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!