McElroy – College Essay
The Company’s marketing and advertising business arm oversees all advertising efforts to ensure that the target audience is well exposed to its products through Len- tore displays, Doll industry magazines and online presence utilizing Search Engine Optimization (SEE). SEE of its website to garner a high ranking on search engines. Advertising at PBS, Nickelodeon and PBS Kids Sprout, school book sale by Scholastic to promote its brand and instill recognition of its name in the doll industry. Presence on Social Networks (I. . Faceable, Twitter, Namespace and Dig) via user profiles, viral discussion, blob sites such as Wordless, Wiseacres and Bloodspots; merchandising at concerts, film premiers, fund raising events, with the intention of outfitting major groups, solo acts, bands, actors, and celebrities. Children of young age and doll collectors should be interested in the product as this is a perfect gift for the understanding of diversity and culture. Recognizing one’s heritage is a representation off cultural doll.
The dolls represent a sense of girl power and stick- to-it-news. The doll will be sold with the option of a wide array of accessories, the Cultural Doll is pricey to some, but parents are willing to spend a bit extra for a well- manufactured doll. Marketing Plan for Cultural Dolls Situational Analysis Situation Analysis presents relevant background data on sales of the doll market, sots, the market, competitors and the various forces in the macro-environment. Market The doll is a 2. BOB market industry based on a 2010 NYPD Group Consumer Tracking Panel.
There has been a 6% increase from 2009. According to the Bureau of Labor Statistics, Manufacturing MANIC 3399 is one of the fastest growing and most wage and salary employment. , reflecting a promising 2. 2 Average annual rate of change. Direct Labor has increased for this category because of the increase in demand. The company finds it necessary to analyze prominent market trends in the industry in which Cultural Dolls will operate. Consumer trends are constantly changing due to the economic climate.
Cultural Dolls is aware of this and intends to become a dominant force by paying close attention to any movement in the specific markets. Company A sole proprietorship that initially got a grant funding from the Social Security Administration’s Plan for Self Achievement and Self Support (PASS) Program. The company is going through second funding after having produced its prototype. The company is seeking to infuse capital and management expertise. Competitors Matter, Inc. Being a publicly held company garners . 20% of Doll business. MGM
Entertainment, makers of Brat dolls, being a privately held company does not readily available data except for historical data of 2006 and 2007. Cultural Dolls Co. Offer a unique look and feel. A toy too kid gives them comfort. As our nation is diversified in culture with various background and ethnicity, a child can find a toy that they can relate to its own roots and add to its collection other dolls of various heritage, with the subconscious inculcating peace and harmony at a tender age. Market Summary The Toy, Doll and Game Manufacturing industry has endured tough conditions over the five years to 2011.
New product-safety regulations, following large-volume toy recalls, have caused industry operators to incur considerable losses. Decreasing downstream demand has also adversely affected sales, with fewer industry products being purchased by toy stores and discount department stores. Furthermore, high and increasing import penetration from China has placed significant pricing pressures on domestic manufacturers, and caused profitability to fall. Consequently, revenue is estimated to decrease at an average annual rate of 5. 0% to $2. Billion over the five-year period. In the past decade, an increasing number of toy, doll and name manufacturers have been bypassing wholesalers by internalizing distribution functions and directly supplying their goods to toy specialty shops and department stores. This has caused industry operators to rely heavily on retailers for the majority of domestic sales. However, poor downstream demand at the retail level has adversely affected industry operators over the past five years, causing industry revenue to fall by 4. 3% and 10. 3% in 2008 and 2009, respectively.
This fall in retail demand has been primarily driven by low consumer confidence in the economy and reduced disposable income. As sentiment crashed by 25. 0% in 2008 and an additional 0. 8% in 2009, per capita disposable income also fell by 0. 4% and 0. 04%, respectively, marking the first declines since 1991. Consequently, these trends forced consumers to curb their spending on discretionary items, including toys, dolls and games. Rather than paying full price for goods, consumers began hunting for promotions and bargains to save cash, contributing to retailers’ and manufacturers’ demise.
Fortunately for the industry, demand for toys, dolls and games have been on the rebound with the gradual economic recovery. In 2010, consumer sentiment and household disposable income rose for the first time in two years, encouraging consumers to increase their spending that they delayed during tough times. Revenue for the Hobby and Toy industry (Fishbowls report 45112) increased by 2. 0% in 2010 and is estimated to increase by 3. 1% in 2011. Such increases in downstream demand are expected to lead to higher demand at the manufacturing level; Fishbowls anticipates that industry’s sales will increase by 1 . % from 2010 to 2011. Company Description Cultural Doll Co. Was created in February 2007 by a sole proprietor. Management is composed of a manager with an education background in Commerce, including a Bachelor of Commerce major in Accounting from University of San Carols and graduate work on MBA program from Keller Graduate School of Management. Her work experience includes 10 years of business operations and 10 years as Controller. The executive talent, who conceptualized the dolls through her creative sketches, has expertise in Art Design and drawings including clothing and fashion design.
