Noel’s Toy Shop
Have you ever…
• Babysat for children under the age of 5? • Had young children in your home? • Given a child a gift for a holiday, only for them to forget about it in a matter of days? • Told a child they couldn’t have a toy since it was too expensive?
We Have a answer for you
3 Services Offered
Toy Store Toy Rentals Baby Equipment Rentals Buy/Sell Used Toys
Description
• Toy store that allows parents to rent toys for a couple of days to see if child really likes them • Baby Needs rental department that allows for rental of cribs, high chairs, • Selling and Buying of used toys
Organization Structure
• Simple, small business • Save on management cost • Leadership effectiveness through direct communication
Business Goal
• Happiness to children in local community • Low prices to parent/grandparents • High customer service and satisfaction to all to encourage repeated patronage
Market Analysis
• Industry Information • Target Market • Products and Services • Competitors • Competitive Advantage • Risk Assessment
Industry Information
• Demographic Data In Iowa: .37% parents income below $35,000 .Grandparents healthy and live longer .Sale in Iowa has grown by 34% last 5 years • Trend.com: .Divorce parent spend more money .Toys more expensive
Market Target
Money spent on toys by age group
Toy Sales
(in millions)
50 40 30 20 10 0
14
16 5 5
0 tru 5 5 thru 10 thru 15 thru 10 15 20
Age Group
Market Target
• Parents and grandparents who do not want expensive toys for their kids • Parents have low income • Parents have a few children • Divorce parents • Kindergarten
Direct & Indirect Competitors
• Direct competitors: do not have Toys Rental store in Des Moines • Indirect competitor: -Chain stores/Discount stores -Specialized toy stores -Online toy stores
Competitive Advantage
• The pricing • Current style toys • Out of date toys • Large inventory
Risk Assessment
• New toy rental stores • Departmental toy stores • Toy stores’ price promotion
Marketing Plan
• Image • Pricing Strategy • Promotion Plan
Image
• Everyone’s Store • Community Store • Store Environment -Bright light, clean store image -Toys and Equipments, looks new -Toys laid on shelf orderly -Employees are Knowledgeable and nice to talk.
Pricing Strategy
• Setup up the rental price that consumer will accept. (10-15% of original price.) • Set up price that Toys Rental can get money back in 2-3 months. (Cash Flow)
Pricing Categories
• Renting for small, low price toys • Renting for large, high price toys and baby equipments • Buying toys and equipments they are renting • Buying used toys we are selling
Small, low price toys ($20 below)
• 60 cents per day. • No limit on minimum rental days. • No limit on maximum rental days.
p.s: under this method, we can get our investment on this toy back in 35 days.
Renting for large, high price toys and baby equipments
• Rental fee- 15% of original product • Minimum rental days are one week
P.S under this pricing method, we can get our investment back in 7 weeks
Buying toys and equipments they are renting
• The selling price is set at original price minus half of the total rental fee they have already paid.
Selling price = Original price – 0.5(Total rental fee)
p.s: we encouraging customer to buy the toys they are renting if their children really like it
Buying used toys
• Most of the toys that we are selling are outdated toys • We have already get the investment back. • Price is set up as 50% of the original price
Promotion Plan
• Design plan focus on 3 market segments -1. Low and middle income family with children -2. Grandparents that have grandchildren -3. Divorce parents that have child
Promotion Plan
• Distribute flyers through community service by providing free rental coupon. Give community organization certain amount of coupon for free rental toys or equipment
Location for Flyer
• Low/middle income family with children -Middle Iowa Community assistance -Women infants children • Family with newborn children -Hospital: Birth Way -Hospital: Pediatric
Location for Flyer
• Family needs federal assistance -Human Resource Department Medicaid Program • Grandparents that have grandchildren -Distribute flyers to retirement center • Preschool children -send free coupon to preschool
Promotion Plan
• Advertising on local newspaper: such as Tribune or Des Monies Register. Use promotion budget in most efficient way to maximize selling and renting