1. Dissertation
On
“Investigative acceptance of affordable robotic kits in
the UK market”
By
Mukesh Kulal
Ｃ
Student ID: 2818510
A Dissertation submitted in partial fulfilment of the requirements
for the Degree of Master of Business Administration (MBA)
Faculty of Business
London South Bank University
December 2010

2. Acknowledgement:
It is a pleasure for me to thank those people who have contributed for this and
made it possible. First of all I would like to express my sincere gratitude to my
supervisor Mr. Laurence Fisher for sharing his vision, providing me the necessary
direction from the start of the research to the final phase. He patiently listened to all my
queries and would calmly solve it.
I would like to thanks Mr. Colston Sanger for his guidance would help me get a
clear picture of things beyond the horizon which I couldn’t be able to see.
And the most sincere thanks to my course director Dr. Leslie Gadman for
providing his inspired guidance which helped me to get a overview of things.
I would like to thank my family, friends and library staff whose support has helped
me to conceive this research
Ｃ
I

3. Abstract
As robotics enters each and every possible field it is adding to the list of innovation and
making a mark of its own. Robotics has recently expanded its collaboration with many
other technologies. This has led to an increase in the number of possible applications
for robotics. The knowledge base that has been created by the increase in technologies
would be beneficial, if imparted to students through some medium. Educational robotic
kits provide such opportunity for children to learn these technologies in their own way
and speed.
Parents were enquired about their opinions as it would help know what they feel about
the product and what they expect from the product.
Many marketing research reports, companies annual reports were analysed to gain
marketing intelligence about the industry, to identify the competitors and their profiles,
situations existing in the market.
II

4. Table of Contents
1.0 Introduction
1
1.1 Research Objectives
2
2.0 Literature review
4
2.1 The concept of Play
4
2.2 Playing with toys
6
2.3 Impact of Technology on Childs Play
7
2.4 Development of child’s brain with the help of educational kit
8
2.5 Educational Robotic Kit
11
2.5.1 RoboRobo educational kit
14
2.5.2 Robokit
15
2.5.3 WorkBook
15
2.5.4 Self-learning
16
2.5.5 Rogic Program
16
2.5.6 Program Cards
17
2.6 Toys and games market in UK
18
2.6.1 Market Analysis
18
2.6.2 SWOT analysis of the market
18
2.6.3 Channels of distribution:
20
2.6.4 Market Value
21
2.6.5 Market segmentation
24
2.6.6 Market factors
24
2.7 The concept of new product development
25
2.7.1New Product development
25
2.7.2 New Product Types
27
2.7.3 Stages of new product development
27
2.8 Consumer adoption process (innovators, early adopters)
31
2.9 Product life cycle
33
3.0 Research Methodology
35
3.1 Research Purpose
36
36
3.1.1 Exploratory research
III

5. 3.1.2 Descriptive research
36
3.1.3 Casual Research
37
3.2 Research Approach:
38
3.3 Data Collection Methods:
39
3.3.1 Depth Interviews
39
3.3.2 Surveys:
40
3.3.2.1 Internet Surveys
42
3.3.2.2 Telephone Surveys
42
43
3.3.3 Sampling
44
3.4 Ethics
44
3.4.1 Ethical research Issues
3.5 Reliability and Validity:
45
4.0 Data Collection Methods
46
5.0 Analysis and Findings
50
6.0 Conclusion and Recommendations
61
6.1 Conclusion:
61
6.3 Recommendations
61
63
Appendix
Appendix 1
Appendix 2
Appendix 3
Bibliography
IV

6. Table of Figures
2.1
Children using constructional blocks
5
2.2
Child Playing
7
2.3
Child placing blocks
10
2.4
Mechanical Robot
11
2.5
Usage of Robotics in Android development – ASIMO Robot
12
2.6
RoboRobo Robotic Kit
14
2.7
Kingdom toys and games market value: £ million, 2005-2009(e).
22
2.8
United Kingdom toys and games market segmentation: per cent share, by
23
value, 2009(e).
2.8(a) Adopter Categorization on the Basis of Relative Time of Adoption of
31
Innovation
2.9
Generalised Concept of product life cycle showing five sequential stages
33
3.1
Problem definition and the Research process
35
4.1
Survey Statistics
48
5.1
Gender Wise distribution of respondents.
51
5.2
Toy Evaluation Criteria
52
5.3
Importance of cost in parents purchasing decision
56
5.4
Average Cost of Toys Purchased
57
5.5
Promotion of Educational Robotic Toys
59
5.6
Most preferred Toy purchasing place.
V

7. Table of Tables
5.1
Cross tabulated table of yearly 58
household income against the
average cost of toys
purchased.
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8. Mukesh Kulal
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1.0 Introduction:
Robots may have various forms and may perform different tasks, but
technically speaking, their structure and behavior are based much on the same
principle. The structure of a robot is made up of complex components which
employ various technologies. Robotic kits are a versatile learning kit which helps
children learns these complex technologies in a simple way. This research will
investigate how to market affordable educational robotic kits to the UK market.
Robotic kits are a unique way of imparting education to students as they
stimulate and boost interest of students. Majority of robotic kits are designed
with extended functionalities and include mostly expensive software which are
intended for researchers. They are not within the reach of students. This
prevents the robotic kits from reaching most of the students. There is a scarcity
in the availability of affordable, programmable and educational robotic kits in the
UK market.
Ｃ
Robotic Kits are readymade Do-It-Yourself kits. These kits offer its users
the opportunity to configure or build the robot as they wish it to be. These kits
are developed by companies in the view that users will configure it on their own.
These kits are easy to configure and they also develop various skills and
increase knowledge level of users using that kits.
While there are many robotic kits available in the market but very few are built to
impart educational knowledge through it. Currently educational robotic kits are
being used as a teaching tool and can be visible in many schools and colleges
being used as an educational tool. Ruiz-del-Solar (2003) experienced the
positive results of school children gaining an interest in science and technology
because of the use of robots. It is discovered that robotics is a highly motivating
activity for children. The major advantage of using robotics is they capture the
1

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attention of their target audience and therefore facilitate the learning process.
According to Smith et al (2008) children develop skills while playing with objects.
Interaction and playing with robotic toys helps children in gaining educational
knowledge and also develops their skills. Barker (1994) considers interactivity in
learning as an “a necessary and fundamental mechanism for knowledge
acquisition and the development of both cognitive and physical skills”.
1.1 Research Objectives
The study seeks to answer a question about whether affordable educational
robotic kits would be acceptable to the UK market. These are a few objectives
which try to answer the question.
1. Assess market potential for educational robotic toys
2. Determine the key benefit sought
3. Identify the key competitors
4. Determine an appropriate price level
5. Determine an appropriate promotion strategy
Research methods required for this research will include a combination of both
external research methods primary as well as secondary research.
The initial step involved collecting secondary data from various existing sources
like magazines, articles, books, statistical reports from government and other
agencies, various documents and so on. This research has utilized resources
available in various business libraries which have access to various market
research and archives of business magazines. Secondary research was utilized
to identify existing data about the market from research carried out by different
agencies.
The next step involved collecting primary data through various depth interviews
which were carried out by use of personal interviews and various web based
surveys of parents of children who constitute the consumer segment for these
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products. The sample for these depth interviews were selected using
convenience and snowball sampling of parents of children. Primary research
was utilized to identify actual data about market that was not covered by
secondary research.
The outcomes from this research will help with availability of affordable
educational robotic kits in the market. It will act as a guide for those researchers
who are planning to bring affordable products into a developed market. This will
benefit children as they will be able to afford robotic kits at home and develop
their skills accordingly.
The study limits are restricted while collecting data for research. During depth
interviews, questionnaires were collected using the respondent’s convenience
and this led to delays in the progress of research. Web based surveys would led
to filtering of many possible candidates as most of them would leave forms
incomplete and more questions in depth could not be possible as they were
mostly unreachable. Also those who were technically sound could complete the
web based surveys.
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2.0 Literature review
The literature review will try to highlight why affordable robotic toys will be
beneficial for the students and how it will impact the UK market and what
benefits will be achieved by marketing this product. The chapter will start with
the theoretical framework to explain how the affordable robotic toys will be
beneficial to the UK market. It will also try to bring into focus the positive effects
that will be achieved by the children who are using them. Then it will show the
product according to the perspectives of new product development, product life
cycle and diffusion of innovation. Also it will show some aspects of UK market.
2.1 The concept of Play
The Encarta World English Dictionary (1999) offers many explanations for
play,, but the first two are those required for this study:
to take part in
enjoyable activity for the sake of amusement and to do something for fun, not in
the earnest.
Play is often referred to as an activity in which the life form which plays it
achieves some sort of goal. Play which is often goal oriented leads to some sort
of physical achievement or development. The physical development can be any
sort of external development or some sort of mental development. Use of play
to teach certain skills can be observed in both human beings as well as animals.
During the play the players develop new skills which may benefit them
afterwards. Play leads to cognitive development and development of various
social skills. Play can consist of usage of some tools or techniques which may
convert the play making it more interesting.