She is an avid doll collector herself. A Management Coordinator is a Technical Advisor. He as a Masters Degree in Counseling and a Bachelors Degree in Industrial Technology. He has extensive experiences in product development and organizational business flow. The company received grant funding of $13,873. 96 from the Social Security Administration’s Plan for Achievement of Self-support (PASS). The PASS program is open to AS’/ disability income recipients who wish to further their entrepreneurial vision. Cultural Doll Co. Eve over 12 renderings of international cultural dolls such as Caucasian American, African-American, American-Indian, China, Mexico, India, Jamaican, Indonesia, Just to name a few. The product is produced by Lungful Ltd. In Taiwan, Republic of China. The resources used is capital infusion of $6950 from private investor. Another resource is the Davison Group representation. Davison Group is huge conglomerate that has product placed through major retailers such as Wall-Mart, Target, K-Mart. Davison presents Cultural Dolls to purchasers of Channel Chain and represent in negotiating to cut a License Agreement.
SOOT Analysts Cultural Dolls has performed the following SOOT (strengths, weaknesses, opportunities, and threats) analysis to better understand its position in the marketplace. The SOOT analysis will also enhance the Company’s ability to recognize its own unique strengths and weaknesses while taking advantage of market opportunities that may exist. Strengths These strengths will speak well for initial market success of its product lines. The Management Team’s combined experience and access to nationwide distribution outlets will be one of the Company’s primary competitive advantages.
A cultural doll that is imparting a message of understanding towards world peace, taught from early childhood to inculcate in a child’s mind until they grow up to be in harmony with one another, respecting diversity. Weaknesses Due to the principals health challenges, chemo treatments, limited capacity is devoted towards growth of Cultural Dolls. Limited financial resources to have the dolls designed with the desired material, communication challenges between Chinese factory and doll designer in US without having to cost an arm and a leg to modify the mold when corrections needed to be done.
Opportunities There is an area of buyer need and interest that a company has a high probability of profitably satisfying. There are three main sources of market opportunities. The first s to supply something that is in short supply. This requires little marketing talent, as the need is fairly obvious. The second is to supply an existing product, a cultural doll in a new or superior way. A fair share of the doll and toy market, visibility at major retail stores such as Toys R Us and Target is an opportunity worth undertaking.
In 2010, consumer sentiment and household disposable income rose for the first time in two years, encouraging consumers to increase their spending that they delayed during tough times. Revenue for the Hobby and Toy industry (Fishbowls report 45112) increased by 2. 0% in 2010 and is estimated to increase by 3. 1% in 2011. Such increases in downstream demand are expected to lead to higher demand at the manufacturing level; Fishbowls anticipates that industry’s sales will increase by 1 . 7% from 2010 to 2011. Threats A not so strong funding base is a threat to successfully market to launch the product.
Kids trend is to want a doll or toy that is a associated with an upcoming movie influenced by media, advertisements at major Children Network such as Cartoon Network, Nickelodeon, PBS and Disney Channels. A Macro-Environmental Scan Economic Major developments in income, price savings, and credit affecting the company. The Consumer Spending Index grew by 1. 4% in June 2009 from May 2009, a sign that shoppers may be feeling optimistic about their spending habits and economic growth. Environmental The outlook for the cost and availability of natural resources and energy needed by the company is bright and positive.
Lung Www, Ltd. In Taiwan, has a steady supply of raw materials needed to produce the cultural dolls. The concerns expressed about the company’s role in pollution and conservation is to be involved in the community cycling programs. Technological Major changes occurring in product and process technology is the emergence of voice toys. The company’s position in these technologies is continued research on additional product lines such as a doll and toy that have a port so that audio files can be programmed. Political On August 12, 2011, President Obama signs the Consumer Product Safety Improvement Act (CAPITA).
Senate approved by Unanimous Consent and a strong, bipartisan vote of support (421-2) in the House of Representatives, along awaited amendment to the Copulations The President approved H. R. 2715. The Act is to provide the Consumer Product Safety Commission with greater authority and discretion in enforcing the consumer product safety laws, and for other purposes. Cultural The publics attitude toward business and the company’s products have been resoundingly encouraging based on responses at Social Media Networks such as Faceable.
