Educational Toys and Programs - Case Study Example

Running Header: Educational Toys and Programs Your name: Course name: Professors’ name: Date Introduction Educational toys and programs in Australia have been growing because of several factors including innovation and enhancement of technology coupled with Australian strong economy. In essence, the industry has many gaps which new entrants can exploit in order to get substantial market share. This report focuses on creative educational toys which target low income earners with children with learning difficulties. Current market forces as well as the success factors coupled with the market gaps will be exploited in order to succeed in the market. Educational toys in Australia Current and future trends Australia survived the last economic recession mainly because of its strong economic base, the government has low debt as compared to other European countries that were recently hit by the consequences of high government debts. The current toy industry in Australia is growing mainly because of the development of online platforms, the internet is continuing to shape the toy industry, notably most of the Australian toys are electronically powered, this trend is expected to continue as electronics industry key players such as HIT entertainment, Harvey Norman continue to improve their products, online retailing even in traditional toys is also on the increase. Poor parents are also searching the internet for much cheaper toys for their children. Additionally, for traditional toys and games, licensing acts as lifeblood for their growth as a result of continuous media properties which enhance fresh demand. In essence, creativity in the industry, both local and global level is creating new products and hence potentially growing over the coming years (Wong & Deborah, 2012). There is a clear growth potential for traditional toys in Australia because of the innovation and the presence of the internet which is a vital marketing tool, the highly valued Australian dollar is also another major reason for the potential future growth of both traditional and online toys. Employing the internet to market new tailored educational toys is thus a strategic means of acquiring a substantial market within a shorter period of time. Educational programs such as Quicksmart have also gained substantial ground in Australia, more so, electronic toys such as Tamagotchis and Furbies have been on unprecedented growth because of their creative aspect, they are virtual interactive pets which attract attention of most young children. Key driving forces and success factors As noted by Atkins & Gallop (2007) in the current and future trends of the traditional toys, the key driving factors in Australia currently is the strong economic base of the country. Unlike other European countries with issues of debt and financial crisis, Australia government debt are reasonably low coupled with unprecedented resources, the country’s individual purchasing power is higher and hence potentially consuming both local and global products including toys. Industry innovation is also another notable success factor, Quicksmart for instance has grown in usage since its inception in 2001, in this year about 150 primary schools adopted the product, eight years down the line, more than 600 schools had adopted the product, the main success factors for this program is its usability in enhancing learning process in children with learning difficulty. Tamagotchis and Furbies have developed because of their key success factor which includes integration of technology with the traditional playing objects; the idea of virtual interactive pets is creative and also relevant to the education process of the child. It enhances motor and reflex developments as well as child decision making process. In essence, these toys contribute positively toward the development of the child in all aspects. Target market profiling The product in this case is toys and programs aimed at enhancing the learning experience of ESL students. The program name is Smartworking, the toy name is SmartTom. Smartworking program is designed to interact with simple computer system that is powered by a small processor and memory. The programs works by accepting input, through physical actions and processing the set of instructions before giving an output, the student in this case will have the chance to give their answers before the machine gives its own. In this sense, the machine will act as confirmation as well as the guideline to the next task. The program also has a simple manual for the parent who will be assisting the child in the learning process. The focus of the program is to enhance learning basic arithmetic and English language. The SmartTom toy on the other hand will consist of a set of varying colored parts that can be fixed together to get varying shapes that will ignite mental reasoning. As a set, the toy and the program focus on improving the student’s response speed, understanding and strategy. The set also enhance student’s information retrieval through repetitive process of learning. This will also be essential in improving the learner’s response time and accuracy of their learning process; it will thus be easier for the parents and the students to make realistic goals to achieve. The purchasers are their parents who have already demonstrated interest in the product. There are a number of key factors that will guide the purchasers of the products; these factors are mainly focused on the product usability. The products especially the programs are designed to make it relatively easy for both the purchaser, the parent in this case and the user, the