1st Answer:

Introduction:

Market segmentation is defined as the practice of dividing your target market into
different approachable groups and segments on the basis of common needs,
characteristics or variables like age, gender, income, nations, lifestyle, and
personality, occasions, benefits, and user & loyalty status.

A firm that makes a product or provides a service targeting solely on the needs of that
potential group of customers can meet the target group’s desire, and provide more
customer value than the competitor who makes a product or service for the entire
market without grouping them on the basis of similar needs or variables

In the case of toys market, the company Wonderkids can segment on the basis of
different variables like children’s age, gender, income of their parents, behavior and
lifestyle. Also, the company can consider the possible personality traits that toys like
‘Doll’ and car can bring to the child while he/she grows up.

However, to segment the market into different groups, it is important to find if it’s a
heterogeneous market. If all the consumers require similar products, then segmenting
the market doesn’t make sense. Also, one or more market segments should provide
enough profit potential to justify developing the products for that particular group of
customers.

The following are the different ways to segment consumer market

Toy companies need to maintain a balance between marketing to parents and their
children. Their products have to be advertised in a way that children are interested in
the toys, and at the same time their parents should be willing to buy them. Also, the toys
should not seem harmful to the parents. For instance, toys like guns and swords are
avoided by many parents since it negatively influences the personality of the child.

India has a growing population of children in the world, due to which, the toy industry
witnessed a rapid growth. The toy market in India is growing with a huge range of
traditional and modern toys.

Demographic segmentation: This segmentation groups the market on the basis of

variables such as age, gender, family size, income, religion and nationality. Babies,
children, teenagers and their parents are the customers of Wonderkids. Gender is an
important variable in demographic segmentation, so Wonderkids should group the
market into two sections such as boy section and girl section. For instance, the doll
named ‘Pari’ is made for girls between the ages of 6-12. The ‘Speedy’ car is meant for
guys between the ages of 6-12. Also, these Toys; ‘Pari’ and ‘Speedy’ are only made for
6 years old; 12 year old or above. This is because some parts of these toys are small
and it may harm to children below 6 years if they may accidentally swallow it.
Geographical segmentation is another way to segment a market on the basis of
particular region, country or location has similar needs or variables. For instance, the
child population is higher in India than other countries. In the above situation,
Wonderkids can segment the market geographically. It can open more stores in
Mumbai because there are wealthy and upper-class people in Mumbai due to stable
income.
.
Psychographic Segmentation
In the psychographic segmentation the market is divided on the basis of social class,
lifestyle and personality characteristics. Parents of babies, children and teenagers from
intermediate and rich families willingly buy toys as traditional toys often boost self-
esteem of children at a young age. In the above case, girls between 6-12 years of age
will feel happy and glad when they play with a Doll. Also, the fairy-like design, beauty
and character name of a Barbie doll acts as a role model for girls of 6-12 years of age.
In addition, the character of the doll named ‘Pari’ could be viewed as a fashion lover girl
who knows everything about makeup and dressing which keeps the children (girls)
cheerful. Also, car named ‘Speedy’ is meant for boys between the age group of 6-12
years that is fascinated with the energy, design and speed of a car. Although a toy, the
car and its name ‘Speedy’ give boys a sense of pride as if they own a car and boost
their self-esteem.

Conclusion: Hence, we can conclude that B2B marketing is much different than B2C
market and accordingly segmentation factors also are different. M/S Wonderkids may
use geographical, demographic, behavioral and psychographic segmentation above to
market its products across the country. As per the above-mentioned points, market
segmentation helps to identify consumers with common variables and helps in profiling
them and their need structure. This helps the marketers to develop an appropriate offer
for every identified segment.
2nd Answer:

Introduction: The product availability in a market depends on the efficacy of the

distribution channel. Hence, the distribution channel plays an important role in the
marketing activity. The success of a company’s marketing effort depends on the reach
and choice of a distribution channel. The company makes its products available to
customers through direct marketing which involves its own sales force, network
marketing) or through indirect marketing which includes intermediaries such as retailers
wholesalers, shopping malls, toy stores.

Concept: Distribution channels perform different functions to smoothen the physical

transmission of goods from the point of production to the point of sale.
Warehouses store the goods and online channels give information about the availability,
uses and features, prices of goods to the buyers. The selection of a proper distribution
channel should be done by a manufacturing company after a careful examination of the
following factors:

Customer characteristics: The number of potential buyers, how frequently they

purchase, average purchases made by them, their buying motives and decision making
process, etc.

Channel intermediaries: Middlemen characteristics include the number of

intermediaries available in order to distribute the company’s products, their willingness
to undertake the distribution work, their proximity to the potential customer market, store
size, shelf size and financial strength to stock products, their product lines, their sales
potentiality, etc.

Producer’s distribution policy: A company can opt for an intensive distribution policy
also called as the maximum distribution (i.e., distribution of a product through as many
channels as possible); selective distribution (i.e., the distribution of a product through a
few selected intermediaries); limited agency distribution (i.e., the distribution of a
product through a few or limited agencies) or exclusive agency distribution (i.e., the
distribution of a product through an exclusive or single agency).

