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Table of Contents
INTRODUCTION...........................................................................................................................................2
Marketing Mix of O’Teddy...........................................................................................................................3
Product....................................................................................................................................................3
Price.........................................................................................................................................................3
Place........................................................................................................................................................4
Promotion................................................................................................................................................4
Targeting of Talking Teddy..........................................................................................................................4
Porter’s Five Forces.................................................................................................................................5
The Five Forces are:.................................................................................................................................5
POSITIONING...............................................................................................................................................6
STRATEGIES:............................................................................................................................................6
By Product attributes and benefits:.........................................................................................................7
By Price and quality:................................................................................................................................7
By Use and Application:...........................................................................................................................7
By product class:......................................................................................................................................7
By product User:......................................................................................................................................7
By competitor:.........................................................................................................................................8
By Cultural Symbols:................................................................................................................................8
Position statement......................................................................................................................................8
Tactics....................................................................................................................................................10
Actions...................................................................................................................................................10
Control...................................................................................................................................................10
Budgeting:.................................................................................................................................................10
Segmentation:...........................................................................................................................................12
Geographical Segmentation:.................................................................................................................12
Demographic Segmentation:.................................................................................................................12
Behavioral Segmentation:.....................................................................................................................13
Psychographic Segmentation:...............................................................................................................13
SWOT Analysis:.........................................................................................................................................14
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INTRODUCTION
Learning is an important process and active learning takes place when the learner is ‘minds on.’
This means that while using apps active learning of a child is being stimulated and engage them
to a greater extent. However, parents often misinterpret the action of children with learning;
meaning that, sometimes, are not actively indulged in the process but are simply deceiving their
parents with hands movement to convince they are grabbing the concept. Therefore, learning is
not just gestures but the development of a kids’ mental comprehensive abilities as well as
manipulative skills whether or not he swipes. For example, a kid just strolling past apps and not
actually viewing them does not necessarily mean that a child has learned the functions of that
app. A person must seek into it in order to learn. Furthermore, learning is most effective in
listening as it is said that, ‘effective learning is also effective listening’ and a child has a huge
capacity for learning since a limited exposure is given to him. However, a child’s learning is
controlled by his parents which makes it an incredibly significant process; and which the parents
cannot belittle so easily.

Parents want their children to become the best version of themselves which is why they search
up for techniques to nourish their children’s minds and socialize them in a productive way. This
is an essential, yet most time consuming process as it occurs over a long period of time. During
this period, parents often compromise on the time and the attention this process entails; and as a
result, children fail to learn and acclimate to new norms and attitudes that shape up their
personality. For instance, children at 5 need their mothers most to look after them and teach them
manners i.e., toilet training, which others will not but parents become too lenient or too strict that
the children often turn out to be either retentive or expulsive.

So, why is it that they cannot give required attention to their children’s primary socialization?
This comes with variety of reasons among which most prominent are that parents are too busy or
un-bothered about their children’s grooming. For example, people who are employed, especially
women who are part time workers, barely have time for their children thus children develop in
useless and perhaps deviant activities later on.

Another factor concerning a child’s grooming process is the means of socializing. For example,
you might have come across with parents who tend to hand over phones to children without
realizing the fact that what damage it might incur. For instance, a mother hands his son, less than
the age of 8, a mobile with the expectation that he will learn something ‘new’. However, parents
often fail to comprehend the fact that by allowing your child to use the phone you are not just
exposing him to childish content; but, this kind of exposure invites a broad media content leading
to ramified situations. A child with barely mature mind does not know what is appropriate and
what is not, hence bringing the parents to play their part effectively. On top of that, this
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ubiquitous nature of media and apps may invite potential risks associated with it, however
current knowledge of a child’s cognitive skills along with his social capabilities are best indicator
of which apps or forms of technology he must be exposed to. For example, there are many apps
for children but many of them serve no purpose so any knowledgeable and vigilant parents will
not allow their child to waste their time. Instead they focus on apps that improve their knowledge
and inculcate ethically and morally sound values.

Marketing Mix of O’Teddy

Talking Teddy’s Marketing Mix involves the engagements that meet business deals in divergent
Toy markets around the globe. It characterizes the procedures that an organization uses to
achieve the objectives in terms of product, place, price and the promotion.

