BrainTrain_FeasibilityAnalysis

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Brain Train Analysis
Michael Chadwick
Elizabeth Kilmer
Michael Roca
Management 404
Dr. Wright
December 4th
, 2014

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Table of Contents
Executive Summary ……………………………………………………………………… 5
Part I – Client Profile
1.1 Company Overview …………………………………………………………………... 7
1.2 Key Facts …………………………………………………………………………….... 7
1.3 Business Description ………………………………………………………………….. 7
1.4 Company History………………………………………………………………….…... 11
1.5 Product ..…………….…………………………………………………………………. 11
1.6 Competitors…………………………………………………………………………..... 11
1.7 Key Employee………………………………………………………………………..… 12
1.8 Key Employee Biography…………………………………………………………...… 12
Part II - Situational Analysis
Chapter 2 – Environmental Factors
2.1 Economic…………………..………………………………………………………….... 15
2.2 Social…………………………………………………………………………………..... 15
2.3 Political……………………………….……………………………………………….... 16
2.4 Technological……………………………………………………………….………...... 17
2.5 Ecological…………………………………………………………………..………….... 17
Chapter 3 – Industry Analysis
3.1 Porter’s Five Forces………………………………………………….…………………. 18
3.2 Competitive Rivalry within the Industry……………………………………….…….. 20
3.2.1 Threat of New Entrants……………..……………………………………………………........ 20
3.2.2 Threat of Substitutes…………………………..………………………………………….……. 20
3.2.3 Bargaining Power of Buyers………………………………………………………………….. 21

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3.2.4 Bargaining Power of Supplies………………………………………………………….......... 21
3.3 Individual Component Analysis & Average Industry Evaluation…………...……… 22
3.4 Competitive Benchmarking………………………………………………...………….. 26
3.4.1 Best Price ……….……………………………………….……………………………………… 28
3.4.2 Ways to Purchase ………………………………………………………………….………….. 28
3.4.3 Quality ………………………………………………………………………………………..… 28
3.4.4 Ease of Use…………………………………………………………………………….……..... 28
3.5 Detailed Description of Competition……………………………………………….... 29
3.6 Competitive Benchmarking Conclusion……………………………………….....…. 31
3.7 Value Chain Analysis…………………………………………………………………. 32
Part III – Feasible Analysis
4.1 Overview………………………………………………………………………………. 34
4.2 Interview with Salamander Games………………………………………………….. 35
4.3 Western Carolina University Professor Survey……………………………….......... 41
4.3.1 Western Carolina University Professor Survey Results………….……………………… 43
4.4 Education Major Survey…………………………………………………………..…. 53
4.4.1 Education Major Survey Results…………………………………………………………… 55
Conclusion………………………………………………………………………………… 65
Recommendations………………………………………………………………………… 65
Regards……………………………………………………………………………………. 65
Bibliography………………………………………………………………………………. 66

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Appendices………………………………………………………………………………… 67
Appendix 1: IBIS World Industry Report……………………………………………………….... 67
Appendix 2: Interview with Salamander Games…………………………………………………. 131
Appendix 3: Survey Introduction Email for Professors…………………………………………. 142
Appendix 4: Survey Introduction Email for Education Majors………………………….…….. 143
Appendix 5: Western Carolina University Professor Survey…………………………….…….. 144
Appendix 6: Western Carolina University Professor Survey Results…………………………. 146
Appendix 7: Western Carolina University Education Major Survey…………………….……. 158
Appendix 8: Western Carolina University Education Major Survey Results…………..…….. 160
Appendix 9: Patent Information…………………………………………………………………..… 170

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Executive Summary
Brain Train is an educational learning game that incorporates musical elements with critical thinking
methods for individuals of all ages. Although Brain Train is currently an idea, Mr. Waldrop, creator and
visionary, wishes to create Brain Train and target it as an educational game to sell to school systems. By
obtaining patents and copyrights, Mr. Waldrop will be able to make advancements towards the final
creation of Brain Train.
There are five environmental factors that impact a business. There are economic impacts, social impacts,
political impacts, technological impacts, and ecological impacts on the business. It is important that Mr.
Waldrop is aware of the environmental factors that impact the business in order to understand and to have
a better way of predicting of the industry’s trends in the future. Being aware of the specific environmental
factors will give Mr. Waldrop an advantage in the competitive industry once Brain Train is completed.
The Five Force Model was created by Michael Porter to evaluate the favorability of a market or industry.
The five forces that are included in the model are: bargaining power of buyers, bargaining power of
suppliers, threats of new entrants, threats of substitutes, and competitive rivalry within a specific industry.
Based upon Porter’s Five Force Analysis, the board game industry/ game industry is in a relatively
declining market. With the rise of technology, board games and non-technologically based games will be
pushed out the industry since majority of consumers use technology based games, such as mobile
applications on smartphones. The industry is difficult for new entrants to be successful unless the idea,
patent, and product rights are purchased by a previously existing company such as Hasbro.
For the competitive benchmarking section of the situational analysis, our team can conclude that Brain
Train will be in direct competition with its main competitors. The fact that Brain Train is not
manufactured and out on the market clearly makes it difficult to be able to receive an official rating.

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Although Brain Train is not on actual product yet, it does have competitors that Mr. Waldrop can evaluate
to receive the most beneficial information when creating Brain Train.
Recommendations provided to Brain Train are based on market research, internal analysis of the
organization, and surveys provided to Western Carolina University professors and Western Carolina
University students pursuing a degree in education. The recommendation for Brain Train is to review all
the data from the surveys provided and get a better understanding of how professors and education majors
at Western Carolina University feel about educational games in a classroom setting. Upon reviewing the
results, Mr. Waldrop will have to rearrange the game to better suit the curriculum found in school systems.
For Brain Train to succeed, all information and data found within this report needs to be taken into
consideration to allow Mr. Waldrop to have a successful product.

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1.1 Company Overview
Brain Train is a game that is in process of becoming a full functioning company located in Webster, North
Carolina. The idea of Brain Train was thought of by sole proprietor Dave Waldrop. Currently, the
company does not have any patents or licenses filed with the United States Patent and Trademark Office.
Brain Train hopes to enhance both reasoning and listing skills while providing an entertaining and fun
manner to a broad audience. Mr. Waldrop’s main objective for Brain Train is to sell his start up for a
certain percent of the company’s value.
1.2 Key Facts
Mailing Address P.O Box 122,
Webster, North Carolina 28788
Phone Number 828.586.6837
Email dewaldrop@frontier.net
Employees 1 developer and visionary
Industry Toy, Doll, Game Manufacturing
1.3 Business Description
The following business description is from the creator and visionary of Brain Train, Dave Waldrop:

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“The purpose of this game is to promote the development of thinking and reasoning processes. It has been
designed to make use of the power of music and song lyrics. By engaging students in this activity, the
desired outcome is to have observed improvement in the following areas of human growth:
1. Abstract reasoning
2. Verbal reasoning
3. Oral communication
4. Listening
5. Critical thinking
6. Taking turns/sharing
7. Respecting others
8. Judging thoughts
9. Presenting and analyzing ideas
10. Resolving conflict appropriately
The game works optimally with five players. It also lends itself to five pairs or five trios.
Getting started
1. Select an appropriate song for the group (i.e. age, level of education, etc.).

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2. Seat players in a circle.
3. Provide pencils and note cards.
4. Provide copies of rules.
5. Select a judge for reviewing participants challenge questions (students need to serve as assistant judges
at first).
6. Provide ten game chips to each player.
Procedure
1. Play the song one time.
2. Ask one student to begin the game with a question (a question, not a sentence or request, is required).
3. Questions must relate to words only—not instruments or song structure, etc.
4. The starter (A) begins the game by asking the player or group (B) to the left. The starter and respondent
player or group are the only people who are allowed to talk when the question is being asked and
responded to.
5. When (A) and (B) have completed their interchange (B) then has the opportunity to ask player or group
(C) a question.
6. This pairing method continues around to (A) in a clockwise direction. After (A) has answered the
question, player or group (A) asks the player or group to the right (D) a question. The questioning
continues in a counter-clockwise direction until (B) has asked (A) a question and been responded to
according to the rules of the game.
Rules

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1. When a player asks a question and a correct answer is provided, the player asking the question must be
prepared to give the respondent a chip. However, the asker may choose to reply that the response is
incorrect. (Note A): If respondent chooses not to challenge the decision of the asker then the respondent
must give the asker a chip. (Note B): If the respondent requests a challenge to the asker`s decision, the
judge, asker, and respondent leave the playing room and settle the challenge in this manner:
Step 1. The judge asks the asker to repeat the exact question
Step 2. The judge asks the respondent to repeat the exact answer.
Step3. The judge asks the asker to prove the respondent wrong.
If the asker proves the respondent wrong the judge asks the respondent to give the asker a chip. If the
asker fails to prove the respondent wrong and the respondent is actually wrong, the judge declares a draw.
If the asker fails to prove the respondent wrong and the respondent is right, the judge asks the asker to
give the respondent a chip.
2. If a player fails to ask a question in turn, he or she must give the respondent a chip.
3. If an asker uses any prompt besides a question, the respondent may provide an appropriate answer or
answer nonsensical.
If the asker deems the response correct, the asker gives the respondent a chip. If the asker deems the
response is incorrect, the respondent must decide to give a chip or challenge. If a challenge is issued when
a prompt, other than a question was used, the asker cannot win. The respondent can win by providing an
accurate response. The respondent will not lose in this situation by responding in a nonsensical manner.
This challenge is settled outside the playing room, as are all other challenges.
Summary and suggestions
In the elementary level of play described above, players may ask any type of questions they choose. This,
of course, includes using other players` questions. This makes for a great deal of fun and allows each
player to stay within his or her own type of thinking and reasoning.

