Study on

Title: M K Trading, Bangalore

Submitted by

Aniruddha R Rodge

Registration No:

2021MMBA07ASB059

Under the Guidance of Dr. Ray Titus

In partial fulfilment of the Course - Industry Internship Programme - IIP

in Semester II of the (programme name)

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 Master of Business Administration

Industry Internship Programme (IIP)

Declaration

This is to declare that the report titled “M K Trading” has been prepared for the partial

fulfilment of the Course: Industry Internship Programme (IIP) in Semester II by me at M K

Trading under the guidance of Dr. Ray Titus.

I confirm that this report truly represents my work undertaken as a part of my Industry

Internship Programme (IIP). This work is not a replication of work done previously by any

other person. I also confirm that the contents of the report and the views contained therein have

been discussed and deliberated with the faculty guide.

Signature of the Student:

Name of the Student: ANIRUDDHA R RODGE

Registration No: 2021MMBA07ASB059

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 Master of Business Administration

Certificate

This is to certify that Ms. Aniruddha R Rodge Regn. No 2021MMBA07ASB147 has completed

the report titled M K Trading under my guidance for the partial fulfilment of the Course:

Industry Internship Programme (IIP) in Semester II of the Master of Business Administration.

Signature of Faculty Guide:

Name of the Faculty Guide:

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 TABLE OF CONTENTS
Cover Page……………………………………………………………………………i

Declaration…………………………………………………………………………...ii

Certificate…………………………………………………………………………….iii

Executive Summary………………………………………………………………….v

Chapter 1: Introduction …………………………………………………………….1-14

1.1 Industry Overview…………………………………………………...………......1-9

1.2 Company Overview………………………………………………………………10-11

1.3 SWOT Analysis………………………………………………………...…………11-14

Chapter 2: Work Profile………………………………………………………….….15-16

2.1 Objectives of the study……………………………………………………………15

2.2 Methodology or how the work was carried out…………………………………16

Chapter 3: Observations & Analysis………………………………………………...17

Chapter 4: Findings ………………………………………………………………..…18

Chapter 5: Recommendations………………………………………………….…… 19

Chapter 6: Conclusion ………………………………………………………………..20-21

Chapter 7: Learning Outcome….…………………………………………………….22

References………………………………………………………………………….…..23

Internship Completion Certificate……………………………………………………24

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Executive Summary

This report explains the internship program undertaken at M K Trading. The program was

scheduled for two months, where the knowledge of trading and sales was provided, during

which different products and services offered by the company were explained. The program

was conducted in three phases: orientation, product segmentation and conducting sales. The

internship followed an incentive-based program where the stipend was linked to the

performance. During the internship, I was able to make survey form for Market Research and

add to the organization’s revenue, for which I was recognized.

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 Chapter 1: Introduction

1.1 Industry Overview

Global Scenario

The size of the toys market was $92.2 billion in 2019 and is projected to grow by 2.5%

year from 2021 to 2027, reaching $103.8 billion. In terms of toys market share, the

sports and outdoor toys sector took the lead in 2019 and is anticipated to continue to

dominate during the projected period.

Children's growth and development are greatly aided by toys. Toys play a crucial role

in brain development since they assist children develop their logical and reasoning

abilities as well as their spatial thinking. Children learn while playing with toys and

board games, and they also develop their social and communication abilities. The

market for toys is expanding due to children's growing demand for educational and

strategy-based toys. Additionally, in an effort to combat the problem of an ageing

population, the Chinese government this year loosened its long-standing one-child

policy and let all couples to have two children. Thus, it is anticipated that there will be

more children in the next years, which would help the toys business flourish.

Toys are mostly exported from China to other countries. Toy exports from China have

increased by three times in the past ten years, reaching a market value of roughly $30

billion. 58% of the market is made up of the US and EU, with the former accounting

for 31% of toy exports. Several countries are moving toward local toy manufacture to

break China's toy monopoly and enhance domestic toy production. To boost the

domestic sector, the Indian government recently hiked the import tariff on toys by 200%

in February and made toy quality certification essential.

