Providing Holistic Solutions To The Issues Faced By

SIGMA TOYS
Problem Statements:
• To suggest the best way to enhance efficiency of PVC plant
• To suggest an optimal supply chain network
• To suggest ways to increase the bottom line
• To suggest ways to reduce rejection rates and deal with scrappage
• To suggest new channels of sales monetization
• To suggest ways to reduce attrition and increase FTE utilization
• 24.38% growth in revenue in 2019 wrt to 2018 and 14.82% growth in revenue in 2020 TOY INDUSTRY OVERVIEW
• Cost of Revenue increased at a much higher rate with 30.52% and 16.31% in 2019 and
• Potential to grow to $2-3 bn industry by 2024
2020 respectively
• Direct labour expenses increased by 30% in 2020 while SG&A increased by 25% in the • Indian toy industry is just 0.5% of the global
same year industry
• While the operating income decreased by 2.22% in 2020, the net income decreased by • China is the current leader in the industry
11.76% in the same year despite a 14.82% increase in sales. (Refer table 13)
• Domestic demand to grow at 10-15% against
global average of 5%

SIGMA TOYS OVERVIEW

• Leading producer of high quality toys in India
Profits are for the last two decades (15% Market share)
going down

Increase
• Profitability
Reduce
has been trending downwards
Revenue Costs

Ensure 100% Find New

Alternative
Increasing
Maximum • Long term projectionsAlternativeare robust and expected
Approach to Utilization of Reducing Reducing Approach to
Demand Sources of Product Efficient SCM
Attainment Revenue
Scrap
Handling
Portfolio
Manufacturin
g Plants
to Reject
grow Rates Attrition Scrap
Handling
Licensing Alternate Installing
Selling 100% 90%
Online Sales
Channel
from Studio
Merchandisin
Sales
Outsourcing
Direct Retail
Outlets
Third Party
Job Work
Excess PVC
B2B
Brand for
High Graded
Trending
Toys
Utilization of
Toy Plants
Utilization of
PVC Plant
• Seasonal demands in some
scrap cutters
months
to reuse
g Rejects rejects

Venturing into
Soft Toys
Installing
Additional • 1 PVC Plant, 5 Toy Manufacturing Plants, 8
Reactor
Distribution Centres
• 9 toy categories across 7 segments

• 3 types of toy manufacturing machines

New Channels of Increasing Bottomline and Sales for Sigma Toy Industry

1. Ecommerce/Online Avenues Of Sales like Amazon and Flipkart, sell 2lakh+ toys ranging from Rs70 to Rs35000. Amazon displays 35+ toy brands with some brands
like Shumee toys claiming 12times increase in sales via amazon. 19% seller are selling in toys and games category, which is one of the top in categories of most
profitable products in amazon (21% average profit margin for sellers).

2. Sales Outsourcing and Resellers: third party sales force will not only generate extra sales revenue but also increase the brand visibility and customer base. If we
assume the toy manufacturing plant to be working on 100% capacity where only 74% capacity is required to fulfil current demand. The 26% capacity production
can be used for outsourcing that can generate profit of about 211 Crore(Table 3).

3. Studios like Disney, Pixar, Marvel have been the most profitable Merchandise Licensors of the world since 2000s. Disney Consumer Products (DCP) has a
dedicated website in India, selling 660 items. The growth of DCP in India doubled in just last 2.5 years (around 60M product sold annually). To further expand
their reach to remote locations more local licensing are being done thus giving opportunity to local toy manufacturing industries. India's Rs 4000 crore licensing
and merchandising industry is still in its infancy, the segment is poised to grow significantly in the coming years, growing 15%-18% y-o-y.

4. Direct Retail Outlets dedicated for exclusive Sigma Toys, like Toys’R’us, will bring direct sales revenue. The retail profit margin (which can be around 23-66%)will
sail into company’s revenue.

5. Selling Excess PVC to B2B: At present the PVC manufacturing at 90% capacity limits the toy production to fulfill only 92% of current demand. However addition of
a reactor at PVC manufacturing plant will not only fulfil the demand of 100% capacity toy plant but will produce extra PVC, which can be directly outsourced or
sold to other plants(table 6)

6. Third Party Job Work: Increased capacity of production plants will provide options to take more production deals from any third party sources (Table 5)

7. 100% Demand Retainment: because of the unmet demand the company is losing revenue, we need to increase our capacity utilization by efficiently using the
machinery and raw materials. (Refer Table 5)