Characteristics and type of product: The different product characteristics, such as its
class (i.e., whether it is a consumer product or an industrial product) and if it is a
consumer product, a convenience 'product, shopping product or a specialty product,
and if it is an industrial product, whether it is a raw material, or operating supply or
fabricating part or a capital equipment), its nature etc.

There are two modes of distribution channel. Direct channel is a way of selling
from the manufacturers to their final consumers or industrial users. Indirect selling
involves selling through intermediaries.
The classification can be done by the different type of toy stores:

1. Toy Stores (Toy-station): These stores comprise of toys that cater to requirements
of every segments. In hypermarkets like Big Bazaar, separate sections are dedicated
to toys. It consists of toys & kids sports kits, all at a single location. The targeted
demographics usually range from a toddler to teenagers. Baby Stores – It consists of
all stuff related to babies. They usually also sell toys for children below the age group of
10 years.

Online distribution can be done with the help of the company website, to enable the
customers to access product catalogs, related information and brochures of instruction.
Hypermarkets like Big Bazaar are more aggressive within the toy space. They offer
huge discounts in the holiday season sales to attract more footfalls. They also provide
more product offerings and more shelf-space devoted to traditional toys and games

With the evolution of smartphones and other digital media, online sales channels have
also witnessed a boom in India. The quality and features of products can be discussed
among shoppers, and prices can be compared on various online platforms.

Conclusion: Finally, we can conclude that that M/S Wonderkids should go for indirect
distribution channels like specialty stores, super and hyper markets, baby stores, online
stores and others. Currently, specialty stores in India represent the largest distribution
channel.
3rd Answer

(3a) Introduction: Wonderkids offers two products i.e. Doll named ‘Pari’ and car named
‘Speedy’. Both the products are different in terms of gender appeal as cars are usually
loved by boys and dolls are always loved by girls below the age of 12 years.

In the above scenario, company needs to hire a, young actress with fairy-like features
to endorse the doll and an energetic celebrity to endorse the car. This is mainly because
of the way the product has to be positioned. The name of the doll ‘Pari’ and Car ‘Speedy
have a strong influence on the selection of the brand ambassador.

In India, brand ambassadors play a very crucial role in positioning the particular brand in
the minds of customers and in influencing customers to buy the products or consume
the services Therefore, it is important that the product attributes of are related to brand
ambassadors as that represents the brand in a positive way.

To endorse the doll, company can hire a Bollywood actress named Kriti Sanon as a lot
of young girls would relate the doll ‘Pari’ with the tall actress having similar fairy-like
features. The actress, who has been popular on social media, has also become a
favorite for children. Also, she has the brand image of a fairy because of her movie.

Also, to endorse speedy, company may approach an adventurous celebrity like Rohit
Shetty. He is very energetic and loved by young generation for his action and intense
car stunts shown in his movie. In this case, he will be a good choice to promote the
‘Speedy’ car especially due to his brand image of showing car stunts in most of his
films.

Conclusion: Hence, we can conclude that Kriti Sanon and Rohit Shetty will be a good
choice to promote these products as their energies and public image go with their
respective product attributes.

(3b) Types of consumer products

Consumer goods are classified based on the shopping habits. They are classified as
convenience goods, shopping goods, unsought goods and specialty goods. Consumer
goods are bought for consumption, either by individuals or their family members.

Convenience goods – These products are regularly bought by customers. Customers

mostly buy them in frequent consumption situations and purchased immediately with
minimum efforts. These include toiletries, soaps, cigarettes, and newspapers. These
goods can be further classified as:
 ● Staple goods – Consumer purchase these goods on a regular basis.
Toothpastes, soaps and food grains always fall under this category.

● Emergency goods – These are products that customers purchase on urgent

basis. Customers don’t pre-plan to buy these products but due to the
emergencies, they have to buy. For examples, medicines bought from chemist
shops.

● Impulse goods –Purchase of a magazine or a chocolate candy as a person

walks by the shop is an example of impulsive purchase made. It may be due to
attraction towards packaging or color.

Shopping goods – Customers buy these products after comparing them on the basis
of price, psychological fitment, style, and quality. Examples may include home
appliances and home furnishings and electronic devices. They can be classified as

1. Heterogeneous products– They differ in product features and services and

these differences are more important than price to come at a buying decision.

2. Homogeneous products – These goods are similar in quantity but differ in

price levels, justifying a price comparison by the buyer.

Specialty goods – These are products with unique characteristics or brand

identification for which the buyers make a special purchasing effort. Examples include
music speakers, branded clothes. There is hardly any comparison in specialty goods as
each brand is unique and different than others. The buyer is willing to spend more time
and effort while making a purchase decision for branded or speciality goods.

Unsought goods – These are products that the consumer does not know about or
does not normally think of buying. These goods need advertising and more personal
selling efforts for making a sale. These include life insurance products, coffins, and fire
alarms.

Conclusion: Hence, we can conclude that the doll ‘Pari’ and car ‘speedy’ fall under the
category of shopping goods as they will be purchased by the business-to-business
segment customers before reaching the end consumers. The products are usually
compared on factors like quality, price and style in the process of selecting and
purchasing by consumers. Since Wonderkids, has just launched these products, the
company needs to advertise properly to sell to the mass market.