Introducing New Toy Product Into Indian Retail Market Economics Essay

FunDreams will be a freshly formed endeavor based in Saudi Arabia be aftering to establish a scope of “ TOYS and Games ” by a Saudi born Entrepreneur Saif Ullah Khan.

FunDreams shall market new advanced playthings and Games for Indian retail Market utilizing a mix of local endowments for development of Products. Online purchase chances will be offered for both playthings and Games.

The Merchandise

FunDreams playthings are fundamentally “ Theme Toys and Games ” aiming Heroes of Arts, Culture, Social and political significance for both genders.

Subjects are developed by the originative section after thorough treatment and analysis of all dimensions involved to avoid any societal, cultural, Political and lingual struggle. After subdivision of the subject a narrative line is developed to add component of merriment and instruction. On the footing of plot line package coders and other originative squad members convert these thoughts to alive theoretical accounts.

Copying the lifes different tools, characters and Topographic points are developed into plaything shaped theoretical accounts and distributed in retail markets and advertised on media to pull clients.

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Models are made utilizing Plastic, Fabrics and Rubber. To assist Protect environment largely reclaimable stuff is used and run is launched to educated kids on environmental issue and ensures their engagement in this recycling run.


FunDreams basic aim is to use local endowments and blend in transnational managerial constructs and experience. Fabrication installations will be developed in Target states wherever there is handiness of the skilled labour.

State of Launch

Research squad of FunDreams has proposed India as their proposed state of Launch.

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India has 28 provinces with seven brotherhood districts, the universe ‘s largest democracy with a population size of estimated 1.21 billion 2nd most populated in the universe. Its spread over an country of 32,87,2631 sq. kilometer, 7th largest state in the universe. The 12th largest economic system in the universe with regard to market exchange rates and 4th largest by buying power para ( PPP ) footing. The footing for choosing India as mark market is as follows

India is the 2nd most populated state of the universe with a population of 1.2 Billion, amongst which 30 % are in the age group of 0-14 old ages i.e. a astonishing 334 million mark population

Diversified cultural environment give chance of developing subjects of huge involvement for local population

Turning Per Capita income and in-between category means more purchasers and consumers

Democratic and secular political environment, freedom of address and media and increasing degree of instruction are besides of import grounds of choice

Trade Barriers in India

Although trading conditions have improved relatively but still India ‘s trade government and regulative environment remain relatively restrictive. India imposes a figure of high duty and non-tariff barriers in the signifier of import licensing, quantitative limitations, onerous compulsory testing, merchandise enfranchisement and imposts processs those are complicated & amp ; drawn-out. For rational belongings some betterment has been seen in the IPR enforcement substructure, still batch of attempts are to be done sing forgery and buccaneering. Besides, the uncomplete legislative model in the country of procurance is besides a concern affair. Major reforms are required to guarantee international criterions are in topographic point and that there is a predictable environment for bidders. Therefore the current trade public presentation between the EU and India falls far short of its possible. The free trade understanding between EU and India is presently under dialogue that could represent one of the most important trades. This would bring forth ample benefits to both economic systems estimated from a‚¬9 to a‚¬19 billion.

The followers are the trade barriers with India need to be resolved:

Licensing demands

India ‘s investing policy is one of the important barriers to foreign investings. Measures have been taken to guarantee maximal benefit to local sector through engineering and cognition transportation and the policies commanding foreign capital flow. Many of import economic sectors such as multi-brand retail remain closed to foreign investing.

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Economic Analysis of India

The India Economic System from 1947 to 1991 was based on societal democratic-based policies. Chiefly protectionism, extended ordinance and public ownership led to decelerate growing and corruption.A Later, the economic system has moved to a market-based system with economic liberalisation get downing in 1991. From 2000 ‘s onward, the growing rate of the economic system has increased with healthier economic reforms and policies. By 2008 India became the second-fastest turning economic system in the world.A

Some of import high spots of Indian economic system are as follows:

GDPA ( buying power para ) :

$ 4.046 trillion ( 2010 est. ) A

$ 3.736 trillion ( 2009 est. )

$ 3.478 trillion ( 2008 est. ) A

GDP ( official exchange rate ) :

$ 1.43 trillion ( 2009 est. ) A

GDP – existent growing rate:

8.3 % ( 2010 est. ) A

7.4 % ( 2009 est. )

