Hamleys
Hamleys
Hamleys
UNIVERSITY OF MUMBAI
A PROJECT REPORT ON
MARKETING STRATGIES OF
HAMLEYS .
Bachelor of Management Studies
SEMESTER V
Submitted
In Partial Fulfillment of the requirements
For the Award of Degree of
Bachelor of Management Studies
By
(SIMRAN SATHI)
(44)
BHARATIYA VIDYA BHAVANS
HAZARIMAL SOMANI COLLEGE OF ARTS & SCI.
SHRI MANUBHAI MANEKLAL SHETH JR. COLLEGE OF
ARTS & SCIENCE
JAYARAMDAS PATEL
COLLEGE OF COMMERCE & MANAGEMENT STUDIES,
Kulapati K.M. Munshi marg,
Chowpatty,
MUMBAI-400 007.
DECLARATION
I, Miss Simran Sathi the student of T.Y.B.M.S Semester V (20162017) hereby declare that I have completed the project entitled
MARKETING STRATGIES OF HAMLEYS. The information
submitted is true and original to the best of my knowledge.
__________________________
(SIGNATURE OF STUDENT)
(SIMRAN SATHI)
(44)
BHARATIYA VIDYA BHAVANS
HAZARIMAL SOMANI COLLEGE
OF ARTS & SCI.
SHRI MANUBHAI MANEKLAL SHETH
JR. COLLEGE OF ARTS & SCIENCE
JAYARAMDAS PATEL COLLEGE
OF COMMERCE & MANAGEMENT STUDIES,
Kulapati K.M. Munshi marg,
Chowpatty,
MUMBAI-400 007.
CERTIFICATE
This to certify that Miss Simran Sathi, Roll no: 44 of third year
B.M.S. , Semester V (2016-2017) has successfully completed the project
on MARKETING STRATGIES OF HAMLEYS under the
guidance of Jigna Dharia.
Course Co-ordinator
ACKNOWLEDGEMENT
Principal
External
Table of Report
Sr. No.
Page No.
1.
Introduction
2.
Company Profile
3.
Review of Literature
4.
Research Methodology
5.
Data Analysis
6.
7.
Conclusions
recommendations
8.
Limitations
9.
Bibliography
Introduction
and
Hamleys is the oldest and largest toy shop in the world and one
of the world's best-known retailers of toys. Founded by William Hamley
as "Noahs Ark" in High Holborn, London, in 1760, it moved to its current
site on Regent Street in 1881. This flagship store is set over seven
floors, with more than 50,000 toys on sale. It is considered one of the
city's prominent tourist attractions, receiving around five million visitors
each year. The chain has ten other outlets in the United Kingdom and
also has more than 60 franchises worldwide.
Hamleys
was
bought
by
the
Icelandic
investment
company Baugur Group in 2003 but was taken over by Baugur's main
investor,Landsbanki, when the group defaulted. In 2012, the French toy
retailer Groupe Ludendo bought the business for 60 million. [1] In 2015 it
was reported that Groupe Ludendo was negotiating the sale of Hamleys,
possibly to a Hong Kong company owned by a relative of the owner of
department store House of Fraser.[2] Subsequently, it was sold to the
Chinese footwear company C.bannerfor an estimated $154 million
London-based toy retailer Hamleys has opened its second
store in Mumbai
at Infiniti mall, Malad. Spread over 9,000
sq.ft., the new outlet stocks Hamleys own brand range along
with other national and international brands such as Mattel,
Fisher
Price,
Funskool,
and
Simba.
Hamleys is known the world over as one of the best
toymakers and toy retailers. Being a premium toy store,
Hamleys has been very selective when it comes to their
store location across the globe. Hamleys will be in a very
strong position to reach out to its target consumers.
Hamleys entered the Indian market, through a franchise
arrangement with Reliance Brands Limited, a part of the
Reliance Industries Group.
