Marketing

Marketing

Description of the Company

The name of the company is Smart Toy Company. The company is involved in manufacturing toys powered by solar energy. The firm is located in London, UK with several branches across the globe. All operations of the firm are coordinated from the central office in the UK while the branches and affiliate companies are composed of independent regional managers. The products of the company are decorated with variety of colors that are bright. This decoration of the products with bright colors is aimed to attract the attention of children who are the primary targeted market of the company’s products. The logo of the company contains the words “Smart Toys for All Children”. The shape and size of the toys varies in accordance to the category of the toys. Labeling of toys is done with colored pictures of various figures and words.

The Target Market

The products of the company are targeted for children under the age of 18 years old. The company’s annual sale is approximately US $ 200 million. The company operates globally in a number of 70 countries and controls approximately 20 percent market share of the toy manufacturing industry in UK. The estimated number of the company’s clients in the global market is 2 million. Schools, kindergartens and children homes are among the customers that are targeted by the products of the company.

The company also targets undeveloped and developing countries. Statistics indicates that there is huge market potential for toy products in developing countries such as Africa due to low number of local companies that manufactures toys. This makes these regions to depend on imported toys which are very expensive hence majority of the parents are unable to afford. Smart Toy liaise with local companies to manufacture toys using locally available materials hence provide the toys at affordable prices to local residents.

The main competitors of the Smart Toy Company are the international toy manufacturing companies who have been in the market for a long period of time. This makes them to be established and enjoys a strong customers and financial base. The competitors of the company include Climbing Toys Company, Idol Toy Company, Mattel, McFarlane Toys, Mega Bloks, and Mindy Candy.

The specific needs of the customers that the Smart Toy Company’s products are likely to satisfy are the safety and health standard of children. The concerns that parents are having on the health and safety concerns of the toys that are powered by energy sources such as electricity, chemicals, batteries and other gases offers an opportunity for the company to penetrate the toy market. The company therefore targets parents who have lost faith in such toys that are not safe for their children and the environments. The company provides products that ensure that the safety and health of the children are guaranteed. The toys also cater for low income families by providing toys at affordable prices.

Another benefit that the Smart toys have to customers is that it less costly. This is because the toys uses solar as the main source of power supply. This ensures that customers do not spend their money on purchasing the source of power supply such as batteries. This makes it cheap for the customers to maintain and operate hence parents prefer the Smart toys as opposed to toys from other rival companies.

The Smart Toy Company has also come with a range of toys that ensure that the safety and health of customers is considered. Smart Toys are energy efficient, safe and healthy for use by children. This ensures parents and customers trust in the toys since most of the toys manufactured by the rival firms have been associated with health and safety risks due to the manufacturing materials used.

Pricing Strategy

The company offer competitive prices that depend on the size, features and the level of technology used. The Company offers its toys at low prices as compared to the prices of other rival companies. One of the advantages of the Smart toys over other toy companies is that it offers its products at cheap prices due to the use of local materials and labor at the respective countries of manufacturing. The prices of the products are also based on the income level of customers. The company manufactures products that cater for all income groups within the society. This makes its products to be affordable to both the poor and the rich as each of its products are manufactured to cater for the specific income category. Differentiation of product prices based on the income levels of individuals is important in attracting customers to purchase the products of a company (Keegan, 2010). This can ensure that the company attracts large number of customers.

Factors That Affects Prices of the Company’s Products

Prices of products can be determined by a number of factors in the market. Both internal and external factors of organization can affect the prices of a company’s products (Keegan, 2010). Smart Toys products are also affected by internal and external factors. The internal factors that can affect the prices of the company’s products include labor cost, production cost and products design. Cost of production includes the costs that are associated with manufacturing process. This cost can include transport and distribution cost. Production cost can determine the profitability of the company hence pricing decision should be based on production cost. Labor cost can also determine the price of the company’s products since labor is necessary for the production process. Another important internal factor that can determine the price of the products is product designs. The products that are manufactured using high quality materials will attract high prices as opposed to products manufactured using low quality materials.

External factors that can affect the price of the company’s products include demand of the products, cost of supplies, inflation rate, exchange rates and government policies. The demand of the toys in the market can determine the prices. When there is high demand for toys in the market, the price of the company’s products can be high, similarly low demand of the company’s products can results to low prices (Keegan, 2010). Inflation rate can either raise or lower the prices of the company. When the rate of inflation is high then the prices of products can be high and vice versa. High exchange rate can enable the company to raise the prices of its products so as to compensate for the rise in exchange rate. Government policies such as taxation can also affect the prices of products. Government policies can either lower or increase the prices of the company’s products.

Distribution Strategy

The distribution strategy employed by the company involves the use wholesalers and retailers. Several retailers and wholesalers in various countries around the world are recruited to help in the distribution of the company’s products. The products are manufactured at the main company’s premises at various countries and distributed to various wholesalers and retailers. The wholesalers and retailers facilitate in the marketing of the company’s products. All of the 70 countries where the company operates have several wholesalers and retailers that deal with its products.

The selection of the distribution channel of the company depends on a number of factors such as cost associated with the distribution channel, the effectiveness of the distribution channels, the reputation of companies contacted to be distributors of the products and the geographical distance between the company’s manufacturing premises and the customers.

Promotional Strategy

The main marketing objective of the company is to be the leading manufacturer and supplier of high quality toys in the global market. This objective will enable the company to gain reputation and attract customers hence enhance its profitability. In order for the company to achieve its marketing objectives, it must be able adopt various marketing strategies that will enable it to create awareness to a large number of customers in the global market (Keegan, 2010).

Advertisement program is essential tool that is used as a promotional strategy of the company. The company uses a number of advertisements program to market its products. Some of the advertisement channels that are used by the company include print media, radio and television, social media, the company website page, trade exhibition and other online advertisements. This has enabled the company to reach to a large number of clients hence improves its sales in the market.

Public relations activity is also regularly conducted by the company to ensure close relationship exist between the company and its stakeholders. The public relation activities conducted by the company includes regular press briefing to the public so as to inform them of the ongoing activities, sponsoring various events such as sports and education programs and participating in community work.

Reference

Keegan, W. J. (2010). Global marketing management: A European perspective. Pearson

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