..the play experience is connected with the advancement of a wide variety of
psychological constructs: symbolism, the development of language forms, the
abstraction of intellectual prototypes, coping with anxiety and personal conflicts,
exercising control over information levels, the acquisition of tool use and other
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social skills, perspective or role taking that accompany social knowledge,
problem solving and creative behavior(Sutton-Smith, 1979) cited by (Christie
and Johnsen ,1983)
Fig 2.1: Children using constructional blocks.(Citizensadvice, 2010)
Play often leads to development of various problem solving skills which are
beneficial for children. Children develop their skills which come handy when they
come across situations. Bruner (1972) explained the role of play in creative
problem solving which helps in searching for solutions in new situations.
If
learning is included in play then children would pick up their lessons easily if
they find that play interesting. It also teaches them many things like how to
interact in a team, how to survive in situations and improves their
communication skills. Christie Johnson (1983) highlighted that play does not
only act as a source of pleasure but also acts an important medium of imparting
and practicing new behaviors for children. (Buchanan and Cooney, 2000).
Hughes (1990) is trying to express that play which is considered a root of all
learning also impacts our capacity to survive and learn.
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13. Mukesh Kulal
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Plays influence on child development is considerable. It has been cited as
having a vital role in the evolution of a wide range of basic indispensable skills
including motor skills, communication, problem solving, creativity, logical
thinking,
aesthetic
and
emotional
development,
social
and
socialized
development (Hughes, 1990).
2.2 Playing with toys
“When a student learns something in school, the most important thing is not the
content, but the method of learning, which can be applied again in the future”
(Michelle et al., 2008)
As play itself develops the child’s mental skills, the inclusion of a toy in a child’s
play leads to new skills and the faster learning of skills which would have taken
more time for a child to learn. The inclusion of a toy in the play also makes the
play more interesting. Toys are also a good way of keeping children involved in
some activities. Toys are a good medium of imparting values to children.
綸َ
“Personal development in children could come from interaction with various
external objects and forms.” (Goldstein, 1994)
Toys make play more interesting for the children. Toys have to be interesting
otherwise the kids it is being targeted at won’t be attracted towards it. Children
prefer to play than take education, so it is important that the play which child
plays contributes to the child's learning. (Goldstein, 1994)
.
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14. Mukesh Kulal
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Fig 2.2: Child Playing (Reading Borough Libraries, 2010)
2.3 Impact of Technology on Childs Play
What kinds of innovation are liable to produce radical change in how children
learn (Papert et al., 1991)
There has been a lot of confusion upon which technology invention will be
successful in bringing a revolutionary change in the way children learn.
Scientists have been striving in proving that their technology is best in imparting
the learning. There are a lot of inventions that taken place and a lot of inventions
are happening which are making the life of child more technological as well as
making him smarter in the electronic age. When technology is infused in Childs
play then the child tends to learn quickly. Children enjoy interacting with
technological toys which they feel is imparting them some knowledge. Sklar et al
(2003) emphasized that students learn valuable things when they learn it
combined with technology.
When they interact with the technologies they
understand what is running the technology. It’s easier when they themselves
interact with the technology as they become aware of the various challenges
that technology introduces to them. These challenges make the learning even
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15. Mukesh Kulal
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more interesting and children will try to cross all hurdles which the technology
imposes to get to the final goal of learning.
“Students educated
.come out having an idea of the ubiquitous technology
not as a black box or a magic, rather as a world they can control because they
understand it.” (Michelle et al., 2008)
It is better if students are allowed to learn by themselves, in that way they tend
to lean things which need to be imparted faster. When left alone with the
technology they will try to find their own ways to solve the puzzle that is
embedded within the technology whereas when the technology is taught
assisted by someone they only learn it the way the person teaching it wants to
teach it to them.
...Telling children how scientists do science does not necessarily lead to far-
reaching change in how children do science....... (Papert et al., 1991)
Scientists at the University of Hertfordshire's school of computer science are
trying to develop a robot that will teach autistic children play skills. They believe
綸َ
that robots can complete the gap between stable environment of a simple toy
and an infinite world of human interaction and learning. (Industrial Robot: An
International Journal, 2008)
2.4 Development of child’s brain with the help of educational kit
Children might come to want to learn it because they would use it in building
these models (Papert et al., 1991)
Each child has got a unique identity. Every child has got its different
requirements so these educational kits have to be at par with being able to
satisfy each and every kid’s requirement. It is not easy for a toy to be able to fit
into every child’s play routine. Child makes up the decision whether something is
a toy or something which it can learn. Educational toys are intended to increase
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16. Mukesh Kulal
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a child’s intelligence by improving child’s learning and simulating its brain.
Children like to play with educational toys because they like the puzzles and
challenges that are brought forward by these educational toys. The level of
technical skills, constructional skills and other skills within the child are being
tested while solving the educational kits puzzle.
“Whether something is a toy or an instructional object is a decision that rests
with the child “(Vandenberg, 1987) cited by (Goldstein, J., 1994)
Research data indicate that young children spend at least half of their playing
time daily with educational art objects (Giddings Halverson, 1981; SuttonSmith, 1986) cited by (Goldstein, J. ,1994).
(Goldstein, J., 1994) had described that people earlier considered toys as
commodity products than having any educational value where evangelists had
to prove that they possessed some educational value.
“Children learned by doing activities with a concrete object and teachers learned
with them” (Michelle et al., 2008)
Educational toys were targeted at children not only to improve children’s
learning but also to improve their intelligence.( Goldstein ,1994) One goal of
schooling today undoubtedly is to prepare children for a future in a more and
more technologically advanced society. (Goldstein, 1994)
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Fig 2.3: Child placing blocks (Buzzle, 2010)
Constructional toys can improve child's understanding about scientific,
mathematical and spatial concepts more than other toys. (Goldstein, 1994)
Constructional kits are provided with a set of basic units, which can be improved
and enhanced by the enhancement kits which makes the kits more versatile and
don’t limit the user to a limited knowledge level. These constructional kits are
interesting for the precision with which they fit. The precision and scale of one
model is being carried onto the next model. They work as a total system within
which a child tries to perceive his world which he builds with his own hands.
The units from one kit will usually not fit with units from another kit. Children use
this kit to construct, break and again reconstruct the kit and try to solve the
puzzle embedded in it. While solving these puzzle children try to gain as much
creative ideas from the kits as much as possible.
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It seems plausible that any toy can be used to stimulate learning, provided that it
is challenging to explore and that the child feels there is something worthwhile to
learn from it. (Goldstein, 1994)
Bruner (1972) pointed out the design features of object play make it a very
suitable way of developing tool-using skills. Object play, while enjoyable in itself
and intrinsically motivated, provides repeated practice in a range of relevant
skills.
2.5 Educational Robotic Kit
綸َ
Fig 2.4: Mechanical Robot (Typepad, 2010)
A robot is an electro-mechanical device which can perform complex tasks either
according to direct human control, partial control or autonomously. Robots are
typically used to do tasks which are in-efficient for humans.
Applications of robotics include floor cleaners, lawn mowers, waste cleaners,
unexplored areas explorers, surgeons, miners, search and rescue operators,
and bomb disposers.
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Fig 2.5: Usage of Robotics in Android development – ASIMO Robot – which is
capable of climbing, getting down staircases, talking, understanding human
gestures. (Gizmowatch, 2010)
Robots are very complex systems, because they integrate many different
concepts and functions. The most trivial one is the complexity of their
mechanical structure which involves various distinct components. This, allied to
movement and interaction with the surrounding environment and objects,
creates a spatial and time complexity too. Robots are the physical units whereas
Ҝ
robotics deals with the art and science of technology which is associated with
the design, construction, concepts and application of robots. Robotics requires a
working knowledge of different fields like electronics, mechanical, and software.
Educational robotic kits are readymade Do-It-yourself kits. These kits offer the
users the opportunity to configure the robot or build the robot as they wish it to
be. These kits are developed by companies in the view that users will configure
in whichever functionality they want to build into it.
Currently robotic kits are being used as teaching tools and can be found in
schools and colleges. Ruiz-del-Solar (2003) experienced the positive results of
school children gaining an interest in science and technology because of the use
of robots. It is discovered that robotics is a highly motivating activity for children.
The major advantage of using robotics is they capture the attention of their
target audience and therefore facilitate the learning process. According to Smith
12

20. Mukesh Kulal
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et al (2008) children develop skills while playing with objects. Interaction and
playing with robotic toys helps children in gaining educational knowledge and
also develops their skills. Barker (1994) considers interactivity in learning as a
necessary and fundamental mechanism for knowledge acquisition and the
development of both cognitive and physical skills.
Majority of robots are designed with extended functionalities and include mostly
expensive software which is intended for researchers. They are not within the
reach of students. These high costs of robots prevent academics from involving
robotics and other related technologies into their curriculum. Students at
different levels of education have different levels of requirements from robotic
kits. Robotic kits available in the market come preconfigured with set of routines
or procedures that can be followed. These robotic kits don’t allow the users to
build their custom functionality at the core level. When these robotic kits reach
hands of students, more robotic applications can be easily developed. This will
involve more creative minds in the domain of development and will lead to many
inexpensive robotic applications that may help robotic industry to bring out other
๐ҥ
affordable solutions. This will also reduce the barriers for further future robotic
introductions. As more and more enhancements will continue to be done in the
area of robotics, it will help robotic companies to achieve more and more
economies of scale and in turn will make robotics cheaper for students.
