• PAGE ONE
• INDEX
• HOME

Newar Group to expand Little Tikes, Graco range

Ratna Bhushan

NEW DELHI, Feb. 24

THE Newar Group _ which markets children's brands, Little Tikes and Graco, in India _ plans to roll out 30 new Little Tikes products by the end of this calendar year.

Most new launches will be in niche categories. For example, on the immediate agenda are water sprinklers `for outdoor fun' under the Little Tikes banner. Priced between Rs. 500 and Rs. 600, the launch of water sprinklers has been scheduled for April sinc e the product is ideal for the summers. The company will also expand its Winnie the Pooh series, which it introduced some months back.

For the recent entrant, Graco, too, Newar plans to introduce 50 products, including perambulators, baby accessories and high chairs. Company sources claimed that this was the first time such products were being marketed by an organised player in the dome stic market.

``We are offering better products at prices competing with unorganised players. Therefore, the market for Graco could turn out to be larger than for Little Tikes,'' Mr. Manish Newar, Managing Director, Newar Group, said.

All the products are developed in the US, but the company claims these are test-marketed in the Indian market for feasibility before being formally launched here.

Though the Little Tikes and Graco series straddle price points ranging from Rs. 300 for baby accessories to Rs. 10,000 for slides, jungle gyms and perambulators, company sources said the volumes are being driven from products in the sub-Rs. 1,500 price r ange.

Newar expects prices to be reduced once a new manufacturing base for Little Tikes, based in South East Asia, begins supplying to India and other markets in the region.

While the penetration plan for Graco is still in the initial stages, that for Little Tikes is being stepped up by 30 per cent this year.

Till now, Little Tikes' availability has been restricted to seven cities, including the four metros, with every city having six-eight outlets retailing the brand. ``We are now exploring possibilities of entering mini metros like Ahmedabad, Pune and Jaipu r, besides stepping up visibility in cities we are already present in,'' according to Mr. Newar.

``The selection of stores is being done so that they do justice to our brand displays. This implies that expansion possibilities are limited in a way,'' he added.

Direct mailing and tying up with institutes having play areas have been part of the Newar Group's core activities since it began over a year back. ``We will continue to tap play schools, holiday resorts, cinema halls, clubs and hotels for promotional tie -ups and related opportunities,'' Mr. Newar said.

He declined to put a figure to the money being spent on promotions, adding that in-store promotions and contests would be held routinely. Advertising, in contrast, has been low key. Only select print media and cinema halls have been the points of focus. ``We do not see ourselves as big advertisers even in the future,'' company sources said.

The company expects to double its turnover in the financial year 2000-2001, up from the current Rs. 1.75 crore. Mr. Newar also did not rule out the possibilities of the Newar Group venturing into other marketing tie-ups like it has for Little Tikes and G raco.

Newar's expansion plans do not include launching products like toy cars, dolls and stuffed toys, thereby steering clear of territory occupied by toy majors Lego and Mattel. As such, nearly 75 per cent of the Rs. 350-crore domestic toy market is dominated by the unorganised sector.