The changes in customer lifestyles and values affecting the company are the continued influence of children through TV, movies and advertising. In Ho Kaki- Lana, is a Chinese girl character that has taken enormous store shelf space in Toys R Us depicts a growing awareness of the different cultures in the US for girls and doll collectors. Product Offering The Cultural Dolls send a healing message towards differences in one’s culture. An interesting, creative and educational doll that reflects the diversity of the world in which we live today is offered by Cultural Dolls Co.
Our dolls are different from the others in such a way that the look is unique. Marketing Strategy Mission Statement Cultural Dolls is a developer of collectible quality, educational, Cultural dolls and accessories, based in Los Angles. The company’s mission is to create unique dolls ND related accessories that help children and adults embrace international heritage, culture and tradition. Marketing Plan Objectives Non-Financial Objectives Serving customers Periodic surveys will be sent in order to understand the needs and wants of customers. Online surveys such as Polyploidy. Mom linked with an Application Programming Interface (API) of e-Newsletters. Cultural Dolls generates strong lead of customers, a lead of prospective customers, building a subscription incentives respondents to receive promotions, contests and sweepstakes list using through a linkage at e-Newsletters distributed via Milliamp. Mom and Dovetailing. Com. In the long-term, this objective is the foundation for a financially successful business. Non- financial objectives under this heading would include meeting defined delivery standards; product quality, reliability and after-sales service levels.
Relationships with Suppliers Responsibilities to suppliers are expressed mainly in terms of trading relationships. Payment is remitted to manufacturer in Taiwan in advance after the pro-formal invoice is approved. Davison before considering representation of Cultural Doll requires payment in advance as well. Because Cultural Doll Co. Is a new company, no established line of credit; cash outlay is required in advance before work is done. When the company becomes established, timing of payment and other terms Large businesses often have considerable buying power over their suppliers – which should be used of trade will be observed.
Responsibilities to Society The company is aware of its overall responsibility to society at large. Through Corporate Social Responsibility, the business will comply with relevant laws and regulations such as observance of Consumer Product Safety Improvement Act of 2008 n regards to prospective application of lead limit or children’s products. Financial Objectives 1 . Increase profits, as a percentage of revenue, by 1% every two quarters. 2. Hold marketing expenses, as a percentage of sales, to a 2% increase after year two. 3.
Decrease costs associated with selling customers by 3% a year for the first three years. Consumer Segment Analysis What a thorough consumer segment analysis can offer is invaluable, Haggle said. Once the target market segments are identified, existing market data can be used to determine the best avenues for advertising within each medium: television, radio, erect mail, and so on. The target market segment is identified as major retail stores such as Toys R Us, Wall-Mart, Target and K-Mart. Mass merchants and general toys stores capture the largest share of electronic toy purchases.
Forty-two percent of consumers made their most recent toy purchase purchase at a mass merchant store such as Smart or Wall-Mart, and 33% made their purchase at a general toy store such as Toys ‘R’ Us. A likely reason is the large variety of children’s products from which to choose. Target Markets Dolls is a subcategory of the Total Traditional Toy Industry, which is a $2. B in Jan ’10-Deck ’10 business in the US. Toys for Cultural Doll Co. Sales projections represent only a fraction of . 10% penetration.
Such a low level of penetration means that even if the total markets maintain or even decline, it is such a large market that we could meet the forecasted sales and possibly even gain market share. We are after a very small piece of a very large market. The end-users of our products are children, mostly girls, ages four (4) to twelve (12) years. The products are purchased by adults who buy for their children, as a gift or as a doll collection. They will make the final arches gifts as well. They will make the final purchase. We will be making sales to retail stores and wholesale distributors. This is where we must concentrate our efforts.
Our products must be presented to them in a manner that will convey our dedication to providing quality products, in attractive displays, at a price that allows stores to attain their customary mark-up. We must also be committed to supply a flow of new products. New sales- and we want the stores to sell. Through representation of Davison Group, targeted major retail stores are Target, Wall-Mart and Smart. Military Exchanges Since our products are ideal for children away from family and friends and who have idle time, we feel there is a place for them in the military exchanges around the world.
All major buying operations for all the branches of the armed services have been sent catalogs and a sample. We also included a letter of certification that is a woman owned enterprise. Since Federal agencies are required to take affirmative action in support of businesses owned by women, this may give us an edge on getting product placed in the military exchanges. The initial results have been disappointing. More attention must be given to this potentially large channel. We are also looking for a representative sales organization that specializes in this channel.
