Essay: Strategies For Entering The Global Toy Industry Market.

The toy industry is one of such industries which possess a huge scope of development, creativity and innovation. Driven by the aim to give happiness and satisfaction to children, the industry provides different kinds of toys and juvenile products to cater to the playing needs and demands of the children. Based on this driving factor, various companies are trying their best to provide the joy to the young ones, striving to make create a position in the global market as well. Hence, the need for a complete knowledge of international marketing and the market analysis, along with the other related factors important for the purpose.

The chief objective of the report is to make the readers understand the aspects which are needed to be considered to make an entrance in the global market. Stress is given on the requirement of effective marketing along with the need for a proper R&D department. Appropriate recommendations are provided. An attempt is made to investigate the business and corporate strategies which are essential for the purpose.

The present market world possesses a wide scope of opportunity for the toy industry to expand, develop and flourish. With the advent of globalisation and online marketing, this availability of this scope has increased to a considerable amount. Different companies are trying to come up with new ideas and concepts to utilise this opportunity to gain the maximum number of customers and to generate sales and profit in the process. The company Toys R Us is a very good example of a company who has the similar objective and vision. It is an American company, situated in Wayne, New Jersey, in the metropolitan area of the New York city (Homburg et al. 2015).

The organisation holds considerable popularity among the New York citizens and is able to gain a certain amount of reputation due to its products. At present the company wants to enter the wider world of the global market. However, it is important to note that the company has to consider various business and corporate factors, important to gain the competitive advantage in the market, essential to attain organisational stability (Arnold & Troyer, 2016)). Based on the context of international marketing, it is important to mention that the company contemplates India as a potential market sphere for conducting the global venture. The culture, customs, social system, all of these are much different and varied from the Americans. Apart from this, the working system, the approach of marketing is distinctly different as well. Hence, it can be easily assessed that the company Toy R us need to be aware and come to terms with the diversity of the Indian market. Language, this is the primary medium of expression, helpful to conduct effective market research in order to understand the needs, demands and the popular trends of toys prevalent in the current market scenario (Lee Chang, 2014). Taking into account the presented context of the report, it is understood that the chief customers of the children and in India the decision of the children are affected by the decision of the parents, therefore the company needs to market their products in a way which can attract the attention of the parents/guardians as well. However, considering the current situation it is observed that the Indian parents are giving importance to the decision of the children (Mckean, Letts & Howard, 2014).

Recommendations

The company need to conduct market segmentation. Based on key factors such as demographics, societal structure, economy, legal and political and environmental aspects. The country is a developing country (Bare and Le 2014). The rate of population is high. It is true that compared with other international markets, the economic condition of India is still developing. However, considering the recent information, the economic picture has improved to a considerable extent. A certain section of the population possessing strong financial support prefer to provide their children with luxurious and expensive toys. On the other hand, the middle income group of the country tends to give much importance to the needs and wants of the children, trying to fulfil those demands (Orsini, 2015). Hence, the company should try to attract the attention of the children and the parents, teasing on the aspect of their emotions. The Indian government encourages Direct Foreign Investment. The company should try to negotiate with the governmental entities in order to get the business and trading facilities of the country. The company need to conduct careful investigations concerning the various necessary economic factors such as currency risks, tariffs, permits and licenses, taxes and such. India widely uses the wired world during the time of shopping (Tao, 2015). This factor can also be utilised by the company to enhance the possibility of marketing in the country. India is a place which consists of a large population. However, middle income group makes up more than half of the population. The company should try to emphasise and concentrate on the needs and demands of this section of the population since the group can act as the crux point to attract the attention of the potential customers. Regarding the point, it should be mentioned that the company need to consider the environmental factor. For example, pollution is a major issue (Tuzkaya & Yolver, 2015). Different companies irrespective of its type, polluted the environmental. Hence, it is important for the company to required measures which can help the company to reduce its production of waste materials.

It can be a risk for the company to enter the Indian market without gaining the appropriate knowledge regarding the current condition of the country. However, the particular market has the potential to be a great market sphere if the company is able to utilise the presented aspects (Ferreira, Raposo & Fernandes, 2014).

Globalisation has influenced and affected the world of business and trade in a significant way. Due to this present trend, the concept of global market is truly getting global. However, along with the positive factors, the economic and cultural differences which exists among the different nations becomes a major brake which restricts the unanimous preferences and tastes of the consumers. Aside from these major factors, disparity in technical standards and trade barriers also tends to constrain the company’s capability to sell a particular standardised commodity to an international market.

