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1.

Scope of Business
Toys have been an important and integral part of our childhood
and growing up stages since ancient times. Though some of the
modern age toys are completely different and much more
advanced than Traditional toys, there are some toys, which have
been around since centuries and continue to be the favorite toys
of everyone's childhood, like the wooden rocking horse.
The children of today, their habits, requirements and
needs, likings, upbringing, etc. are very much different from those
of the previous generations. Thus, their toys have also undergone
a lot of evolution and modifications. Nowadays, there are many
types of toys available, which not only entertain the kids, but they
are educational and help in the overall growth of the children.
However, wooden toys, though they are traditional, continue to
rule the charts even now, because of their advantages and
features. They are not just simple toys without relevant details
or great features, but have evolved into bright, eye-catchy and
educational toys of today.

1.1 Wooden toys: they have been present since


centuries and are still popular and best choices for many. These
toys have many advantages over the present day plastic toys,
which make them a hit amongst parents while searching for toys
fit for their kids' needs. The amazing characteristics and
advantages of these toys over their present day counter parts are
as follows:

1.1.1 Natural and safe: The present day plastic


toys have been found to contain a toxic component called
lead. Lead when consumed can have serious and adverse
health effects and can be very harmful for children.
Growing toddlers often have a habit of putting toys in
their mouths, thus these toys pose significant danger. On
the other hand, wooden toys are made from natural
woods like pine, bamboo, etc. and contain glue rather
than nails so as to make them safer for kids. Mostly
natural dyes, which are non-toxic, are used to paint the
toys.

1.1.2 Stronger: These toys are stronger and more


durable than plastic or cardboard toys, just like a wooden
puzzle is more durable than cardboard ones, etc. In
addition, these toys do not contain any small or fragile
parts like plastic toys, which can break off easily and pose
a threat of choking the kids. Thus, they provide the best
value for your hard-earned money. As wood is rugged,
these toys lasts generations and are often made into
heirlooms, which are preserved and passed down to
various generations.

1.1.3 Modern: These toys are as modern as the


other present day's toys. Earlier they were available in
crude and simplest form, without much detailing or
attractive looks. However, now these too are available in
bright colors and features to attract the attention of kids.
These are available in all forms, like pull toys for kids
learning to walk or educational and development
preschool toys for developing toddlers.

1.1.4 Green: When plastic toys are disposed off, they


end up polluting the environment. Seeing this, many
wooden toys manufacturers have started using woods of
trees, which are not facing the threat of extinction.
2. Introduction
The Products we are selling are wooden toys. Wooden
toys are often presented in the simplest fashion. We
believe that simplicity is the key to stimulate a child's
imagination and to create endless playtime. We carry
many different types of distinguished quality and unique
wooden toys, games, puzzles and child's furniture. Safety
is our number one priority. Each and every one of our
toys is carefully crafted with non-toxic paint and 100%
child safe design. We guarantee the quality of our toys.
Customer satisfaction is our primary concern. If you ever
are not satisfied with our products or services, you can
request by e-mail or call us for our immediate attention.
We will attend to you within 24 hours. Our customer’s
suggestions and comments are always appreciated.
We are manufacturing unique and specialized
educational wooden toys which are a source of fun for the
children, aside from providing fun, pleasure it is fostering
creativity and sharing and providing the children with
hours of entertainment. These toys engage the child’s
imagination and creativity.

3. Our Policy
These toys are made for children between 4 to 7 years
old and keeping in view the point of the parents, what
they want for their children. These toys can be dangerous
for the children who are under the age of 3 because a
child at that age has no sense of his. He can swallow,
pinch, or smash it into his head etc. That is why we have
prohibited our toys on the ages less than 3. These toys
are not for infants, toddlers and children who still mouth
objects. Children will love to play with these wooden toys
because it is something diverse with the same old plastic
and it has a plus point too that it does not usually break
early then the plastic ones. They remain new as once
brought because of the polish. A child can play with our
toys everywhere like in the cars, daycare center’s
schools, at the baby sitter’s and grandparent’s house etc.
We are making toys by keeping these things in mind.

