Developing a Strategy for Distribution Channel Management

DEVELOPING A STRATEGY FOR DISTRIBUTION CHANNEL MANAGEMENT

2006

I . Introduction

During the time , toys have always reflected the technological capabilities and the cultural traditions of the societies in which they have been developed . Many toys become the children 's best friends of today . Before merchandising business begins and the television characters are sitting on the shelves as plastic dolls , designers and product developers are trying to find the perfect design which will thrill the children . The market for toys and games is exceedingly fast moving and the life cycles of

many products are relatively short

II . about Toy Industry

Toy Industry competing on a global basis require large amounts of capital and the advantages that get from economies of scale in manufacturing , marketing , distribution and advertising . By the way , the toy industry is following the patterns established in other entertainment sub segments . Some major toy industries , in addition control retail distribution facilities and important Internet sites They take an active interest in toys through licensing and merchandising ventures

Toy Industries are not normally need enough energy for growth . To growth well , toy companies need luck , bravery and a lot of costs on product development and marketing . In this value , the development process for new toys is the same to the film or music . As in film and music , it is often make a new record of hit . Then people (especially children , will love it and always remain about it . Toy manufacturer must be able to focus its energy and resources on its brand , and create highly dynamic , sophisticated content to enhance its consumers (Japan 's Toy and Game Industry , 2004

Now is the new millennium era . As a result , toy industry needs to focus on advance their technology , upgrading and enhancing design innovation and also strengthening managerial skills . Every toy manufacturer is having aim to create their own brands and take control of distribution channels . If a Toy Company wants to be the leading companies or the leading brands , they should offer strategic analysis of key factors influencing the market . They must be the new product developments distribution or pricing issues . Forecasts illustrate how the market is set to change . Up to now , distribution has largely targeted core fans so there is plenty room to expand the extent of sales through general distribution channels

III . Discussion

Toys `R ' Us is the leader in the specialist category , because they carry a variety of toys (Opinion of TOYS "R " US , INC , 1998 . On the other hand , Wal-Mart is number one in the discounter market , because they carry a small inventory at very low prices ( HYPERLINK "http /rds .yahoo .com /_ylt A9htddVtYAVEWFsB_yZXNyoA _ylu X3oDMTBwODlycHB uBGNvbG8DZQRsA1dTMQRwb3MDMgRzZWMDc3I- /SIG 1ejac2dva /EXP htt br

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