Passion for Learning
Helping Kids Become Amazing Students

CASE SUBMISSION 3

Presented to

Professor Ganesh N. Prabhu

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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