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 Toy production in the Indian Subcontinent is projected to increase as a result of the

Production-Linked Incentive (PLI), Phased Manufacturing Programme (PMP), labour

reforms, and competitive corporate tax rates. In a similar vein, in response to trade

disputes, the U.S. government raised taxes on $200 billion worth of Chinese imports

from 10% to 25%. A substantial portion of all Chinese exports to the United States,

including toys, cell phones, shoes, video game consoles, and other intermediate &

capital goods, are made up of these products. Consumer prices will rise as a result of

these higher taxes on Chinese goods, which will have a detrimental effect on the market.

It is important to remember that while tariff increases may have a short-term negative

effect on the market, that effect is likely to fade as local manufacturing is increased.

The coronavirus outbreak has had a significant impact on the worldwide consumer

products business. The epidemic was initially noticed in China, where it led to a

lockdown and a halt to all manufacturing. Due to supply chain interruptions, rigorous

limitations put in place in response to social estrangement and widespread lockdown,

and execution of these measures, the market for toys and games is anticipated to

modestly decline globally. The global implementation of a strict lockdown has caused

manufacturing to stop and the supply chain to become disrupted. The total impact of

the corona virus is still very unclear due to shifting global dynamics and strong market

volatility.

Segment review

The toy market is divided into segments based on product type, age group, sales

channel, and geographic location. The worldwide market is divided into action figures,

building sets, dolls, games and puzzles, sports and outdoor toys, plush, and others based

on product type. Age groups investigated include those under 5, those between 5 and

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 10, and those older than 10. The market is segmented by sales channel into department

stores, internet channels, specialty shops, hypermarkets/supermarkets, and others. The

market is examined by region, including North America, Europe, Asia-Pacific, and

LAMEA.

The action figures, building sets, dolls, games/puzzles, sports and outdoor toys, plush,

and others product categories make up the worldwide toys market. Although the action

figure sector is predicted to develop at the greatest CAGR throughout the projection

period, the sports and outdoor toys segment now holds the most market share.

Action Figures segment would exhibit the highest CAGR of 5.6% during 2021-2027.

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 5 to 10 Years segment would exhibit the highest CAGR of 3.3% during 2020-2027.

The worldwide toy market is divided into three age groups: Under 5 Years, 5 to 10 Years, and

Over 10 Years. The worldwide market's largest segment, 5-10 years, is anticipated to develop

at the greatest CAGR during the projection period.

The global market for toys is examined across hypermarket/supermarket, specialty shops,

department stores, internet channels, and others based on sales channel. Specialty shops

dominate the worldwide market, however throughout the projected period, online sales are

expected to increase at the greatest CAGR.

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 Online Channels segment would exhibit the highest CAGR of 4.5% during 2020-2027.

The study focuses on the potential, challenges, and development prospects for the worldwide

toys industry. To understand the effects of many aspects, including the competitive intensity

of rivals, supplier bargaining power, threat of substitutes, threat of new entrants, and buyer

bargaining power in the toys market, the research gives Porter's five forces analysis.

Atlas Games, Clementoni S.p.A., Goliath Games, Hasbro, Inc., The LEGO Group, Mattel, Inc.,

Ravens burger AG, Tomy Company, Ltd, Vtech Holdings, and Thames & Kosmos are a few

of the major companies covered in the toys market report.

Indian Scenario

Over the past several years, the toy business in India has seen a lot of new changes, including

the introduction of new toy categories and increased innovation that has resulted in improved

structural and other design choices.

Within the domestic market, the toy sector has experienced great development and expansion.

It is presently expected to generate Rs. 5750 Crores (about $78.5 million) annually (factory

made toys by MSMEs and major units plus imports), with annual growth rates of 10-15%. In

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India, parents have evolved in terms of the toys they give their children or newborns as a result

of new parenting techniques. This has resulted in a sharp increase in the popularity of

educational games and toys made of cardboard or plastic with the aim of fostering creativity.

