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    Funskool Case - 2

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    Mudit Sahai
    Funskool India is a leading toy manufacturer in India. It was incorporated in 1986 as a joint venture between MRF and Hasbro. Over the years it has had several changes in leadership. Its net revenue reached Rs. 1.9 billion in 2016. The Indian toy industry is valued at Rs. 56 billion and is growing at 10% annually, though most of the market is served by unorganized imports from China. Funskool aims to differentiate itself through high quality products and compliance with safety standards. It faces challenges from global giants entering India and lower costs of Chinese manufacturers. It is exploring strategies around expanding its owned brands, entering lower price segments, and foraying into digital games.

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    Funskool Case - 2

    Uploaded by

    Mudit Sahai
    414 views9 pages
    Funskool India is a leading toy manufacturer in India. It was incorporated in 1986 as a joint venture between MRF and Hasbro. Over the years it has had several changes in leadership. Its net revenue reached Rs. 1.9 billion in 2016. The Indian toy industry is valued at Rs. 56 billion and is growing at 10% annually, though most of the market is served by unorganized imports from China. Funskool aims to differentiate itself through high quality products and compliance with safety standards. It faces challenges from global giants entering India and lower costs of Chinese manufacturers. It is exploring strategies around expanding its owned brands, entering lower price segments, and foraying into digital games.

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    Funskool case - 2

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    Funskool India is a leading toy manufacturer in India. It was incorporated in 1986 as a joint venture between MRF and Hasbro. Over the years it has had several changes in leadership. Its net revenue reached Rs. 1.9 billion in 2016. The Indian toy industry is valued at Rs. 56 billion and is growing at 10% annually, though most of the market is served by unorganized imports from China. Funskool aims to differentiate itself through high quality products and compliance with safety standards. It faces challenges from global giants entering India and lower costs of Chinese manufacturers. It is exploring strategies around expanding its owned brands, entering lower price segments, and foraying into digital games.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    414 views9 pages

    Funskool Case - 2

    Uploaded by

    Mudit Sahai
    Funskool India is a leading toy manufacturer in India. It was incorporated in 1986 as a joint venture between MRF and Hasbro. Over the years it has had several changes in leadership. Its net revenue reached Rs. 1.9 billion in 2016. The Indian toy industry is valued at Rs. 56 billion and is growing at 10% annually, though most of the market is served by unorganized imports from China. Funskool aims to differentiate itself through high quality products and compliance with safety standards. It faces challenges from global giants entering India and lower costs of Chinese manufacturers. It is exploring strategies around expanding its owned brands, entering lower price segments, and foraying into digital games.

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    Funskool India

    Defend, Lead, and Counter Rivals

    Amrita Walia Ashutosh Asthana Group 7 Shivani Rawat


    180103200
    Tanuj Anand
    180103238
    180102016 180103053
    Section F
    Shashank Mishra Nikhil V Dixit Yuvraj Bhatia
    180101089 180103139 180103263
    Company Timeline

    Oscar Braganza-New CEO John Baby- New CEO

    1986 1993 1995 2006 2016

    Funskool incorporated as a Ralph Kurien- New CEO Net Revenue of ₹ 1.9 billion
    joint venture between MRF
    and Hasbro (60:40)
    PESTLE Analysis
    Indian Toy Industry

    P E S T L E
    Creativity is the
    key to success in
    • Import Duty • Size of Indian Toy
    the Industry
    future andis • Price Sensitive • R&D culture is • BIS • Increasing
    Difference Rs.56 billion Consumers not prevalent compliance is global
    primary
    now concerns over
    • CAGR of 10% • Increasing share of mandatory for plastic usage
    • digital games imported toys
    Unorganized sector of 75% is
    dominated by low priced
    imports • Indian Manufacturers
    have to negotiate for
    • China accounts for 70% of all shelf space
    the imports

    • Retailers enjoy high margins


    on Chinese Toys
    Market Share
    Indian Toy Industry

    75% Unorganized Sector 25% Organized Sector


    70% imported from China Players like Funskool and
    30% from Italy and USA Mattel

    75% Little Differentiation


    Poor Safety and Quality
    High Quality products
    Mid to Premium price range
    25%
    Toy Industry

    64% Traditional Toys Games 36%

    25% 75%
    Educational Recreational
    Strategy of Funskool

    06
    05 05
    04
    03 Riding the Wave
    02 Differentiation Whatever cartoon
    01 Retail Funskool adopted character gained
    Home Brands 20 stores, on BIS norms, set up a popularity among
    Licensing Funskool introduced franchisee model, in design department the kids, Funskool
    Cost Cutting Entered into more 4 new brands- tier 2 cities and and did extensive began to produce
    licensing Giggles, Handy multi-brand retail promotion and its figures through
    Focused on
    agreements to Craft, Fun Dough outlets in metro strengthened its licensing
    reducing
    regularly introduce and Play and Learn cities. E-Retail also sales channels
    manufacturing costs
    new products in the supported
    to boost exports by
    bringing in market
    automation and
    mechanization
    Challenges

    Advent of Giants Digital games segment


    1 International toy manufacturers are contemplating Funskool has no presence in a sector that is 3
    to enter the Indian market. This will naturally eat expected to surpass the traditional toys sector by
    into the market share of existing players 2018

    Chinese Woes The Sales Target


    China incurs 25-50% less manufacturing cost
    2 Funskool has set a target to achieve Rs 5 billion 4
    than Indian counterparts. Secondly, they are in worth of sales in 2020 of which 50% is to be
    the process of moving up in the value chain from Funskoool owned brands
    posing as direct competitors
    Current Scenario

    Home Brands Lower Price Segment Digital Games Segment


    How to augment revenue Should they embrace Should the company enter the
    from home owned brands? customers in lower price digital space and foray into an
    levels? unchartered territory?
    The Perfect Formula

    Indianized Product Line


    Brand Portfolio Management

    Focus on Digital Gaming Segment White Labeling Chinese Imported Toys


    Thank You!

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