The introduction of affordable robotic kits will in turn benefit the education
system and even hobbyists who will in turn exploit the advantages presented by
its availability. This will help cater the education system which will result in
robotic being utilized on a large scale. According to Druin et al (2000) if key
innovations in robotic like simple sensors and “rule based” programming is
implemented it will lower the cost of robotics and, perhaps more importantly,
makes robotics far more accessible to the many programmers of the world –
from professionals to grade-school hackers, any of whom can get their hands on
a low cost robotics kit.
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Michelle et al. (2008) found that by interacting with robots, children develop
skills for Counting and logical thinking, Solving topological problems, Accessing
problem solving education and Getting used to an inquiry based learning(and
teaching) technique
Educational Robotic kit is an innovative concept and will benefit children if it is
implemented. Currently parents are worried about their children’s getting any
beneficial values through the usage of games and other electronic medium.
The research wanted to see a practical view point of how actual product would
be perceived in the market.
So the research considered RoboRobo’s
educational robotic kits as a frame of reference for the product to be launched.
2.5.1 RoboRobo educational kit
The process of constructing real robots helps students to understand concepts
about complex dynamic systems....This is done through a construction process.
(Miglino et al, 1998)
嫠٦
Fig 2.6: RoboRobo Robotic Kit (Tradekorea, 2010)
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The educational kits provided by RoboRobo are offered to a varied age group of
children. There are different kits for different age groups of children. There are
three levels of kits that are available from RoboRobo. Each kit is an upgrade to
another
Each kit is targeted to specific age group which has unique requirements, talents
and personalities. It includes all the components, spares, circuits and manual
which are necessary for constructing the kit. In each kit segment there are
different levels for different children with varied levels of expertise. If a kid is a
beginner, he can choose the kit level 1 which is the basic kit for providing the
necessary knowledge required for a beginner. Other kits available in the market
come as a complete package without a clue for the beginner how to begin. If the
kid becomes interested then he can proceed to become the intermediate by
purchasing an upgrade to the level 1 kit i.e. the level2 kit.
The RoboRobo educational robotic kit has been described below:
2.5.2 Robokit
‫ע‬ʽ
The robot kit was developed to nourish children’s talent in science and to
develop their thoughts into being creative. Using it users would be able to grasp
good knowledge of machine structures and would be able to construct various
types of models. It has safe modules which are easy to assemble or
disassemble at any time and it will nurture the brain of students to grasp more
constructional knowledge. They would understand how the internal components
within the object function and move. Students will improve their spatial
perception capability from the constructional activities.
2.5.3 WorkBook
Workbook increases the learning efficiency of students. It is a step based
program designed and organized for the students to check and recall the
different check points that are being laid out to refer. It is organised in various
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23. Mukesh Kulal
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pictures and characters which are easy for students to understand. It offers a
puzzle which children have to complete so they find it challenging
The workbook has been attached as an Appendix 2
2.5.4 Self-learning
Users can prepare their own schedule and checkpoints in their own workbook.
They can design tasks according to their own speeds of learning. Students who
pick up learning slowly like dyslexia students can prepare their own schedule
and achieve the achievements according to their learning pace. They don’t need
to be compatible with the speed of the workbook supplied. By this method they
can improve their skills of learning and can learn more.
2.5.5 Rogic Program
The application that has been developed for programming the robotic modules
has a simple and easy programming through graphical user elements. This
Ҝ
allows users to easily program the robot without any hiccups.
The programming on the application is based on the flowchart concept. It
is a simple icon based program which even nurtures the theoretical and
mathematical basic ability of the student. The user has to just place icons in a
flow to complete the flow of the program. Even an end user who has no
knowledge of programming can use the application with great use and will end
up developing a program that an advanced programmer would have developed.
The application allows children to develop programs from simple to complex
functionality. It offers a wide and diverse array of functions and libraries that
allows user to offer versatile functionality. The user can develop programs with
varied levels of complexities.
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If an advanced user wants to add some advanced functionality then he
can override the icon based flowchart and start programming using C language,
so that user would have the ability to control the functionality with precise. It
offers more advanced level of programming to users with the functionality for the
programmers to be comfortable using C language using which they can import
advanced functionalities and can expand the possibilities which were limited
through the graphical user interface.
2.5.6 Program Cards:
For little children who have no knowledge about programming or how to use
programming languages there is an option to use scanner with a computer.
There are various types of program cards available. Just the child needs to scan
the program cards through the scanner. Combining all cards can give rise to
make several practical applications.
2.5.8 About RoboRobo company
RoboRobo is a robotic kit manufacturing company based in Seoul, Korea. The
Ҝ
whole purpose of the company was to provide educational robotics that could
easily impart robotics knowledge to children. RoboRobo Inc has been striving to
nourish students with scientific ability through the use of AI robot knowledge.
They have adopted the robotic education model and have systemized the
educational curriculum and tutoring course which has been designed for the
education system. It has proven its capabilities by incorporating engineering
design textbook in the Seoul National University curriculum.
RoboRobo has carefully understood the requirements for imparting scientific
education and incorporated those by designing elementary educational courses.
They wanted to cultivate creativity among students by developing courses that
increased the creativity among students. The knowledge that they gained from
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their experiences was included in these courses. They had various experience
from establishing educational courses and providing education in their domestic
colleges. The robot-science education systems developed by RoboRobo
involves curriculum which imparts students with the knowledge to handle
sensors, electronics and various electronic technologies. The students would be
equipped with knowledge to provide intelligence to robots using computer
programs. It will lay a foundation for the development of future technologies and
will improve the creativity of the students.
2.6 Toys and games market in UK
2.6.1 Market Analysis:
“The UK toys and games market has been growing at a sluggish rate since
2005. The UK toys and games market has total revenue of $5,391.8 million in
Ҝ
2009. The performance of the market is expected to accelerate, which is
expected to drive the market to a value of$6,555.5 million by the end of 2014.”
(Datamonitor, 2009)
2.6.2 SWOT analysis of the market:
Opportunities
of
Market
are
merchandising
of
characters,
televisions
connections and tie ups with film production units are most of the new products
under development and ones which are running the industry. (Keynote, 2010)
Increase in birth rate has led to rise in the number of children and which in turn
creates more demand for toys in the toy market. The birth rate has constantly
seen a growth since 2003 (Keynote, 2010) Opening of wide and diverse
distribution channels like Internet and supermarket has helped in the market
growth of toys. The reach of internet is wide and reaches areas which stores
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and supermarkets can’t cover. Credit crunch has led to the decline in sales for
highly priced toys but has given an increase to the sales of affordable and low
priced toys. (Keynote, 2010)
Threats of the market are children are getting matured early are reducing the
effective range for toys and games. Toys and games are defined for specific age
groups and they become useless when the child crosses the age group.
(Keynote, 2010) Other forms of entertainment like TV games, mobile phones
and computers are eating into Toys market. These products which have been
lucrative and tempting for children to have have led to their higher sales and
they are eating up into the market of traditional toys. Market is always bound by
strong regulatory and legislative rules. Exposure of various dangerous
chemicals to children which were being sourced from unregulated sourced
countries has lead to the industry being bound by many tighter regulations and
is being monitored by government agencies very strictly. The market is heavily
crowded with different brands which offer too much competition.
Strengths Of market are the industry is a recession proof industry which has
Ҝ
shown constant growth even in bad economic conditions of the market. Children
will always play and they require toys for playing and parents will try to keep
their children equipped with the latest toys in the market. Toys are always
required for a child’s development. They always play an important role in any
child’s childhood. They are a necessary component which fosters child’s
development. They have a higher household penetration rate than other items
all across UK. The industry is always driven by innovation. New inventions drive
the sales of the industry. New product development (NPD) is an ongoing feature
of the industry. There is an increase in demand for educational toys which
impart learning through play. Educational toys which can complement schooling
are required for development of child.
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Weaknesses of market are seasonal demand affects the yearly sales. Demand
of toys is seasonal which always rises to the end of the year during specific
season. The toy industry observes a spike in sales in end of year. (Mintel, 2008)
Rising costs of raw materials has led to the increase in development costs. It is
hitting hard on small players. (Mintel,2008) Increased competition is driving the
prices down. Big players in the industry are sourcing materials from far off
locations in cheaper price and thus are achieving economies of scale which in
turn helps them in offering cut throat prices. (Mintel, 2008) Second hand market
of toys and games may dilute the sales of first hand products. The sales and
distribution of second hand toys and games is supported by big players like
eBay (Keynote, 2010) Kids tastes are highly unpredictable (Mintel, 2008)
The main market of toys and games is of traditional toys and games which
include some electronic aspects also. The market has been categorized into:
Action toys which constitute boy action figures; Activity toys which constitute
building and constructional toys and some craft sets; dolls;
2.6.3 Channels of distribution:
Ҝ
There are a lot of options for consumers to purchase toys. There are
various channels available for them to purchase their products. Each channel
has its own advantages and disadvantages.
The channels of distribution have been
High Street Shops:
High Street Shops are shops which are located in primary business streets. It is
a large commercial street which would have shops located on either side. The
shops are big well known brands outlets which offer variety of options with a
huge choice unlike supermarkets which offer limited options for shopping. E.g.
Hamleys, The Disney Store. They have huge stores with various amusements to
attract crowds. These stores draw huge amount of crowds. They stock a huge
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level of toy stocks and have several toy companies running their promotion
programs in their stores.
Internet:
Internet is well known among regular shoppers. Internet shopping sites like
Amazon, eBay have changed the way shopping was done and have increased
consumer confidence in internet shopping sites. Internet offers convenience for
shoppers and has a wide spread reach over to the most remote locations. So
shopping over internet is becoming the most preferred choice as it offers the
wide variety of options with different retailers.