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This game can be transformed into a powerful teaching tool by moving up to higher levels of play. An
example is to develop a deck of cards with various questions printed on them (who, what, when, where,
why, how, how much, how many, to what extent, sequence, cause/effect). Another way Brain Train could
be transformed would be to incorporate a deck of cards with parts of speech. Players in this higher level of
play must draw a prompt card and generate an appropriate question based on the prompt type. If a prompt
type is not in the song, the player would then be free to develop any type of question. However, failure to
use prompt type, if in the song, results in automatically losing in the case of a challenge.
It is highly recommended that each game consist of five rounds of play as described above. Using that
format allows each player the equal opportunity to start a round. At higher levels of play, starting a round
carries with it the right to declare the rules for that round.
It is important for teachers to remember that no instruction is to take place during this game. It is also
important to realize that songs are the ideal medium to use to introduce students to this method of
learning. However, the method may be adapted to other material such as news articles, videos, and blogs
with careful thought and planning.
1.4 Company History
Mr. Waldrop first started playing Brain Train after bringing it to a classroom while working in the Jackson
County Public School System. Mr. Waldrop noticed that children of all ages enjoyed the game, alongside
with also realizing that their active listening and deductive reasoning began to increase. Mr. Waldrop
proceeded to pursue the creation of the Brain Train. Due to the September 11th
attacks, Mr. Waldrop had
to stop all work on the project due to the economic stress of the United States. Within the past five years,
Mr. Waldrop started to reinvest interest in Brain Train and has begun to move from the creative process to
the production stages of the game.
1.5 Product

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Mr. Waldrop hopes to create a multiplatform game, this means it will be both a board game and a mobile
application in order to utilize the full potential of Brain Train. Mr. Waldrop wants to create the card game
version of Brain Train to offer the game to public and private educational institutions as a test run to see
the success and popularity of the game. If the card game proves popular, Mr. Waldrop would like to create
an application that is accessible from both Android and Apple product mobile platforms. This allows
players to play locally or internationally with fans who have similar taste in music.
1.6 Competitors
Brain Train currently has no local competitors within the Western North Carolina area. After expanding
the search to national and international music applications, there is one online application that is relatively
close to Brain Train, but does not provide the in-depth questions and critical thinking. The online and
mobile application is Guess the Song and has over three million active users in the United States, with a
quarter of a million reviews. Guess the Song is only available to play as a solo player rather than with
other players on the site. Besides only solo playing, Guess the Song only allows players to guess the title
of the song that is being played.
1.7 Key Employee
Employee: Role:
Dave Waldrop Founder and Visionary
1.8 Key Employee Biography
Dave Waldrop is currently a retired Jackson County Public School employee, as well as a veteran of the
United States Navy. While working for the Jackson County Public School System, Mr. Waldrop was

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employed as a middle school counselor. Mr. Waldrop has a strong passion for music, song writing,
philosophy, and equality while he creates Brain Train.
Situational Analysis Overview
The following is an initial analysis of the commercial feasibility of a new product concept created by Dave
Waldrop. The product is an educational game that includes music, critical thinking and learning about
others. To understand the commercial feasibility of Mr. Waldrop’s concept, one must understand both the
environmental and market factors that may affect the product. In the board game industry, there are
countless products that had potential for success but ultimately ended up failing due to the creators or
investors not understanding the market. Another reason a product could potentially fail is due to outside
factors that caused the downfall of the product.

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Mr. Waldrop worked as a public school counselor which allowed him to spend time with students of
different ages. This gave Mr. Waldrop the ability to develop a game that children and adults of all ages
enjoyed. During this time, Mr. Waldrop thought of the idea for a product to allow children and adults to
use critical thinking methods while enjoying time spent together playing a game. The idea consists of five
or more players listening to a song, then those players are to ask the other players questions about the song
with the end goal of figuring out certain meanings or parts. The players can also figure out if one part of
the song was directed towards something other than the rest of the verses. Mr. Waldrop mentioned
potentially turning the game into a mobile application, which would allow the game to be played
anywhere there is cell reception or Wi-Fi, allowing players from all over the world to connect. Since Mr.
Waldrop’s product is in the beginning ideal stages, the analysis that follows has information about what
could happen if the product was created.
The report consists of four main sections that will allow Mr. Waldrop to understand the market the product
would be a part of while discussing positives and negatives of the production of the product. The first
section is the environmental analysis, which includes a review of economic, social, political,
technological, and ecological factors. These factors were examined for potential impact on Mr. Waldrop’s
product. The information within this section can ensure that Mr. Waldrop has the knowledge of outside
factors that could be faced during the creation of Brain Train.
The section following the environmental analysis is the industry and market analysis. Within this section,
Mr. Waldrop will be able to see trends and forces related to the toy, doll, and game manufacturing
industry. The information in this section will allow Mr. Waldrop to see if market conditions are favorable
or unfavorable for Brain Train.
The competitive benchmarking section follows the industry and market analysis. A competitive analysis is
a comparison of possible substitute products that Mr. Waldrop can face when entering the toy, doll, and
game market. Since this section is a comparison of potential substitutes, Mr. Waldrop will have an
understanding of where the product stands in term of price, quality, and other factors compared to various
competitors, who offer similar applications and games like Brain Train.

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The final section of the analysis is the value chain of Mr. Waldrop’s product. The value chain analysis is
how Mr. Waldrop’s product will be different from the competition. Since the product is not currently in
production, the value chain analysis provided for Mr. Waldrop consists of information about what can be
done when the product is put on the market.
The situational analysis will give Mr. Waldrop the knowledge to know outside factors, market analysis,
and information on existing products in the toy, doll, and game manufacturing industry. The information
in the situational analysis will provide a better understanding of the direction Mr. Waldrop should go in
with the product, as well as if the product will be successful.
Environmental Analysis
2.1 Economic Factors
During the past five years, the toy, doll and game manufacturing industry has fallen into negative revenue
growth at a rate of -0.3% per year. IBIS World states that the industry will see a positive revenue growth
of 0.7% per year over the next five years, 2015-2020. Revenue is forecasted to decline 2.1% in 2014 but

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will then increase by 0.7% the next five years to reach $2.4 billion. 1
One of the largest factors affecting
the toy, doll and game manufacturing industry is that labor cost rising in China. With the increase in labor
costs, an emerging trend of “reshoring” is occurring. Reshoring is the act of a company that relocates
manufacturing operations back to the United States, where there are lower compliance and transportation
costs, and a greater ability to respond to changes in the market.2
Currently, the increase of labor costs have
driven 500 U.S companies to reshore, which means that about 60% of the work that was previously being
produced in China has now been brought back to the United States. Since the one-child policy in China
has been in effect, the workforce has dropped by about 3.5 million workers per year3
. Workers are less
likely to work in inhumane factories that treat their workers poorly, this has resulted in employee
dissatisfaction which drives to employee strikes and an extremely high turnover rate.4
Reshoring will help
the manufacturing industry, as well as finding investors to make new products since they will be able to
communicate with the manufacturing company. This allows them to adapt and change the product rapidly
and in a timelier manner as the market changes
2.2 Social Factors
Over the past four years, smartphone ownership has grown increasingly popular in the United States. In
2010, there were a reported 62.6 million active smartphone users nationwide; currently, the reported
number of smartphone users is 163.9 million. Consumer analysis sees no end in the smartphones
popularity, due to the fact the number of smartphone users could potentially hit 220 million by 2018 in the
United States. 5
Worldwide smartphone ownership and usage skyrocketed tremendously, with 1.43 billion
users worldwide, in 2014. The usage is then expected to increase to 2.50 billion smartphone owners.6
The
below graph shows the increase of smartphone ownership and usage from 2012 to 2017.
1
http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?indid=894
2
http://en.wiktionary.org/wiki/reshoring
3
http://www.industryweek.com/ask-expert-reshoring/how-will-chinas-labor-turmoil-and-rising-wages-impact-reshoring
4
http://www.industryweek.com/ask-expert-reshoring/how-will-chinas-labor-turmoil-and-rising-wages-impact-reshoring
5
http://www.statista.com/statistics/201182/forecast-of-smartphone-users-in-the-us/
6
http://www.emarketer.com/Article/Smartphone-Users-Worldwide-Will-Total-175-Billion-2014/1010536

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Smartphone usage has increased worldwide due to the fact smartphones are relatively inexpensive to make
when compared to their counterpart, the computer.7
Smartphones are not the only item that is popular and
on the rise. Social media sites have become a huge sensation. Approximately 1.28 billion people use
Facebook on an active basis, with 1.01 billion of those users signing in via their smartphones. With this
increase, mobile applications are slowly replacing board games8
.
2.3 Political Factors
Political factors are constraining factors which include taxation and pricing policies that affect the
company. The term “Brain Train” doesn’t have a copyright nor does the game itself have a patent.
According to the analysis done by Lambert and Lambert for Mr. Waldrop’s product, only two percent of
patents are successful.9
Political factors may change over the patents lifetime, therefore Mr. Waldrop will
need to be informed on any current and future laws that may influence and affect the products
development during its lifetime.
7
http://www.emarketer.com/Article/Smartphone-Users-Worldwide-Will-Total-175-Billion-2014/1010536
8
https://zephoria.com/social-media/top-15-valuable-facebook-statistics/
9
Invention/Technology Evaluation Results from Lambert & Lambert

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2.4 Technological Factors
Mr. Waldrop is wanting to potentially create a mobile application for Brain Train. Since technology based
games are increasing, if Mr. Waldrop decides to create the mobile application, there would need to be an
understanding of the advantages and disadvantages such as mobile applications. Online capabilities would
be the next step of technological advancement for this idea. This would help advertise the game through a
whole new market rather than in brick and mortar stores. If Brain Train was an online game, people of all
nationalities could be involved into the game and play globally. This would enhance the communication
aspect of the game and in turn would be easier in terms of educational value. Technology is growing,
therefore Mr. Waldrop’s product would benefit from researching technological innovations and
advancements related to the product.
2.5 Ecological Factors
Through research, ecological factors or risks related to Mr. Waldrop’s product have not been found. If Mr.
Waldrop’s product goes to a mobile application rather than a physical game, there will be no ecological
factors that will affect the final product. If Mr. Waldrop does not go with a technology based application
for Brain Train, there would be ecological factors like the cost of materials being used for the board game,
paper, ink, etc. Depending on the direction Mr. Waldrop goes will be the deciding factor if there are any
ecological factors that need to be taken into consideration during the creation of Brain Train.

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Industry Analysis
3.1 Porter’s Five Forces
When a company is trying to figure out what direction they want to take a product in, it is important to
pinpoint which industry the product would prove and preform the most successful in. A proven effective
method of doing so is using the Porter’s Five Forces to conduct an industry and market analysis. Using the
Porter’s Five Forces Analysis allows a company to measure the bargaining power of suppliers and
customers, the threats of new entries to the market, any products that can be substitutes, and the
competitive rivalry within the company’s industry.
For Mr. Waldrop, conducting a Porter’s Five Forces analysis is of the upmost importance since Brain
Train is in the beginning stages. Due to Mr. Waldrop’s product being in this stage, it is important to fully
understand the industry Brain Train will be implemented. The more knowledge and information gained
about the toy, doll, and game manufacturing industry, the more easily informed well educated choices can
be made. To make these decisions, each key factor regarding the toy, doll and game manufacturing
industry is scored on a scale one through ten, with one being weak in the area and ten being strong. After
figuring out the necessary factors scores, the scores will be added and averaged to see what the proposed
product’s market likelihood score, which has a correlation of how likely the product is to succeed.

