Professional Documents
Culture Documents
Report on
Comparison of toy retail stores in India
Submitted to
By
Group No 3
Kalpit Rajak| Rahul Pateliya | Shivanand Pawar| Sonam Jaiswal| Tushar Gogia
On
10th November 2015
Contents
Simba................................................................................................................ 5
2.
Funskool............................................................................................................ 5
3.
Me n Moms........................................................................................................ 5
4.
Babyoye............................................................................................................ 5
5.
Shishu ranjan.................................................................................................... 5
parents are increasingly demanding high-quality toys. Also, parents buying decisions are highly
influenced by kids choices hence decisions makers are kids most of the time.
The Market
The toy market consists of two major categories of players- the local manufacturers and brands.
The branded toy market is not more than 20-25 percent like Simba, Hamleys, Funskool,
Landmark, etc. These companies are importing toys, branding them and selling in India. They
market their brands through distributors, who distribute the product to retail stores.
The local manufacturers have got a network of wholesalers and distributors. Their reach is high
due to their comparatively inexpensive products. While the branded stores have few distributors
owing to their high price points.
Our group has studied, amidst of stiff competition from online retailing how brick and mortar toy
stores are profitable in Udaipur. The study covers four branded stores Simba, Funskool, Me n
Moms, Babyoye and, an established local toy store Shishu ranjan.
A large number of Indians (specially middle class and lower class) are wary of spending
on toys that clearly dont have any educational value. Hence, it is important for retailers
to communicate the bebefits of toys to parents to penetrate the middle class households.
Due to high penetration of smartphones in India, kids are spending more time in playing
games on phones given the low cost of games. Thus toy companies should aslo start
A German company
Dream world like ambience, appealing to children; played music as we
entered
All branded products, mostly recreational
Sections were divided primarily on gender basis
Product knowledge of staff (1) was good but low on communications
First sight view of Foosball table: expensive item
2. Funskool
3. Me n Moms
Ambience was crowded with lesser walking space & too much of staff (5)
Products of in-house brand, recreational & educational toys along with babies
utilities
Sections were divided on the type of products (cars separate, cradles &
utilities separate)
Product knowledge and communication skills / friendliness of staff was very
poor
Discount was available on selective expensive products but wasnt displayed
First sight view of baby utilities
4. Babyoye
5. Shishu ranjan
Local store
Poorly planned
No space to walk
Boxes lying everywhere
No space to attend customers
Attributes
Rating (1 to 5) or Y/N
Simba
General
Store opening hours
Layout of store
Footfall
Location
Street/mall/hyper
market
Proximity to target
audience
Visibility
Parking space
Position of shop
Nearby shops competition/eateries
Exterior appearance
Signage
Cleanliness
Aesthetics/exterior
display
Security guard
Attractiveness to stepin
Fliers/promotional
posters pasted outside
Interior appearance
Funskool
Me n Moms
Shishu
ranjan
Babyoye
Mall
Mall
Mall
Street
Street
4.5
3.5
5
3
3
5
3
2.5
5
3
3
4
3.5
4
3.5
4
4.5
4
4
4
3
4
4.5
4.5
3
1
3.5
3.5
1.5
4
Store size
4
Lighting
3
Flooring
3.5
Ceiling
3.5
Display
Temp., music,
3
fragrance, wall colors
3.5
Segregation
walking space - easy to
3.5
navigate, clear aisles
Amenities - water
2
cooler, sitting area
Common
Washroom
5
Product
Price Range
Display
Options/variety
Brand availability
Quality
Well labelled price/brand
Customer interaction
Staff behavior greeting / reaction to
direct/indirect
customer
No. of staff
Reception
Staff
uniform/grooming
Staff behavior in their
idle time
Friendliness -behavior
if purchase was not
made
Approach time to
customer
Product knowledge
Brand and price
knowledge
Owner's presence
3
3.5
4
3.5
4
3
2
3
3
3
1000 sq ft
5
5
4
4.5
2
1
1.5
1
4.5
2.5
3.5
2.5
4.5
4.5
1.5
Common
Common
No
No
2.5
4
3
3
4
3
3.5
3
4
4 .5
4
3.5
4
3
3
3
4
3
4
4
4
1
4
3
2.5
4.5
3
3
3.5
2.5
4
3
2
1
2
1
3.5
3.5
3.5
3.5
3.5
2.5
2.5
No
Yes
No
No
Yes
Billing - time,
manual/computerized
Exit - impulse
purchase
Bargaining
Repeat purchase
appeal?
