys remains in a position to meet the demands of the market. The inclusion of technological equipment’s in the production process of the toys will ensure the quality manufacturing of the company’s products (Dalkir & Liebowitz, 2015). Through this, the company remains in a position to increase its revenues, an aspect that raises the organizations profit margins, thus denoting a growth in its operations.

  • Limited Changed in the Design of its Products

The limited changes in the organizations products are additionally considered as strength since this helps the company ensure the designs of the products are reserved. The company therefore remains in a position to develop products that may not be imitated, an aspect that helps in the retention of its clients and the achievement of customer loyalty (Neighbors & Rankin, 2011). Given this, an increase in the consumer’s loyalty will result into referrals, thus expanding the company’s customer base, with this significant in increasing the sales of the company.

  • Reduction of Personnel in Production

The company’s efforts to understand the demand and surplus of its products in the market play a significant role in ensuring the company hires enough personnel in the production process. In other words, when the demands for the company’s products are high, the company, may need to higher more personnel’s since the production of products will increase to meet the demands of the consumers (Rummler & Brache, 2012). However, when the demands for the organizations products are low, the company needs to rationalize its personnel with the aim of increasing its profit margin from the resources the company spends in remunerating the employees.

Weaknesses of Galaxy Toys

  • The Inclusion of Adult Supervision

Considering the fact that children may heavily rely on the supervision of their parents to enjoy the company’s products remains a weakness since the numbers of customers received in a day is reduced. Many of the company’s clients accompany their children to its stores to ensure the children’s safety. It is however significant to consider that these parents in most cases are busy, then the company fails to sell its products (Loredana & Alexandru, 2015). The company therefore needs to develop an initiative aimed at reaching the customers at their doorsteps to ensure its products reach its client groups. Such an initiative will ensure the company’s sales are increased, thus translating to profits.

  • Additionally Costs on Equipment and Machinery

Galaxy in its approach to increase its production seeks to purchase additional equipment’s for the primary purpose of meeting the demands of the consumers. However, it is essential to consider that the company may be forced to spend on these equipment’s. Given this, an increase in spending on the equipment’s may cripple the organizations functions since the costs incurred in purchasing the equipment’s may increase the organizations budgetary allocation (Madhavi & Prasad, 2015). An increase in the organizations budget may reduce the company’s products, an aspect that denotes the need for the company to lease machines to cut on costs.

Recommendations

It is imperative to understand that the toy industry remains a seasonal industry inhibited by serious competition, an aspect that has seen the replication of products in the industry. With this, Galaxy Corporation may need to ensure it differentiates its products in the market from its competitors by manufacturing inimitable toys (Verma & Singh, 2014). On the other hand, the company may need to consider diversifying its customers to ensure it develops different products that meet the needs of different clients. This therefore denotes the need for the company to invest in research and development (R&D) in order to enhance the quality of its products in the market.

On the other hand, the inclusion of technology in enhancing the quality of its products and in increasing the production process needs to be aligned to the company’s objectives. Galaxy Company may therefore need to ensure it cuts costs by leasing machineries required to enhance the quality and the production process. On the other hand, the company needs to take consideration of the prices of its products by being a cost leader in the market (Canada, 2015). In order to get its market share, Galaxy may need to consider engaging in Corporate Social Responsibility, an approach that will draw its client’s attention towards its products. Clients currently prefer companies that give back to the community, an aspect that increase the company’s market share.

Summary

Through the development of Galaxy’s SWOT analysis, the company remains in a position of making decisions based on the markets conditions. The company may need to rely on the analysis provided in analyzing the nature of the market and implementing effective strategies aimed at enhancing its performance (Grünig et al, 2014). The managers of the company therefore need to ensure they minimize their threats and weaknesses by majoring on the company’s strengths and opportunities to achieve the company’s market share.

References

  1. Canada, N. (2015). Lowering Costs and Enhancing Efficiency Program Achieved Remarkable Results. Canada Newswire.
  2. Cornelissen, J. (2014). Corporate communication: A guide to theory and practice.
  3. Sage Dalkir, K., & Liebowitz, J. (2015). Knowledge management in theory and practice. MIT press.
  4. Galaxy Toys Inc. (2016). Galaxy Toys, Inc. Company Profile. Retrieved From: https://www.homeworkmarket.com/sites/default/files/qx/16/11/28/08/20161117052129bmgt 364_galaxy_toys_inc._company_profile.pdf
  5. Grünig, R., Kühn, R., & Clark, A. (2014). Process-based Strategic Planning. Berlin: Springer.
  6. Loredana, D. R., & Alexandru, B. (2015). Policies and Strategies For Enhancing The Performance Of Corporate Governance. Annals Of ‘Constantin Brancusi’ University Of Targu-Jiu. Economy Series, (4), 61-65.
  7. Madhavi, E., & Prasad, M. V. (2015). Assessing Corporate Performance with Measures of Value Added as Key Drivers of Shareholder Wealth: An Empirical Study. IUP Journal of Business Strategy, 12(4), 19-34.
  8. Neighbors, R. C., & Rankin, S. (Eds.). (2011). The Galaxy is Rated G: Essays on Children’s Science Fiction Film and Television.
  9. McFarland. Rummler, G. A., & Brache, A. P. (2012). Improving performance: How to manage the white space on the organization chart.
  10. John Wiley & Sons. Verma, S., & Singh, P. (2014). Organizing and Managing in the Era of Globalization. New Delhi, India: Sage Publications Pvt. Ltd.

Cite this page

A Marketing Strategy for Galaxy Toys Inc. to Address the Depleted Sales. (2021, Sep 12). Retrieved from https://studymoose.com/a-marketing-strategy-for-galaxy-toys-inc-to-address-the-depleted-sales-essay

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