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1. INTRODUCTION Eurekakidsis a Spanish company whom the legal name isDamerikLimited Company. This firm is engaged since 2002 in the design, distribution and sale ofeducational toysfor childrenbetweenzero andten years old. They work withover 5000referencesranging frompacifiers, childcare, clothing, books and costumes. Since itscreation, managers were guided byclearvalues. The toys designed by Eurekakids focus on the acquisition of habits and values ?? that can facilitate their learning.

These educational toys have the aim to increase interaction among children, bring children to nature, away from violence and try not to differences between boys and girls. Their purpose is to entertain, educate, encourage creativity and raise children. Eurekakids was created in 2002 by Erik Mayol and Marta Roget in the province of Girona. In 2004 they opened three stores. Three years later, Master Pierre joined as a shareholder of the company opening four stores. In 2006 already had ten stores and launched its online platform. In 2010 they made their first break abroad, expanding to Barcelona and Italy.

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Today, nine years after its creation, Eurekakids has 112 stores and it is present in Spain, Portugal, Andorra, Italy, Belgium and France. They also sell anywhere in the world with its online store. 2. ANALYSIS OF THE ENVIRONMENT a. Analysis of the external situation i. German market Analysis The products were mostly bought by families with children. According to the director of marketing, Germany has become a potential market for the company because the online sales are very important. Fertility rate| Spain| Germany| 2001| 1. 24| 1. 90| 2002| 1. 26| 1. 88| 2003| 1. 31| 1. 89| 2004| 1. 33| 1. 92| 005| 1. 35| 1. 94| 2006| 1. 38| 2. 00| 2007| 1. 40| 1. 98| 2008| 1. 46| 2. 01| 2009| 1. 40| 2. 00| Taking a look at the data from fertility in Germany: comparing the data, in Germany the fertility rate is significantly higher throughout the last decade. This would strengthen the theory that is a good potential market: more families and children may mean an increase demand of toys in the future. The good experience of the company in Spain and the information in the online sales can ensure a successful introduction into the French (German) market. CHECK!!!! the toys and games market in Germany: Consumption of traditional toys and games in 2005 was € 2. 3 billion. – Germany is one of the largest consumer markets for toys and games in the EU, with 17% of total EU · The average expenditure on toys and games per child in the age group of 0-14 years was 192 euros in 2005. This is higher than the EU average of 168 euros. · Kids in Germany are more technically oriented than in most other European countries. Construction toys are popular as well as (model) vehicles and electric trains. The latter category has, however, been witnessing falling sales in recent years. Increased popularity of toys with electronic content, ranging from toy cell phones which make sounds and music, to dolls and figures which can speak, move and react. 3. Competitive analysis The toy industry, a sector that can not be considered a market in which competition is perfect. It would become an oligopolistic market. Eurekakids has few competitors, but competition is very strong. This competition can be classified into two groups: companies that distribute toys and, outside the distribution, design your own product. German competitors in the toy’ market

Vtech Electronics Europe is the leading educational electronic toys specially designed to help children learn while having fun. Nemmer is a family traditional company since 1952. Quality in wooden toys for children. It is the leader in this market. Since its foundation in 1948 in Washington, whatever the Chain Toy sales have become more important than a World level. It is present in 5 continents and include a total of 1550 stores, 46 of them a Germany. Also sells online and their website represent an average of 6 million visits per week. Founded in 1962, nowadays have 60 subsidiaries in the south of Germany.

Founded in 1988 and have 41 shops in Germany. The LEGO brand is more than simply a familiar logo. It is the expectations that people have of the company towards its products and services, and the accountability that the LEGO Group feels towards the world around it. The brand acts as a guarantee of quality and originality. VEDES is the leading association of toy stores in Europe. Over 1000 business share a philosophy: If you buy toys in trying out, and can be discussed. After all, it’s about encouraging the children in the game and to consciously develop their own valuable time.

In Germany has the 14,6% of market share. Market share of 12,7% in Germany. Market share of 5,8% in Germany. As shown, the direct competition that may have Eurekakids in the field and ecological educational toy is quite small. But, by reference to the marketing of toys of all kinds, there is much competition. However, the company does not make much account of this competition is considered as different. For Eurekakids, the sale of these toys is all kinds, including sexist nightmare and looking for more sales too. Unlike them, they only sell educational toys, green, a way from that violence and sexism.

Competitors Dominant actors are small toy specialist stores (‘SpielwarenFacheinzelhandel’) which are members of one of the large buying groups: Vedes (14. 6% market share in 2005), Idee+Spiel (12. 7%); Spiel und Spass (5. 8%) and duo Schreib und Spiel. The total turnover of specialist stores was € 1. 1 billion in 2005, which is 36% of the market. Further specialists are large surface retail chains like Toys ‘R’ Us (6. 5%) or Rofu. The turnover of specialist chains was € 330 million in 2005, with Toys ‘R’ Us leading the field. Department stores like Karstadt and Kaufhoff together account for € 380 million.

