Marketing Plan for Cultural Dolls Co.

Lucille A. McElroyMM522 Marketing ManagementProfessor Geraldine Goodstone

August 14, 2011

Situational Analysis Customers. Children, mostly girls ages 4 to 12, avid doll collectors

are the end users. Major retail stores to carry the dolls in their store shelves.

Company. Sole proprietorship.

The doll market is a 2.77 B industry. Competitors are Mattel Inc., MGA (Bratz Dolls)

Market SummaryDemand for toys, dolls and games has been on the rebound with the gradual economic recovery. In 2010, consumer sentiment and household disposable income rose for the first time in two years, encouraging consumers to increase their spending that they delayed during tough times. Revenue for the Hobby and Toy industry (IBISWorld report 45112) increased by 2.0% in 2010 and is estimated to increase by 3.1% in 2011. Such increases in downstream demand are expected to lead to higher demand at the manufacturing level; IBISWorld anticipates that industry's sales will increase by 1.7% from 2010 to 2011.

Company DescriptionCultural Doll Co. was created in February 2007 by a sole proprietor.

Management is composed of a manager with an education background in Commerce, including a Bachelor of Commerce major in Accounting from University of San Carlos and graduate work on MBA program from Keller Graduate School of Management. Her work experience includes 10 years of business operations and 10 years as Controller.

The executive talent, who conceptualized the dolls through her creative sketches, has expertise in Art Design and drawings including clothing and fashion design. She is an avid doll collector herself

SWOT AnalysisPositive Negative

Strengths Weaknesses

Internal positive aspects under our control on which we may wish to capitalize

Internal negative aspects under our control which we plan to improve

Internal Years of positive experience in trainingExperience in collaborating with other organizations

Designer’s health challenges, communication challenges with China.

Opportunities Threats

External Business for Doll Industry increased by 6% in 2010. Disposable income rose in 2010 by 2.0%

A not so strong funding base to successfully market the product, kids are influenced by advertisements.

Environmental Scan Economic. Consumer Spending Index grew by

1.4% in June 2009 from May 2009, a sign that shoppers may be feeling optimistic about their spending habits and economic growth.

Environmental. Steady supply of raw materials needed to produce the cultural dolls

Technological. Trend on Video Games has the biggest share of total traditional to industry. 85% of toy industry. Growing demand for fun voice dolls.

Political. Consumer Product Safety Improvement Act.

Competition Mattel, Inc., a publicly held company who

takes .20% of the total Doll Industry (MAT) www .mattel.com

MGA Entertainment, a privately held company, makers of Bratz Dolls. Private Company Ticker Symbol (MGAEP) www.mgae.com. 08% market share. Being a private company, only 2006 and 2007 figures were available at www.privco.com

We are unique and different because the face is unique. Upcoming line is a voice doll with a capacity of an iPod shuffle. There’s nothing like it out there.

Product Offering The Cultural Dolls send a healing

message towards differences in one’s culture. An interesting, creative and educational doll that reflects the diversity of the world in which we live today is offered by Cultural Dolls Co. Our dolls are different from the others in such a way that the look is unique.

Market Strategy The target market are kids, usually girls at ages

4-12, avid doll collectors as end users. Retail stores are targeted to carry these products at their shelves to give consumers varied choices.

They would be interested in our product due to the diversity and the need for parents to get the younger generation to have ties with their roots since this nation is a melting pot of races.

Price point is dependent on volume ordered and would like to come in low for consumers to try the product out.

Mission Statement Cultural Dolls is a developer of

collectible quality, educational, Cultural dolls and accessories, based in Los Angeles. The company's mission is to create unique dolls and related accessories that help children and adults embrace international heritage, culture and tradition.

Marketing Plan Objectives

Non-Financial Objectives

Serving customers

Periodic surveys will be sent in order to understand the needs and wants of customers. Online surveys such as PollDaddy.com linked with an Application c]Programming Interface (API) of e-Newsletters.