student in this case to learn and use the product within a short period of time. In essence, the uniqueness of the product is the fact that parents can learn how to use them and hence be in a better position to help their children. Unlike Quicksmart programs already established in the market, instructors’ intervention is not required in SmartTom and Smartworking. Competitor analysis Australian market is full of toy companies ranging from traditional toys and modern toys made mainly of electronics. Essentially, the growth of electronic toys has been unprecedented in Australia with; the two major electronics toys include Tamagotchis and Furbies. These two toys are virtual pets which are interactive in nature. Children find it interesting to play with them while their prices are moderate. QuickSmart is another program that specifically targets students with learning difficulty. Since its inception in 2001, many schools have adopted the program and are now using it in their school to improve learning abilities of these target students. Skillbuilders program is another program that focuses on multidisciplinary treatment and therapy for children with learning difficulties. According to Norris & Lecavalier(2010) Skillbuilders mainly demand specialized human intervention in the therapy process. All these key competitors are fostered by the key success factor that is the Australian economy. Most parents are in a position to purchase these toys and programs for their children (Ghesquière & Aloysius, 2005). Quicksmart and Skillbuilders are similar to the proposed product Smartworking because they all focus on improving the learning experience of students with learning difficulties, the also focus on information retrieval as well as time and accuracy. Quicksmart and Skillbuilders are thus substitutes to the proposed product Smartworking. On the other hand Tamagotchis and Furbies and the proposed product SmartTom are all engaging, they are creative and hence imperative in child’s motor and reflex development process. Tamagotchis and Furbies are thus substitutes to the proposed product because of the identified similar usage. Firstly, the manufacturer of the proposed tailored program and toys must adhere to all the industry standards such as Australian Toy Standard (AS1647) and be very reliable in terms of time and supply of the products to their desired destinations. In essence, the manufacturer needs to have been in the market for not less than a decade and with proven manufacturing standards and reliability. The pricing of the product will also be essential considering that the target market is those of less income. Communication with the selected manufacturer is the key to managing them. It is possible for new competitors to enter the market, this is mainly because of the fact that the products can be copied and sold to the same market. In order ward off these prospective competitors, there are a number of issues that must be addressed. The first issue will be patenting the product; this is an important step because these competitors cannot copy the products features as it will be a breach of the copy right law. Another advantage that the toys and programs will have is the knowledge of the target market. A new competitor will find this difficult because the products are based on their current need, which is to help their children improve their learning process. As an educator of these children with learning disabilities, I have verse knowledge on what to include and what not to include in the products, this is not the same case with a new competitor copying the product, and the competitor has a high chance of failing to meet the required market standards because of less knowledge on the same. More so, I will personally take the imitative of promoting the product in the market, this will erect a barrier to competitors with less knowledge on child learning process. As I have already approached the market with samples of the product, the reception in the market is positive, this is a step forward and hence an advantage over the competitor who will potentially enter the market when it is already saturated. The pricing strategy will also came in handy as an essential tool for warding off prospective competitors, with small pricing margin, I will only focus on sales turnover to get the desired profit, and this will make it difficult for the prospective competitor to survive in the market. Size of the market niche According to Nargunde (2013, p.136) in the year 1999, the toy and games market was valued at US$438 million in Australia, this is excluding video games. The current value is worth more than US$1000, this because of the growth in the technology sector as well as the general industry growth powered by innovation and technology. The estimate target for my products is achieving US$200 which is 20 percent of the market share. This can be achieved by focusing on the market gap in the industry. Product description The products in this case are two innovative toys with SmartTom as the brand name and a program with Smartworking as the brand name. SmartTom will have varying colored parts which can be fixed together in a number of ways to form different identifiable shapes. The aim of this set of toy is to ignite mental process of the child in order to make decisions about different scenarios; it also enhances the child creativity and problem solution. SmartTom focuses mainly on children with learning disabilities, in this sense; SmartTom offers a variety of challenges as compared to other toys which are limited in this aspect. The practicability of the SmartTom also offers another advantage as the children involved can make sense