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Below is a graph of some of the life stages of the market.
According to the graph, the toy, doll, and game manufacturing industry falls into the “decline” segment in
the above graph. This “decline” means that there is a shrinking economic importance in the terms of items
and various goods produced within the market. A product within this field is of decreasing importance in
today’s economy, making this a barrier to entry for Mr. Waldrop.

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3.2 Competitive Rivalry within the Industry
There are 527 businesses currently listed as manufactures in the in the toy, doll, and game manufacturing
industry. According to IBIS World, competition within the industry is high, and the trend is staying at a
steady rate.10
There are currently many different types of toys, dolls, and games including board games,
electronic and non-electronic games, card games, and many others. Since there is a large variety of toys
and games that exist for all ages, it is difficult to narrow down every game that has a separate element of
music and critical thinking. Although narrowing down the games that include both of those elements,
music and critical thinking, is fairly easy, since Brain Train is centered on musical elements with critical
thinking.
3.2.1 Threat of New Entrants
The toy, doll, and game manufacturing industry is saturated with existing and established companies while
the number of participants seems to be steady. The vast majority of the market share is controlled by
stores, such as Walmart, Target, Toys R Us, and Kmart. This acts as a natural deterrent to new board
games and companies. The reason for this is that a large portion of these retailers shelf space is occupied
by products manufactured by incumbent players. As a result, new entrants will find it difficult to compete
against the industry’s largest players in gaining new supply contracts, this will ultimately cause poor sales.
3.2.2 Threats of Substitutes
As stated previously, the board game industry is already supersaturated with competition. In fact, there
are over 527 companies alone that associate with selling board games. According to IBIS World, “The
most significant barrier to entry is the amount of time, research and capital required to establish a brand,
10
http://clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?entid=894#BOC

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along with the complexities involved in developing unique product designs, and protecting intellectual
property rights and trademarks. The high-cost and long-term nature of establishing brand reputation is,
hence, the largest barrier to entry. Already established brands such as Hasbro and Mattel have respective
product offerings and new entrants will be compelled to invest money and time to persuade consumers to
shift away from recognizable brands.”11
3.2.3 Bargaining Power of Buyers
Toys, dolls, and games in the United States are used on a daily basis, especially by children. This presents
a large group of potential customers that could use Mr. Waldrop’s product. As the United States
population rises, more people are having children. There are currently four million babies born in the
United States within a year.12
However with the rise of technology, many people have switched over from
board games and physical toys to technology-based entertainment by the use of computers and cell
phones. The average age for children to receive their first cell phone is age 11. There are 77% of children
ages 12-17 who have a cell phone.13
Since the majority of children and adults have a technological device,
the need for a card game or physical product such as Mr. Waldrop’s will decrease unless a mobile
application is created.
3.2.4 Bargaining Power of Supplies
There is no surprise that there is a large variety of competitors in the toy, doll, and game manufacturing
market. Although there are many competitors, this is a positive aspect because there are also many
suppliers to produce these products. In return this will make the development stages easier for Mr.
Waldrop.
11
http://clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?entid=894#BOC
12
http://www.nichd.nih.gov/health/topics/infantcare/conditioninfo/Pages/born.aspx
13
https://faithandsafety.org/cell-phones-and-kids

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3.3 Individual Component Analysis & Average Industry Evaluation
Few Competitors
There are not many companies in the toy, doll, and game manufacturing industry that produces a game
that involves both music and critical thinking. Since there are only a limited number of companies that
produce these types of games, most games are either musically inclined or involve critical thinking.
Therefore, a score of 7 has been assigned to this component.
Quality-Based Competition
Many markets have brand loyalty as a high importance factor; however, this does not seem to be the case
in the toy, doll, and game manufacturing industry. Trends show that consumers in the toy, doll, and game
manufacturing market do not buy based on brand name but what the product has to offer.14
This is an
advantage for Mr. Waldrop since his product is in the beginning stages, and Mr. Waldrop currently does
not have the financials or a company to support branding his product. If Mr. Waldrop can produce a
product that is of high quality and offer great value to the consumer. The likelihood of a larger company
like Hasbro or an individual investor purchasing his intellectual property rights will improve greatly. For
that reason, a score of 6 was assigned to this component.
14
http://www.emeraldinsight.com/doi/pdfplus/10.1108/10610421011018347

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Barriers to Entry
The toy, doll, and game manufacturing market has several barriers to entry. A comprehensive barriers to
entry checklist is shown below.
The board game industry has many barriers to entry that can prevent new companies and products from
emerging. The market has a vast amount of competition and technology has also become a major threat to
the industry. Mr. Waldrop should start getting the idea patented before he continued with the creation of
the product. Due to the high risk of the board game industry, a score of 4 was assigned to this component.
Number of Entrants

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The expectations of new entrants is low for the reason stated above, the game market has barriers that
make it difficult for individuals who are starting out in the toy, doll, and game manufacturing industry. A
score of 3 was assigned to this component.
Number of Substitutes
There are over 527 companies alone that associate with selling board games. This allows for consumers to
have a variety of games to choose from when making a purchase. Due to having a great amount of
substitutes, individuals trying to start in the toy, doll, and game manufacturing industry need to take into
effect the risk of having the large amount of substitutes. A score of 2 has been assigned to this component.
Number of Customers
With the rise of cell phone usage by children ages 11-17, many game uses have switched to mobile
applications. The use of board games has slowly moved out of the consumer’s eye, while it has moved to
the use of technology based games. A score of 4 has been assigned to this component.
Fragmented Customers
As mentioned above, the majority of consumers have a technological device that is use for entertainment.
This has a major impact on the toy, doll, and game industry is that most people who use these products
range in ages 4 to 12. This represents a very refined and fragmented niche for Mr. Waldrop’s product. A
score of 2 has been assigned to this component.
Number of Suppliers
The materials used to create games are primarily produced by a large variety of manufacturers. A vast
amount of these companies solely manufacture toy and game products, allowing for businesses within the
industry to have a great amount of suppliers to choose from. A score of 7 was assigned to this component.

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PORTER’S FIVE MARKET ANALYSIS
COMPANY NAME: Dave Waldrop – Brain Train
RATING 10-1 (FAVORABLE TO UNFAVORABLE)
COMPETITORS BASE 7
QUALITY BASED COMPETITION 6
BARRIERS TO ENTRY 4
NUMBER OF ENTRANTS 3
NUMBER OF SUBSTITUTES 2
NUMBER OF CUSTOMERS 4
FRAGMENTED CUSTOMERS 2
NUMBER OF SUPPLIERS 7
TOTAL SCORE 35
AVERAGE 4.375

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Overall, Mr. Waldrop’s product scores 4.375 out of ten in terms of its feasibility in the toy, doll, and game
manufacturing market. These numbers are not the most favorable but many key aspects must be taken into
consideration. Mr. Waldrop is dealing with a product that is in the beginning stages of development. Since
the product is in early stages, it allows Mr. Waldrop to shape a business strategy that focuses on the
industry and market strengths while weaknesses can be worked out. This allows for the product to have
potential if an investor or company decides the product is worth the risk in the competitive market such as
the toy, doll, and game manufacturing industry.
Although Mr. Waldrop’s product is in the beginning stages, it does not mean that the weaknesses can be
ignored. The market has such a high volume of competitors; the product is different, no game offers music
and critical thinking. His product needs value and quality.
3.4 Competitive Benchmarking
In this section, we will look at the competitive aspects within the toy, doll, and game manufacturing
industry. Critical Success Factors in each industry are the main subjects in which a business must thrive in
order to be considered successful within the industry. The critical success factors in the specific industry
of toy, doll, and game manufacturing include: best prices, best service, ways to purchase, quality, and ease
of use.
The table on the following page compares Brain Train to its competitors. The critical success factors are
graded for each business. Each business’ score is averaged to reach the overall score of the business. Brain
Train is in direct and close competition to its competitors within the industry. This information shows
where Brain Train should be placed in comparison with similar products.

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Table 1:
Grading Scale: 1 Low, 5 High
Critical Success 1. PRODUCT NAME: 2. PRODUCT NAME: 3. PRODUCT NAME:
Factors (1-5) Brain Train Guess The Song BEAT MP3
Best Prices Undetermined 5 3
Ways to Purchase Undetermined 5 5
Quality Undetermined 4 5
Ease of Use Undetermined 4 3
Total ----- 18 16
AVERAGE ----- 4.5 4
STRENGTH Can be used in schools Free to play Fast and exciting

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gameplay
Will be on IPhone &
Android
Current Songs Multiple Artist
Thought Provoking 10 Million downloads,
3 Million Users in the
United States
Strong multiplayer
presence
WEAKNESS No Patent In app purchases
prohibit users from
playing if they are not
made
Multiple Products
3.4.1 Best Prices
Prices vary within the toy, doll, and game manufacturing industry. Brain Train competitors offer lower
prices for mobile applications while another competitor offers a higher cost. This is done to compensate
for the higher production cost for individual mobile applications, this includes licensing fees for songs,
and better layouts alongside animations. Since Brain Train is currently not a manufactured product, there
is no way to give an accurate rating for price. Although Brain Train does not have a physical product in
the market, the product can be aimed to be priced within its competitor’s price range.
3.4.2 Ways to Purchase

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Purchasing within the toy, doll and game manufacturing industry varies depending on the product type. If
the product is technology based and a mobile application, purchasing will be tremendously easier than
purchasing within a brick and mortar store. Brain Train’s competitors are both mobile applications making
it fairly easy to purchase. Users can purchase with their credit cards over Wi-Fi via app stores which are
safe and secure. Downloads would only takes a few seconds to be added to a consumers device. If Brain
Train is created into a mobile application, purchasing would be simple and hassle free. It would also allow
Brain Train to be in direct completion with its competitors.
3.4.3 Quality
The quality of a game can make or break the product. Since Brain Train is currently still in the visionary
phase, research of the competition would be beneficial. The competition has great quality ratings at 4 and
5. These ratings show that the competition is producing high-end quality mobile applications. Brain Train
should see the quality that is needed to be produced to stay with its competition. A team of coders would
be needed in order to procure an application of high quality
3.4.4 Ease of Use
Since the toy, doll, and game manufacturing targets a large group of individuals varying in age, ease of
use of a product is highly important. With Brain Train still in the beginning stages and without a clear
indication if it will be technology based, Mr. Waldrop will be able to customize the ease of use based on
the competitions. Brain Train’s competitors have good ratings for ease of use and will need to be
considered with the creation of Brain Train.
3.5 Detailed Description of Competitors
Below is a detailed description of Brain Train’s competitors. This will allow Mr. Waldrop to have a better
understanding of the competition alongside what is needed to produce a high quality application.
Guess that Song is a well-established mobile application game, in which users compete for top scores in
guessing songs, lyrics, and other musical facts. Currently, the application states it has over ten million