Will u recommend the
store to others?
Did u find what u were
looking for?
Age-wise toy
availability
Did u increase your
knowledge of toys
Were u comfortable
buying from the store?
Computerized Computerized
Computerized
Computerized
Manual
Yes
No
No
No
No
No
Yes
3.5
Yes
No
Yes
No
3.5
No
No
3.5
2.5
Yes
Yes
3.5
Yes
No
Yes
No
Retailers perspective
Simba
S.No.
Funskool
Me n Moms
Babyoye
Attributes
General
Franchise / Self
1 owned
2 Opening Hours
Opening Month
3 or date
Space on
rent/lease or
4 owned
What is the
5 weekly footfall?
How many of
these are
repeat
6 customers?
7 Total floor area?
8 Do you face
competition
from nearby
Franchise
Franchise
Franchise
Franchise
10:30 AM
to 9.30 PM
10:30 AM
to 9.30 PM
10:30 AM
to 9.30 PM
10:30 AM to
9 PM
September
2015
Feb14
Aug14
Dec14
Rent
Rent
Rent
Owned
100-120
100-125
180-200
60 70
50%
800 sq. ft.
Yes
35%-40%
1000sq.ft
Yes
25%
800 sq. ft.
Yes
20%
1000 sq. ft.
Not much
Shishu
ranjan
stores?
Age groups
9 served
0 to14 years
0 to 18
years
20 - 25 Lacs
30 Lacs
20 Lacs
20 25 Lacs
Both
Both
Company
Both
20 to 25
6 to 7
30
0 to 4 years
0 to 12 years
and females
Inventory
1
2
3
4
6
7
How much is
the investment
on inventory?
Who decides
the inventory
(Company or
franchise
holder)?
How many
brands you
keep?
What is the
range of
products?
Computerized
Inventory
Management
system?
Materials come
through
company or
direct from
supplier?
Any bargaining
or Loyalty
programs?
INR 100 to
INR 30,000
15 to 20
Apparels,
toys, baby
products
INR 49 to
INR 33,000
INR 29 to
18,000
Yes
Yes
Yes
Yes
Supplier
Warehouse
in Jaipur
Supplier
Both
Yes
Free gifts
Yes
Yes
Interior &
Maintenan
ce
Who decides
the interiors
(Company or
franchise
1 holder)?
Are the
interiors
standard in all
other stores of
same
2 company?
Marketing
Company
Yes
Company
Yes
Company
Yes
Company
Yes
Monthly
marketing
1 budget?
Share of
company &
franchise
2 holder?
Who decides on
the marketing
3 activities?
How marketing
4 is done?
No Idea
50% each
Company
and
Franchise
Owner
No Idea
Varies from
month to
month
Company
No Idea
50% each
Company
Company
No Idea
Events in
mall and TV
ads
Paper ads,
Radio,
Hoardings
and Events
in mall
Hoardings
3.75 Lacs
2.5 Lacs
5 to 6 Lacs
Mutual
decision
Pamphlets
at local level
and
newspaper
ads at
regional
levels
Revenues
& Profits
Total average
1 monthly sales
Any Targets? If
any then how
2 much?
What are the
average
3 margins?
Do you think
the business is
4 profitable?
5.50 Lacs
5 Lacs
4.25 Lacs
7 to 8 Lacs
7 Lacs
30% to 25%
30% to
25%
30% to 25%
30% to 25%
Yes
Yes
Yes
Yes
Employee
s
How many
1 employees?
Training to
employees
(Company or
franchise
2 holder)
Once in six
months
1 Manager
and 2 Staff
Once in
three
months
Monthly
Once in
three months
Marketing Strategy
Key Learnings
Appendix
Store Layouts