1st Answer:

Introduction:

Market segmentation is the process of dividing the market into subsects of customers
with common needs or variables like age, gender, income, nations, lifestyle, and
personality, occasions, benefits, and user & loyalty status. A firm that develops a
product focusing solely on the needs of that segment can meet the target group’s
desire, and provide more customer value than the competitor. In the case of toys
market, the organization can try to segment on the basis of children’s age.

However, for segmentation to work, a marketer must first find if it’s a heterogeneous
market. If the consumers require too similar products, then there is no point of
segmenting the market. Also, one or more market segments should have enough profit
potential that justifies developing the products to target that particular group of
customers.

The following are the different ways to segment consumer market

Toy companies have a very specific target market and have to maintain a balance
between marketing to parents and their children. Their products have to be advertised in
a way that children are interested in the toys, but also the parents are willing to buy
them in terms of spending and the toy.

The target market, in terms of adults, includes people of a certain advanced age, since
younger people are less likely to have children. Families with children tend to live in
suburbs rather than in large cities or metropolitan centers, so the target market also
includes those people. India has the largest young populations in the world, due to
which, the toy industry has witnessed a rapid growth. The market is brimming with a
wide range of traditional and modern toys.

Demographic segmentation: divides the market into groups based on variables such
as age, gender, family size, income, religion and nationality. Babies, children, teenagers
and adults are consumers of the company. Gender is important in demographic
segmentation as Wonderkids should divided their market into three sections which is
baby section, boy section and girl section. For instance, the doll named ‘Pari’ is made
for girls between the ages of 6-12. These girls can be self-conscious about their looks.
Also, the company can target the mothers who make all kinds of decisions for the toy
purchases for their children. Also, the doll ‘Pari’ and Car ‘Speedy’ is only meant for 6
years old; 12 year old or above. This is because some parts of these toys are tiny and it
may cause harm to babies or children below 6 years as they may accidentally swallow
it.

Geographical segmentation is one ways to segment a market when a particular

region, country or location has similar needs or variables. For instance, the child
population is higher in India than other countries. In the above situation, Wonderkids
operates in a toy market which is accepted by kids of different age, location, status and
hobbies. It can segment the market geographically. Mumbai has more many toy stores
because there are more wealthy people in Mumbai due to stable income.
.
Psychographic Segmentation
Psychographic segmentation divides the market into groups based on social class,
lifestyle and personality characteristics. Parents of babies, children and teenagers from
intermediate and rich families love to spend money on toys as these traditional toys can
boost self-esteem of small children.

In the above situation, the doll named ‘Pari’ could make children (girls) between 6-12
years of age feel happy and glad. The design, beauty and character of a Barbie doll toy
acts as a role model for girls of 6-12 years of age. In addition she shows a fashion lover
girl who knows everything about makeup and dressing which will keep the girls cheering
up. Also, car named ‘Speedy’ is made to sell to boys, a customer group that is
fascinated with the energy and speed of a car. It gives them a sense of pride in owing a
car and makes them feel important.

Behavioral Segmentation: Behavioral segmentation is done on the knowledge that a

customer has of particular products, uses of products, and responses to certain
products. In India, during festivals like Diwali and Christmas, consumers, especially
parents will buy traditional toys as it serves as a perfect occasion for them to surprise
their kids during their vacations from school.

Conclusion: Hence, we can conclude that B2B marketing is much different than B2C
market and accordingly segmentation factors also are different. M/S Wonderkids may
use geographical, demographic, behavioral and psychographic segmentation above to
market its products across the country. As per the above-mentioned points, market
segmentation helps to identify consumers with common variables and helps in profiling
them and their need structure. This helps the marketers to develop an appropriate offer
for every identified segment.
2nd Answer:

Introduction: The availability of the product in the market depends on the distribution
channel capacity. Therefore, the distribution channel plays a major in the marketing
activities. The success of a company’s marketing effort depends on its reach and choice
of the distribution channel. The company can reach out to customers directly through its
own sales force (called direct marketing) or through a set of intermediaries and channel
members (indirect marketing).

Concept: Distribution channels perform a number of functions ease the physical

movement of goods from the point of production to the point of consumption.
Their warehouses store the goods and they give information about the availability, uses
and features, prices of goods in the channel of distribution to the buyers.

A proper distribution channel should be selected by a manufacturing company through a

careful examination of some of the following factors: :

Characteristics of customers: The number of potential buyers, their purchase

frequency, average purchases, buying motives and decision making process, etc.

Marketing or channel intermediaries: Middlemen characteristics involve the number

of middlemen available for distributing the company’s products, their willingness to
undertake the distribution work, their location, size of store and financial strength, their
product lines, their sales potentiality, etc.

Manufacturer’s distribution policy: A company can adopt the practice of intensive

distribution or maximum distribution (i.e., distribution of a product through as many
channels as possible); selective distribution (i.e., the distribution of a product through a
selected number of intermediaries); limited agency distribution (i.e., the distribution of a
product through a few or limited agencies) or exclusive agency distribution (i.e., the
distribution of a product through an exclusive or single agency).

Product Characteristics: Different characteristics of a product, such as its class (i.e.,

whether it is a consumer product or an industrial product, and if it is a consumer
product, whether it is a convenience 'product or shopping product or speciality product,
and if it is an industrial product, whether it is a raw material, or operating supply or
fabricating part or a capital equipment), its nature etc.

Supply Characteristics: Supply characteristics involve the number of producers or

suppliers, their concentration or dispersion, the quantum of their supplies, etc.