It opened its first store in the country in 2010 at High Street
Phoenix, Mumbai spreading over 21,000 sq.ft. and second
store in 2011 at Express Avenue mall, Chennai with a 10,500
sq.ft. area.
History
Hamleys is the oldest and largest toy shop in the world. [4][5] It is
named after William Hamley, who founded a toy shop called "Noah's
Ark" at No. 231 High Holborn, London, in 1760. Ownership of the shop
passed through the family, and by the time it was operated by Hamley's
grandsons in 1837, the store had become famous, counting royalty and
nobility among its customers.[6]
A branch at No. 200 Regent Street was opened in 1881; the
original High Holborn shop was destroyed by fire in 1901 and was
subsequently relocated to Nos. 8687 High Holborn. [7] The Regent Street
branch later expanded to Nos. 188-196.[6]
In 1938, Queen Mary, consort of King George V, gave Hamleys
a royal warrant.[6] During the Second World War, the Regent Street store
was bombed five times. In 1955, Queen Elizabeth II gave the company a
second royal warrant as a "toys and sports merchant".
Hamleys was bought in June 2003 by the Baugur Group, an
Icelandic investment company. When Baugur collapsed, its stake in the
toy store was taken over by the Icelandic bank Landsbanki. In
September 2012 Groupe Ludendo, a toy retailer based in France with
shops also located in Belgium, Spain and Switzerland, bought Hamleys
for a reported 60 million.[1] In October 2015 it was reported that Groupe
Ludendo was negotiating the sale of Hamleys, possibly to a Hong Kong
company owned by a relative of the owner of department store House of
Fraser.[8]It was subsequently purchased by C.Banner, a large Chinese
footwear and fashion wear conglomerate based in Nanjing.
Other UK store
As of 2015, there are ten other stores across the UK, including
sites at the St. Enoch Centre in Glasgow,[11] at the Trafford Centre in
Greater Manchester, at Lakeside Shopping Centre in Essex, in Sheffield,
York,
and
at
airports
including London
Heathrow, London
[12]
Gatwick, London Stansted and Manchester.
Global Stores
In 1987 Hamleys' second store was opened in New York City,
however it was closed less than 12 months later.[13]
Hamleys' European footprint existed in Denmark (three small
stores) and, since October 2008, the Republic of Ireland, when it opened
a 3,250-square-metre (35,000 sq ft) store in Pembroke Avenue, located
adjacent to the Town Square in Dundrum, Dublin.[14][15][16] On 12 October
2012, a Hamleys store opened at Nacka in Stockholm, Sweden. On 19
September 2013, a Hamley store opened as part of Steen og
Strm department store in Oslo, Norway. In April 2014 the Hamleys
Denmark toy chain closed all four of its Danish locations when its Nordic
parent company, Kids Retails, filed for bankruptcy.[17]
Hamleys opened its first store outside Europe in Amman, Jordan,
on 18 June 2008. The three-storey store on Mecca Street is run by the
group's franchisee Jordan Centre.[18] A Dubai franchise opened with two
stores on 4 November 2008.[19]
The first store in South Asia was opened in Mumbai, India, on 9
April 2010.[10] The 22,000-square-foot (2,000 m2) store is located in an
upmarket shopping district in India's financial capital. A second store in
India is located in the city of Chennai at the Express Avenue Mall. The
11,000 sq ft store has a London bus that customers can walk up through.
It now has ten stores in India, including two stores
in Delhi, Ahmedabad, Bangalore,
two
stores
in
[20]
Mumbai, Pune and Chandigarh. Hamleys also opened its first store in
the City Of Joy at Quest Mall, Kolkata. It is also the first store of
Hamleys in Eastern India. With this addition, the iconic brand is now
present in 8 cities with 14 stores across India.
Hamleys' opened a store in the Saudi capital Riyadh on 26
January 2012. The 2,100 sq m shop is located in the Panorama mall at
Takhassusi Street's intersection with Prince Mohammed Road.[21]
Groupe Ludendo
Category
Sector
Tagline/ Slogan
USP
STP
Segment
Target Group
Positioning
SWOT Analysis
Strengths
1.