Other stores, like cash & carry (2. 4%) discounters (5. 5%); supermarkets/hypermarkets (14%) and mail order supply the remainder. SWOT ANALYSIS SWOT| Positive| Negative| Enterprise| Strengths -Little competition in educational toy-Good quality and security products-Design and originality- Pedagogical and educational values? – Innovation. Every year renews 60% of the catalog products-between-new and renovated. -The concern for the environment-Online sales worldwide- Sales unseasonable| Weaknesses -Lots of competition in toys in general High cost of distribution-High cost of storage- Do not have toys with the characters of fashion. -Theme designs hops monotonous. | Sector| Opportunities -The product is easily adaptable to international market- Increase of birth- Product with an affordable price| Threats -High seasonal sales- Low barriers to market entry-Substitute products on the rise- Not being considered a commodity, the demand for this product low in times of recession. -Lots of competition| PESTEL ANALYSIS!!!!!! DO WE PUT IT?? PEST model: political, economic, technological, social for eurekakids Political:

Stable government Foreign exchange market: Germany isthe most powerfulworld tradein 2009. Thetrade surplusof Germanyis a sign ofa healthyeconomy. In 2010, German exports reached € 959. 497 billion, a level close to the record in 2008 (€ 985 billion, according to the FMI), imports 806. 164 billion € and the trade balance 153. 333 billion €. The export machine is at full repartee. Exports represent 46% of GDP, imports 40. 5% and the trade balance 5. 2% of GDP. Germany is thefirstindustrial powerin Europe | Economic: Evolution of PNB: http://www. indexmundi. com/g/g. aspx? =gm&v=65&l=fr 2005: 2480 billion dollars 2006: 2630 billion dollars 2007: 2807 billion dollars 2008: 2918 billion dollars 2009: 2815 billion dollars 2010: 2940 billion dollars Unemployment rate: 2005: 10. 6% 2006: 9. 8% 2007: 8. 4% 2008: 7. 3% 2009: 7. 5% 2010: 6. 9% 2011: 6. 6% Disposable income: 18 797 euros in 2010 Inflation: http://www. gecodia. fr/Taux-d-inflation-Allemagne–Inflation-Allemagne–Prix-a-la-consommation-allemands_a615. html January 2010: 0. 75% July 2010: 1. 21% January 2010: 1. 96% July 2011: 2. 40% Sociocultural: http://stats. ecd. org/Index. aspx? DataSetCode=CSP2010&Lang=fr Demography: 81 953 800 habitants Income Distribution: The 10% of the wealthiest Germans have 61. 1% of the private property of the country, while 70% of the less affluent have only 9% of assets. Esperance de vie (2007) 78. 95 ans Birth rate (2007) 8. 20 ‰ Fertility rate(2007)1. 40children born / woman Death rate (2007) 10. 71‰ Infant mortality rate(2007) 4. 08 ‰ Literacy rate(2005)99. 00% Rate of natural increase(2010):- 0. 26% Population -15 years (as a percentage of the total population): 13. 8055% (2008), 12. 66448% (2030)

Technological: Expenditure R&D: 62 billion euros against 39 billion for France The expenditure in R&D as a percentage of GDP is 2. 54% The highest proportion of firms had innovation activities are in Germany (63% of firms) Energy costsin Germany: The prices of energy haverisen sharplyin recent monthsin Germany. In October, theincreaseover the yearstood at11. 1%, with a price increase of25. 4% for heating oil. SinceJanuary 2009, the price of oil (fioul) soared by about 80%. Pricesmayincrease furtherwith the abandonmentdecided tonuclear powerplantsatthe laststop workingin 2022.

COMPANY The evolution ofexports fromSpainto otherEU countriesfollowsanincreasing trendfrom 1995 to 2002, which takesupa volume of348. 7 million. From thatyear until 2007, varying the volume exportedand is located on€302. 98 million. Including29. 13 millionfor Germany who is the 3th countries for importation but the first country in which Eurekakids is not implemented. The toyin Spanish,positionedat the international levelfor its quality, design, strict compliance withsafety standardsandthe high valueof educationand teachingis very positivefor customersinternationally.