Page | 31
downloads worldwide, with three million being in America. The game is free to purchase, but in order to
compete with other users, one must download song packs via an in game application purchase. Guess the
Song is offered on both iPhone and Android platforms, which means it is available to a majority of
smartphone users. The game is very well coded, meaning it does not run down the user’s battery on their
phone, and also has an easy to use contact page in case the players have problems. The developer can
easily contact the players.
Figure 1- Guess the Song Example
The above picture on the left illustrates that Guess the Song has very high production value. It is apparent
that a great deal of effort was put behind selecting the color schemes, texts and graphics. It also allows for
potential users to view what genres of music are available before one purchases the product. The above
picture on the right shows what Guess the Song looks like in the Google Play Store. It provides the
customer with a very brief overview of the application. One key point it highlights is, 10 million

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downloads with an average of 4.3 out of 5 stars by over 20K users. It further goes on to elaborate and tell
the customer that there are “thousands of hits to guess”15
.
BEAT MP3 is an application created by Creapptive Co., LTD. It currently has one million downloads
worldwide, with an average user rating of 4.0 on the Google Play Store. The object of the game is to listen
to songs and attempt to match the beat with various buttons. It offers competitive multiplayer games
where users compete for the best scores, highest streaks, and longest time without error. The game is free
to purchase, but users must also pay to unlock new songs. One main issue that was brought up in several
reviews was the fact some purchases would not show up on user’s accounts, or the game would crash in
the middle of the song. This is due to bad programming and coding. Unlike Guess the Song, there is not a
lot of production value placed in this game, instead BEAT MP3 is very simple and straightforward16
.
BEAT MP3 is strictly a music based game with no critical thinking involved.
Figure 2- BEAT MP3 Example
15
Google Play Store, “Guess The Song”
16
Google Play Store, “BEAT MP3”

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The above left picture shows BEAT MP3 in the Google Play Store. It provides customers with a video
above the title that allows the customer to see the game in action. This is useful due to the fact users may
simply watch the video rather than read over the in-depth description of the product. The above right
picture shows a downside of the application. It is dark in color, it is clear that not a lot of thought went into
color schemes or layouts.
3.6 Competitive Benchmarking Conclusion
After scoring Brain Train and its competitors in the competitive benchmarking table shown in Table 1, we
can conclude that Brain Train is in direct competition with its main competitors. There are some major
factors within the industry that Brain Train is not as prosperous in compared to its competitors, however,
there is also some factors that Brain Train surpasses or equals its competitors. Since Brain Train has not
officially been manufactured, it makes it difficult to get a true rating for the competitive benchmarking.
Once Brain Train has been created, Mr. Waldrop will be able to get achieve a better understanding of the
ratings for the product.

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3.7 Value Chain Analysis
The purpose of a value chain analysis is to take an in-depth look at the company to evaluate the success
factors. A value chain identifies the specific process or products that create value within the business.
Since Mr. Waldrop’s product is in the beginning stages, there is no physical product to evaluate with a
value chain analysis. Even though Mr. Waldrop has not started production on his product, the value chain
analysis can still be used to evaluate Brain Train. Since there is no concrete product produced yet, Mr.
Waldrop can implement hypotheticals to better suite his needs. The value chain analysis can look like the
diagram below.17
Mr. Waldrop would greatly benefit by protecting Brain Train with a patent. The start of getting a patent
would allow Mr. Waldrop to have time to create the product and understand the strengths and weaknesses
without another company taking the idea. Since Mr. Waldrop has a product already envisioned, the design
can be modeled and perfected during the beginning steps.
Once patents, copyrights, and designs are addressed, Mr. Waldrop can choose producers and
manufacturers for the product. Even though, the product is not physically created, Mr. Waldrop will be
able to figure out the companies he wants to work with to create and manufacture his product. Along with
17
http://www.vertexips.com/information/articles/questions.html

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deciding how Mr. Waldrop would build the product, the thought process for sales channels, customer
base, and brand recognition can begin.
Since the creation of the product is in the beginning stages, the step of wholesalers and distributors can be
substituted with advertising and promotion. Alongside that, Mr. Waldrop will also learn about the market.
Ways to promote and advertise the product will take time to figure out because knowledge of the market
will need to be understood. These aspects can be thought about with a similar thought process of where
the product will be sold. It takes time to get a product to a retailer to put in their business. Mr. Waldrop
would need to do a test run in various public and private schools to see how well Brain Train is received.
Overall, the findings in this analysis show that Mr. Waldrop will face some struggles but there is a chance
for success with the product and the potential chance for failure. Until the toy, doll, and game
manufacturing industry has an increase in growth instead of a decline, it will be difficult to pinpoint how it
will help or hurt the product Mr. Waldrop is trying to create in the next five years.
There are positive and negative factors facing Mr. Waldrop and his idea. For there to be success, Mr.
Waldrop needs to take advantage of all the strengths shown in the above analysis and find ways to turn
weaknesses into strengths.

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Feasibility Analysis
4.1 Overview
Throughout our team’s work with Brain Train, Mr. Waldrop wanted to gain further knowledge about the
potential success of Brain Train. To help gain more knowledge for Mr. Waldrop in the creation of Brain
Train, our team created a survey that provided questions about how professors at Western Carolina
University and students who are obtaining education degrees thought how educational games within the
classroom. Since Mr. Waldrop wanted to target the school systems as the first target market, our team
ideally created the survey to allow first hand data to deliver to Mr. Waldrop. Along with creating the
survey, our team contacted Chad Scott and Josh Fry, the creators of Salamander Games to gather inside
knowledge of the gaming industry. By having this interview with Mr. Scott and Mr. Fry, our team was
able to gain valuable information from professionals in the gaming industry to provide to our client. Our
team asked Mr. Scott and Mr. Fry twenty-six questions ranging from their background in the industry,
advice to Mr. Waldrop for the gaming industry, and advantages and disadvantages of Brain Train. The
most important questions and answers can be found below while the rest of the questions will be located in
Appendix 2.

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4.2 Interview with Salamander Games
Our team has decided the top eight questions and answers from the interview with Mr. Scott and Mr. Fry
to elaborate to Mr. Waldrop. The complete interview will be available for review in the appendix. These
eight questions will be a great attribute to Mr. Waldrop and the creation of Brain Train. The below
questions are directly from the interview with Mr. Scott and Mr. Fry.
Q. Is getting into the gaming industry recommended?
Mr. Scott – It depends on what your goals are. The gaming industry is a very high risk, low reward
industry. As far as a hobby game goes, most games don’t go past their first print run of about 1500 units.
If you are looking to get rich making games, it can be done, but you are going to have to have a
blockbuster game, most are small successes. If you want to do it for the experience or just enjoy it as a
hobby then you should definitely join the industry.
Mr. Fry - That is a hard question to answer directly. The gaming industry (video AND analog) is a hard
one to break into. Video gaming usually involves getting a very technical or artistic skill set and working

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for others to make their dreams a reality for a long time before you get a shot at designing something of
your own. Tabletop gaming is somewhat similar. While the barrier to entry is smaller in the non-
electronic market in terms of development and delivery costs, you are still looking at designing games and
trying to pitch them to existing publishers which can be hard to find success with or you can try to self-
publish which can be expensive for an individual. I definitely wouldn’t get in to the market if money is
your aspiration, you should get into it for creative fulfillment.
Q. How challenging is it to get into the gaming industry?
Mr. Scott – The barrier to entry is very low. If you are going the self-publishing route, Kickstarter has
made getting a game out there and started much easier than it used to be. To get a game out there on
Kickstarter, you need your game prototype, some graphics, a polished campaign, and a marketing
presence to get funded. If you are going to sell to another publisher, you need a good prototype and
enough salesmanship to get heard and get them to love the game as much as you do.
Mr. Fry - It is very challenging to succeed in the gaming industry but getting into it, at least on the non-
digital side, is not that difficult. If you have an idea and the willingness to work tirelessly to improve it
enough to make it marketable, you can become a tabletop game designer.
Q. What obstacles could you face when getting into the gaming industry?
Mr. Scott– There are plenty of obstacles that can trip you up upon entering the industry. First you have to
make sure your game is different enough from existing games out there. Staying positive and motivated
can be tough if you are getting tough feedback. However, you have to be open to feedback both positive

Page | 39
and negative. Life also often tends to get in the way, be it someone is getting married, the birth of a child,
death of a family member, job/location change, or even a falling out in your group.
Mr. Fry- There are many obstacles, most notably getting noticed. There are a lot of people designing
games at different levels of professionalism and Kickstarter reflects this. Getting noticed by a publisher
can be extremely difficult as many are small enough that they only publish a few new games a year.
Publishing your own games requires a lot of effort marketing, developing, playtesting, and publishing
your product that requires more than just a desire to make a fun game. You have to be willing to take on
the (unpaid) duties of a full time publisher while you are likely also working a full time job to keep the
bills paid.
Q. What is the success rate for a first time game maker?
Mr. Scott – I am not certain what the success rate is. I can tell you that a lot of games on Kickstarter fail
to fund. If I remember correctly there is about a 30% success rate in funding. However, as with all
statistics you need to take that with a grain of salt. That number includes companies that are already in the
industry and have a large following. It also includes projects where the goal is $50 and you know it is
going to fund. On the failure side there are those that are just horrible games as well as those that have
very poorly designed campaigns or no market following.
We are one of the failures on Kickstarter. We got a little over 60% funded on there, raising $7,000. Our
main problems were not a large enough following, timing with reviews, and I think our price point was a
little high.
Mr. Fry - I’m not sure I’ve seen this quantified but I would imagine if you are talking about success as
getting your first designed game published, I bet it is less than 20%. If you are talking about making any
real MONEY from it, it is probably less than 2%. Most first time game publishers end up breaking even
or even sacrificing a little development money to see their idea become a reality.