Market Analysis

Just like every business organisation, the Toys R Us company strives to try its best to improve and better the scope of marketing possibility (Stock & Reiferscheid, 2014). Apart from this, the company also needs to make the necessary effort to enhance the development of its R&D aspect, this is very much essential in order to bring the overall growth and development of the company, especially as the new entrant in the international market. It is true that the company holds much popularity and support in its native place. However, the major issue the company need to be aware of the major difficulties which an organisation face while entering the global market. The primary thing which needs to be considered, the toy company needs to conduct an appropriate market segmentation. The company should know that differences are bound to exist. The company should try to overcome these obstacles of differences. The toy company should try to investigate the similarities which unite the interests and wants of the children. For example, all over the world, the children love the Disney characters. In India, the Disney characters are very much popular throughout all the regions, just like the American adolescents (Smits et al. 2015). The company can try to market kids’ products which demonstrates Disney characters. The company need to focus on the packaging system, the servicing system.

It is important for the company to focus on the factor of product attributes. Products tend to sell well depending on the attributes of the products. Most of the Indian children for example, loves to prefer with dolls and vehicles. Assessing the present condition of the Indian market, it is observed that the popular Harry Potter merchandise, Disney products and such are much popular among the children (Flipse, 2014). Aside from these, the domestic cartoon characters also possess significant popularity among the children. Hence, it can be understood that the company apart from providing the children with popular toys and accessories related with Harry Potter and Disney must also be able to provide toys and products which stresses on the domestic cartoon characters. Apart from the playful products, the Toy R Us should also try to offer educational products concentrating on the factor of mental development of the children. This approach is necessary to attract the favourable attention of the parents/guardians. The company must acquire sufficient amount of knowledge of the existing language to succeed in this objective. Social structure is indeed an important factor which needs to be considered (Buckley & Casson, 2014). The company must try to maintain and improve the technical standard of its products. Regarding the point, it should be mentioned that the company should carefully assess the key factors of marketing mix. Importance must be given to develop the product and the places where it should be solved. The company should strive to get proper distributors to launch its products to the Indian market. The price range must be properly set so that the people are enticed to purchase the products (Szostak, Levin & Haeberle, 2014). Most of the population prefer to buy the products which are reasonable and affordable. The company should have its branches in the main cities of the country to get the maximum number of customers. It is important to note that the company need to design its product assessing the demands and wants of the adolescent population. Considering the point of distribution, should be highlighted in India, the concept of wholesaler is much popular (Chippendale et al. 2014). However, with the emergent of new shopping centres, the sector of retail distribution has gained considerable popularity as well. The company needs to aim the mid-size shops and the shopping complexes, the option of retail distribution is much favourable concerning the matter.

Segmentation

The company need to give attention to the communication strategy. This strategy is important for letting the people know about the existence of the company products in the concerned country. It is necessary for the company to take the measure of advertising, helpful to promote the products of the company. Apart from this factor, the company needs to conduct direct marketing, sales promotion along with direct selling. The company, for instance should try to hold special events and concerts for children (Guilbert, Betzabet & Romero, 2016). The company can also cooperate with schools to conduct different workshops. This can also help the company to showcase its products to the children and to parents/guardians. Push and pull strategy can be effectively used for the purpose.

It is true that the existing kids’ products of the company holds much potential. In spite of this, the company must try to better and improvise its R&D unit. The company must discuss new ideas and concepts to develop new products assessing the different needs of the children and the adolescents. Scientific research needs to be considered. a sufficient amount of company fund must be utilised for the purpose. This can also enable the company to gain competitive advantage. Specialised individuals must be recruited who are expert in making different types of toys (Sekeres & Castek, 2016). The company should consult with the R&D department so that effective integration is possible between two perspectives.  The department must have clear goals and required member who can contribute to the development of the department.