These toys frequently lead to the child's brain's better growth and functioning.

Since China is perhaps the greatest supplier of toys in the world, the toy business in India is

currently under intense competition from Chinese toy imports. However, because of the Covid-

19 pandemic's effects on exports and imports, even Chinese markets have seen a slowdown in

their growth in this area. As a result, our domestic toy markets have realised a tremendous

amount of untapped potential, especially given the size of our population and the fact that the

majority of Indians are under 25 years old.

IMPORT STATISTICS FOR TOYS IN INDIA

In the 2018–2019 fiscal year, toys were imported into India for $1.4 billion (around INR 10,000

crore). China is the main supplier of toys to India, followed by Sri Lanka, Malaysia, Germany,

Hong Kong, and the US. Almost 85% of toys sold in India are imported.

EXPORT STATISTICS FOR TOYS FROM INDIA & MAJOR DESTINATIONS

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During the 2016 fiscal year, the export value of toys, games, and sporting goods from the nation

was around INR 18.92 billion (about $260,000). The UAE, the US, and the UK are the main

nations importing a sizable portion of exports.

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TOP INDIAN TOY MANUFACTURING COMPANIES

Funskool (Indian) Ltd.

Establishment: 1986

Headquarters: Chennai, India

Market Share: 10.93%

One of the top toy manufacturers in India is Funskool (India) Ltd. It is sponsored by the MRF

group, and the company's goal is to persuade parents to spend money on toys that support

children's development and growth. For the best learning and entertainment of kids, it offers a

wide variety of toys, including Beyblades, Asmodee Games, Endless Games, Othello, Rubiks,

Rummikub, University Games, USA Opoly Games, Dora, Engino, Fundough, Giggles,

Handycrafts, Leap Frog, Play and Learn, Schleich, Siku, Superman, Tomy, and Warner Bros.

Lego System A/S (The Lego Group)

Establishment: 1932

Headquarters: Billund, Denmark

Market Share: 7.6%

The holding company for The Lego Group, the fifth-largest toy producer in the world, is called

Lego System A/S. Its main offering is LEGOS, which may be assembled into a variety of

constructions either using one's creativity or by following the manufacturer's instructions. The

corporation maintains 10 production facilities and 24 subsidiary businesses to serve various

national markets.

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Mattel, Inc.

Establishment: 1945

Headquarters: California, United States

Market Share: 9.1%

A large range of toy goods are designed, produced, marketed, and distributed by Mattel, Inc.

in almost 150 different countries. the American Girls Collection of books, dolls, clothing, and

accessories; Fisher-Price infant and preschool toys; Little People figures and playsets; toys

based on various licenced characters, like Disney and Sesame Street; and games like Scrabb.

The company also sells Barbie dolls, clothing, and accessories; Hot Wheels toy die-cast

vehicles; Warner Bros. merchandise; Batman, Superman, Harry Potter, and Looney Tunes.

Hasbro, Inc.

Establishment: 1923

Headquarters: United States

Market Share: 5.89%

Hasbro, Inc. creates toys that provide entertainment for kids and families. Littlest Pet Shop,

Magic: The Gathering, Monopoly, My Little Pony, Nerf, Play-Doh, and Transformers are

among the brands that the business sells. The United States and Canada, International,

Entertainment, Licensing, and Digital are the segments through which it operates.

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1.2 Company Overview

MK Toys & Baby junction is a retail store that specializes in the selling of toys, games and

baby products. The company mainly focusses on giving the best customer experience and its

vision is to become every customer’s first choice when it comes to the toy retail store.

The company is based in Bangalore, kammanahalli Main road. This area is very busy and is

filled with highly reputed brands such as westside, Van Heusen, Titan, Apple store, Reliance

footwear, Tanishq, Kalyan Jewelers, Burger King, Mc Donalds, Peter England, Louis Philippe,

Allen Solly, and much more. Since the company is situated in such a commercial area, the sales

are in good numbers during the peak seasons such as the back to school season, Christmas

season, summer season, rakshabandhan and other main occasions.

