Marketing Management II

Hamleys (Reliance Retail Limited) Competitor’s Analysis

SECTION-B

Submitted to: Submitted By:

Professor Pooja Darda Saumya Kumbhaj
Neelesh singh
Paritosh Goyal
Shreya Bansod
Mantasha Quereshi
 TABLE OF CONTENT

1. INTRODUCTION TO THE COMPANY (SAUMYA

KUMBHAJ)
2. MAIN COMPETITOR’S OF HAMLEY’S
(SHREYA BANSOD)
3. MARKET POSITINING OF HAMLEYS
(SAUMYA KUMBHAJ)
4. COMPETITOR’S STRATEGIES (NEELESH KUMAR SINGH)
5. COMPETITIVE ADVANTAGE (PARITOSH GOYAL)
6. PERCEPTUAL MAP (MANTASHA QUERESHI)
 INTRODUCTION TO THE COMPANY

One of the biggest and most established toy retailers globally, Hamleys is a
British multinational company with Indian ownership. William Hamley
established it as "Noah's Ark" in High Holborn, London, in 1760. In 1881, it
relocated to its present location on Regent Street. With more than 50,000 lines
of toys available for purchase, this flagship store is spread across seven stories.

Attracting approximately five million tourists annually, it is regarded as one of

the city's most popular tourist destinations. The shop was passed down through
the Hamley family, and by the time Hamley's grandsons took it in 1837, it was a
well-known establishment with a clientele that included nobility and royalty.

Reliance Retail, an Indian retail giant, paid an estimated 67.96 million pounds
to acquire the chain in May 2019. The chain boasts over 90 franchises
internationally and 26 locations in the UK. They have been providing the
greatest selection of high-end games, dolls, and toys at the same, unwavering
quality for more than 250 years. Hamleys has grown so rapidly that the brand is
now synonymous with toys.

Children's imaginations are piqued by Hamleys' extensive selection of toys,

premium goods, and enchanting atmosphere. Through thrilling events,
interesting demos, and toy demonstrators, it offers its clients unique
experiences. For the whole family, the Hamleys experience is the ultimate
delight.

It provides a large selection of toys for kids of all ages, including toddlers,
preteens, and even teenagers, ranging from well-known brands to more
conventional toys. This includes the Hamleys-branded line, which is well-
known for its outstanding play value and quality.

MAJOR COMPETITORS OF HAMLEYS

•
Direct Rivals: FAO Schwarz, Lego Stores, Toys R Us, Smyths, Walt Disney, Mattel
(global brands & budget titans)
Online Onslaught: Amazon, Walmart, Target (convenience & discounts)
Pureplay Predators: Zulily, Buybuybaby (niche offerings & flash sales)

Walt Disney: The Walt Disney Company, sometimes known as Disney, is a

worldwide media and entertainment corporation headquartered in Burbank,
California. In terms of income, it is one of the top media companies, offering
toys, media, streaming services such as Disney+, resorts, and so on. Founded in
October 1923 as an animation studio by two brothers, Walt Disney and Ray O
Disney, it has since expanded into theme parks, television, and live action film
production.

Mattel: Founded in 1945, Mattel is one of the largest toy companies in the
world. With its headquarters located in California, it has established a presence
in over 40 nations and distributes its products to over 150 countries worldwide.
Mattel began its history producing wood items before transitioning to the
production of toys, such as dollhouse furniture.

Hasbro: An American toy and board game manufacturer, Hasbro, Inc. is an

acronym for the original name, Hassenfeld Brothers. With Mattel being the
largest, it is the second-biggest toymaker globally. The majority of Hasbro's
growth came from mergers and acquisitions; two examples are the Parker
brothers and Kenner.

Fisher-Price: One of the top producers of preschool supplies worldwide is

Fisher-Price. Herman Fisher, Irving Price, Margaret Evans Price, and Helen
Schelle formed it in 1930. The founders of Fisher Price joined their names to
become the company's name.

Smyths Toys Superstores: Leading supplier of entertainment and play items,

providing kids of all ages with a huge selection of games, toys, and outdoor
activities.
Smyths has many physical locations in Ireland and the United Kingdom. They
also run shops in Austria and Germany, among other European nations.
Through their official website, shoppers may explore and purchase goods from
Smyths Toys, which has a strong online presence. There are frequently
possibilities for home delivery while purchasing online.

FAO Schwarz Toy Stores offers: The legendary toy retailer Fao Schwarz
claims 170 years of magical play. Picture plush mayhem, dancing pianos, and
interactive displays all housed in one location. They collaborate with well-
known figures and curate unusual toys, such as cuddly bears that are taller than
children. Even though they are more expensive than some competitors, they
provide an experience rather than merely a product, adding a dash of stardust to
childhood fantasies.

Amazon: They pose a serious threat to physical retailers with their unparalleled
convenience, extensive assortment, and affordable prices.

Pureplay Internet stores with flash deals and steep discounts, such as
Buybuybaby and Zulily, draw bargain seekers.
Niche Ninjas: Online retailers who focus on ecological products, instructional
toys, or certain pastimes provide a devoted clientele.

