Christmas perfect - Christmas profit

Christmas comes early in toy shop storerooms

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Student Guide

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Christmas comes but once a year but when it comes it fills the shops with toys and boosts the profits of toy makers and retailers - if they get it right.

Mrs Christmas is responsible for getting it right for Woolworths.

She uses a mix of wisdom and intuition to meet the challenge.

Business is often risky but Jo Hall, the company's director of toys - as she's really known - has to work hard to reduce that risk.

Just think...

What toys do you think will be favourites this Christmas? Why?

The Challenge

Jo needs to make sure that she has enough of the popular lines in store.

If she buys the wrong things - they will all be sold off cheaply in the January sales, so the profit margin will be cut.

If she doesn't buy enough, Woolworths will miss the opportunity to sell more and increase its profits. There'll be unhappy customers as well - just think of those miserable parents who can't find the 'must have' present for their children.

If she gets it right demand for each toy will match supply and everyone will be happy.

Keeping the customer happy is essential

Just think...

Think of some products that run out or are not available for much of the year. What happens to the price?

Getting it right

Jo will be looking at all sorts of things to help her to decide what to buy and how much to buy.

New toys on the market

New films coming out

New books being published

Spin off products

The marketing of all these new products

Products at different prices

The customers who come into Woolworths

Just think...

Explain how each of these points helps Jo to decide what to buy.

If you ran a company which makes toys, how would you try to persuade Woolworths to stock your products?

What would make the perfect range of products?

What makes Jo a good toy buyer?

Bringing in the customers

Once Jo has decided on the range of toys she is going to buy, the objective must be to bring customers through the shop door.

She needs to make sure that

People know what Woolworths is selling

The products are at the right price

These plans will be made by the marketing department.

There are many strategies that can be put to use.

Just think...

Have a look at some shops' websites to find out how they are competing.

Woolworths

Hamleys

Argos

Toys R Us

Have a look again as Christmas approaches to see how the sites are changing.

Are your predictions about Christmas toys proving to be right? If so, perhaps being a toy buyer is just up your street!