Market:
Market consists of small shops which are located mostly near the consumers
and offer them the convenience. Their stocking capability is less than the high
street shops for that specific category.
Catalogues:
縷-
These are some companies which offer the customers the catalogues and these
catalogues will display list of products for customers to select from. Customers
go through these catalogues and will order the toys they wish to order. There
are many catalogue companies which sell toys in their catalogues. For e.g.
Argos.
Other Suppliers:
Others include other suppliers who import these toys and directly sell them to
potential clients.
2.6.4 Market Value
A Markets potential is determined by the level of growth it offers. The market
potential is the market volume. When the market is in its early stages of
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development, it has a greater level of potential for growth, greater growth for
market volume and the return on investment is always increasing.
investment
The United Kingdom toys and games market is valued at value of £3459.3
million in 2009. Every year the market has been growing at a snail’s pace but
never has shown a negative growth. The growth always has been positive.
Market Volume
3459.3
3500
3338.9
3400
3219.9
3300
3200
3100
3108
£ million
2997.1
3000
2900
2800
2700
‫ע‬ʽ
2005
2006
2007
2008
2009(e)
Fig 2.7: United Kingdom toys and games market value: £ million, 2005
:
2005-2009(e).
(Datamonitor, 2010)
The change in the market volume from 2005 to 2009 has been around 13
13per
cent which a good growth is considering the bad market condition during that
period. The market has shown growth despite economies going down. Every
year from 2005 to 2009 the growth value has not changed much; it is showing
the same consistent growth. It has been a fairly consistent market with very less
nt
effects of recession affecting it. The toy industry is considered a recession proof
industry as it always has a positive growth. (Datamonitor, 2010)
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The United Kingdom toys and games market grew by 3.6per cent in 2009 to
3.6per
reach a value of £3459.3 million. (Datamonitor, 2010)
lue
The toys and games market is divided into these categories: Infant/ Preschool,
Ride-ons, Dolls, Games and Puzzles, Activity Toys, Plush and Others.
ons,
Educational Robotic Toys have been included in the others catego
category. This
category has the second largest market share after Infant/Preschool.
(Datamonitor, 2010)
% Share
Other
Infant/ PreSchool
Plush
Infant/ Pre-School
Pre
Ride-ons
Ride
Activity Toys
Dolls
Games and
Puzzles
Ride-ons
Games and Puzzles
Activity Toys
Dolls
Plush
‫ע‬ʽ
Other
:
Fig 2.8: United Kingdom toys and games market segmentation: per cent share,
by value, 2009(e). (Datamonitor, 2010)
Datamonitor,
When market has been analysed and its drivers identified i.e. their purchasing
decision will be identified.
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2.6.5 Market segmentation
The strategy for segmentation was determined based on the population of users
who are going to use the product. Since the users who would be using this
product would be children who are the consumers of the product. Hogan (2000)
has highlighted that young children shouldn’t be targeted because they have
immature cognitive abilities, limited shopping experience and experience. The
consumers i.e. children’s buying decision is based on the decision of their
parents decisions so the purchasers are the parents of the children. The most
important players are parents in this segment who are the key decision makers
in this organization with their specific interests about imparting educational
values to students.
2.6.6 Market factors:
Effects of Recession on market:
ٚ
Despite the economies recovering from the effects of recession, the trails which
are left behind by the economic crisis has left a fear in many individuals mind.
The economic plethora has not left any companies or any individuals
unpunished.
Everybody has been affected by what happened during that
period. Many individuals were left bankrupt while others feared to spend. This
has led to many changes in habits of individuals and organisations. People have
changed their living habits as well as shopping habits and companies have
funneled their expenditures. This has given fuel for the development of more
value and affordable brands. Companies have started rethinking their marketing
strategies and are redefining themselves. Even consumers have started
rethinking about cutting down their spending. They are moving from big branded
products to affordable products which cater to their needs and even save them
pennies. Consumers have started preparing for saving after gaining experience
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from what they have experienced in the past. Companies are also fighting each
other to offer the best possible solution at the best affordable price. Companies
have become more customer focused and are diverting their attention towards
creating more value oriented products. The recession has also left behind some
negative impacts like high level of unemployment, high GDP rate, and lower
growth rate of economies.
Due to the impact of the crisis people in Britain have changed their lifestyle.
They are now concentrating more towards saving than spending. According to
Mintel report “British Lifestyles 2009” 30per cent of adults in Britain have
reduced their level of expenditures fearing their own financial condition. The
crisis has left an impact in the minds of people who have seen big corporations
tumble even with the biggest profitable businesses. According to Mintel report
“British Lifestyles 2009” 71per cent of consumers have reduced their
expenditures due to the situation in 2009.
A significant three in ten adults have cut back on their spending not because
they have to, but mainly through ҝ fear of how the recession might affect
褐
them...........It’s important to remember that a lot of customers are cutting back
not because they have to, but because it's seen as the right thing to do. Nobody
wants to be seen as being too flash in a troubled economy (McCoy, 2008)
2.7 The concept of new product development
2.7.1 New Product development
Product development has become an important factor in today’s market
scenario where hundreds of products are launched. Businesses are trying to
keep customers indulged in using their products by reducing development
cycles and offering quality innovations to consumers. Apple has pioneered this
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art by constantly providing products that are of top quality with good innovative
solutions built in which makes consumers life easier. Whenever a new product is
developed for consumers, marketers try to gather needs and wants of
customers for their product. The product which is to be launched should satisfy
most of the needs and wants of the customers. If the product fails to satisfy the
needs and wants of the consumers then it is bound to fail in the market.
Customer’s attention is always diverted by different innovative products always
being offered by different companies who are always trying to increase their
market share by staying innovative.
New product development is known as the riskiest exploration which is carried
out by companies in the modern industry and is of utmost importance for the
company to stay afloat.
Producing a product taking into consideration
consumer’s needs and wants, matching that with company’s goals and
capabilities is quite a challenge. Companies have to always prove that their
product is better than competitors.
Many products are launched and theَ failure rate of these products to perform in
絀
market is still high. Research and development costs involved with a new
product are usually high and businesses try to minimize these costs to achieve
minimal risk in business. If the product did not perform well then the business
would have to bear the loss involved with the development and promotion of the
product.
Many problems contribute for the failure of a product in the market. While
development and introduction of the product in the market, marketers must take
into consideration various shortcomings of the product and the market
environment at that point of time.
Innovation is a constant driver of success. If companies failed to innovate and
launch new products or upgrade their product then they will perish in the
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competition. So innovation is important in any business. It offers new avenues
for the company to succeed.
2.7.2 New Product Types:
Booz, Allen and Hamilton(1982) identified six types of new products: New to the
world products - New innovative products which establish an entirely new
market; New product lines - New products that allow a company to penetrate an
existing market for the first time; Additions to the existing product lines - New
products that supplement a company’s established product lines (package sizes,
flavors and so on); Enhancements to existing product - New products that
provide improved performance or greater ROI and replace existing products;
Re-positioning - Existing products that are targeted to new markets or market
segments; Cost cuts - New products which offer similar functionality at lower
cost cited by Kotler(2003,pp. 189-190).
According to the types listed above educational robotic kit satisfies the definition
of the type new to the world products. It is a new innovative product which will
establish a new market.
絀َ
2.7.3 Stages of new product development
New product development is involved of eight stages: idea generation,
screening ideas, concept development, concept testing, business analysis,
product development, test marketing and commercialization.
New product development failures can be avoided by taking more user
advantages into consideration.
Idea generation:
This is the step where customer’s needs and wants are identified and the
product idea is configured such that it satisfies most of the customer’s needs
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and wants. It helps to determine whether the idea which is generated after
gathering feedbacks and requirements of consumers is worth thinking about.
Many of the best ideas are collected here. The ideas should have capable
potential to contribute value to gross margin. Ideas for products can evolve from
any corner of the company. The ideas which come up can be either with very
less details or with maximum details.
Idea Screening:
In this step, ideas which were generated from the previous step will be screened
to filter out ideas which don’t seem feasible to continue. The ideas are narrowed
down so that ideas which hold value and are worth pursuing are only considered
and weak ideas are dropped. The idea may consist of a written document which
describes the product, the target market and competition in the market.
“Overall the company must determine whether the idea strategically fits its
corporate objectives, considering also demand, resourcing and competitive
forces”.(Groucutt et al, 2004)
絀َ
Concept development:
The product idea which was developed in above step is elaborated further to
include more details and is known as Product concept. This idea is expressed
in meaningful terms which consumers would understand.
Concept testing:
The product concept which was developed in earlier step is now handed over to
a group of consumers who are the intended audience to explore it. They are
asked to provide their feedback and their responses are noted down. It helps to
understand whether the product has enough market potential to attract more
customers. The feedback from customers is used to make the product more
customers oriented. Consumer views help the product to shape better. Groucutt
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et al (2004) emphasizes that the goal of Concept testing is to get customer
reactions to the idea generated.
“Concept Testing allows a relatively inexpensive judgment to be made by
customers before embarking on a costly product development programme.”
(Jobber, 2010)
Concept testing helps in filtering those product ideas which are going to be non
performers in the future market. It helps to filter out ideas based on future
preferences of consumers.