MARKET POSITINING OF HAMLEYS

The Hamleys company prides itself on having exceptional customer service-

oriented workforce and operating as a dependable and efficient business. The
company positions itself in the cutthroat global market by utilizing both quality
and pricing (Sinha, 2015). They are able to fend off rival businesses and
numerous other stores selling comparable goods thanks to this tactic. They now
have numerous stores operating throughout the world, serving a large number of
people every day. Additionally, the company's personnel exudes
professionalism, which fosters positive relationships and wins the loyalty of the
company's valued clients.
Strategic partnerships to improve quality: The Hamleys Company has formed
relationships with several global brands, including both foreign and domestic
brands that offer classic toys in its stores. In addition to the conventional brands
Desi toys, frog CNC, Hasbro, Nerf, Barbie, and Disney Fisher-Price, this family
also sells its own toys, which account for 15% of its overall sales.

CRM DEPARTMENT OF HAMLEYS

For customers, Hamley's thinks that shopping should be an experience. The size
of Hamley's retail outlets is three times larger than that of other retail
establishments. The store area is used for various toy demos in addition to eye-
catching visual merchandising (VM).

 Toy displays at the stores begin at the door, where shoppers can watch
personnel of Hamleys engage in play with items like frisbees and bubble
guns.

 A selection of toys is kept open for display as soon as you walk into the
store. For instance, water-resistant electronic frogs leaping in a basin of
water. These toys serve as eye-catching props to draw in clients.

 As you proceed through the store, you'll discover toys left out for kids to
play with. Family members can enter Hamley's and enjoy a variety of
games in the store's little sitting area. One of the better instances is a 100-
meter track for racing robotic automobiles.

 Store workers enjoy themselves and play with the kids and families as
well. This keeps customers interested and makes it possible to inspect the
 toys' condition. To preserve the experience, every toy that is not
functional is taken out and replaced right away with a new one at the
space place.

 an executive greets customers within 10 to 15 seconds of their entering

the store, guiding them around and encouraging them to investigate and
occasionally even test various options.

 Customer’s faith in Hamleys has grown because of the experience the

company has provided, and parents occasionally leave their kids in the
stores to celebrate their birthdays and play with executives.

PRODUCT QUALITY ASSURANCE BY HAMLEYS:

Hamleys requires its suppliers to maintain appropriate Quality Management

Systems (ISO9001 or equivalent) to ensure that the products they provide
comply with all relevant laws, rules, regulations, guidelines, and standards.
Hamleys also expects its suppliers to minimize environmental effects.

Hamleys keep in mind the Following points to ensure Quality Products:

 Strict supplier selection: Hamleys collaborates with well-established,

respectable manufacturers who are well-known for upholding safety and
quality standards.
 Frequent inspections and audits: Independent audits and inspections of
supplier facilities guarantee adherence to global safety regulations and
moral production processes.
 Material checks: To ensure the use of sturdy and safe materials,
thorough inspections are carried out at every stage of production, from
raw materials to completed goods.
 Internal testing facilities: In addition to the minimum criteria, Hamleys
maintains its own internal testing facilities where it performs stringent
electrical, chemical, and physical safety testing on all toys.
 Independent certifications: To comply with international safety
standards such as ASTM F963 (US Toy Safety Standard) and EN71
(European Toy Safety Standard), products are subjected to further testing
and certification by recognized independent authorities.
 Put age appropriateness first: All ages of children can play with safe
and appropriate toys thanks to age-grading based on developmental
stages and potential choking dangers.
 Random sampling and inspections: To ensure consistency, random
samples are chosen for additional testing and quality checks at various
 points throughout the supply chain, from manufacturing to final delivery.
 Hamleys follows each product from its point of origin to the store shelf
thanks to a strong traceability system, which also makes it easier to
quickly recall products in the event of a problem.
 Consumer complaints and feedback: Hamleys aggressively solicits
consumer input and responds to any concerns regarding the quality or
safety of its products, acting quickly to resolve any issues that are brought
to light.
 Training and development: To guarantee that its employees are aware
of product safety laws and are able to provide consumers with appropriate
toy recommendations, Hamleys funds training and development
initiatives.
 Collaborations with safety groups: In order to stay up to date on
changing safety regulations and recommended procedures, Hamleys
maintains partnerships with advocacy groups and safety organizations.
 Continuous improvement: To find opportunities for development and
uphold the highest standards for its products, Hamleys regularly audits
and analyzes its internal quality assurance procedures.

By putting these thorough safeguards in place, Hamleys cultivates a

dedication to offering children everywhere delight and magical playing
experiences while also fostering consumer trust.

COMPETITOR’S STRATEGIES
The Strategies of Hamleys' Rivals: A Lighthearted Battleground
The legendary toy retailer Hamleys may be in the lead, but there are many of
competitors in this lively playground. Let's examine the tactics of a few
significant rivals:

FAO Schwarz Toy Stores offers:

Mirror Mirror on the Wall: They face off against flagship stores that provide
elaborate experiences complete with interactive exhibits and upscale toys.