Free Publicity Trade Journals as well as consumer publications are always looking for new items to tell their readers about. So far we have had many free write-ups, and continuous efforts are made to get as much free publicity as possible. Marketing Mix The marketer’s task is to device marketing activities and assembles fully integrated marketing programs to create, communicate, and deliver value for consumers. Marketing activities come in all forms. The marketing mix is comprised of the first P, product. The product is cultural dolls and accessories. The second P is price.
The doll is intended to sell at $18. An American Girl doll at an average really costs $24. The third P is place. Retail store display is the place one can buy the ethnic dolls. There will be an upscale of doll clothing and accessories available as an order form enclosed in each doll packaging. The fourth P is promotion. Promotional efforts is geared to reach the target audience, to be well exposed to its products through Len- groups, solo acts, bands, actors, and celebrities. Pricing Cultural Doll Co. Has after careful consideration decided to align its pricing at a lower level in comparison to its competition.
This fits in perfectly with where the company sees itself positioned in the total marketplace and communication with its customer base as far as getting appropriate value and still maintaining sufficient motivation for high volume. Cultural dolls will be sold at $18. 00. This volume pricing is based on a minimum order of 200,000 units from manufacturer. An average Barbie doll sold in the United States is $20. An American Girl doll with the most economically priced OLL tote is sold at $22 – a bargain compared the doll-sized zip-up carrier for $58, which conveniently includes pockets to store outfits for the doll on-the-go.
Promotion Strategies The management of Cultural Doll Co. Believes very strongly in press releases to significantly get the word out of the value of what it does. This will always be a focus of its promotion efforts. However, though this is a crucial part, this is only one part of its promotion strategy. On a consistent basis the company will be promoting what it does through online Internet exposure through search engine optimization, eBay, retail stores, and by word of mouth. This along with all the individual selling efforts of its staff demonstrates a dynamic way for it to build the penetration of what it does in the marketplace.
Promotion Budget with items and Percentage of Total Budget The company will penetrate the market in the design and distribution of a female multicultural doll that will be welcomed by children and people of all cultural backgrounds and nationalities. There is an opportunity for offering superior quality dolls featuring different hair color, eye color, skin tone, hair texture and clothing according to the country she is visiting or representing. Cultural Doll Co. Will serve its area of business working to make its lines more productive while at the same time controlling expenses.
The founder received grant funding from Social Security Administration Plan for Achieving Self Support (PASS) $13,873. 96 and loans of $2,000 to have the prototype developed and Organization Costs. The company seeks $2. 77 Million in loan through finance or equity investment through angel investors. Funding can be in broken down in several phases as we are getting grants in 2 stages as well as the company shows its worthiness through its progress. The funds will be allocated to take care of the requirements to promote the cultural dolls.
This marketing plan will show the components that make up and accomplish this exciting business. Matter, Inc. A competitor of Cultural Dolls Co. , in its 2011 Annual Report shows Selling, General and Administrative Expense of $1983. 5 million dollars and Operating Revenue of $5,430. 8 million. That’s about 36% Selling, G&A. It would be a safe assumption that at least Five (5) percent of the Total Budget is allocated to promotion. Mantel’s share to the Total Doll Market is . 20%. Cultural Dolls goal is a target of . 10% market penetration.
Taking figures from the Economic Data of U. S. Domestic Markets US Sales Data 2010, Dolls generated $2. BOB, which is 13% to the Total Traditional Toy Industry. .10% of $2. BOB is $2. MM, company’s market share financial objective, which is also the Total Budget. 5% is $2. MM is $138,500 as the desired budget dedicated for marketing the product. The Use of Funds for Promotion Budget is summarized as follows: Budget for web design $5,000. 00 Representation at Retail Stores sign up with Davidson 740. 00 Search Engine Optimization (50%) 4,540. 0 TV Advertisement 10,000. 00 Characterization of cultural doll in TV series, movies 03,220. 00 Point of Purchase (POP) displays 5,000. 00 Promotion, sweeps, e-Newsletter, viral marketing Total Promotion Budget $138,500. 00 Total Budget Total Promotional Budget to successfully launch Dolls Percentage of Promotion Budget to Total Budget 5% Controls Contingency Planning Once a corporation is located as a potential target of cultural dolls, Davison Group will gather production and marketing information concerning the company.
Davison Group will do this representation so they can work harder to better design the project to fit with the company’s abilities. As a disclaimer. A typical project does not et licensed, sell in stores or generate a profit. Plan B is to attract equity investors, participate in Mixers of Angel Investors and Entrepreneurs to present the business proposition to do marketing and production on our own. Plan C, business investment at risk is a tax deduction. As a qualified investor, you can put your experience and contribution to the investor’s repertoire for future endeavors.
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