Noels Toy Shop

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Noels Toy Shop
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Have you ever

• Babysat for children under the age of 5?
• Had young children in your home?
• Given a child a gift for a holiday, only for them
  to forget about it in a matter of days?
• Told a child they couldnt have a toy since it
  was too expensive?

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We Have a answer for you
Noel's Toy Shop
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3 Services Offered
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Description

• Toy store that allows parents to rent toys for a
  couple of days to see if child really likes them
• Baby Needs rental department that allows for
  rental of cribs, high chairs,
• Selling and Buying of used toys

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Organization Structure

• Simple, small business
• Save on management cost
• Leadership effectiveness through direct
  communication

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Business Goal

• Happiness to children in local community
• Low prices to parent/grandparents
• High customer service and satisfaction to all to
  encourage repeated patronage

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Market Analysis

• Industry Information
• Target Market
• Products and Services
• Competitors
• Competitive Advantage
• Risk Assessment

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Industry Information

• Demographic Data In Iowa
• .37 parents income below 35,000
• .Grandparents healthy and live longer
• .Sale in Iowa has grown by 34 last 5 years
• Trend.com
• .Divorce parent spend more money
• .Toys more expensive

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Market Target
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Market Target

• Parents and grandparents who do not want
  expensive toys for their kids
• Parents have low income
• Parents have a few children
• Divorce parents
• Kindergarten

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Direct Indirect Competitors

• Direct competitors do not have Toys Rental store
  in Des Moines
• Indirect competitor
• -Chain stores/Discount stores
• -Specialized toy stores
• -Online toy stores

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Competitive Advantage

• The pricing
• Current style toys
• Out of date toys
• Large inventory

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Risk Assessment

• New toy rental stores
• Departmental toy stores
• Toy stores price promotion

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Marketing Plan

• Image
• Pricing Strategy
• Promotion Plan

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Image

• Everyones Store
• Community Store
• Store Environment
• -Bright light, clean store image
• -Toys and Equipments, looks new
• -Toys laid on shelf orderly
• -Employees are Knowledgeable and
• nice to talk.

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Pricing Strategy

• Setup up the rental price that consumer will
  accept.
• (10-15 of original price.)
• Set up price that Toys Rental can get money back
  in 2-3 months.
• (Cash Flow)

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Pricing Categories

• Renting for small, low price toys
• Renting for large, high price toys and baby
  equipments
• Buying toys and equipments they are renting
• Buying used toys we are selling

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Small, low price toys(20 below)

• 60 cents per day.
• No limit on minimum rental days.
• No limit on maximum rental days.
• p.s under this method, we can get our investment
  
• on this toy back in 35 days.

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Renting for large, high price toys and baby
equipments

• Rental fee- 15 of original product
• Minimum rental days are one week
• P.S under this pricing method, we can get our
• investment back in 7 weeks

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Buying toys and equipments they are renting

• The selling price is set at original price minus
  half of the total rental fee they have already
  paid.
• Selling price Original price 0.5(Total rental
  fee)
• p.s we encouraging customer to buy the toys they
  
• are renting if their children really like
  it

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Buying used toys

• Most of the toys that we are selling are outdated
  toys
• We have already get the investment back.
• Price is set up as 50 of the original price

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Promotion Plan

• Design plan focus on 3 market segments
• -1. Low and middle income family
• with children
• -2. Grandparents that have
• grandchildren
• -3. Divorce parents that have child

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Promotion Plan

• Distribute flyers through community service by
  providing free rental coupon. Give community
  organization certain amount of coupon for free
  rental toys or equipment

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Location for Flyer

• Low/middle income family with children
• -Middle Iowa Community assistance
• -Women infants children
• Family with newborn children
• -Hospital Birth Way
• -Hospital Pediatric

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Location for Flyer

• Family needs federal assistance
• -Human Resource Department Medicaid Program
• Grandparents that have grandchildren
• -Distribute flyers to retirement center
• Preschool children
• -send free coupon to preschool

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Promotion Plan

• Advertising on local newspaper such as Tribune
  or Des Monies Register.
• Use promotion budget in most efficient way to
  maximize selling and renting