7.4 % ( 2008 est. ) A

GDP – Per Capita:

$ 3,400 ( 2010 est. ) A

$ 3,200 ( 2009 est. )

$ 3,000 ( 2008 est. ) A

GDP – composing by sector:

Agribusiness: A 16.1 %

Industry: A 28.6 % A

Servicess: A 55.3 % ( 2009 ) A

Labor Force:

478.3 million ( 2009 est. ) A

Labor force – by Occupation:

Agribusiness: A 52 % A A

Industry: A 14 % A

Servicess: A 34 % ( 2009 est. )

Unemployment Rate:

10.8 % ( 2010 est. ) A

10.7 % ( 2009 est. )

Population below poorness line:

25 % ( 2007 est. )

Investing ( gross fixed ) :

32 % of GDP ( 2009 est. ) A


Grosss: A $ 170.7 billionA

Outgos: A $ 257.4 billion ( 2009 est. ) A

Public Debt:

55.9 % of GDP ( 2010 est. ) A

57.3 % of GDP ( 2009 est. )

Inflation rate ( consumer monetary values ) :

11.7 % ( 2010 est. ) A

10.9 % ( 2009 est. )

Agriculture – Merchandises:

Wheat, Cotton, Rice, Jute, Oilseed, Tea, Lentils, Sugarcane, Onions, Dairy Products, Potatoes, Goats, Sheep, Poultry & A ; Fish.


Chemicals, Textiles, Food Processing, Transportation Equipment, Cement, Steel, Machinery, Software, Mining, Pharmaceuticals & A ; Petroleum.

Industrial Production Growth Rate:

9.7 % ( 2009 est. ) A

Electricity – Production:

723.8 billion kWh ( 2009 est. ) A

Electricity – Consumption:

568 billion kWh ( 2007 est. ) A

Current history balance:

– $ 26.91 billion ( 2010 est. ) A

state comparing to the universe: 181

– $ 26.63 billion ( 2009 est. ) A


$ 201 billion ( 2010 est. ) A

state comparing to the universe: 22

$ 168.2 billion ( 2009 est. ) A

Exports – Commodities:

Machinery, Precious Stones, Petroleum Products, Iron and Steel, Vehicles, Chemicals & A ; Apparel

Exports – Spouses:

UAE 12.87 % , US 12.59 % , China 5.59 % ( 2009 )


$ 327 billion ( 2010 est. ) A

state comparing to the universe: 13

$ 274.3 billion ( 2009 est. )

Imports – Commodities:

Crude Oil, Precious Stones, Machinery, Fertilizer, Iron and Steel, Chemicals

Imports – Spouses:

China 10.94 % , US 7.16 % , Saudi Arabia 5.36 % , UAE 5.18 % , Australia 5.02 % , Germany 4.86 % , Singapore 4.02 % ( 2009 )

Exchange Ratess:

Indian rupees ( INR ) per US dollar –

46.163 ( 2010 ) ,

48.405 ( 2009 ) ,

43.319 ( 2008 ) ,

41.487 ( 2007 ) ,

45.3 ( 2006 )

In 2010 India was ranked 2nd in planetary foreign direct investings and is expected to stay one of the top five attractive finishs for international investors during 2010-12. This has been reported by United Nations Conference on Trade and Development ( UNCTAD ) in a study on universe investing chances titled, ‘World Investment Prospects Survey 2009-2012 ‘ .

India is ranked as the 2nd most promising state for abroad concern operations by the 2010 study of the Japan Bank for International Cooperation released in December 2010, conducted among Nipponese investors.

Another study ranks India one of the top three states for British companies to prospect better concern during 2012-14 is released by Leeds University Business School in February 2010, commissioned by UK Trade & A ; Investment ( UKTI ) .

India was besides ranked 4th most attractive foreign direct investing ( FDI ) finish in 2010 by Ernst and Young ‘s 2010 European Attractiveness Survey. However, in the following three old ages India is ranked the 2nd most attractive finish following China.

Furthermore, Canadian houses are besides concentrating on India as a prospective investing finish – the Asiatic Investment Intentions study released by the Asia Pacific Foundation in Canada. In 2010 the Canadian concerns interested to put in India was 13.4 % compared to 8 % in 2005.