The company generates a minuimum of 8 lakhs per month as the revenue out of which 30% is

the profit and the rest is the cost incurred in maintaining and managing the inventory of the

store.

The retail store is an extension of MK Trading which mainly is a distribution company that

specializes in the distribution of toys, games and baby products. MK Trading started in the year

2005 by Mr. Mehaboob Pasha. The company has a net worth of 10 crores and is increasing

every year by 2%.

In order to deeply understand the market, they hired interns to conduct market research of

which I was a part of. The company has about 36 product categories which are: Baby products,

Nickelodean, Cartoon Network, Mechanix, Sparklebox, Marvel, DC, Star Wars, Jurassic Park,

Barbie, Pokemon, Pixar, Chhota Bheem, Doraemon, Harry Potter, Masha and the Bear, Disney,

Garfield, Transformers, Lego, Hot Wheels, Animal Planet, Diecast, Nerf, and Winnie the Pooh.

MK Toys & Baby Junctions has about 8000 products. The company has about 700 suppliers

and are getting in touch with the manufacturers that are manufacturing toys in Toys in order to

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promote “Make in India”. They are also planning on taking measures on sustainability of the

company.

1.3 SWOT ANALYSIS ON MK TOYS & BABY JUNCTION

STRENGTHS:

• Location of Mk toys and baby junction-Mk toys and baby junction is in Kalyan Nagar

which is one high potential real estate destinations in the north-eastern part of

Bengaluru. At the same time all the commercial establishments like banks and markets

are well within reach which enables the business to attract customers.

• Offers wide range of toys for children divided into different age groups unlike our

competitors Hamleys and first cry which have limited varieties under each of their

product lines. Unlike our competitors we also have more than 40 product lines and over

and above 15 different varieties under each of these product lines.

• Collaboration with brands like Funskool, R or Rabbit, Disney etc.

• Improved company website which serves as an online shopping centre.

• Devoted, highly motivated and energetic management team which works together to

make better and better products and performance. For example Mk trading recently

posted about its company’s employees, interns which ultimately kept the employees

entertained

• Mk trading has its own manufacturing factories giving them a cost benefit.

• Good focus on customer experience

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WEEKNESSES:

• Lacks a competitive advantage over large retailers like Hamleys, which is due to a

number of problems including lower popularity brought on by a lack of marketing

methods, a smaller market reach, and a smaller target demographic and lack of

marketing strategies.

• Higher prices compared to some competitors.

• Lack of brand value due to a lack of promotion, and most significantly, display

storefronts, MK toys and distribution has not yet developed a strong brand identity. As

an example, first cry began by offering free gift boxes to new parents in 6,000 hospitals

across the nation as a way of congratulating them on the birth of their kid. Basic

essentials like diapers, baby lotion, baby oil, and other items are included in the box

from well-known manufacturers like Many Poko and Libero. Through this initiative,

First Cry has already communicated with millions of parents throughout India.

• Weak displays in comparison to our rivals due to which it doesn't draw many customers.

For instance, Hamleys stores are renowned for the carnival-like atmosphere where kids

may race toy cars, play with model trains, and engage in other activities. Such a setting

might be a draw to entice visitors to return to a country like India, with its crowded

cities and scant entertainment options.

• It has only one store unlike our competitors who have successfully created franchises

in their parent country as well as host country.

• Lack of attractive logo.

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OPPORTUNITIES

• Marketing of products in current and new markets through social media marketing,

increasing customer reach, google ads/SEOs.

• MK toys and baby junction can expand and open more stores in upscale market such as

in malls and sell its products through online stores such as amazon.

• Expand its market in Asian market giving it a better competitive advantage and

economies of scale.

• Expand network, better range of products and reach to people by opening up more

flagship stores in different cities.

• More young professionals living away from home and working couples who want to

give their kids the best gifts. Hence their target group is increasing fast.

• Customize toy products according to customer wishes.

• Subscription and membership services offered by MK toys and baby junction to have

good customer retention strategy

• Providing gift boxes and gift wrappers with MK toys and baby junction logo to increase

customer reach.