Product
Talking Teddy is nice, soft, cuddly to hug and the voice can be easily recorded in it. What is
attractive in this product is that it is very educational but also a fun for children at the same time.
There are many settings in the toy that enable you to set it for infants such as by installing some
music, some moral stories for encouraging good behavior and few bed-time stories. Infants will
love the product by petting it.

The device that records the voice is very easy to utilize and then it can be easily inserted into the
bear, and the infant simply needs to give the bear an ordinary hug to activate the Talking Teddy.
Simple! The bear is all around well-assembled and is too cherishing. Moreover, the product can
be connected with Wi-Fi and is extremely easy to setup with iPad. The product can hear
anything. Having a toy in the form of a talking teddy bear is generally a great fun for infants. The
sound coming from its mouth is clear, evenly paced and is easily understandable. Our product is
in the form of only a teddy bear with different attractive colors and similarly different
specifications depending upon the price.

Price
Talking teddy charges different price for different products in its marketing mix. The price is
depending upon the colors, sizes and mainly on the basis of specifications. Our company offers
some discounts on the purchase in bulk. Since we are selling a luxury product which is not
necessity and because of being in the top of the toy markets, we can charge premium for our
product and the customers will even buy our product on the basis of technology we are providing
them.

Talking Teddy is only the first company providing such an outstanding toy so it will be the
number one choice of parents and its demand will be always increasing. Its price is ranging from
5000 rupees to 12,000 rupees depending only upon the specifications, the artificial intelligence
used in it and different designs and colors. Talking Teddy is using psychological pricing strategy
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by pricing its products such as 7999 rupees instead of 8000 rupees and 9999 rupees instead of
10,000 rupees. The company is also using Bundle pricing strategy by offering 3 teddies having
limited specifications in just 9000 rupees.

Place
Talking Teddy has successfully managed to sell their products country wide in the five big cities
including Lahore, Islamabad, Karachi, Multan and Faisalabad. Talking Teddy is available at
different locations like:

1. Supermarkets
2. convenience stores
3. retail outlets
4. Malls
In Lahore, Talking Teddy is selling its products in posh areas like an outlet in D.H.A Y-Block.
Similarly, the company has also opened a shop in emporium mall, Lahore to target the lead class.
In Islamabad, Talking Teddy has opened its outlet in Centaurus Mall, providing customer care
services. The company is also selling its products in Mall of Islamabad and gaining huge
revenue. Similarly, the company is selling its products in the other three cities of Pakistan.

Talking Teddy has also its website through which customers can sought services and can also
shop online. At super markets and convenience stores, Talking Teddy is placed along with other
stuffed Bears and toys, giving the customers an option that which one is more educational and
useful.

Promotion
Talking Teddy is using following techniques in its promotional mix:

1. Through Advertisements
2. Giving attractive promotions

Talking Teddy is using TV, print media, social media (by showing different advertisements in
YouTube, face book and in some other apps in place store). Talking Teddy offers discount
coupons for certain products having limited specifications in it.

Targeting of Talking Teddy

Targeting is the second stage of the STP (Segment, Targeting, Positioning). The process of
selecting an aim needed for segmentation is known as targeting. Advertise focusing on alludes to
picking a particular gathering or little strides of gathering to which a business will support its
focusing on. Talking Teddy is using a single marketing strategy.
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Target Market Selection:

Target Market of Talking Teddy is urban, rich class parents who affords buying the luxury
products and the age group of infants that we are targeting is from 1-6 years old child.

Porter’s Five Forces

It is a structure made for investigating an organization's competitive condition. The number and
intensity of an organization's
competitive opponents, potential
new market contestants,
providers, clients, and substitute
items have a great impact an
organization's benefit. This
theory relies upon the possibility
that there are five powers that
choose the forceful power of a
market. Porter's five forces helps
the organization to perceive to
perceive that from where control
starts in the business situations.
Present centered position and the
nature of a position that an
affiliation may plan to move,
these five forces are important
for both. Porter's five forces are
habitually used by fundamental
agents to grasp whether the new
things or new organizations are
perhaps gainful or no.