Tech Twists: They cater to tech-savvy children by embracing digital with their
own line of tablet games and augmented reality experiences.

Partnerships Abound: Collaborating with well-known properties like as Marvel

and Harry Potter give stars more clout and attracts devoted followers.

Lego Retail Stores:

Brick by Brick: They are a Lego specialist that draws a devoted following by
providing an immersive world of creativity and creation.

Playful Learning: They cater to parents looking for brain-boosting fun by

focusing on educational value through workshops and activities.

Special Offers: Enthusiasts are drawn to early access to new releases and
limited-edition Lego sets.

Toys R Us:

Price Play: They cater to families on a tight budget by providing a greater

selection of toys at more affordable pricing.

Online Prowess: They make significant investments in their delivery services

and online store to offer reasonable costs and convenience.

Private Label Play: They create their own toy brands and provide reasonably
priced substitutes for high-end products.

Online Toy Brand:

Amazon: They pose a serious threat to physical retailers with their unparalleled
convenience, extensive assortment, and affordable prices.

Cheap Dinosaurs: Pureplay Internet stores with flash deals and steep discounts,
such as Buybuybaby and Zulily, draw bargain seekers.

Niche Ninjas: Online retailers who focus on ecological products, instructional

toys, or certain pastimes provide a devoted clientele.

Strategies of Hamleys:

 Increasing Website Usability, Delivery Choices, and Digital Marketing to

Take on Internet Giants is a Way to Strengthen their Online Presence.

 They Make the most of their distinctive in-store experiences by adding

more interactive displays, events, and individualized services is known as
experiential ace.

 Premium Products: Keeping an assortment of carefully chosen superior

toys to meet the needs of their specialized market.
  Collaborations & Playtime Trends: Making use of well-known figures
while adjusting to changing tastes in digital games and entertainment.

Maintaining their Advantage in the Fun Playground:

There is a furious competition to rule the toy kingdom. By concentrating on

their advantages, shifting with the times, and consistently providing a dose of
fantastical playtime that internet players and cheap dinosaurs just can't match,
Hamleys can maintain its dominant position.

COMPETITIVE ADVANTAGE THAT HAMLEY’S GETS OVER ITS COMPETITOR’S

Despite strong competition, Hamleys has a number of significant advantages
that help them maintain a dominant position in the toy market:

1. The Legacy of Play: More than 170 years of history cast a mystical
enchantment that trust for the brand. More than just a shop, Hamleys is a
beloved childhood memory brought to life.

2. Experiential Playground: Interactive exhibits, events, and demos turn

shopping into a thrilling journey. Children's wonder-filled eyes inspire
imaginations and produce lifelong memories.

3. Curated Toy Treasures: Hand-selected by Hamleys, these toys are superior to

mass-market options, stimulating imaginations and awe. It's the place where you
can find the enormous teddy bear, the elaborate home, or the enchanted train set
—the toy that stays with you forever.

4. Brand Collaborations: Alliances with well-known figures, such as

superheroes and Disney princesses, lend celebrity power, attracting devoted
followers and fostering an air of exclusivity. Who wouldn't want to meet
Spider-Man in addition to getting a toy?

5. Premium Perception: Parents that value quality and a unique playtime

experience for their kids are drawn to the carefully chosen assortment and
iconic brand name, which command a premium pricing point.

6. Adaptability and Evolution: Hamleys is aware of how the world is evolving.

They fortify their flagship stores while embracing internet platforms. To ensure
that they continue to be relevant to younger generations of imaginative minds,
they incorporate digital features and adapt to changing toy fads.
 7. Quality Commitment: Thorough sourcing, testing, and safety precautions
ensure parents' peace of mind and kids' undisturbed play. It gives Hamleys great
pleasure to provide toys that are long-lasting, safe, and entertaining. Hamley’s

ensures quality control by maintaining Proper guidelines and following

ISO9001 Quality Assurance for all its Product.

Together, these benefits make up a potent fabric that distinguishes Hamleys. It's
a doorway to a world of wonder, adventure, and delight rather than just a toy
store. And in the world of recreation, that's priceless money.

PERCEPTUAL MAP
Perceptual mapping, sometimes called positional mapping or brand positioning
mapping, is a graph or chart that shows how customers view your product or
service in relation to its industry depending on certain features.

 Hamleys markets itself as a high-end, high-variety product choice.

 Toys 'R' Us offers an average product choice at a premium price.
 Walt Disney may be seen as providing a distinctive combination of
premium pricing and a distinctive range of products, sometimes
associated with franchises or toys with character themes.
 Hasbro is recognized for offering a wide range of products at a very
affordable price with good quality.
 Mattel may market itself as providing a range of toys with an emphasis
 on quality at various price points.
 Fisher Price offers a wider selection of goods at a moderate cost.
 Smyths Toys could be positioned as a store that provides a decent
selection of goods at affordable costs.
 FAO Schwartz's positioning could be attributed to its distinctive product
offers and perhaps affordable prices.

Brand Competitive Analysis

Name Value Target market

proposition