Business Analysis:
This helps to identify whether the product concept will be feasible for the
business when it becomes reality. The company will evaluate the potential of the
product to contribute into company’s expenses and earnings. There are a lot of
tests which the company performs to identify if the product is feasible for the
company and the market. Jobber (2010) narrates that a market analysis needs
to be taken to identify the target 絀َ
market, its size and the projected product
acceptance over a number of years.
Guiltinan et al (1997) highlights that
evaluations involved with new products are higher.
Product Development:
The conceptual product which passes the business analysis stage will be
converted to reality. Groucutt et al (2004) explains that a prototype of the
conceptual product is developed which reveals the tangible and intangible
properties of the product. Dibb (2006) phrases that marketplace demands must
be linked to the products design, mechanical features and intangible aspects.
This calls for huge investments from the company’s side. As the costs involved
with development are high companies aim only for successful ideas.
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Test Marketing:
The product developed is tested in the market to check its acceptability. It is
offered in limited locations to a limited audience. This is used to monitor the
performance of the product in the selected areas in which it is launched.
“test marketing is the acid test of new product development since the product is
being promoted as it would during a national launch, and consumers are being
asked to choose it against competitor products as they would if the new product
went national” (Jobber, 2010)
This test is being done practical in natural market environments. It provides the
accurate market statistics related with the product. It provides the actual
customer acceptability levels. It brings to the front the actual problems the
product will face in actual scenario. So instead of launching it all markets
companies use it analyse the launch of the product in a selected few markets. It
also helps to identify the competitor’s moves who may try to block the products
supply to the market and help to prepare for the future.
氠Ҧ
Commercialization:
The final decision whether the product will go into production will be taken at this
step. In this step the company will start with the full production and commercial
launch of the product.
“If a firm learns that a competitor is nearing the end of its development work, it
can choose: first entry (being first to market, locking up key distributors and
customers, and gaining reputational leadership; however, if the product is not
thoroughly debugged, it can acquire a flawed image); parallel entry (launching at
the same time as a rival may gain both producers more attention); or late
entry(waiting until a competitor has borne the cost of educating the market and
revealed problems to avoid)” (Kotler 2003)
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In this phase the product will be launched into the market. The elements of
marketing mix place a vital role over here.
New product development displays the product development phase of a product.
The educational robotic kit is in the idea phase of the project.
Products do have a product life cycle and the same cycle applies to educational
robotic kit. The educational robotic kit is in the introductory phase of the product
life cycle. The product life cycle is a useful tool for accessing that products
performance in the market and when it is going to face difficulties in its life cycle.
2.8 Consumer adoption process (innovators, early adopters)
“A useful starting point for choosing a target market is an understanding of the
diffusion of innovation process”. (Rogers, 2003) cited by (Jobber, 2010)
Ｃ
13 ½%
Early adopters
2 ½%
Innovators
34%
Early majority
34%
Late Majority
16%
Laggards
Time of adoption of innovations
Fig 2.8(a): Adopter Categorization on the Basis of Relative Time of Adoption of
Innovation (Rogers, 1983) cited by (Kotler, 2003)
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“Adoption is an individual’s decision to become a regular user of a
product.”(Kotler, 2003).
Consumers have different buying patterns. Every consumer has a different taste
and understanding of products. They are categorized into different categories
according to their preferences.
“An innovation refers to any good, service or idea that is perceived by someone
as new” (Kotler, 2003)
This curve explains how a new product is adopted throughout the market by
various users with respect to time. The sales in the market for new product
always depend on the willingness of public to try something new. Consumers
have different levels of willingness to try any new product out. Their willingness
to adopt any new product has been divided into categories in this model.
This process is the indicator how the consumers adopt the product in the market
over a period of time. The market usually consists of different types of
consumers who have different purchasing tendencies. They have different
辨ҧ
acceptance levels for innovative or new products when they are released in the
market.
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2.9 Product life cycle
Sales
Volume
Introduction
Growth
Maturity Saturation
Decline
Time
Fig 2.9: Generalised Concept of product life cycle showing five sequential
stages
(Chisnall, 2005)
In a product development life cycle products have finite shelf life during which
they have profit reaping capacity. The life duration which it generates revenue
depends upon the demand in market for that product and the marketing
decisions that has been taken to keep the product in the market. The duration
for which the product lasts from introduction to decline is called the product life
cycle. The product life cycle consists of 5 phases of life cycle.
The toys and games market is dynamic. New products and new brands keep on
showing up in the market and each has its own product life cycle. Some which
are acceptable to the customers remain in the market while other products just
perish. Toys Products do observe the product life cycle and as educational
robotic kit will be launched as a product it follows the same product life cycle.
The affordable educational toy is in the introduction stage. It will follow the same
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introduction as other products. It will also decline when the product demand will
go low and product will become saturated in the market.
The product life cycle is usually a bell shaped curve which differs from industry
to industry. The span of growth varies from industry to industry.
The affordable robotic kit is in the growth phase of the product life cycle.
“The length of profitable life, as well as the duration of each stage of demand
curve, will tend to vary significantly according to the types of products and
services involved.” (Aaker, 2006)
헸٦
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3.0 Research Methodology:
This chapter will cover all aspects of methodology that has been covered in this
research. The methodology which has been selected is based upon the
research problem and the questions which are to be answered.
The Oxford Dictionary (2010) defines research as to carry out systematic
investigation to establish facts with the study of materials and sources and reach
new conclusions.
(8)
Follow up
(2)
Creation of the
Research design
(7)
Writing and
presentation of the
report
(1)
Identification of the
problem and
statement of the
Research Objectives
(3)
Choice of method of
Research
(6)
Analysis of the data
(5)
Collection of the data
(4)
Selection of the
sampling procedure
Fig 3.1: Problem definition and the Research process (McDaniel and Gates,
2004)
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The figure above shows process of research which starts with identification of a
problem and goes through all the steps of research till it reaches the end.
3.1 Research Purpose:
The type of strategy that is to be used to do research is based on the type of
research that has to be performed. There are three possible types of strategies
which are widely used and they are: exploratory, descriptive and casual. Each
research strategy has its own advantages and disadvantages and is selected
upon careful examination of the type of research problem that needs to be
addressed. If an improper research strategy is used it will lead to a flawed
research.
3.1.1 Exploratory research:
Exploratory research is concerned with identifying the reality based in the
hypothesis of the problem. It offers a valuable deeper inner view of the reality
with reference to the problem involved. It enables the problem to be defined in
٦
헸
more detail. It is the fastest and economic route of finding an overview to the
problem and the factors associated with it.
“It is useful in developing hypothesis about specific markets; tends to use
qualitative assessments rather than detailed quantitative data.” (Chisnall, 2005)
3.1.2 Descriptive research:
Descriptive studies originate from previous knowledge about marketing
variables. In this type of research, information can be obtained by designing
queries to obtain specific data.
Most of the marketing research reports available are mostly of descriptive
nature. This research provides data for comparative analysis of competitive
products (Chisnall, 2005). This research evaluates how a product is going to
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perform in the market. This research will create profiles about consumers and
their behaviors. It will help to identify the different types of consumers.
Most
marketing variables which describe the market behavior are covered in
quantitative and qualitative terms.
3.1.3 Casual Research:
This research will usually tend to find the cause and effect relationships that
exist between marketing variables which determine the market behavior.
“The cause and effects relationships are very difficult to deal with realistically
and objectively. So there is a temptation to jump to conclusions, usually in
support of a preconceived notion of how, for instance, the market behaves in
specific situations”. (Chisnall, 2005)
There should be a cautious approach while using casual research. While
performing associations and correlations between variables, they should be
carefully analysed, and should not be accepted at the first sight.
The decision to go on with a type of research strategy depends on what the
research aims at proving.
As the purpose of this research is to check how a product is going to perform in
the market and to study whether it is going to be acceptable to consumers in the
UK market, so the research purpose of this study is going to be descriptive
research. As this study is focusing in a new area of interest it is exploring the
area which is unexplored and so it also includes exploratory research. This
research is not finding the cause and effect relationships among marketing
variables so this is not a casual research. This research is a combination of
both exploratory and descriptive research.
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3.2 Research Approach:
There are basically two approaches to a research i.e. qualitative and quantitative
research (Bradley, N., 2007).
“Qualitative research is intrinsically subjective; its findings are not supported by
statistical evidence based on probability sampling” (Chisnall, 2005)
“Quantitative research is defined as research involving the use of structured
questions in which the response options have been predetermined and a large
number of respondents are involved” (Burns and Bush, 2010)
According to Blumberg (2008) quantitative research relies on quantitative
information which includes numbers and figures whereas qualitative research
relies on qualitative information which includes words, sentences and narratives.
The research approach is selected based on the research problem definition
and identifying the type of data required for solving the problem. The type of
data required is dependent on the research objectives. This research used both
qualitative and quantitative methods of research.
This research started with looking for information which was already existing i.e.
Secondary data. Secondary data is information that some organization or
individual has collected for a different purpose than this research (Bradley,
2007).
Some of the existing information for analysis was available in various different
sources like market research, company reports, government statistics and many
case studies. It is a better practice to utilize the existing available resources as it
provides quality data, saves time and saves resources for the research which
could be utilized for other areas of research.