• Designing theme stores, like Hamleys, with a red design to draw customers to make the

narrative more enticing.

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THREATS

• Computer games and Internet such as BGMI, Subway Surfers discourages kids to

purchase toys.

• Competition from offline stores like Dreamworld, Kidzone, Hamleys.

• Online competitors such as amazom.com and flip kart.

• Low prices offered by the competitors. Over time we have seen a big shift from

physical to online retail, with Amazon becoming a major global player in the toy

category.

• Lot of consumer resentment to excessive and unwanted plastic consumption and

waste, which leads to polluted oceans and other environmental damage.

• Lack of developmental space to open more flagship stores.

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 Chapter 2: Work Profile

As Associate Marketing Manager, I was closely working with the marketing manager and the

head of the company to make sure the mission and vision of the company is fulfilled on time.

As per the roles and responsibilities given, the work activities done was Market Research,

taking feedback from the customers, reviewing the website, handling social media marketing.

2.1. Objectives of the study

The objective of the study was to:

• Perform Market research

• Analyse data

• Segmenting customers

• Positioning of the brand

• Developing new methods to generate feedback from our customers

• Training and developing the customer relations team

• Compiling the data

• Report the changes to be made

• Making sure that the website created is as per the market research conducted.

• Creating social media accounts for the company

• Making sure that the content developed is as per the company and customer requirement

• Managing the accounts and its followers

• Working closely with the social media marketing intern/employee to make sure that the

brand is presented well and has a good customer base

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2.2. Methodology or how the work was carried out

Market Research

• The Market Research was carried out by collecting the responses through market

survey. The primary objective was to understand the product segment. The product was

divided according to age, gender, and brands. After understanding the segment and

dividing them, a survey form was created in Survey Monkey. A survey team was built,

and they were sent to the nearby area to collect the responses. After collecting

responses, the data was studied statically through MS Excel and SPSS.

Collaboration with Website development team

• After analysis of the data collected by survey, the data was further used to help website

developer to create the website according to the demand of the customers. Online

meeting with website developer, helping them to understand how exactly the company

website should be created and designed.

New strategies to generate revenue

• In addition to M K Trading which deals as B2B transaction, there is a child company

M K Toys & Baby Junction which deals as B2C transaction. M K Toys & Baby Junction

is a B2C retail store in Kalyan Nagar. After data analysis from the survey, baby products

and toys were rearranged according to the demand and requirement of the customers.

• Continuously creating google ads within Bangalore region so that the customers get

attracted towards the retail store. The ads were mostly concentrated near the store

region which is within 15kms radius of Kalyan Nagar. Similarly making ad viewer

aware of the offers and discounts provided by the store. Special discounts and events

during occasion like Eid, Independence Day and Raksha Bandhan.

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 Chapter 3: Observations & Analysis

As M K Trading is in business from last 17 Years, it has many distribution connections all

around Nation. But it is tough to compete with other B2C retail stores like Hamleys,

Sapphires, etc. As the companies like Hamleys and Sapphires were already in the market

customers are already aware of this store. But as M K Toys & Baby Junction has been there

from last 4 years the awareness of this store is minimum. To know about the consumer

behaviour with regards to the baby accessories and toys, Market Research was conducted.

As per the organic responses, customers prefer to buy baby accessories and toys from

different retail stores because of certain reasons. The major reason was that the discounts

and additional benefits offered by the retail stores. For example,

In every Hamleys store they keep demo games, like remote control car, Plush Toys, robot

toys, etc. In addition, they provide a premium benefit for the children name as Childs

Passport Card. Whenever children visit any Hamleys store or play any demo games they are

given Hamley point. This point can be redeemed by children to collect any toy from the

store.

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 Chapter 4: Findings

My internship helped me get a better understanding of the Baby Accessories Toy Market, how

the Baby Accessories And Toy market globally and in India saw an exponential growth, the

various products available to cover different needs of people. The companies have been

innovative in bringing new distribution channels based on the changing lifestyles of the people,

which have contributed to their overall growth. It was observed that during the pandemic,

people brought baby accessories only through online method which resulted the company to

implement the idea of creating there website.