The Five Forces are:

1. Supplier Power: Basically, in Supply Power, it is assessed that how a company or an
organization is straight forward before its suppliers, so as to drive up the costs. This is done by
the number of suppliers of every central information; peculiarity of their thing or association,
relative nature and the size of the supplier. In Talking Teddy’s case, if there is an overall high
supply and the vertical integration of suppliers are low then it will cause the weak bargaining
power of Talking Teddy’s suppliers.
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2. Buyer Power: Talking about our company, if the switching costs will be set low and there are
large numbers of providers, moreover, if the availability of substitutes is also high, then it will
lead to the strong bargaining power of our buyers.

3. Competitive Rivalry: It is the number and point of confinement of rivals in the market.
Different contenders that are putting forth undifferentiated items will decrease charm of the
buyers to buy. However, it cannot affect the Talking Teddy’s substitution because of no
existence of any local competitor.

4. Danger of substitution: The likelihood of customers change towards the decision when close
substitute exists in a market. This reduces the force of suppliers as well as the appeal of the
market. There is no danger of substitution in Talking Teddy Company because there are no local
competitors of it. In the Talking Teddy’s case, there are some external factors that may become
threat of substitutes like if the availability of substitute is high which is a strong force, secondly,
if the switching costs are too low, which is also a strong force and lastly, if there is a high
performance in the cost-ratio of substitutes.

5. Danger of new entrants: New contestants can affect the market of Talking Teddy because
they will enter the market with some new innovative ideas that may be advance than Talking
Teddy’s products they may enter into the market by setting the same artificial intelligence in low
costs. Valuable markets attract new challengers, which deteriorates advantage. The threats of
new entry for Talking Teddy is based on the factors that if there is low switching costs which is a
strong force, high capital cost which is a moderate force and the brand development in too high
costs.

POSITIONING
Competition is bound to occur in every market, however our product does not have strong
competition to face.

It is important to target the audience first. Since we are selling a luxury product which is not
necessity and because of being in the top of the toy markets, we can charge premium to our
product. So the elite class is usually targeted by us. This product is communicated to the targeted
audience by having a social media communication. That helps the consumer to get their desired
product easily.

STRATEGIES:
Different strategies are made for the positioning of the product to place it in the market. All of
these strategies have the objective of having a good image in the mind of consumer.
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By Product attributes and benefits:

“Strategy that focuses on the characteristics of product and customer benefits; A product can be
categorized by its’ effective features that fulfill the customer needs.” A product is positioned
along two or more characteristics at the same time.

A Teddy bear with sensors are positioned on its durability A Teddy promises to give parents
some much needed comfort. A built-in speaker let parents activate noise generator that helps
babies put off to sleep. Or it can be used to play the messages that are recorded by the parents, or
even help them learn words through repetition.

By Price and quality:

‘’It is to be assumed that if a product is of low cost it will be cheap and if the price of that
product is high it will have a good quality. “

From inside teddy is fully packed of sensors that report various actions of child allowing
eggbeater parents to remotely look after them 24 hours a day. On the outside it look like a mine
run toy. Teddy charges different price, depending upon the colors, sizes and mainly on the basis
of specifications. It’s a luxury product.

By Use and Application:

“Associating the product with a specific use.’’

Teddy helps parents to keep an eye on their child 24 hours a day with the help of a microphone
that is inserted in the teddy. Teddy can record the voices and can tell babies a bed time story.
New characteristics of the product will automatically expand the brand’s market.

By product class:
‘’A few brands need to contend with the products of similar class.”

These teddy bears do not have to compete with other computing teddy bears locally, but if
judged from an international perspective then competition could be strong. Locally, Teddy bear
is providing the services properly and thus using good pricing strategy to value their customers. s

By product User:
“When a firm positions itself and its products as per suited by a particular user.”
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A stuffed animal can give a child some much needed comfort, but the teddy promises to do the
same for new parents. It targets elite class as microphones are inserted in it characterized by
latest technology that helps comforting the new parents. All of the data is transferred To IOS or
Android app, giving little details of child to the concerned parents.

By competitor:
“Positioning strategy consists in making consumers think that their product is superior than other
products in the market.”

Teddy bear with sensors is the only product selling nation-wide. Because of its amazing features
and technology it is the only product that is considerable for the specific purpose.

