American Toy Industry

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As for marketing, since we don’t need to spend a lot of money on license, we can spend it more effectively. First, we will advertise in some major chains that aim at baby products or in the baby care sections in big stores, i.e. Wal-Mart, Target. The visits of those chains stores usually come from our target consumers. We believe they are likely to be interested in our product. Second, we will offer some free toys at a daycare center owned by a close friend of mine. The employees there will help us market our products. They will teach those children how to play with the kitchen sets. And once our product becomes popular among the kids, everyone will want one of his own. Thus, their parents will know our products and communicate with each other. The network effect then will be formed. What’s more, they can also give us some feedback about which feature of our product is good and which needs to be improved. My main competitor is Fisher Price, who also is a major player in our target segment. But since they sell their products primarily through discount stores and toy supermarkets, we can avoid direct competition from them.

Since our design is easy to be copied, we will emphasize on the quality and play value, which is our competitive advantage. We will patent the edible cooking powder. And we will invest heavily to develop new items to the kitchen set, allowing children make their own simple dishes, which has a high play value and is good for intelligence and creativity development. We believe the end buyers of this segment care more about those factors. Also, by selling our products at specialty stores, we can avoid competing with big brands. In addition, the specialty stores will surely favor our product and require their sales man introduce our product to their customers first because our product is very unique and offer them higher margin. Finally, the daycare center will help me develop the market and build network effect. We believe the overall strategy will keep us competitive in this market.