The information that was to be retrieved was in the minds of parents, who have
the idea about the choices, activities and they make the decisions about
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shopping toys. They have their experiences about shopping toys, toys
availability and their experiences while shopping different types of toys. So this
information needs to be retrieved as it is valuable from a perspective of marketer
for a products success. Primary data is this new information that is developed
from scratch by various data collection mediums.
It is mostly the case that secondary data provides all the information which is
required by the research. To fill up the gaps which were left empty by secondary
data, primary data i.e. original data was used.
3.3 Data Collection Methods:
Secondary data that was collected for this research was through these sources:
Market Research reports, Company Annual Reports, Company Websites.
Primary data for this research which was not available from existing sources
was obtained using surveys and Interviews.
The data collection methods used for this research are Depth Interviews and
surveys. The selection of the data collection methods were based upon the type
of the data that needed to be collected.
3.3.1 Depth Interviews
It is the most common methods for collecting qualitative data. It is technique that
helps to know the respondents view on the research topic.
During depth
interview, respondent is the person who has the knowledge and researcher is
the person who has to figure out questions which will get the information out of
the respondents head. Researchers start the interview in a neutral tone; listen to
the respondent’s answers and fire questions based on respondents answer.
They do not control the respondent’s answers, according to their expected
results, nor do they show any gestures which indicate whether the respondent is
giving any appropriate answer.
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Depth Interviews were used to identify information about a respondent in more
detail. It was conducted face to face and involved only the researcher and the
respondent. It involved telephonic conversations with respondents who lived in
far away areas and face to face was used to interview respondents who lived
nearby. Recordings were obtained from respondents who gave consent to being
recorded. A personal interview is best when users are to be provided with some
additional information or some additional reference materials can be handed
over to them for getting an idea. Respondents who were literate enough to
answer the level of questions being asked and had technically advanced
knowledge were selected to give interviews. The criteria for selection were their
education level. Respondents who had education level of university and above
were selected. The interviews taken lasted about 10minutes. The respondents
were encouraged to provide as elaborated information as possible.
3.3.2 Surveys:
Surveys are instruments which are distributed to respondents to know their
opinions. These contain a set of questions and answers which respondents are
supposed to answer. These set of questions can be close ended or open ended.
Open ended questions are included when the research wants more information
in detail from the respondents. In close needed questions respondents are
provided with a set of options which they to choose from. Surveys were used to
help understand the opinions of customers. The information retrieved from
surveys would be used to help in decision making for analysis. It helped to
understand their opinions about toys availability, preferences, pricing and
awareness. It helps to generate good quantitative data. As the analysis
performed on data collected though surveys is done using laws of mathematics
and statistics, the chances of deducing wrong or totally vague conclusions is
very less. It is also a low cost way of reaching out and gathering information
from a large population. The quality of the research being done will not be
affected though it being a low cost way of data collection. The target population
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in a survey should be clearly identified and segmented. The population which is
selected for questioning should have some information about the information
that is going to be retrieved from them.
Surveys are based on the desire to collect information from a sample of
respondents from a well defined population. (Czaja and Blair, 2005)
Surveys helps to know what respondent are thinking and helps to know their
opinions. Opinions of respondents can be collected through different mediums
like in person, over the phone, by mail and through web. The target population in
a survey should be clearly identified and segmented. The population which is
selected for questioning should have some information about the information
that is going to be retrieved from them. This research survey used both open
ended and closed ended questions for its survey.
Open ended questions
Open ended questions is used in both qualitative and quantitative research. In
an open question, respondent can reply openly and is not restricted to limited
options based questions.
The advantages of using open ended questions are it brings to the front some
unexplored ideas which were not explored before. It provides full answers to
questions which weren’t possible to get in closed questions. The disadvantages
are that the answers can be misinterpreted and the speed of asking and
analysis would be slow. Coding the results would be time consuming and
requires skills.
Close ended questions
In Closed ended questions respondent provides answer from the list of options
that has been provided to him by the researcher. Closed questions are where
researcher provides all possible options for that question. The advantages of
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closed questions are they are fast to create, fast to administer and easy to
analyse. The disadvantages are that errors in this type of questions in inevitable,
it needs to be tested before it is administered.
3.3.2.1 Internet Surveys
The purpose of initial contact was to explain the purpose and importance of the
survey. They had to be provided assurance of confidentiality. The respondents
had to be explained the instructions for accessing the survey website. To ensure
that no repetitions occur the survey software had an option to avoid duplicates
based upon the IP addresses of respondents. A brief introduction to the survey
was provided with an image of the product so that respondents can be
encouraged to participate and would understand purpose of the survey. The
questionnaire was carefully designed so that it can be accessible and the terms
used are understandable to respondents. Social networking sites and forums
were used to gather the target audience and were invited to answer the survey.
3.3.2.2 Telephone Surveys
Telephone surveys are the mostly used for respondents who are not readily
available for interview and are readily available in person for interviewing.
Outbound interviewing was carried out wherein respondents were called to carry
out their survey.
Advantages of telephonic surveys is telephonic surveys are a speedy way of
administering surveys to people, they do provide quick results and this method
is known as a cost effective method. It is a useful method for reaching to
respondents who live in inaccessible areas or people who are not comfortable
for a face-to-face interview. Telephone calls can be recorded for later analysis
but with the respondents consent. (Bradley, 2007) Disadvantage of telephonic
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surveys are there is little control in a telephonic survey. There is very little
chance of showing visual aid materials to the respondents.
3.3.3 Sampling:
There are basically two methods of sampling, probabilistic and non probabilistic
sampling. In probability sampling each unit of population has good chance of
being included in sample. In non probabilistic sampling, individual units of
population do not have a chance of being included in the sample. Non
probabilistic sampling was used for this study for selecting samples. Chisnall
(2005) has noted that selection in non probabilistic sampling was done by
human judgment. This helps in selecting a sample which has the general
characteristics of the required sample and acts as a reliable indicator which
satisfies all the required characteristics. Non Probabilistic sampling is useful in
this research as it is easier to select individuals in a non probabilistic way where
the chances that the right person is selected is less.
Judgement sampling is used to identify samples with best possible criteria that
matches the requirements. The selection made is based on a set of criteria,
such as for this research parents with children aged from 7 years to 16 years
was an selection criteria. It is easier to segment samples who match the
required criteria in judgement sampling.
Snowball sampling is one of the non probability sampling which was used for
sampling some of the respondents. It starts off by identifying a person who has
the special characteristics that are required for the survey audience. They are
invited for taking part in the survey. The initial respondents who took up the
survey were asked to supply details of other respondents who had similar
characteristics to that of the initial respondents. Chisnall (2005) has explained
that snowballing techniques provides a good analytical view of the consumer
behavior and attitudes or which might have been difficult to observe while doing
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study. It is easier to get respondents with similar characteristics through this
method.
3.4 Ethics
“Ethics form a system that helps to determine what is right and good from what
is wrong and bad”( Kolb,2008)
Ethics are a set of guidelines which researchers are bound to follow. It defines a
set of rules which define the set of actions allowed and prohibited. Daymon and
Holloway(2002) emphasized that it is important for a researcher collecting data
from human to take care of ethical issues because of the problems that are
involved in the process of research. In this research, ethical boundaries were
drawn to maintain the integrity of the research and to protect vulnerable
respondents from any kind of action as highlighted in Dayman and
Holloway(2002). It helps respondents gain confidence on the quality of research
being carried out and researcher motives become clear to them. Daymon and
Holloway(2002) have noted that the ultimate goal of any research should be the
achievement of highest ethical standards. While performing the research the
researcher must define the limits to the depths of information the researcher
wants to retrieve from the respondent. The researcher must also keep into
consideration the welfare of participants.
3.4.1 Ethical research Issues:
The Initial ethical issue that was taken into consideration was the purpose of
research being carried out. The research study was carefully designed so that
the end result of the research was not predictable and was dependent on the
research output.
The next ethical issue addressed was while selecting the sample for the
research. The target segment included children and the answers for this
research could have been retrieved from children as they are the beneficiary
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who will be benefited from the availability of the affordable robotic toys. Since
children don’t take their own decisions and are too vulnerable to questions, so
the questions were targeted towards their parents and safeguards who make
most of their decisions. Parents and safeguards are involved in their toy
purchase decisions as they are well augmented with their child’s choice and
what they want their child to play.
Confidentiality was an ethical issue that was tackled to gain confidence of
respondents who would answer the questions. The respondents who
participated in the survey and interviews were shown a disclaimer that the
personal information they provide won’t be used for any third party purposes.
Reluctance to get recorded was another ethical issue that was observed. In
depth interviews some respondents were reluctant to get their voice recorded or
to offer depth interviews. Those respondents who had issues in getting their
personal details noted or did not wish to be identified were asked to take the
web based surveys.
ٓ
As online research is vulnerable over the internet, special considerations have
been taken to keep respondents details confidential. Research done over
Internet does not have the same level of control which is achievable in face to
face interviews. If the respondents email address becomes available to others
they may utilize it for unwanted purposes. This will led to unwanted security
issues for the respondent. As everything is stored over the internet, the data
becomes more vulnerable. Privacy of the participating respondents must be
maintained when they agree to get involved in the research. Over the web data
is not secure and privacy is not ensured so maximum confidentiality of data
must be maintained. Respondents must not be exposed to unnecessary risks.
Confidentiality of respondents should be maintained when they agree to
cooperate for the study. Anonymity of their details is the primary concern of
many individuals who volunteer up for research.