By Cultural Symbols:
“Identifying something that is very meaningful to people that other competitors are not using and
only that brand is associated with that symbol.”

Position statement
Our product is new in the market that aims to overcome all these drawbacks imprinted by parents
during the childhood of their children. Moreover, A product that has features and advanced
technology that can eradicate all the variables contributing to an unsuccessful primary
socialization. This product is enough to supersede all the worries parents have regarding the
upbringing of children. Our product intends to communicate with children and acts as a positive
speaker to develop and gradually enhance the learning skills of a child. How is it going to do it?
On the basis of newest and portable technology which has been installed in kids’ stuffed toys, so
there will be a direct and effective communication taking place between them. A child who does
not have any one to talk to for 24/7 will be provided with a stuffed toy, that will instill healthy
and positive messages into the minds of kids. In addition, the main advantage it will bring is the
nourishment of cognitive skills that are essential to a person’s personality traits. Over the period,
he will develop a set of skills that will tell him of how to perceive things and interpret them in a
meaningful way. Moreover, this is a skill that is widely appreciated these days since it leads to
creativity. Hence the product will accentuate a kid’s creativity side as well as his cognitive
development.

This will give us competitive advantage over other companies’ products.

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SOSTAC

Situation: our company is new in the market and has been operating for a year. There is not any
rivalry to face in the country, consequently we have competitive advantage over other business
organizations.

Objectives:

 Currently, we are aiming to target as much audience as possible so that higher profits can
be generated.
 In the long term, we are aiming for huge market share and company expansion in the
outside markets.

Strategies: Analyze company’s strengths through SWOT analysis and bring it into action. For
example, recognizing company’s flexible (organic structure), environment hence decision
making is faster and effective. Faster implementation of objectives will occur due to free flow of
information, therefore dominating an employee’s technical expertise.

Tactics: Heavy advertisements will be conducted to position the product in customers’ minds.
Moreover, our advertisements will primarily target elite class and convey them our USP to
generate increased sales. Positioning through heavy advertisements especially in Pakistan’s
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upper class societies will be our main moto, thus creativity within the organization and effective
ideas for advertisements will be put into action.

Actions: Recruitment of skilled and creative employees is essential to our need and then making
them go through induction training will help polish their skills. Furthermore, managers will be
appointed to each group so that employees report to them on time to improve decision making
process.

Control: To avoid any discrepancies between employees and employees’ and other managers’
strict policies will be implemented as company’s harmonious environment is crucial to its’
success. Secondly, employees will have to report to managers to ensure work is being done
properly. If any incompatibility arises then strategies will be made to overcome them.

Budgeting:
 The capital pitched in by all five members of this start-up was Rs.10,00,000 making the
capital a total of Rs.50,00,000.
 The plant was rented on a monthly basis of Rs. 30,000 making it a yearly cost of about
Rs.3,60,000.
 The plant that was setup for the production of Talking Teddy was build worth of
Rs.500,000.
 The machinery installed in the plant cost about Rs.7,50,000 for the production of Talking
Teddy.
 The software developed for installing voice recording and speaker et cetera was bought in
Rs.200,000
 The Manufacturing of Talking Teddies, including the purchasing of raw materials, for the
first whole year cost about Rs.12,00,000.
 The cost for transportations of all raw materials cost about Rs.1,50,000.
 The salaries for all the labours working in the plant for manufacturing of Talking Teddys
and installation of voice devices are Rs.25,000; making it a total of Rs.3,00,000.
 Also, the website was developed by an expert who charged Rs.1,00,000 for its
development and an application was developed by that same person in Rs.75,000;
charging a total of Rs.1,75,000.
 Also, a maintenance budget was set aside for any necessary repairs and maintenance of
machinery, if required, for a total of Rs.5,00,000
 For our Talking Teddy delivery service, a total of Rs.3,50,000 was spent on purchasing
motorcycles for delivery of product.
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 The delivery boys hired for this purpose were paid Rs.20,000 on monthly basis, that
made up a total of Rs.2,40,000 in the first year.

For our Marketing Budget, the men hired for marketing our product door to door were be paid
Rs. 35,000 on yearly basis.

