Toy website business idea

myeCar.co.uk

Business model:

Customise, play and buy your model car!

Driven by flash applications

Roots in Web 2.0:

Rich user experience

High personalization

Advanced web applications

Differentiation via website

Fast brand building (myeToys.co.uk and myeCar.co.uk)

Different level of difficulty of flash applications, depending on age group. Decent profit margin

Differentiation:

via website:

Customize

Put together

Play

Invite friends

myeCar.co.uk Children (parents) China supply import

Age: 4-7 Age: 8-11 Age: 12-16 Toy example: 3d puzzle Toy example: 22 piece car Toy example: wooden car

Large growth in the UK internet retail industry. Market worth above 10 billion as of 2006. Of this market, approximately 2.9 million is comprised of people who spend less than 100 pounds a year. Households with access to the Internet, GB

56 percent of households have broadband (2008) and 16 million have internet access

Estimated potential market of 21 million people (Taken from cross comparison of internet usage habits with total internet users.)

Internet Usage and Population Statistics Source: Internet World Stats, 2008 Adult users and their activities online Source: National Statistics, 2006 YEAR Users Population % Pop. 2000 15,400,000 58,789,194 26.20% 2005 35,807,929 59,889,407 59.80% 2007 38,512,837 60,363,602 63.80%

The core market includes traditional toys such as cars, but excludes sales such as electronic games

Recent years, the toy market’s growth smaller then the growth of the economy as a whole, as shown in the adjacent graphs.

The core toy market over time is static, yet volatile.

Specialization and differentiation is especially essential for start ups.

Source: Mintel International Group Limited, 2006; Trading Economics, 2008

Source: Media@LSE, 2005

U.K

4-7 year old boys

8-11 year old boys

12-16 year old teenager male

Fun, emotional need customers

Ultra conservative decision makers

Price insensitive

TV – Cbeebies channel [Audience share 1.2%]

Cbbc channel [6-12 year olds]

Cinema - £310 for a 30 second spot

Google AdWords and SEO marketing

Focus on PPC and organic SEO

Facts:

comScore: 60% of consumers use Web as first source of search

iProspect: 62% of consumers click on results on first page , 90% within first 3 pages

Great domain names:

mye Toy .co.uk and mye Car .co.uk

Keywords to be used for both PPC and organic SEO

Examples for myeToy:

Examples for myeCar:

Source: Google UK Keyword Search vol. 11/08 Average search Toys online 14,800 12,100 Buy toys online 1,300 1,000 Keyword Search vol. 11/08 Average search Car toys 550,000 450,000 Toy cars 90,500 60,500

Total start up cost: £40,000

Key facts:

Growth rate: between 8% - 12%

Decrease in costs by 20% over 3 years

Breakeven point Year 1 Year 2 Year 3 Revenues £65,891.16 £87,144.83 £121,719.81 GP £49,068.63 £64,896.07 £90,643.78 Net Profit -£21,586.37 -£3,867.93 £9,943.78

http://www.statistics.gov.uk/CCI/nugget.asp?ID=1711&Pos=2&ColRank=1&Rank=192

http://learning.wmin.ac.uk/@@c27204eb757e3d076e1384ff18a82a45/courses/1/4MBS658.2008.1/content/_580168_1/MBS636_Ebusiness_Startups.ppt

http://www.statistics.gov.uk/CCI/nugget.asp?ID=8&Pos=1&ColRank=1&Rank=192

http://www.internetworldstats.com/eu/uk.htm

http://www.statistics.gov.uk/statbase/Product.asp?vlnk=5672

http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=173675/display/id=4295/display/id=303317/display/id=241604&anchor=atom1?select_section=173675