 Toys should be safe for use.


 Toys should be easy to clean.
 Toys should be easy to handle.
 Toys should be attractive that kids play with them
again and again.
 Toys should be educational.
 Toys should be extremely fine.
 Toys should be customer satisfactory.
 Toys should be not offensive for kids.

Our motive & Responsibility


We consider it our prime responsibility to create a good
and fun learning experience for the children. Children can
get as much fun and pleasure from playing with
shoeboxes, car keys and saucepans as they can but they
can provide harm to them. These toys are developed for
a purpose to provide children something which can
improve their learning skills along with providing fun and
pleasure and can be trusted by parents. Because some of
the other toys are spoiling children and are leaving bad
effects on the children minds as well as the parents
dislike them but they are forced to buy the toys because
of their children. Our toys are specifically designed and
built keeping in mind the safety standards and to
focusing on a child’s learning and growth. Our prime
motive is to contribute to the economic growth by
introducing new products and creating new job
opportunities. The jobs created by our business are
meant for carpenters and the painters. The business is
offering good opportunity to the true craftsman who is
suffering because of technological revolutions. We have
no factories and all our toys are made on contract by
outside suppliers which give the flexibility to change its
designs quickly. We are promoting our cultural heritage in
front of the entire world. The international market is a big
time opportunity for us for business & we are trying with
the best of our efforts to explore that horizon and gain
potential revenue and business for our country.

4. Why us...?????
There are many other companies which are
competing with us in the same scope of business but yet
we have a good customer number of international and
local customers. Our customer’s interest in our toys is our
main motivator to keep exceling ahead and offering
quality products in a competitive market. The following
points are distinguishing that why people have to choose
us.

• Safety
• Natural material & Fine Craftsmanship.
• Cheap.
• Tough.
• Easy Cleaning.
• Return Policy.

4.1 Safety

The safety and durability of our wooden toys is very


important. All of our parts are hand assembled using All-
weather wood glue (no nails!). All of our collectible toys
are smoothly sanded. No sharp edges or splinters to
worry about. So we assure you the finest when it comes
to safety.

4.2 Natural material & Fine


Craftsmanship

Our handcrafted creations are made primarily of spruce,


pine and assorted hardwoods. We use a minimum of
hardware in our pieces. We take great care in
handcrafting our wooden toys so they will have an eye-
appealing appearance that is unique. Our wood toys
make wonderful gifts for people who love handcrafted
transportation vehicles. All pieces are modeled after real
vehicles and created with attention to proportion and
function to make them stimulating the imagination and a
joy to behold. We leave our wooden toys in their natural
wood finish. Your model will look like a work of art rather
than another plastic truck from a store shelf.

4.3 Cheap
We offer products at a very reasonable and competitive
price for all classes of consumers. We try use the best
materials available and design toys which are perfect in
craftsmanship and offer them all at a very reasonable
price. Infact we try to give the customers the best value
for their money.

4.4 Toughness

Our handcrafted wooden toys are built TOUGH, but like


all wooden toys they are not indestructible. We assure
the best quality by meeting the best quality standards
available and by thorough testing of any product before it
comes to the market. Due to the fine handcrafted detail
and abundance of moving parts, we sell our wooden toys
as models for adults and older children. Because each
child is unique in their development, parents must decide
if our wooden toys are appropriate for their children.

4.5 Cleaning
The toys can be easily cleaned with a cloth or Scotch
Brite pads. They can easily be cleaned by using a damp
cloth with a mild cleaning agent. Some more delicate
looking toys can be cleaned by using a soft brush.

4.6 Return Policy


Our collectible wooden toys are handcrafted to withstand
a lifetime of enjoyment. If you are not 100% satisfied with
any wooden toy truck, train or farm equipment, simply
return the toy within 10 days of your receipt for a refund
of the purchase price. Please include a copy of the
invoice. All toys must be undamaged/unused and in their
original undamaged packaging. Shipping charges are not
refundable.