Brand
recall
is
very
high
2. One of the world's Biggest toy retail chains
Weaknesses
upscale
market
Other
retail
toy
stores
games
Competition
Competitors
1.K.B.
2.Toys R U
Toys
Its seven-floor toy box in the heart of Londons West End has
attracted droves of excited children for decades. The unique theatre
created by in-store demonstrations, puppet shows, hundreds of toys and
a shop designed around a childs viewpoint is responsible for making
magic a reality for many and the brand is recognised the world over.
But behind all this fairy tale wonder is a business with plenty more
opportunity, and Hamleys is pursuing it overseas.
Hamleys chief executive Gudjon Reynisson says: Families and
children all over the world are the same - they want toys to be fun, which
makes us well placed to take our unique retail proposition to international
markets.
Hamleys has been leveraging its brand awareness by expanding
internationally. Over the past five years it has been rapidly extending its
international store reach, opening shops designed to delight children on
almost every continent.
Hamleys head of international development Helen Barnish says
the retailers proposition is unique.
Everyone knows Hamleys and people always have a memory of
visiting the store so it has emotion attached to it, its not just a store on
the street.
They remember going in with their children or going in as a child
themselves, so people have a very magical experience and memory and
feel its a very special store, she says.
The franchise model has been such a success since the retailer
took
its
first
international
steps
in
2008
it
doubled its franchise stores in 2012 and has almost doubled them again
this year - that Hamleys aims to open more than 200 overseas stores in
the next five years.
The latest plans come a year after French toy retailer Groupe
Ludendo bought Hamleys for an undisclosed sum.
It is an ambitious target for a retailer that has 33 international
stores at present and nine in the UK. But the expansion trail is already
well trodden.
Hamleys now has a presence in Jordan, Dubai, India, Cyprus,
Denmark, Saudi Arabia, Russia and Sweden, and it is preparing to open
in the Malaysian capital Kuala Lumpur.
Changing strategy
It seems that the charms of the retailers magical world are
working. Hamleys revealed this week that unaudited results for the 12
months to December 2012 showed EBITDA surged 12% to 7.2m.
Global
sales
soared
18%
travel hubs, Hamleys posted losses before tax of 2.4m. In 2008 the
economy plunged into recession as consumers tightened purse strings.
Hamleys had to look at strengthening the business.
The retailer began testing different locations in the UK and
Ireland. It opened its first regional store outside London in Dublin in
2008, then in 2010 it launched Glasgow and last year it added a Cardiff
branch to its estate.
It has proven to be a successful strategy because these stores
alone have contributed more than 10m to Hamleys domestic sales.
They have also provided the blueprint for the overseas stores. In
2008, Hamleys tested the waters in Jordan and Dubai, where there is a
well-established appetite for British brands. Despite the economic
conditions, Hamleys didnt view it as a risk.
The Middle East has always been a good market to go into in
terms of the opportunity for international retailers, says Barnish.
You cant open there yourself, you have to go through a franchise
partner in the Middle East, she adds. Meanwhile, the tax-free benefits
out there are also a draw, making the decision less risky.
Since 2008 franchising has been Hamleys chosen model for
overseas expansion.
Reynisson says: Franchising is a model that has proved
successful for many retailers and has been used successfully to grow
international businesses.
Hamleys now has three store formats that it exports, enabling it to
roll
flexibility.
out
shops
to
different
countries
with
understand what retail is all about and what international retailing is all
about.
Its not as though we have to reinvent the wheel.
The cultivation of franchise relationships has meant that some
partners have been able to work more independently from the UK
business.
Barnish says: Our more mature franchise partners are becoming
very skilled in the support that weve previously offered them in terms of
store launches, staff training and demonstrations.
Our single point of difference is the theatre that we create in
Hamleys stores and weve now found that through investing in our
partners weve managed to replicate it.
