Market Segmentation, and Product Positioning Essay
Market Segmentation, and Product Positioning
For the purpose of this assignment, I am assuming myself as the owner of a plastic molded toy company in United States that manufacturers, and distributes plastic molded toys through retailers across the country and around the world. The company is capitalizing on the strong growth in the children’s toys segment and planning to expand in an aggressive manner throughout the nation. The company offers unique, world class and high quality toys which appeal to children of all ages and nationalities around the world. The operations of the manufacturing plant have commenced and the quality of toys produced by my company is comparable with or even better than those produced by the top toy companies in the country. Mission Statement
The mission statement of my company is “to bring fun and happiness to every child in the world”. The mission statement focuses on three points. First it says that the company has the objective of brining fun and happiness. Second, the company is focused on children. Third the company wants to become a global company to bring fun and happiness to every child in the world. The emphasis is on international growth and expansion. Foreign Market for My Product and Service
One foreign market for the toys of my country is France. France is already importing toys from the USA. There is a large market for safe and trendy plastic molded toys, and the toys made by my company comply with the requirements of the EU Toy Directive. The tie up with the French distributor is the first step in globalization. Later my company will set up sales offices in different parts of the world. Later it will open branches and also set up manufacturing operations in several parts of the world.
The marketing plan for my company is to sell three million plastic molded toys during the first year of operation and generate sales revenues of $45 million during the first year. This target is based on the manufacturing capacity of my company and the expected sales figures from distributors. Product: The toys will be made from the finest quality plastic and use high quality additives imported from Germany. The toys will comply with the requirements of the U.S. Consumer Product Safety Improvement Act (CPSIA). The toys will reflect the latest trends in toys. Price: The price range of toys will range between $11 and $32. The average price of toys will be $15. Place: The distribution of toys will be done by six national toy distributors. The toys will be available in at least 230 toy stores all over the US.
In addition, the toys will be available on at least five websites that sell toys. In addition, one distributor will be appointed in France who will market my toys in France. Promotion: The toys will be advertised on internet banners, websites that sell toys, and social media sites frequented by children. There will also be search engine advertising and advertising on mobile phones. Personal selling will be done by company sales persons in selected twenty stores selling toys. In addition, company sales persons will also interact with distributors to ensure that distributors sell the toys through a large number of consumers. Potential Audiences
The potential audiences for my marketing plan are children between the age of 3 and 12 in the US. These children require toys that are safe, attractive, and long lasting. Further, children also love to buy toys that reflect the latest trends. This may mean characters from the latest movies, comic books, or computer games. The needs of the target audience are fun, laughter, and light entertainment. Market Segment
The market segment for this product is children between the age of 3 and 12 years in the United States. Dolls will be targeted at girls, video game characters will be targeted at boys, and comic book characters will be targeted at children between 8 and 12. The rationale for this segment is that molded plastic toys in general are preferred by children between the ages of 3 and 12 years. Girls prefer to play with dolls. Boys are interested in video game characters. Finally, comic book and comic strips are targeted at children between 8 and 12 as these children read comics and comic strips; the toys based on comic characters should be targeted at this segment. Target Market
The target market will be children between the ages of 3 and 12 who are located in the six states where the distributors are located. The 230 retailers where the toys are sold are also located in the same states where the six distributors are located. The rationale for this target market is that our company has distribution and retailing access only to those states. SWOT Analysis
Strengths: The strengths of my company are excellent quality products. My company is financially strong. The products made by my company are compliant with U.S. Consumer Product Safety Improvement Act (CPSIA), and EU Toy Directive. In addition, my company has distribution access to six states in the US. The agreements with six distributors ensure that my company’s products have a comfortable market. Weaknesses: The internet based sales are low. There are no sales of molded toys in other parts of the country. Retailers in other states do not stock our toys. Our company does not have well-known brand recognition. Even though my company has appointed a distributor in France the sales in France are low. Opportunities: My Company has opportunities if it appoints more distributors in the USA.
Further, there is land available next to our existing facilities. If our company purchases the land the production of molded toys will increase three times. The larger volume of production at one location will enable my company to realize economies of scale. If my company appoints more distributors in Europe, the sales of my company will increase. Threats: There is strong competition in the molded plastic toys market. Not only top toy makers but even small entrepreneurs make molded plastic toys. The economic downturn leading to low disposable incomes is also a threat to toy sales. Changes in trends during the peak seasons can render large stocks unsalable and can lead to losses. Market Position
The market positioning for the plastic molded toys made by my company is moderate in prices but high in quality. The plastic molded toys made by my company will be safer than, and better in quality than the products of Hasbro, Lego, and Tiger. The rationale for this strategy is that the objective of my company is to persuade more distributors to carry our toys. When the quality of our toys is compared to those of top brands in the market, distributors agree to carry our brand. 5 Cs Strategic Marketing Analysis
We carry out the 5 Cs strategic marketing analysis of my company in the following manner: Customers: The customers are children between the age of 3 and 12. In several cases the purchase decisions are made by the parents. Children want plastic molded toys that bring them fun, joy, and happiness. Company: My Company can fulfill the needs of children who want to buy plastic molded toys. My company keeps a close watch on market trends and the changing requirements of children. My company can change its production at short notice and make exactly those plastic molded toys that the children demand. Competition: Small plastic molded toy makers compete on price. They make and sell toys cheap. On the other hand each of the top toys making companies makes plastic molded toys.
Companies such as Mattel, Hasbro, Bandai, Lego, Playmates Toys, and Tiger each compete in the plastic molded toys segment. Collaborator: The collaborators of my company are the six distributors plus the distributor in France. The suppliers of plastic pellets are also our collaborators. The suppliers enable our company to use the highest quality of raw materials and make plastic molded toys of the highest quality. Context: The context is that plastic molded toys are being imported at low prices. Barriers to trade have been removed because of WTO. The economy is recovering but the recovery is still slow. The society approves plastic molded toys but looks down on children who play with plastic molded toys instead of electronic or computer games. The technology is coming up with improved computer games and internet based games.
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