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Q. How much monetary needs does one need to start a game?
Mr. Scott – If you use Kickstarter, you really only need enough money to create a few prototypes to send
out to reviewers to get some buzz going. However, if you don’t have any graphical folks on your team,
you may need to hire an artist for anything you need in that department. Then you will need a video
made, which you can do with an iPhone if you want to, but you are seeing more and more professional
videos out on Kickstarter these days. However, to make the game your Kickstarter will need to raise
enough money to cover all your production costs.
When it comes to actual manufacturing costs, it really varies depending on what the components of your
game are. You are most likely going to have to do a print run of at least 500 units unless you go with a
print on demand service. It also depends on quality and printing company as to what your final per unit
cost will be. If you are doing a small card game with a set of rules, the cost can be around $3.50 or so per
unit for a print run of 500, with costs going down the more you print.
Mr. Fry - To develop a game idea from inception, you will need costs to allow you to build iterative
prototypes, which is usually minimal but does depend upon your game components. There are several
companies out there which will ‘Print on Demand’ copies of games, allowing you to produce in a
semiprofessional fashion your own game design idea. This can be good for concepting although it will
cost about half what you would normally sell the game for to print this way so it is not a commercially
viable production solution really. If you opt to just do designs, you do not need to create a business
necessarily for that and can work as many designers do on a purely freelance basis. If it is your intent to
publish your own game (as I suspect it is from the sound of this project), you would need to set up an LLC
or S Corp and put a few straightforward business elements in place. A PO Box, a website, a business
phone number, lining up a CPA and possibly a lawyer. All of these are business necessities and while
they don’t cost a lot, you would need to spend several thousand dollars and some of your time to make
that happen. Beyond that, you are looking at printing, shipping and advertising costs, warehousing costs,

Page | 41
and order fulfillment expenses if you are going to publish and sell your own product which can get you up
into the $20-60K range.
Q. If someone sells their vision to a larger gaming company, how much percentage would they
receive for their game?
Mr. Scott– A typical contract to a designer is 3-5% of MSRP. 5-6% of Wholesale. 20-25% of Net Profit.
If you go this route, look for clauses like a guarantee that the game will be out in 2 years or you get to take
the game to a different publisher.
Mr. Fry - For a first time game designer, the percentage would likely be a flat fee. Many first time game
designers simply sell their design to a company that then has full rights to it. Since they are taking on the
risk, they limit their risk in payout of potential profits if the game is (likely) not a huge seller. In the
instances where a designer signs over the production rights on a game, the percentage varies widely based
on the publisher but I have seen examples of a flat fee of 4-10K plus a percentage (like 5-8%) of the sales
on the game. As you can see, you aren’t going to make big money selling designs to a publisher unless
you churn out quite a few that are good enough to buy every year. Obviously once someone makes a
name for themselves in the industry like Eric Lang for example, his designs are highly regarded and I’m
sure he is paid much better for them in turn.
Q. What is the hardest aspect of creating a game?
Mr. Scott – This is going to vary from person to person. When we first started, it was being new, not
knowing enough and trying to get your name out there. Nowadays the biggest hurdle for me is time. It is
tough to balance your day job and family and still have time to work on games. This is especially true with
a young child. It seems like I get interrupted by someone or something every 10 to 15 minutes unless I
say up really late and then I am exhausted, so that is really not an option.

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Mr. Fry - Coming up with an idea is the easy part, the hard part is refining it, play testing it, refining it
more, finding people to play it and give feedback repeatedly over and over until it is good enough to put
out there for the world to see. You really have to stick with it, have thick skin, and be prepared to
compromise on your idea to turn it into something sellable. Once you have it produced, visibility is by
FAR the most difficult thing to achieve. Without an enormous marketing budget, getting your game out
there for people to look at and try is an uphill battle.
Q. How long does it take from start to finish to make a game?
Mr. Scott - If you are talking from concept to finished product, that varies widely based on the creator.
Once you have the game designed and the rules are set, it can still vary depending on art needs, play
testing, marketing, and then manufacturing. Once you have it at the printer, it can be a quick turnaround
of about a month or two, or it could be longer if you are using a popular printer and they have a large
queue ahead of you, it could take more like four months. Overseas printing you also have to take things
into account like Chinese New Year and customs when freighting it back to the US.
Mr. Fry - How long does it take to build a mountain? No, in all seriousness game development can be a
long drawn out process. It depends on several factors: Are you doing game development as a full time
job? Do you have the financial resources to expedite playtesting iterations and get your art and creative
design done in a rapid timetable? Do you have the money to send it off to a printer and have it done or are
you going to have to raise funds to help with this? I have seen games done by contracted full time
designers with the big publishers take about 8-10 months from concept to release but that’s very rapid.
Usually smaller developers can take 6 months to a year or more to develop the game, then 4 to 8 months to
get their product ready for market and fund an initial print run.
Q. What are some tips or advice you would give somebody who wishes to create a board game?

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Mr. Scott - The main advice is play test. Don’t just play test with your friends and family. They are
usually going to be supporting and tell you your game is great. Sometimes you get those friends that are
always honest no matter what and will tell you your game sucks if they don’t like it. Take your game to a
Protospiel. At Protospiel there are people testing and giving good feedback and publishers are there
looking for new games. Also, blind play testing is encouraged as well. Blind play testing is where you
drop off the game and don’t say a word. You let them read through the rules and play the game on their
own.
Mr. Fry - First I would make sure you are doing it because you have a passion for design or a desire to
create something to share with others. If you don’t start there, you will tire of the process. Secondly, I
would look at how other companies go through the process and try to learn from their direction. We have
all screwed up out there trying to get to the end of the process and seeing how others have gotten around
problems can help you avoid them in the future. Nowadays the Internet and social media makes some
amount of that possible. Thirdly, don’t be afraid to get out there and share your idea. Show it to everyone
who will look at it. Share your passion for it, get them excited. Listen to feedback and have an open mind
to it, try to look at your design from the eyes of other people and see if there is something you can do to
make it better. Finally, don’t get discouraged. As with any major creative endeavor, you will have people
tell you why you can’t do it or why you shouldn’t. You will have people tell you that the sum of your
labors is crap. They have no investment in it, so it is easy to brush it off of their radar. If you think your
design has some merit, refine it and build it and show it to people and you will find others who agree.
As seen above, the interview with Mr. Chad Scott and Mr. Josh Fry provided detailed information to help
Mr. Waldrop in the creation of Brain Train. The advice from Mr. Scott and Mr. Fry should aid Mr.
Waldrop in his decisions to continue the creation of Brain Train.

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4.3 Western Carolina University Professor Survey
To have a better understanding of individual’s opinions about educational games, our team created a
survey to send out to Western Carolina University’s professors within the different colleges at the
university. The questions on the survey asked demographic questions along with what the professors
thought about educational games in general. Below is the survey our team sent out to professors
throughout the university.
1. What is your gender?
a. Male
b. Female
2. What is your highest level of education?
a. High school diploma/GED
b. Some college
c. Associate degree
d. Bachelor’s degree
e. Master’s degree
f. Professional degree
g. Doctorate degree
3. Employment Status: Are you currently…..
a. Employed for wages
b. Self-employed
c. A student
d. Military
e. Retired

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f. Unable to work
4. What college and department do you current teach in?
a. __________________________________________________________________
5. What type of classes do you teach?
a. __________________________________________________________________
6. What is the highest class level do you teach?
a. 100 level
b. 200 level
c. 300 level
d. 400 level
7. I would use educational games to engage students actively while in class?
(1 being not at all likely, 10 being extremely likely)
a. 1 2 3 4 5 6 7 8 9 10
8. How effective are educational games to college level students?
a. Very Unlikely
b. Unlikely
c. Somewhat Unlikely
d. Undecided
e. Somewhat Likely
f. Likely
9. What are your thoughts about educational games? Please explain:
__________________________________________________________________________
10. What are the advantages about educational games? Please explain:
__________________________________________________________________________

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11. What are the disadvantages about educational games? Please explain:
__________________________________________________________________________
4.3.1 Western Carolina University Professor Survey Results
The results of the survey are shown below to get a better understanding of how professors feel about
educational games in a classroom setting. The purpose of this survey was to show Mr. Waldrop the
opinions and feelings of the individuals who would potentially be using Brain Train in the educational
setting, Mr. Waldrop wishes to target.

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# Answer Response %
1 Male 15 39%
2 Female 23 61%
Total 38 100%

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# Answer Response %
1
High school
diploma/GED
0 0%
2 Some college 0 0%
3
Associate
degree
0 0%
4
Bachelor's
degree
1 3%
5 Master's degree 8 22%
6
Professional
degree
3 8%
7
Doctorate
degree
25 68%
Total 37 100%

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3. Employment status: Are you currently...
# Answer Response %
1
Employed for
wages
37 100%
2 Self-employed 0 0%
3 Student 0 0%
4 Military 0 0%
5 Retired 0 0%
6 Unable to work 0 0%
Total 37 100%
4. What college and department do you currently teach in?
Text Response
College of Education and Allied Professions School of Teaching and Learning
School of Teaching and Learning
WCU College of Education and Allied Professions
College of Education and Allied Professions
WCU
College of Education and Allied Professions; School of Teaching and Learning
College of Business; Business Administration and Law and Sport Management
Business
College of Business/Entrepreneurship, Sales and Marketing, and Hospitality and Tourism
Business / Business Admin. & Law and Sport Mgt.
College of Business - Entrepreneurship
Accounting
Global Management and Strategy
Business, Accounting, Finance, Information Systems, and Economics Dept.
Fine and Performing Arts/Stage and Screen

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Western Carolina University, College of Business
College of Business, Accounting, Finance, Information Systems, and Economics Dept.
Global Management
Business Management
Art
Art Department
Business, Entrepreneurship
College of Fine and Performing Arts - School of Music
Text Response
Mathematics methods for elementary and middle grades majors as well as education seminars for
clinical experiences
Methods
Primarily literacy education courses
Elementary/Middle Grades
GRAD
Face to Face
Education
Methods, lecture
LAW
Business law
Marketing
Sport Mgt.
Face-to-face undergrad & on-line undergrad & Masters
Intro
Quantitative
Accounting
Economics
Studio/lab, lecture
Introduction to Business
Face to face and online. Accounting classes.