They are now becoming more mature and training their own staff
internally.
It is this turning point that is driving Hamleys ambition to expand
its international footprint six-fold.
Local expertise
Reynisson insists that even before being taken under Ludendos
wing, Hamleys had ambitious plans in place.
The retailer aims to open 40 stores a year from next year,
stretching across the globe, with the exception of North America where
the toy market is much more crowded than elsewhere.
Barnish explains: Were developing existing markets with our
existing partners. Some markets will take more stores than others, such
as big cities like Moscow where we know we can operate quite a large
number of stores. But there will be other cities where we will have one
store.
She says Hamleys will work with its partners to build a
development plan, as well as with landlords to ensure sites are available
at the right time, such as where a new mall is operating.
She adds: At the same time we do have a global expansion plan.
So were actively working on new markets to open either with new
partners or existing partners that may go into additional territories. So for
example, our partner in Malaysia will also open stores in Singapore for
us.
Despite the varied trading locations it is key to ensure the brand is
aligned across all stores.
Barnish says that whether in Indonesia or Moscow, Hamleys will
be traded the same way using the same marketing campaign and the
same point of sale - in short, everything is directed by the Regent Street
store.
Hamleys has ensured that each store retains the experiential
theatre, such as toy demonstrations and colourful store designs that are
so key to the Regent Street flagship.
Hamleys will open five more stores overseas before the end of the year.
In the last fortnight it opened in Stockholm, while in October it makes its
debut in Malaysia and it will soon have a store in Africa.
Cunningham says: When you get critical mass the growth has
natural momentum. When we have the international exposure more of
our potential franchisees are seeing the brand and they want a piece of
the action.
Type
Limited company
Industry
Retailing
Founded
Headquarters
London, W1
United Kingdom
Number of
locations
11 in UK; 46
international
franchises
Area served
Worldwide
Products
Toys
Revenue
43 million (2011)
Owner
C.Banner
The chain has ten other outlets in the United Kingdom and
nearly 50 franchises worldwide.
Hamleys was bought in June 2003 by the Baugur Group, an
Icelandic investment company.
When Baugur collapsed, its stake in the toy store was taken
over by the Icelandic bank Landsbanki.
In September 2012 Groupe Ludendo, a toy retailer based in
France at 60 million.
Competitors of Hamleys
K.B. Toys
Toys R U
Hamleys holds an exclusive tie-up with Reliance Retail for
merchandising its famous toys for children.
Reliance Retail plans to open 20 toy stores of the UK-based
Hamleys in India at an investment of Rs .120 crore.
Founded in 1834.
Purchased by the Fayed brothers in 1985.
Fayed announces he has sold Harrods to the Qatar
Investment Authority (QIA) in 2010.
Products of Harrods
Clothing for women, men, children and infants
Electronics
Jewelry
Pets and pet accessories
Toys
Food and drink
Health and beauty items
Packaged gifts
Stationery
Housewares
Furniture and much more.
Hamleys in India
First store in Asia
At Mumbai on 9 April 2010
Area of 21,000 sq ft
Brands
Hamleys own brand range toys
Mattel
Hasbro
Disney
Fisher Price
Playmobil
Leapfrog
Mecchano
Hornby
Maisto
Burrago
Lego
Category
Segments Infants, young boys and girls, teenagers and
adults
Barbie doll house and Barbie Salon and Spa for young
girls of age group 5 12
Grand Racing track for cars, London Double Decker
Bus, Safari Jeep for young boys
Petals and Pods play area and Tree House for infant
and pre-school children
Candy Shop, Disney Castle, Experiential gaming
stations, Party rooms for teenagers
Disney
KodakExpress Studistrategically placed at center
of World
shop
A
n
i
m
a
l
s
Pricing
The price varies from Rs 100 to Rs
50,000
Most products are priced higher for
affluent urban folk
There are no discounts except on
Christmas
Promotion
Jungle
Theme