8. Retail Automation like kiosk, vending machines, can be used as along term sales strategy to prevent the pressure of increasing retail margin due to rising
competition. Automation reshaping of business will give real-time data and analytics of sales
1. Reducing Attrition:
• Central Empanelment for recruitment of employees from trusted third party source will ensure uniformity and better understanding of the
process.
• Proper training programs from employees even at a helper level provides more confidence and knowledge about the work. It also inculcates trust
for the organization as they feel that the organization is interested in them.
• Employee Engagement Activities like festival celebration, games and family meets will make the workers happy and socially satisfied.
• Increasing Employee Benefit: will increase the employee loyalty thus reducing the chances of their leaving. Employees will be more focused in
working which in turn will increase productivity. Even the recruiting will improve as more workers will be interested in joining.
• Tenure Clause and contracts will help in retaining the employees and prevent random attrition.
• Exit Interview and Problem Identification: it is important to know the reason behind the high attrition rate to solve this problem more effectively.
It will help in understanding the drawbacks in management or recruiting process.
•
Or diagrams to explain complex ideas
Example text.
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Nam venenatis nisi at nisl
tempor, et luctus diam lobortis.
Nulla sit amet metus consequat
velit iaculis tempor.
Example text.
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Nam venenatis nisi at nisl
tempor, et luctus diam lobortis.
Nulla sit amet metus consequat
velit iaculis tempor.
5
Maps

our office

6
 Timeline

Yellow is the color of

Blue is the colour of the Red is the colour of danger Black is the color of ebony gold, butter and ripe White is the color of milk Blue is the colour of the
clear sky and the deep sea and courage and of outer space lemons and fresh snow clear sky and the deep sea

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Yellow is the color of White is the color of milk Blue is the colour of the Red is the colour of danger Black is the color of ebony Yellow is the color of
gold, butter and ripe and fresh snow clear sky and the deep sea and courage and of outer space gold, butter and ripe
lemons lemons

7
Roadmap

Blue is the colour of the Red is the colour of danger Black is the color of ebony
clear sky and the deep sea and courage and of outer space

1 3 5

2 4 6

Yellow is the color of gold, White is the color of milk Blue is the colour of the
butter and ripe lemons and fresh snow clear sky and the deep sea

8
Gantt chart
Week 1 Week 2

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Task 1

Task 2 ◆

Task 3

Task 4 ◆

Task 5 ◆

Task 6

Task 7

Task 8

9
SWOT Analysis
STRENGTHS WEAKNESSES
Blue is the colour of the clear Yellow is the color of gold,
sky and the deep sea butter and ripe lemons

Black is the color of ebony and White is the color of milk and
of outer space fresh snow
OPPORTUNITIES THREATS

10
Business Model Canvas

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Insert your content Insert your content Insert your content Insert your content Insert your content

Key Resources Channels

Insert your content Insert your content

Cost Structure Revenue Streams

Insert your content Insert your content

11
Funnel

AWARENESS Insert your content

DISCOVERY Insert your content

EVALUATION Insert your content

INTENT Insert your content

PURCHASE Insert your content

LOYALTY Insert your content

12
Team Presentation

Imani Jackson Marcos Galán Ixchel Valdía Nils Årud

JOB TITLE JOB TITLE JOB TITLE JOB TITLE
Blue is the colour of the clear Blue is the colour of the clear Blue is the colour of the clear Blue is the colour of the clear
sky and the deep sea sky and the deep sea sky and the deep sea sky and the deep sea

13
Competitor Matrix
HIGH VALUE 2

Competitor
Compe
titor
Our company

Competitor

HIGH VALUE 1
LOW VALUE 1

Competitor

Competitor Competitor

LOW VALUE 2

14
Weekly Planner
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

09:00 - 09:45 Task Task Task Task Task Task Task

10:00 - 10:45 Task Task Task Task Task Task Task

11:00 - 11:45 Task Task Task Task Task Task Task

12:00 - 13:15 ✔ Free time ✔ Free time ✔ Free time ✔ Free time ✔ Free time ✔ Free time ✔ Free time

13:30 - 14:15 Task Task Task Task Task Task Task

14:30 - 15:15 Task Task Task Task Task Task Task

15:30 - 16:15 Task Task Task Task Task Task Task

15
SlidesCarnival icons are editable shapes.

This means that you can:

● Resize them without losing quality.
● Change line color, width and style.

Isn’t that nice? :)

Examples:

16
Diagrams and infographics

17
You can also use any emoji as an icon!
And of course it resizes without losing quality.
How? Follow Google instructions https://twitter.com/googledocs/status/730087240156643328

✋👆👉👍👤👦👧👨👩👪💃🏃💑❤😂😉😋
😒😭😸💣
👶😸 🐟🍒🍔💣 📌📖🔨🎃🎈🎨🏈🏰🌏🔌🔑
and many more...

18
 Free templates for all your presentation needs

For PowerPoint and 100% free for personal or Ready to use, professional Blow your audience away
Google Slides commercial use and customizable with attractive visuals