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6. What is the highest class level you teach?
# Answer Response %
1 100 level 1 3%
2 200 level 2 6%
3 300 level 4 11%
4 400 level 29 81%
Total 36 100%

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7. I would use educational games to engage students actively while in class
(rating: 0 being very unlikely and 10 being very likely)
# Answer Response %
0 0 3 8%
1 1 1 3%
2 2 1 3%
3 3 4 11%
4 4 2 5%
5 5 4 11%
6 6 2 5%
7 7 5 13%
8 8 5 13%
9 9 5 13%
10 10 6 16%
Total 38 100%

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# Answer Response %
1 Very Unlikely 1 3%
2 Unlikely 2 6%
3
Somewhat
Unlikely
2 6%
4 Undecided 10 28%
5
Somewhat
Likely
7 19%
6 Likely 8 22%
7 Very Likely 6 17%
Total 36 100%

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9. What are your thoughts about educational games?
Text Response
They have to be of the utmost quality in meaning making for me to utilize them
I think the quality can vary, but I think the research is strong on the use of gaming (not just digital) in
all types of classrooms.
This can be an effective strategy as long as it is varied with other approaches.
If they can be completed in less than one 70-minute class period AND if they support my own
objectives, I may use them.
Questions about their ability to appropriately challenge students
I've used many over the years, starting with recording monopoly transactions in accounting ledgers,
two business simulations, making play-doh horse and riders and making punch and keeping track of
costs, accounting baseball... My impression is they work well in small classes but generally not as well
when there are 40-50 students. Except monopoly, played outside of class, worked. It's difficult to
keep the entire class engaged in learning when play is involved.
It depends! Hands on learning is a large part of experiencing the arts... I guess a game could replicate
the tactile experience of art- but maybe not?
If they carry with them a heavy lesson applicable to the course, I am all for it.
They do not replace instruction.
MY SON IS A GAME PROFESSIONAL, SO I AM SUPPORTIVE BUT DOUBTFUL THAT I COULD USE THEM
EFFECTIVELY IN MY CURRICULUM.
If adequate training is provided, I believe they can be very beneficial.

Page | 56
10. What are the advantages of educational games?
Text Response
They can be engaging and a different way of helping students learn
Engagement, modeling of this strategy for teacher candidates (e.g. so that they might use this
approach in their own classrooms)
The good ones can engage students and they provide and they offer another way to teach.
Students can relate
Can apply real world situations and give better understanding of concepts
Experiential learning
Application of theory
Students are often receptive to alternative means of delivering content.
For those students that get engaged and involved, games can make learning more fun and it can bring
real-world aspects into the classroom (such as keeping track of costs as you make something in class,
as they do in manufacturing plants.
Collaboration/competition
We just love games as a culture
Learning without knowing!
significant lasting learning if game is good
Have to see it first, but would hope it would mock the real world
I suppose if done well they would be engaging.
In teacher education, it provides our students with an additional strategy to use in the classroom.
They engage students, they get the message across in a non-lecture way, and they can be more
memorable to students.

Page | 57
11. What are the disadvantages about educational games?
Text Response
Distraction, level of rigor
Don't require critical or creative thinking
If there is no real substance or they are simply to help with memorization, they are a distraction
rather than a true learning tool.
There might be the potential to focus so much on the gamification that learning goals and objectives
are less of a focus. Fun is only effective when learning is at the center.
Sometimes, they take too long, are expensive to buy, or the instructions are ambiguous.
Some students may not take it seriously
Could be boring, too easy
This can't be the sole method of delivery, but I don't see a downside as long as students remain on
task.
Can be distracting for students, can allow a lit if social ladino, and if complicated can be frustrating
and therefore counterproductive (like the simulations I tried).
Often take more than 50 minutes
Screen time as opposed to face time
Potential to get distracted and miss the "lesson"
Not enough of them; sometimes students don't take seriously so impact is not great
Classroom size can limit attention
Not all students/classrooms have the equipment or technology available.
They are blown off as just being fun and games by the students.
Over-use may cause traditional study skills, such as reading, writing, and other things that require
sustained concentration, to wither.
As the results above show, professors at Western Carolina University vary on opinion about educational
games in a classroom setting. Each question in the survey was asked to add a level of understanding of the
reception of board games by those who could potential purchase and use Brain Train in an educational
setting. Question 4, “what college and department do you currently teach in”, was included in the survey
to allow Mr. Waldrop to see the large variety of departments that could potentially use Brain Train.
Question 5, “what type of classes do you teach” and question 6, “what is the highest class level you teach”
were asked to get a better understanding of the individuals taking the survey. It provides information to
see if there is a relation between the type of class and the difficulty of a class for professors to incorporate
Brain Train in the curriculum.

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4.4 Education Major Survey
To have a better understanding of individual’s opinions about educational games, our team created a
survey to send out to Western Carolina University’s students who are pursuing a degree in education. The
questions on the survey asked demographic questions along with what the students thought about
educational games in general. Below is the survey our team sent out to students who are pursuing a degree
in education.
a. Male
b. Female
b. Some college
c. Associate degree
g. Doctorate degree
b. Self-employed
c. A student
d. Military
e. Retired
f. Unable to work
4. Do you find games helpful for learning? Please explain why:

Page | 59
__________________________________________________________________________________
5. Which type of learning tool do you learn best with (choose the one that defines you the best)
a. Auditory
b. Tactical (Hands-on)
c. Visual
d. Written
6. What level of education are you currently teaching or actively pursuing?
a. Elementary
b. Middle School
c. High School
d. College
e. Other
7. How important is implementing technology into the classroom?
(1 being not important, 10 being very important)
a. 1 2 3 4 5 6 7 8 9 10
(1 being never, 10 being always)
a. 1 2 3 4 5 6 7 8 9 10
a. ________________________________________________________________
10. What are the advantages about educational games?
a. ________________________________________________________________

Page | 60
a. ________________________________________________________________
4.4.1 Education Major Survey Results
The results of the survey are shown below to get a better understanding of how students who are pursuing
a degree in education feel about educational games in a classroom setting. The purpose of this survey was
to show Mr. Waldrop the opinions and feelings of the individuals who would potentially be using Brain
Train in the educational setting, Mr. Waldrop wishes to target.

Page | 61
# Answer Response %
1 Male 10 67%
2 Female 5 33%
Total 15 100%

Page | 62
# Answer Response %
1
High School
Diploma/GED
0 0%
2 Some college 10 67%
3
Associates
degree
1 7%
4
Bachelor's
degree
4 27%
6
Professional
degree
0 0%
7
Doctorate
degree
0 0%
Total 15 100%

Page | 63
# Answer Response %
1
Employed for
wages
5 33%
3 Student 9 60%
4 Military 0 0%
5 Retired 0 0%
Total 15 100%

Page | 64
4. Do you find games helpful for learning? Please explain why
Text Response
Yes, they help engage students
Yes, i like challenges.
No. They distract me.
Yes, it helps make certain topics stick
Yes, the act of playing a game is much more memorable than a lecture
Yes because games, for the most part, require the person to follow directions to complete a puzzle.
Sometimes. It depends on how the game functions as compared to what I am trying to teach.
Computer labs are also hard to book and get everyone into in a crowded school.
yes, for some people
Somewhat, it depends on how the person learns.
For skills that are muscle memory dependent
5. What type of learning tool do you learn best with?
# Answer Response %
1 Auditory 0 0%
2
Tactile
(Hands-on)
5 33%
3 Visual 5 33%
4 Written 5 33%
Total 15 100%

Page | 66
6. What level of education do you plan on actively pursuing after college?
# Answer Response %
1 K-5 0 0%
2 6-8 6 40%
3 9-12 2 13%
4 College 7 47%
Total 15 100%

Page | 68
7. How important is technology in the classroom? (Rating: 1 being very
unimportant and 10 being very important)
# Answer Response %
0 0 0 0%
1 1 0 0%
2 2 0 0%
3 3 0 0%
4 4 0 0%
5 5 2 13%
6 6 2 13%
7 7 5 33%
8 8 2 13%
9 9 1 7%
10 10 3 20%
Total 15 100%

Page | 70
# Answer Response %
0 0 1 7%
1 1 0 0%
2 2 0 0%
3 3 0 0%
4 4 0 0%
5 5 1 7%
6 6 2 14%
7 7 2 14%
8 8 6 43%
9 9 1 7%
10 10 1 7%
Total 14 100%

Page | 71
9. What are your thoughts on educational games?
Text Response
They are great, not used enough in the class though
Can be used to lighten the mood in a productive way.
They helped me learn growing up, so I think they are great
Could be useful in improving students retention rates
Not much experience, but I think if a school had the resources it would be beneficial.
Educational games help kids stay focused
They are important for different styles of learning in children
It’s good for different learning styles
They promote communication between classmates
They aren’t really used very much
They are out dated.

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10. What are some advantages of educational games?
Text Response
Inexpensive, reusable, fun.
Attention retained
They're fun for kids.
Help reinforce what is taught in the classroom
They can teach kids basic information outside of the classroom and make it fun. Pajama Sam helped
me learn to read and think critically, as well as helped with some math. They can help tremendously.
Using all learning styles in a single lesson and could make learning "fun"
Motivation, a change of pace, more work being done.
Focused kids, and less worries
Children can learn from different approaches
It gives kids different learning opportunities
Get bored students involved
They can engage younger students
11. What are some disadvantages of educational games?
Text Response
Not all students are engaged.
Motivating students
They can be a distraction.
Kids could possibly miss the point, but if it's made well that shouldn't be an issue
Some students may excel more than others or the take away lesson may be missed.
Students will get off task quickly.
Not everyone favors games
Not every kid loves games
They can be expensive, not all the students like games
Students can get off track/ won't take it seriously
As the results above show, students obtaining an education degree at Western Carolina University vary on
opinion about educational games in a classroom setting. Each question in the survey was asked to add a
level of understanding of the reception of board games by those who could potential purchase and use
Brain Train in an educational setting. Question 5, “what type of learning tool do you best learn with”, was
included in the survey to allow Mr. Waldrop to see if the learning style of Brain Train corresponds with
the current learning style of students who are currently enrolled in the School of Teaching and Learning at
Western Carolina University. Question 6, “what level of education do you plan on actively pursuing after

Page | 73
college” was asked to get a better understanding if Brain Train’s concept would be marketable towards the
specific target market that the students would potentially be teaching.

Page | 74
Conclusion
Through the research conducted for Mr. Waldrop through the situational analysis and the surveys
completed by Western Carolina University professors and education majors, Brain Train has a vast
amount of information and data to further the company’s knowledge in the gaming industry.
Understanding these aspects will be a great attribute to Brain Train during the creation and production of
the game.
Recommendations
After extensive research and first hand data provided through surveys, it is shown that Brain Train has a
chance of being successful. Through the survey data provided by Western Carolina University professor
and students pursuing degrees in education, these individuals provided information about how helpful
educational games are in a classroom setting but some also said educational games are a waste of time
within instruction time and would not use games in their classroom.
For Brain Train to not fail, Mr. Waldrop will need to add areas of interest to the game (i.e. subject
categories, current events, etc.). To be successful within the toy, doll, and game manufacturing industry,
Mr. Waldrop will need to take inconsideration the changes that need to be made to Brain Train. The aspect
of the original game can be difficult to incorporate into school’s curriculum. If Mr. Waldrop added topics
related to the area of study, it could have a potential to be a success in the educational game market. Brain
Train has good structure but with the proper molding and figure out proper requirements for marketing
educational games to school systems.
Regards
Our team has truly enjoyed working with Mr. Waldrop and researching information to help the creation of
Brain Train. We would like to thank Mr. Waldrop for allowing our team to work with him and learning
the game, Brain Train. We hope Mr. Waldrop finds success with the creation and Brain Train.

