Eurekakidsis a Spanish company whom the legal name isDamerikLimited Company. This firm is engaged since 2002 in the design, distribution and sale ofeducational toysfor childrenbetweenzero andten years old.They work withover 5000referencesranging frompacifiers, childcare, clothing, books and costumes. Since itscreation, managers were guided byclearvalues. The toys designed by Eurekakids focus on the acquisition of habits and values that can facilitate their learning. These educational toys have the aim to increase interaction among children, bring children to nature, away from violence and try not to differences between boys and girls. Their purpose is to entertain, educate, encourage creativity and raise children. Eurekakids was created in 2002 by Erik Mayol and Marta Roget in the province of Girona. In 2004 they opened three stores. Three years later, Master Pierre joined as a shareholder of the company opening four stores. In 2006 already had ten stores and launched its online platform. In 2010 they made their first break abroad, expanding to Barcelona and Italy. Today, nine years after its creation, Eurekakids has 112 stores and it is present in Spain, Portugal, Andorra, Italy, Belgium and France. They also sell anywhere in the world with its online store.
2. ANALYSIS OF THE ENVIRONMENT
a. Analysis of the external situation
i.German market Analysis
The products were mostly bought by families with children. According to the director of marketing, Germany has become a potential market for the company because the online sales are very important. Fertility rate| Spain| Germany|
2001| 1.24| 1.90|
2002| 1.26| 1.88|
2003| 1.31| 1.89|
2004| 1.33| 1.92|
2005| 1.35| 1.94|
2006| 1.38| 2.00|
2007| 1.40| 1.98|
2008| 1.46| 2.01|
2009| 1.40| 2.00|
Taking a look at the data from fertility in Germany: comparing the data, in Germany the fertility rate is significantly higher throughout the last decade. This would strengthen the theory that is a good potential market: more families and children may mean an increase demand of toys in the future. The good experience of the company in Spain and the information in the online sales can ensure a successful introduction into the French (German) market.CHECK!!!! the toys and games market in Germany:
- Consumption of traditional toys and games in 2005 was € 2.3 billion. - Germany is one of the largest consumer markets for toys and games in the EU, with 17% of total EU · The average expenditure on toys and games per child in the age group of 0-14 years was 192 euros in 2005. This is higher than the EU average of 168 euros. · Kids in Germany are more technically oriented than in most other European countries. Construction toys are popular as well as (model) vehicles and electric trains. The latter category has, however, been witnessing falling sales in recent years. · Increased popularity of toys with electronic content, ranging from toy cell phones which make sounds and music, to dolls and figures which can speak, move and react.
3. Competitive analysis
The toy industry, a sector that can not be considered a market in which competition is perfect. It would become an oligopolistic market. Eurekakids has few competitors, but competition is very strong. This competition can be classified into two groups: companies that distribute toys and, outside the distribution, design your own product.
German competitors in the toy’ market
Vtech Electronics Europe is the leading educational electronic toys specially designed to help children learn while having fun. Nemmer is a family traditional company since 1952. Quality in wooden toys for children. It is the leader in this market. Since its foundation in 1948 in Washington, whatever the Chain Toy sales have become more important than a World level. It is present in 5 continents and include a total of 1550 stores, 46 of them a Germany. Also sells online and their website...