Financial Objectives

Increase profits, as a percentage of revenue, by 1% every two quarters.

Hold marketing expenses, as a percentage of sales at 5% with a 2% increase after year two.

Consumer Segment Analysis

The target market segment is identified as major retail stores such as Toys R Us, Wal-Mart, Target and K-Mart. Mass merchants and general toys stores capture the largest share of toy purchases. Forty-two percent of consumers made their most recent toy purchase purchase at a mass merchant store such as Kmart or Wal-Mart, and 33% made their purchase at a general toy store such as Toys ‘R’ Us. A likely reason is the large variety of children’s products from which to choose.

Actual Target Market End users are kids, usually girls ages 4-12.

The parents purchase the doll for them. Income would be low to moderate income families. Education level would be at least some education in grade school. My son when he was in kindergarten had already topics about diversity.

Marital status. Single, who purchase for their nieces, or for a wish-list for indigent children. Married who love and care for their children.

Psychographic. Loyal to one’s heritage and culture.

Marketing MixThe marketer's task is to device marketing activities and assembles fully integrated marketing programs to create, communicate, and deliver value for consumers. Marketing activities come in all forms.

The marketing mix is comprised of the first P, product. The product is cultural dolls and accessories.

The second P is price. The doll is intended to sell at $18. An American Girl doll at an average really costs $24.

The third P is place. Retail store display is the place one can buy the ethnic dolls. There will be an upsell of doll clothing and accessories available as an order form enclosed in each doll packaging.

The fourth P is promotion. Promotional efforts is geared to reach the target audience, to be well exposed to its products through Point of Purchase (POP) displays.

Promotion Strategies The management of Cultural Doll Co. believes

very strongly in press releases to significantly get the word out of the value of what it does. This will always be a focus of its promotion efforts. However, though this is a crucial part, this is only one part of its promotion strategy. On a consistent basis the company will be promoting what it does through online Internet exposure through search engine optimization, eBay, retail stores, and by word of mouth. This along with all the individual selling efforts of its staff demonstrates a dynamic way for it to build the penetration of what it does in the marketplace.

Promotion BudgetBudget for web design $5,000.00Representation at Retail Stores 740.00 Search Engine Optimization 4,540.00 TV Advertisement 10,000.00 Characterization of cultural doll in 103,220.00 Point of Purchase (POP) displays 5,000.00 Promotion, sweeps, viral marketing 10,000.00 Total Promotion Budget $138,500.00 Total Budget

$2,770,000.00 Total Promotional Budget $138,500.00 Percentage of

Promotion Budget to Total Budget 5%

Contingency Planning Once a corporation is located as a potential target of cultural dolls, Davison Group will gather production and marketing information concerning the company. Davison Group will do this representation so they can work harder to better design the project to fit with the company’s abilities. As a disclaimer. A typical project does not get licensed, sell in stores or generate a profit. Plan B is to attract equity investors, participate in Mixers of Angel Investors and Entrepreneurs to present the business proposition to do marketing and production on our own. Plan C, business investment at risk is a tax deduction. As a qualified investor, you can put your experience and contribution to the investor’s repertoire for future endeavors.

Executive SummaryThe company will penetrate the market in the design and distribution of a female multicultural doll that will be welcomed by children and people of all cultural backgrounds and nationalities. There is an opportunity for offering superior quality dolls featuring different hair color, eye color, skin tone, hair texture and clothing according to the country she is visiting or representing. Cultural Doll Co. will serve its area of business working to make its lines more productive while at the same time controlling expenses.

Keys to Success & Critical Issues

Utilize the management team’s networking abilities to stay on the forefront of marketplace innovation

Deliver a line of products are high of quality and fun to play with

Control all areas of the product – from conception, marketing to distribution

Perform operations at a low cost at all times

Introduce cutting edge materials in dolls that are made safe for children

Communication skills are widely regarded as among the most critical success factors in interpersonal, professional and business relationships.

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