Page | 75
Bibliography
"Cell Phones and Kids." Faith and Safety. Web. 24 Sept. 2014. <https://faithandsafety.org/cell-phones-
and-kids>.
"How Many Infants Are Born in the United States Each Year?" NIH. Web. 13 Oct. 2014.
<http://www.nichd.nih.gov/health/topics/infantcare/conditioninfo/Pages/born.aspx>.
Invention/Technology Evaluation Results from Lambert & Lambert
Moser, Harry. "How Will China's Labor Turmoil and Rising Wages Impact Reshoring?" Industry
Week. Web. 3 Oct. 2014. <http://www.industryweek.com/ask-expert-reshoring/how- will-
chinas-labor-turmoil-and-rising-wages-impact-reshoring>.
"Number of Smartphone Users in the U.S. from 2010 to 2018 (in Millions)." Statista. Web. 29 Sept.
2014. <http://www.statista.com/statistics/201182/forecast-of-smartphone-users-in-the-us/>.
"Product and Brand Management." Emerald Insight. Web. 21 Oct. 2014.
<http://www.emeraldinsight.com/doi/pdfplus/10.1108/10610421011018347>.
"Reshoring." Wiktionary. Web. 2 Oct. 2014. <http://en.wiktionary.org/wiki/reshoring>.
"Smartphone Users Worldwide Will Total 1.75 Billion 2014." EMarketer. 16 Jan. 2014. Web. 24
Sept.2014.<http://www.emarketer.com/Article/Smartphone-Users-Worldwide-Will-Total-1
75-Billion-2014/1010536>.
"The Top 20 Valuable Facebook Statistics." Zephoria. Web. 1 Oct. 2014. <https://zephoria.com/social-
media/top-15-valuable-facebook-statistics/>.

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"Toy, Doll, and Game Manufacturing Industry." IBIS World Industry Report. Web. 22 Sept. 2014.
<http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?indid=894>.

Page | 77
Appendix 1: IBIS World Industry Report (Toy, Doll, and Game Manufacturing in the US Industry Report)

Page | 79
Game time: Despite recovering demand,
competition from China remains a threat
IBISWorld Industry Report 33993

Page | 80
Toy, Doll & Game
Manufacturing in the
US
July 2014 Zeeshan Haider
2 About
this
Industry 18 International Trade 35 Key Statistics
2 Industry Definition 20 Business Locations
2 Main Activities

Page | 81
35 Industry Data
35 Annual Change
2 Similar Industries 22 Competitive Landscape
2 Additional Resources
3 Industry at a Glance
4 Industry Performance 4 Executive Summary
4 Key External Drivers

Page | 82
22 Market Share Concentration
22 Key Success Factors 36 Jargon & Glossary 22 Cost Structure Benchmarks
24 Basis of Competition 25 Barriers to Entry
26 Industry Globalization
6 Current
Performance 27 Major Companies 9 Industry Outlook 27 Hasbro Inc.
12 Industry Life Cycle
31
Operating
Conditions 14 Products & Markets 31 Capital Intensity
14 Supply Chain
14 Products & Services
16 Demand Determinants
17 Major Markets

Page | 83
32 Technology & Systems 32 Revenue Volatility
33 Regulation & Policy
34 Industry Assistance
www.ibisworld.com | 1-800-330-3772 | info@ibisworld.com

Page | 84
WWW.IBISWORLD.COM Toy, Doll & Game Manufacturing in the US July 2014 2
About this Industry
Industry Definition
Main Activities

Page | 85
This industry comprises companies that manufacture dolls, doll accessories, action figures, toys, games
The primary activities of this industry are
Manufacturing action figures
Manufacturing dolls, doll parts and doll
clothing Manufacturing stuffed toys
Manufacturing children’s automobiles
Manufacturing crafts and hobby kits
Manufacturing children’s and adult games
Manufacturing science kits
Manufacturing toy and hobby models
Manufacturing video game machines

Page | 86
(including electronic), hobby kits and children’s vehicles (except metal bicycles and tricycles).
The major
products
and services in this industry are Children’s
vehicles
Dolls and
action
figures Electronic toys
Models and
crafts Non-
electronic toys
Other
Similar Industries 33461 Recordable Media Manufacturing in the US
Operators in this industry manufacture electronic video game cartridges and reproduce video game
software.
33699a Motorcycle, Bike & Parts Manufacturing in the US
Establishments in this industry manufacture bicycles and metal
tricycles.
33992a Athletic & Sporting Goods Manufacturing in the US
Businesses in this industry manufacture sports and athletic goods for children.
Additional Resources For
additional information on this
industry
www.nam.org
National Association of Manufacturers
www.toyassociation.org
Toy Industry Association, Inc.
www.census.go
v US Census

Page | 88
Revenue vs. employment growth
Impor sector
12 34
0 32
30
−12
28
t penetration into the
manufacturing

Page | 89
−24 26
−36 24
Year 06 08 10 12 14 16 18 20
Year
Revenue Employment
06 08 10 12 14 16 18 20
SOURCE:
WWW.IBISWORLD.COM
Market Share Hasbro Inc.
9.7%
p. 27
Key External Drivers Import
penetration into the
manufacturing sector
Trade-weighted index
Demand from hobby and toy
stores
Per capita disposable income
Demand from department
stores
p. 4
% change
%
Products and services
segmentation (2014)
5
.
5
%
7
.
9
%
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e
r
D
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l
l

Page | 90
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Page | 91
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Page | 92
s
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Industry at a

Page | 93
Glance Toy, Doll & Game Manufacturing
in 2014
Key Statistics Snapshot

Page | 95
Annual Growth 09-14
Exports
.0bn

Page | 96
Annual Growth 14-19
Businesses
Industry Structure Life Cycle Stage Revenue Volatility
Capital Intensity Industry Assistance
Concentration Level

Page | 97
Decline Medium Low Low
Low

Page | 98
Regulation Level Heavy Technology Change
Medium Barriers to Entry Medium Industry Globalization
High
Competition Level High
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 35

Page | 99
WWW.IBISWORLD.COM
Industry

Page | 100
Toy, Doll & Game Manufacturing in the US July 2014 4
Performance
Executive Summary | Key External Drivers | Current
Performance Industry Outlook | Life Cycle Stage
Executive The Toy, Doll and Game Manufacturing industry will continue to recover from
devastating revenue losses incurred during the recession. Manufactured products in
this industry are discretionary items and demand for these products represents a strong
positive correlation with per capita disposable income, consumer sentiment and the
availability of leisure time. Most of these demand drivers took a turn for the worse
during the recession, as consumer sentiment fell considerably, owing to high
unemployment, a bleak economic
Despite higher demand, toy manufacturers will lower prices to stay
competitive, hurting profit
outlook and a fall in per capita disposable income. Furthermore, products produced by
industry operators tend to overlap, causing manufacturers to compete fiercely on price,
with consumers consistently seeking bargains.
Since price competition in this industry is high, domestic operators have been forced
to reduce prices to compete with cheap imports, sourced from
low-cost economies such as China and Vietnam. However, as a labor-intensive
industry, imported products have a significant advantage when it comes to production
costs. As a result, domestic

Page | 101
industry operators have been forced to settle for lower profit margins to compete with cheaper imports, the
prospect of which has reduced the attractiveness of this industry. Furthermore, many companies in this industry
have completely disbanded US-based production operations and shifted production facilities to East Asia and
China, which has also reduced revenue.
Given the significant offshoring and price competition from imports, which are expected to account for
94.0% of domestic demand in 2014, revenue is expected to decrease at an annualized rate of 0.3% to $2.3
billion, during the five years to 2014 and is expected to decline 2.1% in 2014.
Nevertheless, the industry is expected to make a modest recovery during the five years to 2019. This recovery
will be spearheaded by a new and emerging trend of “reshoring,” whereby companies relocate their manufacturing
operations back to the United States, where there are lower compliance and transportation costs, and a greater
ability to respond to changes in the market. Increasing labor costs in China are also incentivizing this trend. This
phenomenon of reshoring, coupled with improving conditions in the domestic economy, will help industry revenue
grow at an annualized rate of 0.7% to $2.4 billion, over the five years to 2019.
Key External Drivers Import penetration into the manufacturing sector
Growth in the volume of imported toys in the United States has created intense
competition for domestic toy manufacturers over the past five years. Despite instances
and perceptions of inferior quality, imported toys have become increasingly popular
among

Page | 102
consumers over domestic goods due to their lower prices. Import penetration into the manufacturing sector is
expected to increase in 2014, posing a potential threat to the industry.
The trade-weighted index (TWI) measures the strength of the US dollar

Page | 103
Industry Performance
Key External Drivers continued

Page | 104
relative to the currencies of countries that trade with the United States. A drop in the value of the US dollar leads to
lower relative export prices and higher relative import prices, benefiting industry revenue. On the other hand, when
the TWI rises, there is greater import competition and industry exports are relatively less competitive in the global
market. The TWI is expected to increase in 2014.
Demand from hobby and toy stores Regarded as specialists in the toy retail market, hobby and toy stores are key
buyers of industry products. Hobby and toy stores purchase an extensive range of goods from industry
manufacturers. Therefore, an increase in demand for toy, doll and game products from hobby and toy stores
translates to demand and revenue growth for manufacturers. Demand from hobby and toy stores is expected to
increase throughout 2014.