out of the toy. The product will be packaged in a bright colored container with a manual instruction inside the container, the parts of the SmartTom will be colored with red, blue, purple and green colors, this will is important because children at a tender age prefer colored toys to play with. A warranty of 6 months will also be given to the purchaser of the educational toys. SmartTom is unique as compared to other educational toys, SmartTom are designed specifically for students with learning problems, repetition being the key to the design of the product (Westwood, 2008). The product also offers wide range of challenges; this is not the same case in other products such as Tamagotchis and Furbies. Smartworking on the other hand is a program with is designed to effectively interact with a simple computer system is powered by a small processor and memory. The program works by accepting input in terms of physical actions and triggers the users, the child in this case to give the answer to a problem before eventually processing the instructions and giving an output. The program will be packaged with a simple manual for the parent who will work with the child. The focus of this program will be to develop response, speed and information retrieval. It also develops understanding and hence giving both the parent and the learner to monitor their progress and the set goals (Mittal, 2005). The program will be packaged in a plastic container with simple arts drawings with bright colors. Smartworking is different from other products such as Quicksmart in the sense that the product is designed for home use unlike Quicksmart which is designed as a helping tool for teachers. Smartworking is also simple to use, it is also packaged together with its manual in order for the parent to commence using it within a short period of time (Westwood, 2012). Market mix Product pricing Since the target market is a low income earning, the pricing of the product will be low, this will also act as an advantage over other products in the market. Psychological pricing strategy will also be used in order to further improve the mental picture of the affordability. Product placement The products will be distributed both directly and indirectly; the indirect channel distributor will be base on commission upon achieving a certain agreed supply amount. Direct distribution will be based on the local order made to the company as well as the sales team of the product. Product promotion The target market will be informed through exploiting online marketing channels as well as the traditional channels such as the TV. Professional involvement will be essential at this point; the experience of teaching ESL and children with learning difficulty will be tailored into the marketing strategy (Gunter, Oates & Blades, 2005). The television promotion will be used twice a month for the entire year. The consequent usage in the rest of the years will be evaluated based on the response of the first year. Online advertising will be used daily because of the low expenses and the wide coverage of this platform. The promotional budget for the first year will be set to $3000 AUD. Market feasibility of the idea The idea is viable; this is because the development of the two products is based purely on the need. The initial market research showed that the target market is willing to purchase the product despite the fact that they are of low income. As identified by Spodek & Saracho (2006) this is a major milestone, the other main advantage is the intended product pricing, the pricing will be low and hence affordable to the target market, The other usability of the product is also another main reason why the idea is feasible, the two products focus on enhancing the learning experience of children with learning difficulty. The incorporate aspects that will foster information retrieval, accuracy, motor and reflex development as well as decision making process, these are the key issues facing children with learning difficulty. Conclusion As identified, educational toys and programs for children with disability have adequate potential which should therefore be exploited. The proposed products, Smartworking and SmartTom are creative products with realizable market feasibility. This is because the two products target a market which has not been fully exploited. More so, the usability of these products in enhancing the learning experiences of children with learning difficulty is the core of the potential success of these products. References Atkins, D.C., & Gallop, R.J. (2007). Rethinking how family researchers model infrequent outcomes: A tutorial on count regression and zero-inflated models. J Fam Psychol 21(4): 726–735 Ghesquière,P., & Aloysius J.J. (2005). Learning disabilities: a challenge to teachning and instruction. Sydney: Leuven University Press. Gunter, B., Oates,C., & Blades, M.(2005). Advertising to Children on TV: Content, Impact, And Regulation. Routledge. Mittal,S.(2005). Children And Media.Thausand Oaks: Gyan Books. Nargunde, M.A. (2013).The Future of Creative Clusters And Industries. International Journal of Management , 4(1): 136-148. Spodek, B., Saracho, O.N.(2006). Handbook of research on the education of young children. Melbourne: Routledge. Westwood, P. (2008). Learning Difficulties. New York, NY: Aust Council for Ed Research. Westwood, P. (2012). Reading and Learning Difficulties. Adelaide: Routledge. Norris, M., & Lecavalier L.(2010). Screening accuracy of level 2 autism spectrum disorder rating scales: A review of selected instruments. Autism 14(2): 263–284. Wong, B.Y., & Deborah, B.(2012). Learning about Learning Disabilities. Academic Press. Read More