BUSINESS PLAN

Soft Toy Company

Adriana Craciun, Owner
May 1, !"1#
1$ E%ECUTI&E SUMMA'(
1$1 Product
Soft manufactures high-quality toys for children aged 3-5. All toys are made with love from the best
plush and terrycloth materials, and stuffed only with cotton. We want to give children a beloved play
pal that they will remember for the rest of their lives.
1$! Cu)tomer)
he target audience for Soft oys is adults, specifically parents and grandparents who wish to give their
children or grandchildren the opportunity to play with a toy that will probably become their best
friends, but also foster the child!s creativity.
1$# *+at ,ri-e) U)
Although the toy manufacturing business is highly competitive, we believe that there is a place for
high-quality, attractive, soft and affordable toys. "ur goal is to build and mar#et toys that will entertain
children and stand the test of time.
!$ COMPAN( ,ESC'IPTION
!$1 Mi))ion Statement
o build and sell high-quality toys that will be cherished and handed down from generation to
generation.
!$! Principa. Mem/er)
Adriana $raciun % owner, designer
&ane 'oe % business manager(boo##eeper
)ill Williams and Samer &ohnes %sewers, stuffers and assemblers
*ic#ey y % web master and handles shipping for web, mail, and special orders
!$# Le0a. Structure
Soft oys is a sole proprietorship.
#$ MA'1ET 'ESEA'C2
#$1 Indu)try
)uilt-+ite oys will be a part of the toy manufacturing industry. $urrently, stuffed toys are considered a
niche mar#et, comprised of different si,ed companies. he largest companies, such as +ag 'olls and
-lush oys .com and *inime S', have large inventories of products that are offered internationally.
he smallest companies sell locally either in shops, at craft fairs, or online. .ndustry revenues increased
by /0.1 million in the 1nd quarter of 1201. his means there is a potential for growth.
#$! Cu)tomer)
he two groups that the company plans to mar#et to are parents 3age 04-325 of young children and
grandparents 3age 62-755 of young children with an income range of /35,222 - /42,222 a year. "ur
target customers are interested in giving durable, well-made toys to their children and grandchildren to
help foster creativity. hey value quality and they research the products they buy. "ur target customers
are willing to spend more money on products that are of higher quality and last longer.
#$# Competitor)
8 A)$ oys
8 Alcone *ar#eting 9roup
8 Aurora World
8 )anday America
8 *attel, .:$
#$3 Competiti-e Ad-anta0e
Soft oys has the following advantages compared to competitors;
8 )asic, practical designs.
8 Safe, non-to<ic and accessories.
8 All components are manufactured in America with top quality materials.
8 =uic#, >4-hour delivery since our goal is to #eep at least 52 units of each toy in stoc#.
8 ?igh-quality, interactive website.
8 @ace-to-face interaction with customers at craft shows over a three state area.
#$ 'e0u.ation
Soft oys must meet all @ederal and state regulations concerning toy manufacturing. Specifically, $ode
of @ederal +egulations in itle >1, -arts 013> and A476.52, 50, 51 and 4A $.@.+. 5555.043a53A5B
$onsumer -roduct Safety .mprovement Act of 1224B Cead-@ree oys ActB and itle AA.A of the $ode of
$alifornia.
3$ P'O,UCT4SE'&ICE LINE
3$1 Product or Ser-ice
Soft oys will sell stuffed toys. he toys are handmade and designed for small children to easily use.
"ur line currently includes the following si< models; eddy the )ear, ina the love )ug, )unny w(
carrots, u< the shih t,u w( leash and water( food bowl, immy the baby #angaroo and *artha the
mom #angaroo.
3$! Pricin0 Structure
Soft oys will offer its products for the following prices;
8 eddy the )ear - 15/
8 ina the love )ug - 12/
8 )unny w( carrots - 52/
8 u< the shih t,u w( leash and water( food bowl - 72/
8 immy the baby #angaroo - 32/
8 *artha the mom #angaroo - >2/
3$# Product4Ser-ice Life Cyc.e
All current Softoys products are in production and inventory is being accumulated.
3$3 Inte..ectua. Property 'i0+t)
Soft oys is a trademar#ed name in the State of $alifornia.
3$ 'e)earc+ 5 ,e-e.opment
he company is planning to conduct the following research and development;
8 .nclude a feedbac# mechanism on the website for ideas, suggestions and improvements
8 -rovide comment cards for distribution at craft fairs
8 +eview available mar#et research to identify top children!s toys and reason3s5 for their popularity
$ MA'1ETIN6 5 SALES
$1 6rowt+ Strate0y
o grow the company, Soft oys will do the following;
8 Sell products at craft fairs in $alifornia, "regon, and Washington.
8 Dstablish a company webpage that contains pictures and descriptions of offered products, including a
secure means for ordering online.
8 As business grows, advertise in target mar#ets, especially in advance of the holiday season.
$! Communication
Soft oys will communicate with its customers by;
8 -roviding an e-mail newsletter with company news, product information, and craft fair schedule.
8 Esing targeted 9oogle and @aceboo# advertisements.
8 Etili,ing social media such as witter, Fouube, @aceboo#, Cin#ed.n, -intrest and umblr.
8 -roviding contact information on the company website.
8 Adding labels on toys that include company name, contact info and web address.
$# Pro)pect)
$urrently, the only person in charge of sales for Soft oys is the owner, Adriana $raciun. As profits
increase, Soft oys will loo# to add an employee to assist with social media and online mar#eting. he
target demographic for the company will be parents of children aged 3-5. he company will increase
awareness to our targeted customers through online advertising and attending craft fairs.