It is necessary for the toy company Toys R Us to put emphasis on the factor of production. The term production indicates the activities which are essential in order to make a product. Another term exists which is closely related with the production and that is known as logistics. Logistics indicates the procurement process, followed by the physical transmission concerning the materials with the help of the supply chain. The process of logistics suggests the chain which starts from suppliers and ends with the receivers or the customers (Field et al. 2017). The market of India is wide country which provides a varied population, in terms of economy, custom, culture, language and such. Hence, it can be understood that the company should try to conduct an extensive market research. This research is crucial for the company to know about the diversity in detail. As per the data and information which comes up in the process, the company should try to analyse its own ability with the help of a SWOT analysis. It is important for the company to know of its strengths, weaknesses, opportunities and threats. The company is known for its innovative and varied selection of toys and playthings (Ile & Iles, 2013). The company holds a certain section of distributors. On the other hand, the company is not aware of the Indian market, also many local toy companies are present which provides children with the toys they demand. The price range is comparatively cheap than the other branded companies. It should be stated that the China market holds a significant amount of toy market in India with relatively cheap playthings. It is true that the company Toy R us is new to this market, however in terms of variety and creativity the company holds much potential. Another important fact is, the company can get cheap and skilled labourers who can be hired to fill up the production department. The company should consider the factor of the destination and type of the production: country factors, product factors and technological factors (Hongbo et al. 2016). Considering the country factor, the company need to select a place where the key aspects of manufacturing tend to be most conducive. The company need to conform with the legal regulations and norms which is applicable for the country and along with the factor of health. The company must give importance to the safety of the playthings since the actual consumers are the children, the young ones. It is recommended for the company to improve its technology of the production. The organisation should try to focus on making new and innovative products which can generate interest among young minds (Gomes et al. 2015). Attention should be given on the concept of mass production. This means that the firm need to know the art of customisation so that it can succeed in catering to the mass population overcoming the factor of individual preferences. Hence, comprehensively speaking the company must have the necessary resource.

Product Attributes

Since the Indian market is new, Toy R Us company should make strategic alliances with certain companies of India. Vertical integration can be useful for the company. Joint venture, partnerships and such can be implemented in order to make the primary entry to the particular market.

HRM department (or the human resource management) forms an integral part of an organisation and the complexity of the department increases based on the company size. This important department holds the responsibility of managing and observing the entire workforce and the environment of the organisation. Apart from this, the unit is holds the duty and responsibility of recruiting and hiring the staffs and the other employees needed to strengthen the resource of manpower of the organisation (Bader, Schuster & Dickmann, 2015). Based on the context it should be stated that the toy company needs to make its human resource more strong. The company aims to operate in the foreign regions, hence, the department also need to manage the issues which are related with the expatriate managers. The department needs to consult with the CEO of the company to conduct the selection process of these managers. Along from this assigned task, the department is required to deal with the problems which might arise due to this process of sending its citizen employee to other country, such as India. It is bound for the department to be aware of the policies and the norms which needs to be followed accordingly for the purpose, the rules of the countries and also that of the company. Considering the factor of ethnocentric policy, all the expatriate managers must be home-country nationals (or better indicated as nationals of the parent-company. However, if the company takes the geocentric approach, then the transfer decisions of expatriates need not be based on nationality (Dickmann, Brewster & Sparrow, 2016). The selected company should have necessary development and training sessions for the overall betterment of the employees and the staffs. The company is all about toys and juvenile products, aiming to highlight the needs and wants of the children. Therefore, it is necessary for the company working members to have a proper and clear idea regarding the necessary and importance of toys and the significant it holds for the children. The employees must understand the importance of providing happiness and dreams to the children (Mishra & Roy, 2017, January). Comprehensively speaking, the management department must ensure that the employees understand and consider the importance and the significance of their work. In this way, the working staffs can give their best effort and dedication to their work, leading to better productivity of the company in the process. Training must be given to the expatriate managers which includes cultural training (to make the staffs aware about the cultural diversity), language training (to make the staffs know about the existing local languages to certain extent, helpful to attract the attention of children), and the practical training (helpful for the managers to know about the regular life of the foreign country) (Carusone & Moscove, 2015).

Communication Strategy

Conclusion 

In conclusion it can be said that the scope of opportunity indeed shows a promising picture for the toy industry. The demand of the children has risen compared what it was, also the parents given sufficient importance to the children and try their best to cater to the needs and wants of the children. Creativity and innovation are the tools which can be effectively used by this industry. Considering this context, it can be said that the Toy R Us possess great scope of development and economic growth concerning its attempt global venture in the Indian market. It is true that the difference exists between the countries, however, several similar aspects are also observed, if the company is able to utilise these factors effectively and fulfil the needs and wants of the children population, then the company can become one of the best toy company.

Reference List 

Arnold, D. G., & Troyer, J. L. (2016). Does Increased Spending on Pharmaceutical Marketing Inhibit Pioneering Innovation?. Journal of health politics, policy and law, 41(2), 157-179.

Bader, B., Schuster, T., & Dickmann, M. (2015). Special issue of International Journal of Human Resource Management: Danger and risk as challenges for HRM: how to manage people in hostile environments.

Barei, F. & Le Pen, C., (2014). Refocusing on R&D model or redefining marketing strategy? Anticipating sustainability for generic pharmaceutical industry. Journal of Medical Marketing, 14(2-3), pp.81-90.

Buckley, P. J., & Casson, M. (2014). Marketing and the multinational: Extending internalisation theory. The multinational enterprise and the emergence of the global factory, 20-51.