5. Target Market
I.Adults
II.Young Children
III.Consumer budget Specific
IV.International

5.1 Young Kids


As we are selling toys we are targeting the young
consumers such as children. When someone is a child, he
or she just loves one thing and that is toys. Everyone has
some toys in his childhood. So, parents of the children
would do anything to fulfill the desire of their children.
And if we are good enough to earn the trust of young kids
then we can say that we achieved our 1st consumer
target. So in order to do that we are offering varied
product according to the market trends which cover the
children’s most wanted list of must have toys.

5.3 Adults
We are also targeting the adult consumers because if
you are a male or a female you will buy anything which is
precious to you or its eye appealing to you and more of
that if it is cheap you will certainly buy it for your kids or
as a decoration piece. So as explained above our toys are
eye appealing and eye catching if anyone sees it once he
would like its fine work and will buy it. Our toys can be
entertaining and also can be used for the decoration. We
have a wide range of collectibles for the adults because
every adult person fantasizes about his childhood
memories; we are offering him a chance to look into his
past.

5.4 Consumer Budget Specific

We have toys for all masses, usually as we know there


are many things which are not available for low budget
consumers or are too much expensive that they cannot
buy them. So as discussed above our main priority is
customer satisfaction. One area the customer is much
sensitive and concerned about is the price, so we have
toys for all type of masses and for all sorts of people
having varying budgets. We design our toys keeping in
mind all the potential consumers with a prime motive of
having happy customers from all segments.

5.5 International Market


Currently we have a number of international customers
as well in our customer lineup. We are targeting the
international market of Europe and North America as a
good opportunity to explore into. We know that the
international market has a huge demand for collectables
and craftsmanship and we are offering the international
market just that. Our toys are most finely crafted by the
most skilled workmen and there is a hint of their
craftsmanship in all our products. We have a good line up
of collectibles and some good decoration pieces
available. Our toys offer the international consumer all
what they desire in a fine piece of skill. So the
International market is a big contributor to our business
progress and growth.

6.0 Marketing, Distribution & Pest


Analysis

Marketing:

1. Selling:
We sell the wooden toys at a very suitable price which is affordable for all
the people .As we previously explained that customer satisfaction is our top
most priority. We are committed to give our valuable customers the full
value for their money and the best quality affordable .We are new to the
market so in order to get our Name in popular we have to give some special
discount offers and Low selling price at the start.

We are selling different types of wooden toys which play a vital role in the
nourishment of Children.
So, our price for

*Wooden Puzzles 5-10$


(Depending upon size)

* Wooden Car,Train,Plane 20-30$

*Wooden Animal set 30$

*Wooden Blocks 20$

*Wooden counting Abacus 15$

2. Competitor’s price:

1. Local:
*Cars Rs 800

*Animal set Rs 1200-


1500

*Wooden Puzzle Rs 500

There are no such registered wooden toys retailers in Pakistan.


Different toy stores are giving imported wooden toys but they do not
do business in wooden toys specifically.

The price of the Wooden toys in Local toy stores we visited are

2. International:
There is wide range of wooden toys competitors in America and Europe.
There is very much demand of the wooden toys because the
people have a good taste of fine craftsmanship and collecting things there
but as usual the productivity is low, that’s why the price is high.
The price of the some toys of renown Wooden Toys Companies In America
are:

*Car 75$

*Puzzle 50$

*Animal set 80-100$

*Blocks 75$

3. Margin of profit
As we are new to the market. Our profit margin is quite low. We first need
to get our name in established in the consumer’s mind and to set
ourselves as a good well reputed brand. Our profit margin is just 20-25%
at maximum.

