Problem Statement Pam Shirr, a former independent manufacturers’ representative, is the newly- appointed senior vice president of sales for Playmate Toys. When she assumes office on the first week of January, she will be faced with the daunting task of achieving a 100 percent sales volume increase, from $50 million to $100 million, in a span of only five years. With these things filling her thoughts, she now has this question in mind: What are the various strategies that should be developed and Implemented by Playmate Toys in order to be successful in achieving its objectives? Assumptions

For this case, we shall use the point-of-view of Ms. Pam Shirr. As the new senior sales Vice President of Play Mart Toys, she has al the authority to Implement various strategies that would help the company. She doesn’t need to depend on higher- positioned officers to decide. She has the last say. Also, there will be no changes in the supplier. The company will still resort to cheap-labor manufacturer In China. And as not given In the case, there’s no sales quota for every sales representatives. Also, the company is financially stable and capable of implementing new strategies to achieve their goals.

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Analysis BCC Matrix In evaluating its current position in the market, Playmate Toys can utilize the BCC Matrix. As seen in Table 1, Playmate Toys is, at present, a cash cow. Being a well- established company, It enjoys the privilege of having leading toy stores and department stores as their customers. This is not to say though that they put aside small players in the toy store industry; they actually supply even to these small companies. Having seen all these, it can be said that Playmate Toys enjoys a high market share. On the other hand, the toy Industry is not exactly a developing industry.

Even with the advent of new toys every so often, toy makers such as Playmate Toy cannot claim to have a high market growth, since the industry is more or less stable already. In fact, the company, through Pam Shirr, is trying to look for ways to Increase their growth In the market. Being a cash cow, Playmate produces more cash than what they consume; they can now choose to “milk” their finances to be able to invest in more moneymaking endeavors in the future. Forecasting Methods An effective forecasting method must used by Pam Shirr for the compass efferent products.

Their products are separated into to two: the seasonal products and the year-round products. For the seasonal products, multiple decomposition ‘OFF Theoretical moment Is uses to accost Tort ten seasonality AT products . It can De an annual forecasting. On the other hand, exponential smoothing forecasting method will be used for the year-round products. It will estimate demand by using the past data where a larger weight will be is given for the recent data and can account for the trend in sales of products. A quarterly forecasting can be used.

Develop Strategies To obtain their sales goals, Pam Shirr can improve and develop Play Mart’s strategies. Play Mart’s sales representatives are independent manufacturers’ representatives. They work on a commission basis with each representative earning a 3 percent commission of the total dollar sales volume. To further motivate Play Mart’s sales representatives to achieve the 100 percent increase in sales, Pam Shirr should make a new incentive system. In the new system, the commission per sales person would rely on whether he surpasses the given quota or not.

For example, for he first $500,000, the sales representative will earn a 3 percent commission but per every dollar over $500,000 he will start earning a commission of 4. 5 percent. Pam Shirr can establish a website for Playmate’s products and services. Its products and services would be more accessible to the possible online buyers from abroad making their market share wider. The company would also be able to offer their products at a lower price because they do not have to go to distribution channels excluding the possible shipping cost.

During off seasons and to have the least inventory costs, he company can give seasonal promos and discounts to their clients. This promo is a win-win situation for Playmate and their clients. This will also result to a better relationship with their clients and get their loyalty for the company. Customer Relationship Management (CRM) How the company deals with its customers is nothing but important; a healthy supplier-customer relationship would bring about loyalty among customers and more revenues for the company.

Playmate Toys, in its target to double its sales in five years, should not put aside its CRM. In fact, Pam Shirr should come up with strategies o further develop the company’s relationships with its customers. First on the list would have to be a very efficient and extensive database of all its clients, and of all the people who serve as their contacts. They can use this to effectively communicate and clearly plan with their clients, thus helping the company attain a more personal relationship with them.

Playmate Toys should also come up with a customer loyalty program, which would work like an incentive program for loyal clients. The company can opt to give out a 1% rebate, in the form of their products, to those customers who each a certain amount of purchases. For example, upon accumulating $100,000 purchases, a customer can be given the pleasure of acquiring Playmate products amounting to $1 ,OHO for free. The case stated that Playmate does its planning one year in advance. This means that for its July 2011 operations, the number of toys to be made would have to be determined at this point in time, July 2010.

With this in mind, the company should be able to plan well with all its customers; that is, they should make their customers know about their policy of planning ahead as to ensure better services. This strategy loud allow less room Tort problems Tort Don parties, sun as surplus or sonorant AT toys, in the future. The company should also assure all their clients that it is very strict when it comes to confidentiality, that all the information shared by the customers to Playmate representatives will not be divulged to anyone else, especially not to its direct competitors.

International Expansion With major international companies such as K-Mart and Toys “9” Us, as their key customers, Playmate Toys should also look into the possibility of international expansion. These companies have branches in other parts of the world, not Just the nest in United States and Canada which Playmate currently supplies to. The company should consider increasing their market reach by supplying their toys even to the international branches of their customers. Given that all their products are manufactured in China, this is not at all a bad idea.

For example, Playmate can choose to set up an office in Hong Kong so that they could directly talk to not only the Toys “9” Us faction there, but also the other factions in the neighboring countries, such as Singapore and the Philippines. This would pave the way for another division of Playmate Toys in the Asian market which would enjoy benefits such as significantly lower shipping costs from China. Sales Organization A better sales organization is needed. She maintains the geographical sales organization she used to handle.

However, additional sales manager and people are required. If the state is population-dense and where the key account is located, an additional assistant sales manager to the existing manager will be hired for them to have smoother and efficient work. This structure will help each manager to focus on their own services and clients. (See appendix) Recommendation Short Term For the first year of Pam Shirr, Playmate Toys can establish their company’s website in order to reach a wider market.

Seasonal discounts could also be offered to attract and maintain customers’ loyalty. In order to keep up with their clients, Playmate has to create a well-organized database and constantly update with the customers’ needs to efficiently cater to their orders. Rebates can also be given to their long-time customers. Confidentiality has to be observed during transactions. Long Term Since Playmate has already established its presence in the US market, they can insider tapping the international market.