There are two modes of distribution channel

.Direct channel: It is direct selling by the manufacturers to their final consumers or

industrial users.
Indirect selling: It is selling through intermediaries.

Breakup by Distribution Channel:

CLASSIFICATION OF TYPES OF TOY STORES

1. Hypermarket (Big Bazar) – Separate section dedicated to Toys {Includes a plethora

of toys comprising of toys & kids sports kits at a single location. Targeted demographics
usually range from a toddler to teenagers}.

2 .Toy Stores (Toy-station) – It should comprise of toys that caters to requirements of

every segments.

3. Baby Stores (Mom’s Touch) – All stuff related to babies. They also sell toys for age
group till 12.

Wonderkids should use the indirect distribution channels like specialty stores, super and
hyper markets, baby stores, online stores and others. Currently, specialty stores in India
represent the largest distribution channel.

Online distribution takes place through its website, where the consumer has access to
extra services such as product catalogs, related information and brochures of
instruction.

Hypermarkets like Big Bazaar are getting more aggressive within the toys space. They
offer deep discounts during the holiday season sales to attract more footfalls with more
product offerings and more shelf-space devoted to traditional toys and games

Online sales channels have also witnessed a boom in India with the evolution of
smartphones and other digital media. As quality and features of products can be
discussed among shoppers, and prices can be compared on various platforms, online
sales channels have appeared to be one of the fastest growing distribution channels for
toys in India.

Conclusion: Finally, we can conclude that that M/S Wonderkids should go for indirect
distribution channel as it is involved in business to business segment and ultimately it
will sell directly to other industrial consumers and companies without involving any
mediator, wholesaler or retailer.
3rd Answer

(3a) Introduction: There are two products offered by the Wonderkids i.e. Doll named
‘Pari’ and car named ‘Speedy’. Both the products are completely different in terms of
gender appeal as cars are usually loved by boys and dolls are a girl’s favorite toy.

In this scenario, company needs to hire a cute-looking, young and bubbly actress to
endorse the doll and an energetic actor or a sportsperson to endorse the car. This is
mainly because of the product positioning. The name of the doll ‘Pari’ and Car ‘Speedy
have a strong influence on the selection of the brand ambassador.

In India, brand ambassadors play a major role in the positioning the particular brand,
service or product in the minds of consumers. Hence, it is important that the attributes of
the product can be related to brand ambassadors. Brand ambassadors represent the
brand in a positive way. It is their job to make the product likeable and interesting.

To endorse the doll, company may hire a young Bollywood actress named Parineeti
Chopra as a lot of young girls would relate the doll ‘Pari’ with the actress having similar
fairy-like features and a similar name. The actress, who has been popular on social
media, has also become a children-favorite. Also, she has the brand image of a child-
loving person because of her characters in movie. In this case, she will be the perfect
choice to endorse the doll.

Now to endorse speedy, company may approach an adventurous celebrity like Tiger
Shroff. He is very energetic and loved by young generation for his action and intensity.
He is super hit among the kids because of his body, dance skills, action skills, flexibility
etc. In this case, he will be a good choice to promote the ‘Speedy’ car especially due to
his brand image of doing car stunts in some of his recent movies.

Conclusion: Hence, we can conclude that Parineeti Chopra and Tiger Shroff will be the
good choice to promote these products as their energies and public image suit the
products. It is well known fact that big and famous celebrities influence customers to
buy any product and customers listen to them.

(3b) Types of consumer products

Consumer goods can be classified based on the shopping habits. They are grouped as
convenience goods, shopping goods, unsought goods and specialty goods. Consumer
goods are bought for consumption of either individuals or family members.

Convenience goods – These products are regularly purchased by customers.

Customers mostly buy them in frequent consumption situations and they are purchased
immediately with minimum efforts. Examples include toiletries, soaps, cigarettes, and
newspapers. These goods can be further classified as:
 ● Staple goods – Consumer purchase these goods on a regular basis.
Toothpastes, soaps and food grains always fall under this category.

● Emergency goods – These are products that customers purchase on urgent

basis. Customers don’t pre-plan to buy these products but due to the
emergencies, they have to buy. For examples, medicines bought from chemist
shops.

● Impulse goods –Purchase of a magazine or a chocolate candy as a person

walks by the shop is an example of impulsive purchase made. It may be due to
attraction towards packaging or color.

Shopping goods – Customers purchase these products after comparing them with on
basis of price, psychological fitment, suitability, style, and quality. Examples include
electrical appliances and home furnishings. They are classified as

1. Heterogeneous products– They differ in product features and services and

these differences are more important than price to come at a buying decision.

2. Homogeneous products – These goods are similar in quantity but differ in

price levels, justifying a price comparison by the buyer.

Unsought goods – These are goods that the consumer does not know about or does
not normally think of buying. These goods need advertising and more personal selling
efforts for making a sale. These include life insurance products, coffins, and fire alarms.

Specialty goods – These are products with unique characteristics or brand

identification for which the buyers make a special purchasing effort. Examples include
music speakers, branded clothes. There is hardly any comparison in specialty goods as
each brand is unique and different than others. The buyer is willing to spend more time
and effort while making a purchase decision for branded or speciality goods.

Conclusion: Hence, we can conclude that the doll ‘Pari’ and car ‘speedy’ come under
the shopping goods category since they will be purchased by the industrial customers
and not end-users. For industrial customers, these goods are purchased in order to sell
to other individual end-users. Customers usually compare products on quality, price and
style in the process of selecting and purchasing. Since Wonderkids, has just launched
these products, the company needs to advertise on a large scale to attract and sell to
the mass market.