Product Features:
A toy is any object that can be used for play and our wooden toys is just
like that they provide an entertainment while fulfilling an educational role.
The main feature of our product is that they should develop the sense of
child in every way like in education, entertainment, basic needs of
humans, games, music etc. Our wooden toys should be strong, clean,
modern and according to child’s imagination. Its innovative and very
beautiful design & craftsmanship attract the child to buy it because our
product helps the child to take it task easily.

Our wooden toy is clean, fine, highly color polished, educational and our
toys are not offensive for kids. And we also have plans to launch different
featured wooden toys which are new in market.
1. Stack and bull dinosaur wooden toys.

2. Animal pencils.

3. Musical instruments.

4. Hand crafted hobby horses.

Quality:
Our product is nontoxic, made from all natural ingredients and safe .Its
natural and fine. And there is no sharpness in our toys which cuts the
hand, its fine and made of pure wood. We tend to give our customers
100% quality. The following quality features are given

• Natural

• Fine

• Smooth

• Safe

Placement:

RETAILITY:
In model town we have a small building at rent and the rent of the
building is around 20,000 rupees and this is also our shop and we store
and save all our wooden toys in it. So the building is acting as a
warehouse to our toys as well. In international market we have also a
small retail shop at rent and the rent of the shop is around 400 Euros.
Also we have made some arrangement with the local dealers of toys who
are offering our products to the consumer at a very reasonable rate.
These small retail shops are promoting our business in a good manner
and we are sharing a good chunk of profits made through that.
DISTRIBUTION:
We distribute our products at international outlets through a small
contract with a small shipping company who transport our products
through the sea route. From there we have arrangements with local
transport companies who transport the toys to our business places over
there. Currently we are trying to save in transportation costs to offer a
good price to the people buying our toys.

For the distribution in the local markets we have our own transport
vehicle which goes from our warehouse to the shops and delivers the toys
over there. We have made arrangements with local courier companies as
well to make some special deliveries for the retailers and our valued
customers.

PROMOTION:
ADDS:

We are planning to promote our business through a variety of mediums to


offer cheap and economical publicity for our products, actually the main
issue in the local market is first educating the consumer’s to buy our
products because it is an art right now which is long forgotten so what we
are planning to do is to utilize the media available to educate the masses.
So we will start by giving some advertisements in the newspapers
because nearly every one reads a newspaper. Then we are thinking of
promoting our business through advertisements through radio channels
as well. Finally the best medium to exploit the market now a days is the
internet so we are making deals with a few local websites. And we have
currently started a website to promote our business in the international
masses as well. As our business progresses we will shoot some video
advertisements as well for our products.

WEBSITE:

All the specifications and features of our toys will be given in our website.
The toys will have detail HD pictures of them available at the web to show
the good detail that has been so finely been put into the toys. There will
be pricing information readily and regularly updated over there. All the
interactive flow chart of the toy making will also be there to educate
people the work that is behind this fine piece of art. Online shopping
facility will be added shortly. We will make a page of Wooden Toys on
some famous social networking site in order to educate people with the
toys. We will give a lot of details over there regarding our wooden toys

MEDIUM:

As already described above the medium that we are going to utilize in


promoting our business are newspapers, Radio and Internet. Video and
television advertisements will be kept a minimum due to shortage of
budget.

LOCAL COMPETITORS:
There are many types of local competitors in Pakistan. They are not
registered for wooden toys but they are selling regular toys. Because a
toy is always anything which is of interests to a child the most so all these
companies are our natural competitors who don’t compete in the same
league but are directly affecting our business. Some of the companies are
listed below

• KBS international
• ZNZ enterprises
• Rank Traders
• Amir associates

International competitors:
International market is relatively a big market to exploit and we have a
good number of same product class competitors having well-earned
reputation over there. The main competitors that have an impact on our
business are mentioned below.

• FAGUS, Germany
• HABA, Germany
• SCALINO, Switzerland
• THAMES & KOSMOS USA
Apart from these direct competitors there are other companies that are
also in the toy business so it is a tough market to exploit and penetrate.

