Instead of starting from the scratch Diana Nelson bought toy store “Kazoo & Company” (which was not famous at that time) and spent her time to know the dynamics of toy industry by focusing on the gaps in the market. In intention of filling those voids, she saw untapped potential in Kazoo store and did something different from the competitors to gain position in industry and market. She knew that it was not easy at all to own a toy store as other stores were dominated by some famous companies like Walmart, Toys “R" Us, and others and they used to copy them. So instead of doing this, she thought out of the box to compete these large retailers. And the only way to beat them was to make a unique business plan which will make toy store different and attractive to clienteles. She developed her company on this idea and this was the reasons that Kazoo toy store stood first in Denver by Denver’s 5280 magazine from the year 2002 to 2010.
It would be a good impact in short run if Diana Nelson focused on the typical things like store designing, advertisement and hiring personnel and other things like that which were considered by anyone before opening any store. But as a result, her business would be driven out of the market and got no fame like other small stores. But instead, she put her effort in developing the business on the basis of differentiation strategy. And that gave her company long-term benefits and distinct position in the world of toy companies.
Diana Nelson possessed the qualities of a creative entrepreneur so she followed some other ideas to make her toy store different from other toy stores. She made store design unique by dividing her small store into smaller segments. There were different small departments in her store like Playmobil department and the department of tank Engine and others. To gain customer’s attention, the company offered some attractive services to customers like parking space and free gift wrapping. To make customers feel easy they took care of some other things also like diverting the attention of their crying baby and helping customers to find their desired toy in the store. They did their best to entertain their customers.
Diana Nelson built a long-term relationship with her vendors so she invited vendors of her company for demonstration and testing of new products in her store. And just because of this many new products were first presented only in her store. Diana Nelson and her company got a tip from their vendors about the interest of large dealers from time to time. So this helped the company a lot in understanding the new trends in the industry. She also opened an online store on Yahoo in 1999, to sell her products to the customers worldwide.
They also introduced some unique toys like educational toys and for children under 12 they bring non-violent toys in store also Gotz Dolls from Germany. They worked hard to meet the needs of their clientele. As customers do not want to see the same items, every time they visit the store so they used to change the appearance of store by mixing some items and changing their position. So when the customers come they see different items on old shelves.
All this was the result of making good and unique business plan and that is why company gained a lot of profit. They did not fall into the trap of duplicating the services and products of a famous toy store. This was the reason that the toy store made his name in the list 500 fastest growing companies in the USA.
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