Thus,the toy industryin Spainis ranked asa leaderin the creation,innovation andpassion. This efforthas createdaconsistent productinnovationand quality, coupled with his attempt toconquer theforeign market;we thoughtthe results andthe quantities of suchproducts exported. During the periodfrom January to November2010,international saleswere higherby 367million euros,registering a growth of9% over 2009. Figuressuch as France, Portugal, UK,Germany or theNetherlands,to demonstratethe value thattheir products tothe European Union. Exports evolution of toys market from Spain to UE countries

The Spanish toy, positioned internationally for its quality, design, strict compliance with safety standards and the high value of education and teaching is very positive for customers internationally. Thus, the toy industry in Spain is ranked as one of the leaders in the creation, innovation and passion. This effort created a constant product innovation and quality, coupled with its attempt to capture the foreign market, we reflected the results and the volumes of such products exported. During the period January to November 2010, international sales were higher by 367 million euros, registering a growth of 9% over 2009.

Figures such as France, Portugal, United Kingdom, Germany or the Netherlands, demonstrate the value they represent our products to the European Union. Estacionalitat de les vendes del sector del joguet a Espanya Valor de les vendes durant la campanya de Nadal sobre el total anual(%) As the graph shows, the toy market in Spain (and other international markets), is clearly seasonal. Sales growth experienced during the Christmas season is between 50 and 60% higher than the average annual sales. Eurekakidsproductscan be found inshops and franchisesinmulti-brand storesandon-line platformof the company.

The shopsare distributedbySpain,Italy, AndorraandPortugal, but the salevia the InternetmakesproductsEurekakidsreachworldwide. Eurekakidsdesigns itsown productsandorders tothevarious manufacturersorbuyother brands. All these productscome to thecentral warehouse, which isthe onlycompany, locatedin RiudellotsCampllong. From thiswarehousethe productis distributedto each of theoutletsthrough varioustransport companiesoutsourced. Themodelshopis a placebetween 50and 100square meters,andnostorelocated in thecitymall. As already mentionedEurekakidsdesigns and marketsall kinds of productsfor children.

Inthe sectionthat hasits owndesigncompany, the company sells179brandsthat sharethe values?? and representsEurekakidspower. Thisbusiness strategyhas beensuccessfulfromthe beginning tothe present andreportedcontinuingbenefits. KEY SUCCESS FACTORS 1 / The store concept The color and shape of the shops work Eurekakids imagination to a world of fantasy. The simulation of a forest with creatures like dwarf and fairy-tale forest are considered key elements of success in the chain. 2 / Product – Toys that are differentiated by their educational and didactic quality, organic (wood and recycled cardboard) and innovative. Diversity of product categories on the website. 3 / Marketing: Trade proximity a. Seasonal sales: While the industry average in the Christmas campaign has 85% of sales, Eurekakids seasonal sales achieved by the use of other campaigns: costumes, summer, back to school. .. Thus, the Christmas season represents only 38% of annual sales for the company. b. Consolidation of brand image: Eurekakids been revealed through cooperation with children’s programs. For one thing, collaborating with the club sponsoring the Festival of Super Super3.

For another, the marketing department organizes free activities in shopping centers where they have their shops with George Cruz, presenter of Art Attack. c. Customer loyalty with customer cards (gift, discounts ,.. ). d. Collaborate with various NGOs. Mainly with the Learning Foundation. e. Channel traffic on the Web (back over 3 years). 4 / planning For them, have a good plan is 50% to a track. a. Organizational well-defined. b. Having good teams: For a good product? Team consists of very different people with varied profile of different cultures and motivated teams. c.

Constancy in the workplace: It is very important the choice of leaders, the evaluation of permanent equipment, incentives and rewards. d. The company is based Illusion: creative toys, family, ecological … this allow you to create, play group, contact. e. Innovation is considered essential because changing tastes of children. The search for new design, colors, materials … is essential. But while Eurekakids not want under any circumstances, stop selling the products as classics that appeal to children and parents. f. The treasury, financing conditions and payment of the company are the biggest help to success. 5 / Making the opportunities:

Eurekakids have missed the opportunities that were presented. Why Eurekakids should not enter to the German market? The German market is a mature open market, but fully stocked and partially saturated, hence it is difficult to introduce. The German market for commercial planets requires medium and long term business German culture is contrary to the quick profit and risk, and requires stable and lasting relationships. The “Made in Spain” has a low recognition among German consumers, except in the case of fresh food products, and although there are no arguments against the Spanish product, there is a huge degree of ignorance.

In the absence of a cover image as “country image” (Italy = design, France = luxury, Japan = technical competence), the marketing of a product requires an additional effort of communication, sales. It is wrong to claim access to the German market competing on price, hoping to raise it when it is introduced: experience shows that the initial positioning of a product in a particular segment of the German market is usually definitive, because the trader did not accept another connection quality, value for money than they know.