RAW MATERIAL:
1. Plywood.
2. Different color polishes.
3. Paints.
4. Glue.

Cost of material:
Tali Wood

The wood we chose for our Toys is Tali its cost is about Rs 700-1200 per
foot.This wood is the best for toy making its sleek,fine, soft wood with easy
smoothing surface.

Polishes

The polish that cost on toys is rs 500 per litre. We are talking here about
good polish which is made of the best quality thinner,spirit,lakh and Varnish.

Paints

We use oil paints for colouring some of the parts of our wooden toys. The
costs of these oil paints are Rs1000-1200 per galoon.

Glue

We use the finest quality glue which is made in Swizerland ,best in toy
making. Its cost is about Rs 300 per Kg.

The simple glue in our country costs about Rs 140 per kg


Pest Analysis:
Political factors:

1. Tax Policy

We will pay all the taxes charged on us. And will pay each and every tax
which is legally imposed on us.

2. Labour law:

We will go according to all the laws of the labour. We will strongly follow the
labour laws of the country. We respect the rule of government regarding
labour laws. We are strongly committed to the child labour laws and
employee labour laws and follow the standards of minimum wages and all
other related laws.

3. Environmental law:

We will never destroy the Environment. Our work is for Wood but we will do it
according to the policies and laws of the Government. We get our wood form
governmental approved suppliers.

4. Trade restrictions:

We will do our business under the restrictions of the government. We will


never do an act which is against the government trade rules and regulations.
Economic Factors:

1. Economic Growth:

Our business will be able to help in the economic growth of the country . We
are hiring many unemployed workers, mostly craftsmen whose work was at a
low scale due to the changing trends of the people, we are giving them a
chance to do what the do best and get the best for it. We are employing
skilled workers. In addition to that we are exporting our products and
promoting the art and heritage for our country, it may be small but we are
doing the best we can.

2. Interest Rates:

Due to a change in the interest policy we are finding difficulties in getting


investment for our business, due to high interest rates on loans set by the
state bank.

3. Exchange Rates:

The drastically changing exchange rates are making it difficult for us to set a
permanent price for our products in the international market. But we are
trying the best to keep the prices right for our products, in order to do so we
have to speculate the rising trends in the rates and set the prices
accordingly.

4. Inflation Rates:

Inflation is also majorly affecting our business, due to the rising inflation
trends it is very difficult to actually set the prices for our products and to
keep them at a permanent stat. This as a result is increasing our costs, so
at times we have to sell the product by decreasing our profits as well which
are already at a low level. Inflation effects everything so the raw material
gets more expensive, packing costs, transportation costs and administration
overheads also escalate so it is relatively difficult to keep our prices at a
good stable state.

Social Factors:

1. Health Consciousness:

As told earlier our toys are 100% safe no chemical dyes or polishes are used.
All are safe for children. We are aware of the health habits of our customers
and we respect them in every possible manner so we make toys that are
100% compatible to the child safety and human health measures. No doubt
misuse will have its dis advantages but we have specified age measures and
safety precautions on all of our toys.

2. Population growth rate

We will make our products according to the population growth rate. As we


manufacture toys for mostly children so we have to look into the population
growth factor as well to speculate about the demand for our toys.

3. Environment protection

We are not polluting the environment, all the garbage or un-used material is
disposed of safely according to the safety and international environmental
standards. We are trying to help building a good environment for all to live.
We are trying our best to play our role in protecting the environment and are
making arrangements to meet our objective. We are using recyclable
material in our toys to make a greener environment.

Technological Factors:

1. Research and Development activity:

We have to know about all the new researches and developments happening
in our section in order to compete with the other companies. As technology
improves our products, we are using a mixture of old and new to make our
product better. We are doing much research on the technological trends for
our toys and are doing our best so that our customers get the best stuff.

Environment Factors:

Climate Change:

Changing climates have a big impact on our toys because good wood tends
to be seasonal and we have to get wood at high rates from the market in the
winter and the rains season. So we are trying to adjust according to these
climate changes by planning in advance and managing material requisition
planning accordingly.