India has attracted the FDI equity influxs of US $ 2,014 million in December 2010. The cumulative sum of FDI equity influxs from April 2000 to December 2010 stood at US $ 186.79 billion.

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Political Analysis

After its formation India became a democratic democracy. India is divided into six major zones: East, West, North, South, Northeast and Central India.A

Some of the political challenges are as follows:

Political instability taking to a abject in authorities determinations.

Adverse alterations or capriciousness on foreign investing, ownership, import, pricing or revenue enhancement issues.

Cultural issues, holds or legal differences due to local spouses and providers.

Labour struggle and industrial action.

Normal concern disrupted due to societal and political issues.

Bureaucratic inefficiency & A ; corruptness.

Unexpected holds and cost-overruns due to overlapping governmental legal power.

Interest, rising prices and currency rates fluctuation.

Legal Analysis

Following are the considerations that a foreign company may see be aftering to put up concern operations in India:

Integrate a company under the Companies Act, 1956, as a Joint Venture or a Wholly Owned Subsidiary.

Set up a Liaison Office / Representative Office or a Project Office or a Branch Office of the foreign company which can set about activities permitted under the Foreign Exchange Management ( Establishment in India of Branch Office or Other Place of Business ) Regulations, 2000.

An Indian company may have Foreign Direct Investment under the two paths ; ( a ) Automatic Route ; FDI up to 100 % is allowed in all activities/sectors except where the commissariats of the amalgamate FDI Policy, it does non necessitate any anterior blessing either of the Government or the Reserve Bank of India. ( B ) Government Route ; for those non covered under the automatic path requires anterior blessing of the Government. These are so considered by the Foreign Investment Promotion Board ( FIPB ) , Department of Economic Affairs, and Ministry of Finance.

Geographic and Cultural Analysis

Eastern India includes the provinces of Jharkhand, Bihar, West Bengal and Orissa. The entire population of these provinces is 227 million. Entire country covered by East is 418, 323 km2.

The Western part covers a entire country of 508, 052 km2. The provinces of western India are Goa, Gujarat, Rajasthan and Maharashtra along with the Union Territories of Daman and Diu and Dadra and Nagar Haveli.A Mumbai, the fiscal capital of India is the capital metropolis of Maharashtra. These provinces have a comfortable economic system with comparatively high criterion of life, ideal hub to the foreign investment companies.

North India includes six provinces are: Himachal Pradesh, Jammu & A ; Kashmir, Uttaranchal, Haryana, Punjab, and Delhi ( National Capital Territory ) . The economic system of this side is turning at a fast gait. The most thickly settled metropoliss of North India are Kanpur, New Delhi, Lucknow, Jaipur, Ludhiana and Indore.

Southern India screens Karnataka, A Tamil Nadu, Goa Kerala, Andhra Pradesh and the brotherhood district of Lakshadweep. Over 48 % of South India ‘s population is engaged in agriculture.A Bangalore, the capital of Karnataka is known as the ‘Silicon Valley of India ‘ being India ‘s taking IT exporter, therefore an ideal topographic point to be used as package fabrication house for Online and Video Games. This is the topographic point we should be looking for puting in toy industry of India.

North east India includes the seven sister provinces of Tripura, Meghalaya, Arunachal Pradesh, Assam, Mizzoram, Manipur and Nagaland. Sikkim is besides a portion of nor’-east India. The Central zone of India chiefly refers to Madhya Pradesh and Chhattisgarh.

Cultural Valuess

The Indian civilization that is based on the influences of Hinduism and the tradition of the caste emphasizes established hierarchal relationships. Indians are ever disbelieving of their societal order and their position relation to other people, be they friends, household or aliens. All relationships are based on hierarchies. For illustration School instructors are supposed to be the cognition priests as they are called ‘Gurus ‘ . Normally the male parent is considered the leader of the household. The foreman at workplace is seen as the beginning of ultimate duty in concern. Hence, every relationship has a good defined hierarchy that must be observed for the societal order to be maintained. This has got greater deductions for plaything industry since largely parents, expansive parents any other seniors have to play their function in purchasing determinations of recreational points for a kid.

