Passion for Learning Helping Kids Become Amazing Students
CASE SUBMISSION 3
Presented to
Professor Ganesh N. Prabhu
[pic]
Indian Institute of Management, Bangalore
On July 26, 2011
Submitted By
Case Group – 2J: Arit Kumar Mondal 1011084 Rajarshi Sarma 1011194 Nirupam Das 1011258
TOY DISTRIBUTION INDUSTRY IN USA
The toy distribution industry in USA is dominated by top five retailers (50% market share). Sales are seasonal towards the last quarter of the calendar year. The industry is attractive and the per capita contribution to toys is increasing. There has been a growing interest in the educational toys segment where educational value is the primary purchase driver.…show more content… of suppliers and higher volume, PFL |No differentiation in its product offering | |may secure better negotiation terms |Investments for order-fulfilment centre and equipments (Approx $ 500,000) – A | |Higher economies of scale with cost of products sold |challenge for a cash strapped company like PFL | |reducing from 46% to 32% |Increase in the mailing expenses | |5% freight discount for increased volume purchases |High supplier bargaining power | |Larger consumer base leading to increased sales from | | |increased responses | |
repositioning option 3: science, crafts and action focus
|This is a focused differentiation strategy. This category is basically a subset of the larger educational toy category. | |Advantages |Disadvantages | |Higher profit margins, focussed
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