Business Plan-Lego and Barbie-Free Essay

Marketing Plan
1. Market segmentation :

In general, Lego and Barbie are two kinds of plastic toys so they should be especially focused and offered to children. According to Unicef Vietnam, there are approximately 30 millions children which is 36% out of total Vietnamese population. It can be seen that market’s range is very high so segmentation process must be evaluate carefully the most. Consider about geographic, all the three parts in Vietnam will be targeted at the same level. More detail, we are going to get attention mostly from big cities and urban areas such as Ha Noi, Ho Chi Minh and Da Nang.

A. Lego: For Lego, it was already a famous toy brand since the year 1950s. Based on Lego’s reputation and market we tend to continue offering normal-quality as well as high-quality toys whereas the price is at an affordable level for the family at even an under income scale in Vietnam. In order to limit the market segment, the focused section is planed to be children from 4 to 13 years old. Based on Vietnamese General Statistic Office and our calculation, there would be more than 15.6 children involved in this section equal to 19.5% in total 80 millions Vietnamese population. To be more specific, we only take a half of above number. In detail, because the main feature of Lego’s toy is to train the creativity of children through combining many “colorful interlocking plastic bricks” to shape various objects. Therefore, it is the fact that boys are easy to be appealed than girls due to the complexity of Lego’s toys so obviously they are who we mainly aim at.

B. Barbie: In contrast to Lego, targeted segment of Barbie doll is all the girls from 4 to 13 years olds. In our plan, Barbie’s quality is going to be normal as well as the price offering. We tend to provide Barbie dolls for all the girls which are living in the upper-normal living standard families.
One challenge for our products is how to approach customers because they are all children, they can not buy toys by themselves. It is the truth that we need to attract both children and their parents as well.

2. Marketing Goals

A. Lego’s Marketing goals :
• Domesticate 30% of toy’s market share in Vietnam at the end of quarter 4 of 2009. Keep growing constantly 5% every following quarter.
• Income is expected to increase at least 20% each quarter.
• Guarantee for a high quality product and an affordable price.
• Expanding and improving quality of after and before sales services in order to achieve the customer royalty as well as customer retention.
• Focus not only children but also their parents, who concern about quality and safety of products.
• Never stop refreshing products and services.

B. Barbie doll’s Marketing goals
• Gain 20% market share of toy in Vietnam after 8 quarters.
• Growth rate is maintained at 5% ~ 7% each quarter.
• Income increases steadily at a high rate of 40% every 2 quarter.
• Customer’s satisfaction must be considered carefully as the most important part of Barbie doll’s business.

3. Marketing Strategy and Marketing Key Performance Indicator (KPIs)
3.1. Marketing Mix Strategy:
The ambitious marketing goals that we have mentioned above reflects that our aim is to make a really big jump in business and toy’s market. It can be seen that to reach this level, Hamachi company needs to use reputation as an advantage while impressing customers with a positive image. In this part, based on the Porter’s Generic Competitive Strategies theory (Porter, M, 1985) we will present the Marketing Mix Strategy contains 4Ps, Products, Price, Promotion and Place. It will show clearly which way we use to approach all the goals mentioned.

A. Product
Based on “Three levels of product” (Kotler.P,2005), we will bring you some analyses to show how our products different with other competitor’s products

• Core benefit:
It’s easy to realize the main purpose of Lego and Barbie when they are sold to the children, to Entertain. However, a product can not survive for a long time if we introduce them only for entertainment purpose. The first product is Lego, we want to bring children not only a game to play but also a chance to gain their creativity through arranging and mixing up various colourful bricks into one perfect shape. Consider Barbie doll, it can be seen that they are not the same from head to toe. What we try to create here is the collective value.
• Actual product:
Both Lego and Barbie also have great brand name as well as reputation so it is obviously an advantage for our Hamachi over other competitors. As the fact of Toy market in Vietnam, low quality products come from China and other countries are having priority over high-quality toys so we will make the difference. From the beginning, level of Quality is always at least normal with Lego and high with Barbie. The design of Package and Product is important because it will be able to catch the children’s eyes. It must be colourful as well as trendy style. In detail, Lego toys are more modern while Barbie doll is always following the newest trend such as the hottest singer at the moment or even introducing the doll with face of the new president.
• Augmented product:
Though services are intangible, we are planning to put a lot of money in this part. If children are attracted by fantastic look and beauty of toys, their parents judge Toy in another way. They consider about safety and also moral issue what mainly affect their children. Therefore, we are going to include the guarantee certificate of quality and safety in every package of both Lego and Barbie dolls, note that they are available for 1 year. We also operate a hotline running 24/24 in order to provide for any help as well as receive the complaints from customers. After buying a product, every customer will be given a card of Hamachi to collect point for each time so when it is accumulated certain times, they would be received a special gift or a discount for every Hamachi’s products.