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3.5 Reliability and Validity:
Reliability and validity maintained in any research highlights the trustworthiness
of that research. Chisnall (2005) has highlighted that reliability and validity are
crucial part of any research and its relevance should be understood by those
working in collecting data.
“if a study is valid, it means that it measures what is expected from the study. if
the study is reliable, it means that if the study is repeated the same results will
be obtained”. (Bradley,2007)
During every stage of the research constant criticism of the techniques used
helped to determine the reliability and validity of that technique used. Any flawed
approach used would have resulted in an improper research. During data
collection it was ensured that respondents enter their answers for questions and
were not directed or defaulted to any intended answers. They were given their
own convenience to answer the questions as this would help achieve the proper
results which were not biased to any result. Since the research itself is aimed at
ٜ
investigating the acceptance of customers for affordable toys in the UK market
so there were no assumptions as this would affect the investigative essence of
the research. Respondents of the interview weren’t offered any incentives to
appear for the interview. The respondents did share information for this research
on their will and weren’t lured to appear for participating in the research. So data
collected reflects the general opinion which they had in their mind when
providing the information.
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4.0 Data Collection Methods:
Data for analysis was collected using web questionnaires and depth interviews.
The respondents who shared information for this research were from all over the
UK. Those who were willing to attempt the survey were given a web link where
they can attempt the survey. Respondents were given the convenience to
answer the questions at their convenient time and place. Respondents
attempting the interview were asked for their willingness to being recorded for
the interview. Respondents who attended the depth interviews were asked
about their opinions in depth about educational robotic kits and their
expectations from it.
The questionnaire was designed by the researcher. The questionnaire was
aimed at retrieving the opinions of parents about educational robotic toys and
specifying details about the toys which they have, the place they purchase it
from, the price segment for toys that they prefer. The questions posed in
questionnaire were peer reviewed ٜ before being distributed to respondents.
Some questions in the web survey questionnaire were closed questions and
open questions. Open questions were used for retrieving open views of users on
some critical questions where users were expected to provide some answers in
detail. Closed questions used Dichotomous questions, lists and scale type of
answers in the survey questionnaire. Sample copy of the questionnaire can be
observed in Appendix 2. The depth interview survey had open questions which
users were asked
Respondents for web based survey and depth interviews were selected using
various mix methods through various online business forums and social
networking sites. 150 respondents were invited for web based surveys. Out of
150 respondents, 60 respondents completed the survey, 34 respondents visited
but did not fill the survey, 10 respondents left the survey partial, 8 respondents
left survey incomplete and 38 respondents did not visit the survey link. 30
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respondents were invited for depth interviews Out of 30 respondents 15 agreed
interviews.
0
for depth interviews.
Web Survey Statistics
38
60
Completed
8
10
Abondoned
Partial
34
Incomplete
Did not visit
:
Fig 4.1: Survey Statistics
‫ע‬ʽ
The respondents were selected on the basis of their being parents of children
aged between 7 years to 16 years. Respondents attending the web based
surveys were emailed the link for the questionnaire whereas respondents who
attended the Depth interviews were informed the date and time for the interview
interview.
The respondents who shared information for the research were asked for any
friends or relatives with similar characteristics as theirs who would be willing to
wi
complete the survey This study also used snowball technique apart from
survey.
ball
judgement sampling. Respondents who were selected through snowballing
technique
were
more
attentive
and responsible
while
answering the
questionnaire.
To analyse the market potential and competitors for affordable robotic kits
several marketing research reports, annual reports of companies were analysed
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and the market behaviour was observed by going through several newspaper
articles and magazine articles.
헸٦
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5.0 Analysis and Findings
d Findings:
The completed surveys were collected and entered into the SPSS software for
analysis. The data collected would be only numbers and characters unless it is
analysed with usage of statistical tools, mathematical functions and display in
displayed
graphs or charts. The data which is collected has been classified on the basis of
research objectives. They are: assessing market potential for educational robotic
toys, determining the key benefit sought identifying the key competitors,
sought,
competitors
determining an appropriate price level and determining an appropriate promotion
strategy.
This graph below shows gender wise distribution of respondents who completed
the web based surveys. The respondents who completed the survey had 60 per
cent male respondents and 40 per cent female respondents. All the respondents
who appeared for the survey represented population for UK and are from all
over the UK.
‫ע‬ʽ
Gender wise distribution of respondents
38%
62%
Male
Female
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Fig 5.1: Gender Wise distribution of respondents.
The survey respondents who were surveyed was majorly represented by
younger generation who represented 53 per cent population out of total. As
younger respondents are more technically aware they were responsible for more
quality answers. Respondents who have completed university education
represented majority of 77 percent among the respondents who completed
survey. They represented the populations who were aware of the benefits
provided by the educational robotic kits.
The analysis according to research objectives:
Market potential for educational robotic toys:
The UK toys and games market consist of 585 companies who are involved in
the manufacture of toys and games in 2009. (Keynote,2010) The market is
divided into a large number of toy suppliers who supply toys to the toy market.
皠!
These suppliers are some big brands, many small brands and a large number of
suppliers. Many of these suppliers focus on specific product or specific region.
Most of the companies selling toys in UK are US owned and are controlled by
their US divisions. These are global companies which have main offices in the
place they operate and will get products manufactured from all over the world.
This helps them achieve the lower cost for products and achieve an edge over
other local manufacturers.
Key benefit sought from educational robotic toys
As UK is a developed market, parents are spending on toys which offer
educational and developmental values in addition to the child’s desirable
choice.(Keynote,2010) Parents are focusing more on welfare of their children.
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Toy Evaluation Criteria
18%
22%
Price Segment
Educational value
60%
Safety
Fig 5.2: Toy Evaluation Criteria
ig
Parents evaluated toys based on educational value provided by a toy. As can be
observed in Fig above 60 per cent of parents who answered web based surveys
‫ע‬ʽ
had selected educational value over price and safety factors. Parents are
growing aware of facts that toys with educational value are useful for their
childrens cognitive development.
Several parents who were interviewed using depth interviews also stressed
more on the educational part of toys. They raised their concern over the growing
ern
influence of TV video games on the minds of children. It is giving rise to more
impact of violence in their minds.
According to Keynote(2010), Toys and games market is being seen as the most
key role player in providing developmental e
education. Mintel(2010) has indicated
that parents are recommending educational toys for children as they
complement education and develop knowledge and skills in children.
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Key competitors for educational robotic toys
When a business enters a market, it usually contains competitors who offer
better competition. Every competitor wants to make their positions in market
secure and they always want to increase their market share in the market where
they are selling their product. Competitor’s size varies in the market and so their
marketing preferences. Not all the competitors present in the market appear as
a threat to the business. Some competitors offer opportunities in the
competition.
“Analysing competitors and the competitive climate can help marketers better
understand market dynamics, anticipate what rivals will do, and create more
practical marketing plans”. (Wood, 2010)
Competitor analysis is used to analyse the competitors who are present in the
market. It helps in understanding the current market scenario of the industry. It
helps in developing the marketing plan with reference to the current market
scenario. Competitor analysis is useful in context of developing a strong
*
marketing strategy. If any business avoids analyzing the competitors before they
develop their marketing plan they are ignoring the competitors and will have to
restructure their marketing plans. There are current competitors who offer
competition and also there are potential competitors who may offer competition
in the market. By performing the competitor analysis, a business identifies
competitor’s strengths and weaknesses, prepares itself by comparing itself with
competitors and preparing for that competition.
Key Competitors who were identified are:
Lego Company Ltd:
Lego is involved in marketing and distribution of children’s construction toys
manufactured from plastic.
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Lego Company Ltd. owns a market share of 62 per cent in the toys and games
market in year 2009. Lego UK has made a sales of £1.3bn in year 2009. Lego
spends £4.2m for its main media advertising.(Keynote, 2010)
Product Lines of Lego: movie inspired licensed collectible toys like Harry Potter,
Indiana Jones, Toy Story, etc.; Construction Toys like Technic, Architecture and
Bricks; Robotic sets like Mindstorms NXT; Video Games and many
more.(Lego,2010)
Brands which Lego is focusing on currently are Harry Potter, Lego Star Wars,
Lego Atlantis, Lego games, Lego Universe and Mini Figures.(Keynote, 2010)
Recent Marketing activities carried out by Lego include continuing its
sponsorship for Vue cinemas. Its advertisements are shown before films. Lego
Atlantis was advertised via television channels throughout UK. Lego initiated
various promotional activities to promote its mini figures.
Hasbro UK Ltd
Hasbro is a group which is involved in marketing and distribution of toys, games
and other products.
ٜ
Hasbro UK Ltd. owns a market share of 7 per cent in the toys and games market
in year 2009. Hasbro UK has made a sales of £136.3m in year 2009. Hasbro
spends £10.9m for its main media advertising. (Keynote, 2010)
Product Lines of Lego: movie licensed collectible toys like Harry Potter, Indiana
Jones, Toy Story, etc.; Construction Toys like Technic, Architecture and Bricks;
Robotic sets like Mindstorms NXT; Video Games and many more.(Lego,2010)
Brands which Hasbro is focusing on currently are Games, Girl Ranges, In the
night garden, Marvel, Sesame Street, Tonka and Transformers.(Keynote, 2010)
Recent Marketing activities carried out by Hasbro include marketing tie ups with
various organisations and social marketing for Hasbro Family Game Night. It
released heavily promoted movie character Iron Man in its toy range.