It is important to consider the distribution channel has Eurekakids ahead in online sales system, which along with France, Germany is the country that purchase through the website. If we decide to settle in Germany, we should study well and go, as Germany is characterized by a concentrated industrial structure. Germany knows the toy market, and has many of the most important fairs of this sector in the world. For example we find the Spielwaremesse Nuremberg and international prestige. In addition, this sector is characterized by high advertising on television and magazines. Why not enter Opportunities and threats Germany has a considerable trade deficit, indicating a dependency on imports from other countries to satisfy its demand. + Imports increased substantially during the period reviewed. + The individual product groups showing strongest import growth were: other construction sets (+73% annual growth, share of 0. 9%); construction sets of plastic (+36%, 17%); electric car racing games (+29%, 1. 7%); ride-ons (+13%, 2. 5%); inflatable balls (+12%, 3. 1%). – Most of the imports are sourced in China, making it difficult to compete on the market, though some other supplying countries are making good progress.

Why enter Consumers play on, market size growths for fourth consecutive year The market for traditional toys and games in Germany displayed positive growth since 2007 and this was succeeded by further improvement in sales growth to pass the €2,700 million mark in 2010. Ravensburger AG observed that even during the economic crisis, parents rather saved elsewhere than disappoint their children by not buying them toys. For families who were particularly hard hit by the global financial and economic crisis in 2009, toys and games were used as partial substitutes for holidays.

Ageing population offers silver lining, grandparents as key gift givers Even though birth and fertility rates dwindled in Germany over the review period, the continued positive value sales growth was not only founded on a quick economic recovery, but also on a growing group of loving grandparents, mostly pensioners, with high purchasing power who spent an increased amount on toys and games products to be given as gifts or presents to grandchildren. The fact that fewer children were being born served to raise the value of young children in German society and the willingness to spend on presents for them.

Consequently, average expenditure on toys per child increased over the review period. In 2010, parents also loosened the hold on expenditure as the lag effects of the global financial and economic crisis waned. Struggle to defend share of wallet PLAN 1. Objectives Last years, Eurekakids expanded on national and European level by opening new stores. Following the lines of growth, the firms will entry new markets. With the company experience in the European market, it is estimated that three years are needed between the first store opening in a country and generating profits.

Therefore, we set the objective of profit in the same timeframe. We would like also to achieve a market share of 5% in Germany after the third year. Short-term goal: Create a brand image in the area where we will establish a physical store. Medium-term Objectives: – Finding new customers. – To create partnerships with individuals and organizations in the German world of children. Long-term objectives: – Obtaining positive results in a margin of three years. – Creating a brand image strong enough to be able to expand own business in other German towns. 2. Strategies and annual action plan

The first thing is to set ourselves an objective and decide a way to evaluate the result. Then we take a series of decisions: which strategies and which plan. The first issue is which market to penetrate? We decided that the new store will be in Germany. The main reason for following that strategy is that Germany is a leading on-line buyers for Eurekakids. This means that there are a number of people in the area who already know the brand. Some potential customers were looking for educational toys via Internet, probably because they were not able to find them in their national market: it is a real opportunity.

Secondly, as we enter the German market with a physical store, we go one step further. Like for the Italian market entry, we consider prudent and appropriate to open a store in one of the areas where online sales are more active. We believe that if the store gets a certain market share and profit margin in three years, we would open more stores gradually to expand throughout Germany as we did with France. The third decision concerns the unit issue. Which is the best solution for Eurekakids: open a owned store or to establish a franchise? Economically, the franchise is better but we want to enter and control closely the market.

In this case, we follow the strategy of opening a owned shop. And if we succeed, the expansion can be carried out through franchisees. In the fourth stage of this new adventure, we decided to follow the strategy that the company has used since its inception. We find a local small hanger (between 50 and 100 square meters) and turn it into a forest. We decided to use the same slogan that we use in the domestic market, only translated it into German (Playing at play? ). To promote and encourage the influx of new customers first store, we can realize sales promotion. 3.

Indicators for evaluating and monitoring Once suitable strategies, action plan and coordination is thought throughout the organization, we can set up indicators for the monitoring. The new customers attraction will be evaluated through the Eureka Club cards. We believe this action will have succeeded if the average is about 25 cards per month during the first year. As an economic indicator we chose the sales volume for the third year. If it is equivalent to the shop in Milan, as this reflects the average store sales of the company outside the home market, the indicator is positive. 4. Financial Plan

The investment for the store opening should be recovered over the next three or four years, depending on the investments made by the company earlier in the same stores. Concept| Cost of first year| Following years| Rental property 86m2| 8. 160+2. 610 = 10. 770€| 8. 160€| Fix store| 85. 000€| 0€| License opening| 3. 000€| 0€| Cost of staff| 24. 000€| 24. 000€| Supplies| 4. 800€| 4. 800€| Insurance| 500€| 500€| Inauguration| 1. 000€| 0€| Provisions| 2. 400€| 2. 400€| TOTAL| 131. 470€| 39. 860€| To finance this project, wewill aska creditvalueof 180,000€during 6 years. 5. Other proposals • Update the website.

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