Sigma Toys

GEP GAMEPLAN
 Background
Sigma Toys is a toy manufacturing company, having a 15% market share, selling toys
through retail channels.
• It has a PVC manufacturing plant working at 80% capacity and employing 50 people
• It also has 5 Toy manufacturing plants which are fully automated
• It has distribution stores in Delhi, Chennai, Kolkata, Jaipur, Mumbai, Goa, Bhopal,
Shimla
• Financials:
1. The costs have grown at a rate higher than the revenue at the CAGR of
approximately 24%
2. The gross margin slipped from 22.2% to 17.3%
 Reducing Market Share

Shrinking Profitability Increasing Costs

Probelms

Ineffecient replenishment Ineffeciencies in Supply Chain

Variation in freight costs

 Suggested Solutions
• Automating the PVC plant. Add reactors to make it more efficient
• Automating the PVC plant will also increase capacity utilisation
• Outsource non core operations
• Look for new retail channels for sale, like partnership stores and online sales
• Conduct quality audits to improve the production standards
• Adapt to market trends more quicker
• Focus on employee retention
• Provide training to Bhubaneswar and Rajkot staff to increase quality
 Implementation
01 02
Reduce Manufacturing costs Increase Capacity utilization

03 04
Adapt to market changes Focus on employee retention