This Cultural Diversity of India has a definite advantage for any concern to be launched since it means that you can happen lovers of every merchandise in some portion of the society

Truths of linguistic communications pose a challenge particularly for games since it has to be co-occuring with the local civilization and to be translated in local linguistic communication


Fundream will be a entirely owned subordinate. Head office will be situated in Mumbai Maharashtra, fabrication installations for playthings will be situated along with the caput office. A package development installation will be made in Bangalore the IT centre of the state.

Brief occupation Descriptions:

HR Manager: he will be responsible for developing recruitment manual, engaging policies, Hiring cardinal forces, developing public presentation criterions, understanding preparation demands, set uping preparations, developing administrative manufacturers. Forces, Admin & A ; Training sections will describe to him.

Production Manager Toys: He will be looking after all the activities affecting production and quality control of toy division.

Production Manager Games: He will be looking after all the activities affecting production and quality control of game division.

Creative Manager: Heading the squad of originative forces, originative director will assist in the development of subjects, transcript authorship, developing media runs.

Marketing & A ; Gross saless Director: He will be responsible for creative activity and executing of marketing scheme, Category and Gross saless directors will describe to him. He will besides look after media direction.

Supply Chain Management: He will make a web of distributers all over India to guarantee complete handiness of the merchandises. He will besides oversee procurement map of organisation.

Finance Director: He will put down the fiscal scheme of the company, supervising basic fiscal system & A ; pull offing equity.

Manufacturing Plan: The Company will put a fabrication unit in Mumbai for the production of playthings. Following production sections will be made.

1 – Molding

2 – Costing

3 – Diing

4 – Coating

5 – Packing material

Software Development: Site will be developed in Bangalore which will bring forth picture games & A ; on-line Games. It will besides assist in the development of the web site for the company.

Inventory Policy:

Transportation system:

Market Entry Strategy

FunDreams program to follow a Market entry scheme of Production in the mark state since due to cheap labor, free economic system, fewer trade Barriers, ferocious monetary value competition, and it is a executable option. A national distribution scheme will be adopted to accomplish Swift and prompt bringing.

For Games an online merchandising system will be made ensuring payment through a no of payment options. All Retail mercantile establishments will be tapped to acquire maximal handiness and exposure necessary for the gross revenues.

Marketing Strategy Plan


A separate pricing scheme will be adopted for both scopes i.e. Toys and Games.

US Dollar will be used as exchange currency for all practical intents

A 30 % Markup is planned to be achieved over and above all the costs, including Material Costss, Transportation, Production Cost, Marketing, Taxes, GST and etc.

FunDreams plans non to Adopt a Markdown pricing scheme to avoid image deformation but can make up one’s mind in instance of failure of a merchandise scope to excite its gross revenues and complete its stocks

Pricing will be done Competitively, specially maintaining in position pricing of Chinese points


Initially in the launching stage incursion pricing will be used in the “ Toy ” Market since there is a ferocious monetary value competition low monetary value points are available from local makers and China to derive their market portion some relieve in the monetary value will be offered but subsequently on as “ client experience and satisfaction is achieved Premium pricing will be adopted.


Equally for as Games are concerned FunDreams will follow Premium Pricing because of its advanced and alone merchandise experience. However, holding them sold online option will minimise the costs of existent being such as stock list or distribution in physical agencies. Therefore holding lesser costs higher borders could be gained ab initio, nevertheless, these borders could be reduced otherwise if the purchaser market does n’t react good or if the competition arrives.

Promotion Plan

An aggressive publicity program will be adopted to make ballyhoo in the initial launching stage. Main accent will be on Advertising supported by personal merchandising to distributers and retail mercantile establishments.


All type of telecasting media i.e. Satellite, Terrestrial, national and regional will be used to telecast advertizement.

FM Channels will be used to Broadcast Radio advertizement

A Full page Advertisement shall be given at the launch in print media

Company ‘s booklet will be developed and distributed to major mercantile establishments

Outdoor advertisement through hoardings and bus-boards will be done throughout the Calendar twelvemonth

Engagement in National exhibitions and industry related exhibitions will be done

Personal Selling

To acquire concern from retail mercantile establishments of reputation and distributers a gross revenues squad will be hired headed by a Gross saless Manager. A preparation meeting will be held at the tiffin to develop gross revenues force on selling the merchandises.

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Introducing New Toy Product Into Indian Retail Market Economics Essay. (2020, Jun 02). Retrieved from

Introducing New Toy Product Into Indian Retail Market Economics Essay

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