7.0 SELF ASSESMENT FOR QUALITY


STANDARDS
(NO DECLINE IN QUALITY)
We promise with our customers that there is no decline seen in
our quality and we maintain the standards of quality according to
the customer satisfaction, because satisfaction is our main
priority. We also try to know that the customer is satisfied or not.
So we get the input from our customers and design our toys
according to the quality requirements of the customers. Our aim
is to provide quality products at an affordable price. We maintain
every detail without compromising quality. Where technically
possible, edges are rounded off to prevent splintering. We make
Eco friendly kids toys which are the best for their respective age
groups. Meanwhile the government approved wood ensures that
we do the least when it comes to harming our environment.

7.1 Internal quality Control


Wood Requirements
• No insect holes, knots upto 5 mm not loose
• No splinters at edges
Packaging
(For items with high number of pieces)
Free fall from 60 cm with impact of packaging on different edges
and surfaces

7.2 Internal Quality Standards


All stages in our production process are controlled and handled
according to strict internal standards to ensure the highest quality
standards. The selection of wood must fit our requirements for the
color of the wood, insect holes, knots etc. Sawing, planning and
sanding fulfill the safety specifications established internally.
Gluing, coloring and varnishing is done according to internal
principles and technical requirements and maintaining quality
standards at every bit. Packaging care about design, information
leaflets and labeling is to satisfy our customers and to reduce
damage in transporting our goods.

7.3 Quality Features:


1. We don’t use low quality wood and it is perfectly
selected natural wood.
2. The paint we use in our product is registered and non-
toxic.
3. The packing used in our product is finest and at the
standard of international level.
4. Highest quality standards are followed in their
manufacturing.

7.4 Future Quality Vision


In the Future we want to make a leap forward in
quality by getting us registered according to the
international ISO standards for quality and safety
to make sure that we continue to raise the bar
with respect to quality and continue to provide our
customers innovative and best quality products
which are certified according to international
standards, so the customers get the full value for
their money. Never the less we are still
maintaining and improving our internal quality
standards for these toys at every passing day.
8.0 Process Flow Chart
9.0 Organogram

10.0 Income Statement


Income Statement
Sales 1000000
Less:
Returns 25000
Net Sales 975000

Less:
Cost Of Goods Sold 1 650000
2.
Operating Expenses 3 160000

Operating Porfit 165000


Other Income 3 17000
Other Expenses 4 2000

Net Profit 180000

Working

Cost of goods Sold 1


Purchases 600000
Frieght Inwards 50000
COGS 650000

Operating Expenses
Admin Expenses 20000
Rent Expense 40000
Misc Expenses 30000
2.
Total Admin 1 90000
Advertisement 40000
Sales Comission 30000
2.
Total Selling 2 70000
2.
Total Operating Expenses 3 160000

Other Income 3
Sales Discount 17000
Other Expenses 4
Chamber Expenses 2000

11.0 Balance Sheet

Balance Sheet
Current
Current Liabilities Assets

20000
Creditors 0 Inventory 20000
10000
Cash 0
66000
Bank 0

Non Current
Capital And Reserves Assets
40000
Opening Capital 0
18000
Net pofit 0

Total Libilities + Owners 7800 Total 7800


Equity 00 Assets 00

12.0 Financial Plan


Financial Plan

2013
2010 2011 2012

Customers 1k 2k 3.5k 5k
60000
10000 20000 40000 00
Net Revenue 00 00 00

40000
65000 10000 25000 00
Purchases 0 00 00
50000
R&D 0 20000 40000
13500
11000 13000 0
Admin 90000 0 0
20000
Selling & 12000 0
Marketing 70000 90000 0
50000
Other Expenses 0 20000 42000
81000 12400 28320 44350
Total Cost 0 00 00 00

19000 76000 11680 15650


Net Income 0 0 00 00