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Mattel UK Ltd
Mattel has been involved in sale and distribution of toys and related products.
Mattel UK Ltd. owns a market share of 4 per cent in the toys and games market
in year 2009. Mattel UK has made a sales of £78.5m in year 2009. Mattel
spends £13.7m for its main media advertising. (Keynote, 2010)
Product Lines of Mattel: movie licensed collectible toys like Avatar, etc.; Dolls
like Barbie, Comic series characters licensing with DC Comics and Disney;
Fisher Price; Girls Ranges, Cars from Hot Wheels and many more.(Keynote,
2010)
Brands which Mattel is focusing on currently are Avatar, Barbie, DC Comics,
Disney, Fisher Price, Girls Ranges, Hot Wheels (Keynote, 2010)
Recent Marketing activities carried out by Mattel include sponsorship activities
for Barbie in various mediums.
Tomy UK Ltd
Tomy UK Ltd is engaged in the sale ٜ of toys and nursery products in the Uk and
Europe.
Tomy UK Ltd. owns a market share of 2 per cent in the toys and games market
in year 2009. Tomy UK has made a sales of £42.7m in year 2009. Tomy spends
£0.8m for its main media advertising. (Keynote, 2010)
Product Lines of Tomy: movie licensed collectible toys like A-team,
Chuggington, Rah Rah the Noisy Lion, etc.; Sega and Sonic, Tomica and many
more.(Keynote,2010)
Brands which Tomy is focusing on currently are A-team, Chuggington, Rah Rah
the Noisy Lion, etc.; Sega and Sonic and Tomica .(Keynote, 2010)
Recent Marketing activities carried out by Tomy include fully integrated
marketing campaign for Tomica and Micro Pets.
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Appropriate price level for educational robotic toys
ppropriate
After recession has affected the economy, parents have become more price
conscious. Mintel(2009) has highlighted that 71
71per cent of consumers due to the
economic crisis have reduced their spending. Keynote(2010) highlights that
consumer confidence on spending has dropped due to UK recession and they
are reducing the expenditure on most of household expenses.
Imortance of Cost in purchasing decision
2%
42%
56%
Always
Sometimes
Never
ٜ
Fig 5.3 : Importance of cost in parents purchasing decision.
56 per cent of parents sometimes feel cost is important factor while purchasing
actor
toys and 42 per cent of parents have always considered cost as a important
factor while purchasing toys Overall out of 100 per cent, 98 per cent of parents
toys.
consider cost as an important factor to be considered while making purchasing
decision. This indicates importance of cost that toy manufacturers should
importance
consider while bringing new toys to the market.
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The figure below displays average cost of toys purchased. 42 per cent of
parents who answered the web based survey selected £26 to £50 as the
average cost of toys purchased 18 per cent parents have selected the below 25
purchased.
price segment.
Average Cost of Toys Purchased
3%
5%
18%
17%
Below £25
£26 to £50
15%
42%
£51 to £75
£76 to £100
£101 to £125
More than £125
ʾ
:
Fig 5.4: Average Cost of Toys Purchased
According to Keynote(2010), four in ten consumers in UK spend in the UK toys
and games market and most of them spend less than £50 annually.
50 annually
The cross tabulated table below shows table of yearly household income against
the average cost of toys being purchased. It can be observed from the table that
£26 to £50 price segment is the favorite choice among all income groups £76 to
groups.
£100 is the next favorite segment after below £25 segment which is the second
favorite segment.
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65. Mukesh Kulal
Average
cost of
the toys
purchase
d
Total
Below
£25
£26 to
£50
£51 to
£75
£76 to
£100
£101 to
£125
More
than
£125
2818510
Yearly Household Income
Less
£15001 £20001 £25001 £30001
than
to
to
to
and
£15000 £20000 £25000 £30000 above Total
5
2
0
0
4
11
6
6
6
2
5
25
0
2
5
1
1
9
2
2
2
4
0
10
0
0
3
0
0
3
0
0
0
0
2
2
13
12
16
7
12
60
Table 5.1: Cross tabulated table of yearly household income against the
average cost of toys purchased.
헸٦
Parents who attended depth interview also pointed out cost as being the major
factor which affected their purchasing decisions. They explained recession has
brought about changes to their buying decisions.
Appropriate promotion strategy for educational robotic toys
Promotion plays a major role for creating awareness of product among
consumers. Selecting the appropriate medium for promotion is an important
decision that will affect the future sales and success of the product.
Internet is becoming a place where toy manufacturers want to improve the
experience of child with product. (Keynote, 2010)
Parents were asked if they remember of any educational robotic toy being
promoted over internet or TV. 43 per cent parents remembered a little,
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Promotion of Educational Robotic Toys
50
45
40
35
30
25
Promotion of Educational
Robotic Toys
20
15
10
5
0
A lot
Some
A little
Nothing
Other
Fig 5.5: Promotion of Educational Robotic Toys
Parents who prefer High street shops for shopping toys amount to 43 per cent,
while choice of parents who prefer Internet and those who prefer Markets is
pَ
almost same at 25 per cent. High street shops is the most preferred place for
shopping toys.
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Toy purchasing Place
4%
25%
25%
Internet
High Street Shops
3%
Catalogues
43%
Market
Other
Fig 5.6: Most preferred Toy purchasing place.
:
Findings:
36% of parents indicated that their children spent maximum time on playground.
pَ
28% of parents indicate that their child spent maximum time on toys and 16% of
parents had their children spending maximum time on TV games.
Toys and games are the next possible category that may see expansion within
supermarkets.(Keynote,2010)
eynote,2010)
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6.0 Conclusion and Recommendations
6.1 Conclusion:
The previous chapter provided an analysis of the data collected in this study.
This chapter will draw conclusions based on the findings found in the analysis.
This will try to answer the research questions which were the hypotheses of this
research and will also suggest some recommendations based upon that for
further exploration within this area.
The study will bring an important change in the education domain if it is
implemented.
Literature was reviewed, which brought to front the benefits
gained by educational robotic toys when children interact with them, market
analysis for Toy industry was performed. Literature written by other authors were
reviewed and syncronised. Marketing models related to new products were
reviewed which were suitable for affordable educational robotic kit and it was
observed that educational robotic kit is still in its initial stage.
Ｃ
It can be concluded from this study that educational robotic kits is a new product
and will satisfy requirements of parents. Educational robotic toys were not
known by parents and its benefits were not known. Some parents believed that
few educational robotic toys just claim to be educational and don’t have and
positive benefits. The price segment for an educational toy which parents can
afford should be £26 to £50 but some parents can afford £76 to £100. The
promotion medium for the educational robotic kit should be through internet.
6.3 Recommendations:
The educational robotic toy needs more awareness as very less people
have heard about it. The benefits that educational robotic toy provides needs to
be imparted to parents so that they can utilise it for the benefit of their children.
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Social networking sites are a meeting point where people satisfy their
social needs to communicate with each other. It has got the maximum reach
with an maximum impact. For E.g. Facebook has got a user base of more than
5million people. These sites offer an alternative for companies to advertise. If
this medium is exploited then more people will become aware of the educational
robotic toys and the benefits that it imparts.
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Appendix
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Appendix I : Micheal Gove Holding Lego StarWars set
The force is with you: Education Secretary Michael Gove arrives at conference
with a Lego set. He has said he loves spending time with his son building
models
(http://www.thisislondon.co.uk/standard/article-23885365-arts-venues-face-closureunder-funding-cuts-says-theatre-boss.do)
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Appendix 2: Applications of robotics
Fig: Usage of Robotics in Entertainment – HRP-4C – which is capable of performing
catwalks in fashion shows.
(Source:http://www.businesspundit.com/wp-content/uploads/2009/11/robotsupermodel.jpg)
㣘ٙ
Fig: Usage of Robotics in Undersea Exploration – ASIMO Robot – which is capable of
going to deep sea water depths and carry out exploration for scientists.
(Source: http://www.bountyfishing.com/blog/images/robot-fish.jpg)
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Fig: Usage of Robotics in Medical Care – ASIMO Robot – which is capable of carrying
patients around, nursing them.
(source: http://www.geekologie.com/2009/03/05/robot%20love.jpg)
翀
Fig: Usage of Robotics in Android development – ASIMO Robot – which is capable
ofclimbing, getting down staircases, talking, understanding human gestures.
(Source: http://www.gizmowatch.com/images/asimo-robot_48.jpg)
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Fig: Usage of Robotics in Search Rescue – Snake Robot – which is capable of
slithering to most of the possible areas which are unsafe for humans or any rescue
equipments to reach. It can explore and search for any survivors.
(Source: http://www.elistmania.com/images/articles/21/Original/Snake_Robots.jpg)
ٚ
Fig: Usage of Robotics in Space and Exploration – Mars Rover – which was built to
explore the mars terrains and perform some experiments on the soil samples.
(Source:http://www.gizmodo.com/assets/resources/2006/12/mars_rover.jpg)
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Fig: Usage of Robotics in Military – Bigdog – which is capable of carrying huge loads of
luggage in war torn areas and can self balance itself in any terrain.
(source: http://www.mytko.org/random/bigdog.jpg)
ٚ
Fig: Usage of Robotics in Military –– which is capable of carrying anti terrorist activities
in warfare zones as well as in civilian areas.
(Source: http://web.rollins.edu/~tlairson/tech/robot10.jpg)
68