The advertisements for the publicity of Talking Teddies cost about Rs.95000.

Also, the TV channels charged Rs. 87000 for running the publicity commercials for Talking
Teddies.

The excel sheet for budgeting of Talking Teddy is attached below for clear understanding.
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Segmentation:
Since the market for selling any product is really huge, smaller markets or parts within a market
are selected and targeted. This process is called the process of segmentation. In this process,
markets are concentrated into further smaller markets often called as niche market. Through this
process, a product is better marketed according to the needs and demands portrayed by the
concentrated segments of a larger market. This enables the sellers to market their products
successfully and earn better profits this way. By targeting or segmenting larger markets into
smaller ones, the particular characteristics of that segment can be kept in mind when trying to
market the products. In order to sell the product to a majority of people, you need your product to
appeal to them on a personal level. Most people think that a product should “speak to them” so
that they feel compelled to buy it. For this purpose, a market can be segmented in four ways:
Geographic, Demographic, Behavioral and Psychographic segmentation.

In order for Talking Teddy to sell better, the generalized market was segmented in the same four
ways. To target people better, market was concentrated and segmented according to the specific
characteristics and buying behaviors and patterns shown by the people. The four segments of the
consumer market are discussed in detail below:

Geographical Segmentation:
A geographical segmentation occurs when a market is divided into segments on basis of
countries, nations, cities and even neighborhoods.

For Talking Teddy, the geographical segmentation helps in targeting the specific areas of
Pakistan where people are rich and caring just enough to buy these Talking Teddies for their
children, so that they can leave these Teddies in their children’s’ rooms and the Teddies would
talk them to sleep, or the parents can even record their own voices so that the children remain
calm at hearing their parents’ voices.

These Teddies are targeted towards those parents who want their children to be taken care of and
are independent enough to go to parties or events, while leaving their children at home. This way
the parents do not worry about getting spoiled by illiterate maids, not knowing what these maids
teach their children. Through this product, parents can monitor and teach children what they
want to teach them.

Hence, the geographical segmentation would be the cities in which the upper middle class and
elite class can buy this product for their children.

Demographic Segmentation:
In demographic segmentation, segments are based on a number of variables like the age of the
consumer. The segments can also vary on color of their skin, occupation, gender, income,
education, religion and so many more factors.The demographic segmentation for Talking
Teddies is based on age, income and occupation.
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The age group that is targeted in this segment is late twenties to middle age, i.e., the parents of
children aged from 3-6 years.

Talking Teddies are targeted towards those parents who earn reasonable amount of income, so
that they can buy Teddies for their children easily, hence, affording this luxury for their children.

Also, in demographic segmentation, occupation is a different segment too because the parents
would prefer Talking Teddies if both partners have a job or one of them has a time consuming
jobs. Those parents are also targeted who have to attend lots of job related parties as compulsion.

Behavioral Segmentation:
This segmentation deals with the smaller segment of the consumer market where the products are
consumed quickly and efficiently.

For our product, the behavioral segment would have to be closely analyzed and then selected
because e only after careful analysis, would we know that where the Talking Teddies are most
popular and gained profits. Once analyzed, these segments will be targeted for behavioral
segmentation.

Psychographic Segmentation:
Psychographic segmentation is done on the basis of personalities of consumers living in that
particular segment. Also, this segment may be made on basis of the social statuses of consumers
or their lifestyle choices. These factors help in targetting this segment according to the price
range of the products.

Talking about the Talking Teddys, the psychographic segmentation for this product will be
focused on the people of upper middle class and the elite class. Basically, people from these
social classes will be focused because they can afford the Talking Teddys and can spread a
positive word of mouth to their acquaintances of the same or respective social classes.

SWOT Analysis:
Strengths
 Low salaries and welfares
above.
 Quick to respond to market
variations/ flexible
environment.
 Light evaluate
 Flat order subsequent earlier
decision making.
Opportunities
 Need to upsurge market share
 Could change existing
products for new markets
 Can familiarize a dated
collection.
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Weaknesses
 Present workload too high
 No earlier project planning
skills
 Missing knowledge in some
areas
 No major commercial social
responsibility
Threats
 Business partner has little
loyalty
 Cost of skill investment
 Economic variations
 Objection there product by
group