Leveraging fun value

What are your expansion plans? 

We have a strong ambition to become a market leader as an innovator, designer, and manufacturer of new toys with original content. It is in the process of setting up a new manufacturing facility to keep pace with the demand both from domestic and international markets. We are already in the process of expanding our creative division supported with a strong research and development team.

What are your distribution channels? 

We have a strong presence in organised retail and are distributed throughout the country through active distribution channels. Our product range is available across the organised format in more than 150 stores in over 25 cities.

There are currently 40 distributors working with Toy-Kraft and the product range is available at smaller retail outlets in more than 60 cities and is seen prominently in books and toys sections of leading supermarkets and hypermarkets as well as dedicated large Toy stores such as Hamleys, Mahindra Retail, Smart Toys and Mera Toyshop.

On the e-Commerce front – the range is well retailed through Flipkart, Amazon, First Cry, Jabong etc. The company also sells through its own dedicated web-shop.

Using both the channels, the company has made a strong foray in establishing its presence in this target segment of toys. The range is well retailed in B2C retail models and is prominently portrayed on a number of online websites as well.

How are you using brand licensing to promote your brand?

We as a part of small and medium enterprises, made a policy decision to stay away from licensing and character merchandise. This was because the turnover of the industry is too small to be able to afford the licensing costs. Most of the companies taking licenses were using it as a springboard to gain popularity and traction on their brand irrespective of the bottom line. Many of the toy licensees have just held on to block a competitor from taking the same license. This includes most of the market leaders in toys.

Another most distressing aspect of licensing had been the illogical and most opportunistic attitude to sell, adopted by most of the licensors. We have seen so many disconnects of a licensed character with the toy commodity. Moreover, this in my opinion hampers brand equity of the character. 

How has your association with SAB TV helped you connect with your target audience?

The new tie-up with Multi Screen Media - owners of SAB TV has been the most satisfying for Toy-Kraft. This has been a joint action all the way and the complementary synergies of both the companies have utilised to the hilt.

SAB TV is household name for complete family entertainment with more than 7 crore households watching the serials. As both games can be played by the family our association with SAB gives a hitherto unmatched possibility of reaching out to such large audiences with board games.

Which are the markets that ToyKraft needs to expand more in?

Currently Toy-Kraft is looking at the possibility of tapping audiences in Tier 2 and 3 towns as well. At the top end there is severe competition with older and larger players ruling the roost. The overall market is still quite virgin with customer awareness of toys being quite rudimentary.

What is your USP? How is ToyKraft competing against international brands like Lego, ThinkwayToys etc?

Pegasus International manufactures a wide range of toys providing children with a stimulating platform that fosters personal expression and intellectual growth. The toys provide vistas in opening a child's mind to new ideas and skills.

Innovation, design and vivid graphics are the hallmark of all the company’s products. Whether it is play or educational value in a preschool toy, assembling skills in a construction kit, creative ability in the craft and hobby range or learning skills encountered with puzzles and board games – all the products have been carefully researched and developed with these values in mind.

Both the companies –Lego and Thinkway deal with a totally different category of toys. In the toy Industry the three top companies –Mattel, Hasbro and Lego account for around 18 percent of the whole pie and the rest of the toy players – more than 5000 brands take the balance share. There are more than 100 different categories of toys, which are catered to by these brands.

How are you reaching your target audience by your marketing and promotional activities?

Being a young company, we aim to interact with a wider audience by organising workshops, toy contest, on-floor demonstrations etc. We have an active social media and online shop, which keeps us close to our consumers and their consumption patterns as a toy developer and manufacturer.

What is ToyKraft's share in the Indian toy market? 

In the metro and Tier1 and 2 towns, we have a share of around two percent. This is sizable from our point of view as Toy-Kraft has been in the market for just over six years. This can be seen in a better light when we look at the share of the market leader at around 15 percent after being in market for more than 25 years.