From an organization perspective M K Trading was found to operate through their offline store

as a service model. They mainly operate on an offline model to reach out to different customers.

Their main strategy is the word the mouth approach through which they make sales and

generate revenue. The online website they are developing for customers will help them acquire

the customers from all over India. It was also found M K Trading that did not effectively use

the power of social media to market and attract customers.

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 Chapter 5: Recommendations

MK Toys & Baby Junction has to work on weaknesses and threats, i.e., less brand exposure,

no online marketing, threat from competitors and more. These weaknesses need to be

encountered and tackled with before the company gets into the loss.

The company does have a upper hand in terms of a word of mouth of marketing but it

severely lacks online marketing. The company is building a website and will be ready in the

next month. MK Toys & Baby junction also has to work on social media marketing. They

need to convey their strengths to the customers in order to increase the brand awareness and

expand their customer base.

MK Toys & Baby junction needs to work on their in store experience as well. They might

also compete their competitors by incorporating different AI technology strategies. Best

example of which being; Amazon. Amazon has now added scanners next to the products in

their offline store that can be ordered from the phone. This process is utilized by the

customers in order to get their products delivered to their homes.

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 Chapter 6: Conclusion

The overall experience as a associate marketing manager was extremely fruitful for my

career. I got to learn a lot from the CEO of the company who has been in the market for

about 17 years. It’s an incredible experience as an intern to understand, explore, meet

different retailers, suppliers and new manufacturers, new marketing strategies, etc.

MK Toys & Baby Junction must definitely work on its weaknesses and threats that the

company is facing and will be facing in the near future. The company needs to be ahead of

time and create different strategies to beat the competitors and establish a strong position in

the market.

Main competitors being Firstcry, Hamleys and sapphire, MK toys & Baby Junction must

analyse the strengths of these companies and counterattack them directly or indirectly. These

competitors have fixed their positions are now the market leaders in the market whereas MK

Toys & Baby junction is just a market challenger. It needs to attack these leaders in different

ways as it includes all of the products that these competitors are selling. A customer can

choose to come to MK Toys & Baby Junction and shop for all necessities such as toys,

games and baby products. Instead of choosing to go different stores for different products,

such as customers who have two children, out of which one is a baby and the other is a 10

year old kid. These customers cannot go to Firstcry and shop for both the children. In this

situation, MK Toys & Baby junction is the stop where the customers can find different

products for different age groups.

MK toys & Baby junction also categorizes its products based on the age. The age categories

being 0-3 months, 3-6 months, 6-12months, 12-24months, 2-3 yrs, 3-15 yrs., and above

15yrs. This retail store not only is a stop for teenagers up to 15 years. They also provide

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 different products for the above 15 yrs. of age group. These products include Lego, Board

games, Cycles, etc.

In the end of this internship, I not only have the experience of working for a retail store, I

have a strong emotional connection to the brand for how they have treated their employees,

customers and maintained a good work environment.

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 Chapter 7: Learning Outcome

The internship gave me an opportunity to understand how a start-up functions, their strategies,

business models and work culture.

Through the program I got to understand the different market segments in the selling and

distribution of Baby Accessories And Toys, and who the target customers are. I learnt briefly

about how to do market research on people to identify the target customers that can be

approached. I understood that no two customers are the same and each of them have different

needs. Hence learnt that same selling technique cannot be used for all the customers, each of

them must be approached with a unique value proposition. It helped me improve my corporate

communication skills and public speaking silks as I had to speak to various potential customers.

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 Reference

• https://www.imarcgroup.com/indian-toys-

market#:~:text=The%20Indian%20toys%20market%20reached,12.6%25%20d

uring%202022%2D2027.

• https://www.grandviewresearch.com/industry-analysis/toys-games-market

• https://www.surveymonkey.com/r/25CP25P

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 Certificate Of Completion

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