Carusone, P. S., & Moscove, B. J. (2015). Patterns of Success in Small-City Downtown Retailing. In Proceedings of the 1983 Academy of Marketing Science (AMS) Annual Conference (pp. 1-5). Springer International Publishing.

Chippendale, P., Tomaselli, V., D'Alto, V., Urlini, G., Modena, C. M., Messelodi, S., ... & Michel, T. (2014, September). Personal shopping assistance and navigator system for visually impaired people. In ACVR2014: Second Workshop on Assistive Computer Vision and Robotics.

Dickmann, M., Brewster, C., & Sparrow, P. (Eds.). (2016). International Human Resource Management: Contemporary HR Issues in Europe. Routledge.

Ferreira, J. J., Raposo, M., & Fernandes, C. I. (2014). Technological vs. Professional Services and Location Influences on KIBS Innovative Capacity in Times of Crisis. In Entrepreneurship, Innovation and Economic Crisis (pp. 11-20). Springer International Publishing.

Field, P. R., Lawson, R. P., Brown, P. R. A., Lloyd, G., Westbrook, C., Moisseev, D., ... & Connolly, P. (2017). Secondary Ice Production: Current State of the Science and Recommendations for the Future. Meteorological Monographs, 58, 7-1.

Distribution Channels

Flipse, S. (2014). Environmental Life Cycle Assessments as Decision Support Systems within Research and Development Processes: Solutions or Confusions for Responsible Innovation?. International Journal of Business and Management, 9(12), 210.

Gomes, E., Sahadev, S., Glaister, A. J., & Demirbag, M. (2015). A comparison of international HRM practices by Indian and European MNEs: evidence from Africa. The International Journal of Human Resource Management, 26(21), 2676-2700.

Guilbert, G., Betzabet, K., & Romero Cárdenas, C. D. C. (2016). Creation and compilation of didactic materials for efl students from 1st to 4th grade at Eduardo Crespo Malo elementary school in Barabon: phase i (Bachelor's thesis).

Homburg, C., Vomberg, A., Enke, M., & Grimm, P. H. (2015). The loss of the marketing department’s influence: is it really happening? And why worry?. Journal of the Academy of Marketing Science, 43(1), 1-13.

Hongbo, D. U. A. N., Qianyu, Y. A. N. G., Xiangping, L. I. U., Zhixin, L. I., & Renjun, W. A. N. G. (2016). Feasibility Analysis and Policy Recommendations for Production of Hybrid Rce Seed in Foreign Countries. Asian Agricultural Research, 8(10).

Ile, P. A., & Iles, P. (2013). International human resource management: A cross-cultural and comparative approach. Chartered Inst. of Personnel and Development.

Lee, J., & Chang, Y. B. (2014). Interplay between internal investment and alliance specialization in R&D and marketing. Industrial Marketing Management, 43(5), 813-825.

Mckean, C., Letts, C., & Howard, D. (2014). Triggering word learning in children with Language Impairment: the effect of phonotactic probability and neighbourhood density. Journal of child language, 41(06), 1224-1248.

Mishra, S. K., & Roy, S. (2017, January). A Story of Languishing Doll: Revival of Cloth Dolls of India. In International Conference on Research into Design (pp. 71-77). Springer, Singapore.

Orsini, J. L. (2015). The Interaction of Marketing with Other Functional Units in Product/Service Management: R&D, Prod

Sekeres, D. C., & Castek, J. (2016). Collaborative Online Inquiry: Exploring Students' Skills in Locating, Reading, and Communicating Information. Journal of Interactive Online Learning, 14(2).

Smits, C., Anisuzzaman, S., Loerts, M., Valenti-Soler, M., & Heerink, M. (2015). Towards practical guidelines and recommendations for using robotics pets with dementia patients. Canadian International Journal of Social Science and Education, 3, 656-670.

Stock, R. M., & Reiferscheid, I. (2014). Who should be in power to encourage product program innovativeness, R&D or marketing?. Journal of the Academy of Marketing Science, 42(3), 264-276.

Szostak, P. A., Levin, C., & Haeberle, C. (2014). Toy Train Group 1.

Tao, K. (2015). The Marketing Effect on the Firm Value. In Proceedings of the 2009 Academy of Marketing Science (AMS) Annual Conference (pp. 54-58). Springer International Publishing.

Tuzkaya, U. R., & Yolver, E. (2015). R&D project selection by integrated grey analytic network process and grey relational analysis: an implementation for home appliances company. Journal of Aeronautics and Space Technologies, 8(2), 35-41.