B. Price

Price of Lego is higher than Barbie so Lego will be made as a lead product of Hamachi. Price of Lego is set at a high level and the quality is also very high indeed. Due to the low quality, demand of Barbie doll becomes lower than Lego so we tend to produce only a small number of Barbie doll. At the first quarter, the price of Lego will be 67$ and Barbie will be 49$. In the following quarter, we plan to increase the quality of Lego as well as its price. In contrast, Barbie’s price will increase slightly and the quality will be upgrade to a higher level.

C. Promotion
There are 3 ways to promote our products, by TV advertising, Newspaper advertising and Magazine advertising. Our company is targeting to put effort on TV advertising because it is the shortest way to get attention from children. Colourful advertisement with famous comic characters sure will be able to appeal all the boys and girls. The second way to approach customers is magazine. The reason why we choose magazine is because magazines are colourful and easier to get to children’s mind. Nevertheless, with magazine we can add more descriptions. This is the thing which TV advert cannot fully provide due to the shortage of time appearing on TV. Some of our products can be produced and designed to follow the real characters. For instance, Star wars characters or some comic characters. The last and probably the least is the Newspaper advertising. The reason why we use Newspaper least because it does not provide most of the characteristics that are demanded to meet the requirement. We can create the replicas and put them in our showrooms where children and their parents can go to and see the products in real life.

D. Place
In the near future, we are planning to open 4 official shop in Ha Noi included one at Trang Tien Plaza and another at Vincom city towers, the 2 biggest shopping centre in Ha Noi. Soon there will be a shop where customer can receive the all the fastest maintaining services as well as exchanging products. The places are required to have such a good view and can attract our potential customers. To do that, we have to have our s unified in our very own style. More specifically, the places are required to be attracting yet friendly which is the things that our potential customers are looking for

3.2. Marketing KPIs

a. Efficiency of advertising

• Definition: how effects in comparison between the money that spend on advertising with the effects of those.
• Measure: the quantity of goods sold (sale) in every quarter.
• Target: decrease the cost for advertising but still keep the number of tradition customers and attract new ones as well as reach 5%sales per quarter.

b. Sales forecast and actual demand

• Definition: the sales forecast should be close to the actual demand.
• Measure: the differences between forecast and actual can be seen in the Quarter Performance Report. Manager can find the errors and take experiences for the next forecast.
• Target: become one in top 3 companies that forecast very closely to demand in the fact.

4. Marketing Forecast

4.1. Price for the 1st 4 quarters

Unit Price Quarter 1 Quarter 2 Quarter 3 Quarter 4
LEGO $67 $69 $69 $72
Barbie $49 $50 $51 $51

4.2. Advertising for the 1st 4 quarters
Marketing decision Quarter 1 Quarter 2 Quarter3 Quarter 4
TV adv
LEGO 1 2 2 4
Barbie 1 1 3 2
LEGO 23 27 33 37
Barbie 21 23 28 34
LEGO 2 4 5 7
Barbie 4 3 2 3

Quarter 1 Quarter 2 Quarter 3 Quarter 4
Advertising LEGO BAR Total LEGO BAR Total LEGO BAR Total LEGO BAR Total
TV 5,000 5,000 10,000 10,000 5000
Newspaper 23,000 21,000 44,000 27,000
Magazine 6,000 12,000 18,000 12,000

4.3. Market research for the 1st 4 quarters

Marketing research decision Quarter 1 Quarter 2 Quarter 3 Quarter 4
Price    
Newspaper  
Prod Quality   
Unit Sold    
Market demand

4.4. Sales forecast for the 1st 4 quarters

Product 1 Product 2
Quarter 1 6400 5700
Quarter 2 7002 6003
Quarter 3 7150 6230
Quarter 4 7350 6590

Sales Fore Cast Quarter 1 Quarter 2 Quarter 3 Quarter 4
Unit Sales
LEGO 6400 7002 7055 7350
Barbie 5700 6003 6240 6590
Total Unit 12100 13005 13295 13940
Units Price
LEGO $66 $69 $72 $73
Barbie $49 $53 $55 $56
LEGO $422,400 $483,138 $507,690 $536,550
Barbie $279,300 $318,159 $343,200 $369,040
Total Sales $701,700 $801,297 $850,890 $905,590