Page | 105
Per capita disposable income Toys, dolls and games are discretionary items so changes in
disposable income levels influence industry demand. A rise in household disposable income increases the
propensity for customers to purchase more industry products, causing a growth in demand. Per capita
disposable income is expected to increase during 2014, presenting a strong growth opportunity for the industry.
Demand from department stores Discount department stores, such as Walmart and Target, have grown to
become leading retailers of children’s toys. An increase in demand at the retail level also leads to growth in
demand for toys at the manufacturing level. Demand from department stores is expected to increase in 2014,
representing a potential opportunity for the industry.
Import penetration into the manufacturing sector
34
32
30
28
26

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95
90
85
80
75
24
Year 06 08 10 12 14 16 18 20

Page | 107
70
Year 06 08 10 12 14 16 18 20
S
O
U
R
C
E
:
W
W
W
.
IBISWORLD.COM

Page | 108
Current Performance

Page | 110
The Toy, Doll and Game Manufacturing industry has suffered over the five years to 2014, due to falling demand
brought on by poor economic conditions and increasing competition from low-priced imports. Imports have enjoyed
considerable cost advantages over domestically produced goods during the past five years due to lower labor costs
and significantly lower environmental regulation abroad. Imported toys have therefore become significantly cheaper
as compared with domestically produced goods and, as a result, domestic industry operators have cut down on their
margins in order to remain competitive. However, this reduction in profitability also encouraged many industry
operators to shift production from the United States to Asia and the Far East in order to remain competitive. Many
industry operators had to exit the industry altogether because they could no longer
Demand in the Toys, Dolls and Game Manufacturing industry is primarily influenced by economic conditions such
as consumer confidence and disposable income levels. While consumer sentiment is expected to climb in 2014, it
experienced steep declines during the recession, falling 43.9% in 2008 and 22.1% in 2009. In addition, per capita
disposable income fell for the first time in nearly two decades in 2009. Since then, recovery of this driver has been
marginal and slow. These factors forced consumers to curb spending on discretionary items, including toys, dolls
and games. Many consumers who did purchase industry-related products during this time opted to seek out sales
and bargains online and at second-hand stores rather than pay full retail prices.
As retail spending slowed, demand for manufactured goods declined, with

Page | 111
Industry revenue
12
0
−12
−24
−36
Year 06 08 10 12 14 16 18 20
SOURCE: WWW.IBISWORLD.COM
compete with low-cost imports, which caused industry establishments to decline at an annualized rate of 4.3% to
535, over the five years to 2014. These factors combined to reduce revenue at an annualized rate of 0.3% to $2.3
billion and it is expected to drop another 2.1% in 2014.
revenue falling a staggering 30.5% in 2009. Industry operators rely heavily on demand from retailers, especially
with the onset of wholesale bypass, which effectively eliminates wholesalers from the supply chain and is a growing
trend among manufacturers. By owning their distribution and retail outlets, or by selling directly to third-party
retailers, manufacturers can better manage production volumes and maximize profit margins. Unfortunately,
operators’ increasing reliance on retail demand resulted in painful losses during the recession, when retail
spending plummeted.
Fortunately, demand for toys, dolls and games has been rebounding as the economy has gradually recovered.
In 2010, consumer sentiment and household disposable income rose, encouraging consumers to increase

Page | 112
Diving demand continued
Produced in China

Page | 113
Toy recalls and new regulations

Page | 114
spending that they withheld at the height of the recession. Revenue for the Hobby and Toy Stores industry
(IBISWorld report 45112) also increased in 2010 and
In addition to falling demand, competition from low-priced imports has presented a significant challenge to the
industry. In 2009, imports accounted for 96.5% of domestic demand and are expected to be $19.1 billion or 94.0% of
domestic demand, declining at an annualized rate of 1.3%, over the five years to 2014. The growing share of Chinese
imports has primarily driven this phenomenon. Due to the country’s relaxed labor and environmental laws, Chinese
manufacturers enjoy lower production costs, allowing them to pass cost savings on to domestic retailers, and
ultimately consumers. This trend has placed significant pricing pressures on toy manufacturers in the United States.
Even though imports have declined slightly over the past five years, they continue to represent a significant
proportion of domestic demand and present a major threat to the domestic industry. Furthermore, exports, which
are expected to account for almost 46.0% of revenue or $1.0 billion in 2014, have also declined at an annualized rate
of 8.0% due to a strengthening dollar. In order to maintain sales and remain buoyant in a contracting industry, US
firms have been forced to reduce markups over the past five years, resulting in significant declines in
An increase in outsourcing and offshoring has created both opportunities and disadvantages for domestic operators.
Relocating allowed companies to achieve more cost savings, however relaxed product standards and

Page | 115
has been on the rise ever since. Such increases in downstream demand are expected to bolster demand at the
manufacturing level.
Major toy manufacturers outsourced production to take advantage of
lower overhead and labor costs
profitability. IBISWorld estimates that average profit margins declined from 5.1% of revenue in 2009 to 4.1% in
2014.
As US factories struggle with low profitability, major players have either relocated their facilities to China or
other overseas destinations, or have outsourced production to third-party manufacturers to take advantage of
lower overhead and labor costs. Mattel and Hasbro are examples of major industry players following this trend.
According to their respective annual reports, a significant portion of Mattel products are manufactured in
company-owned facilities in China, while a majority of Hasbro production is outsourced to Chinese factories.
Offshoring, coupled with falling demand, has caused many domestic operators to close facilities and reduce
workforces. In the five years to 2014, employment has fallen at an annualized of 3.9% per year to 8,049 workers.
regulations in overseas facilities led to a decline in product quality. This decrease began to negatively affect the
industry’s bottom line as major problems emerged. Since 2008, the US government has recalled a plethora of
Chinese-

Page | 116
Toy recalls and new regulations continued

Page | 118
manufactured toys due to unsafe levels of lead found in paint, while others were recalled for choking hazards
presented by loose magnets. These recalls created considerable losses for industry operators, including Mattel,
which had to recall its Barbie and Fisher-Price brands. Similarly, Hasbro reported losses from the recall of its Easy
Bake Ovens. In addition to the immediate losses incurred as a result of having to pull products from shelves, these
recalls also tarnished consumer confidence and trust in these respective brands.
As a result of these sweeping recalls, the Consumer Product Safety Commission implemented new legislation in
2008 to protect children from unsafe lead levels, choking hazards and other chemicals that may cause illness. This
law, known as the Consumer Product Safety Improvement Act (CPSIA), bans manufacturers from producing or
selling children’s products that do not meet the enhanced safety regulations. In addition, companies are required to
test products for lead and other harmful chemicals.
Children, aged nine and younger, are traditionally regarded as the key buying market for toy manufacturers. As a
result, the ranges of toys produced have been systematically geared toward specific age groups within that prime
market. However manufacturers began to experience declining sales within this key market in the early 2000s.
Operators subsequently acknowledged that demand was being affected by an “age compression” phenomenon,
whereby children were outgrowing toys at a younger age and demanding more adult-like merchandise, such as
personal computers and DVD players. While the economic downturn caused a temporary hiccup in demand for
tech-centric toys, which are often more

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Although CPSIA provided peace of mind to consumers, it has adversely affected the industry. Many
manufacturers, lacking the resources to test every item for compliance, have simply disposed of inventories that
may not meet new regulations. This disposal cost has created a significant financial burden for firms across the
industry. The Toy Industry Association (TIA) publicly estimates this cost to be roughly $2.0 billion.
However, the problems with imported toys and their subsequent costs have also prompted a major shift towards
relocation to the United States. K’Nex Brands LP, a family owned company based in Hatfield, PA, is one of the
industry’s players moving production back to the United States. This trend will continue as manufacturing costs
rise further in China and manufacturers
seek alternative strategies to keep production costs low. Reshoring is expected to benefit the domestic
industry in the future.
Sales of high-tech children’s gadgets declined as consumers opted for more
traditional toys
expensive than traditional toys, a growing proportion of children continues to favor electronic toys.
In response to changing market conditions, manufacturers began to focus on electronic and interactive toys.
In addition, operators have invested millions of dollars in attempts to spur more demand for traditional toys by
bringing them into the 21st Century. For example, Mattel

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Changing tastes continued
Industry Outlook
Downstream demand picks up

Page | 122
debuted its “Barbie Digital Dress Doll” at the New York Toy Fair in February 2013. The doll features a dress with an
LED touchscreen on which children can create custom designs. Other
Despite challenges faced by local manufacturers over the past five years, IBISWorld expects the industry will fare
better during the five years to 2019. Revenue is projected to increase at an average annual rate of 0.7% to $2.4
billion over the next five years, with a 0.5% rise expected in 2015. As economic conditions improve, consumers will
likely increase their discretionary spending, which will subsequently increase demand for toys, dolls and games.
However, the long-term outlook for the industry is not encouraging. US manufacturers will continue to face
As the US economy recovers, consumer sentiment and per capita disposable income, two key drivers of industry
demand, are expected to increase at annual rates of 5.6% and 3.5%, respectively, over the next five years. Renewed
confidence in the economy and higher discretionary spending are forecast to drive retail purchases, as households
begin to spend on products they had delayed buying during the recession. As a result, retailers will likely increase
the volume of purchases from toy manufacturers, boosting industry demand.
Advances in product design and the introduction of new electronic and interactive toys will drive industry growth

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plans for Barbie in 2013 included three full-length animated features, as well as a comprehensive digital
experience, including online games and Barbie webisodes.
increasing competition from cheap imports and vie for contracts with a shrinking number of retailers. Given the
limited amount of shelf space in stores, retailers will place significant pricing pressures on domestic firms to
lower their markups, or they will give up shelf space to cheaper imported goods. Consequently, many industry
operators will be unable to survive in this competitive environment. IBISWorld expects that the number of
industry establishments will decline at an annualized rate of 2.4% to 475, over the five years to 2019.
Demand for interactive and electronic toys will support growth, leading
revenue to increase marginally
through 2019. In the five years to 2014, growth in demand for these products was limited by uncertain economic
conditions in the earlier part of the period. However, with improving economic conditions, consumers will have
more discretionary funds at their disposal during the outlook period. With increased spending on electronic toys,
consumer demand will again be satisfied.

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Increasing pressure from retailers

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China to lose its advantage

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In the Toy, Doll and Game Manufacturing industry, wholesalers were traditionally viewed as the key market for
manufacturers because they were able to eficiently distribute toys to a large number of US retailers. However, an
increasing number of manufacturers have internalized distribution functions and have begun supplying goods
directly to retailers. Wholesale bypass greatly benefits industry operators because it allows them to charge higher
prices for goods. In addition, manufacturers are able to gain greater control over production volumes. However, the
competitive nature of the industry has led a small number of retailers, such as Walmart, Toys “R” Us and Target, to
gain control over a large portion of the retail market.
Unfortunately for operators, dependency on a few large toy retailers is expected to continue through 2019,
Due to rising labor costs in China which have reduced the appeal of offshore production, industry operators are
increasingly moving production back to the United States. US-based production reduces freight and compliance
costs for many manufacturers, as products from China are frequently recalled due to health hazards and
noncompliance issues. In March 2013, The Wall Street Journal reported that industry operator, K’Nex, was aiming
to relocate its production facilities back to the United States due to rising costs in China. Producing locally also
provides manufacturers with greater control over their inventories and designs, and allows them to quickly respond
to changes in domestic demand, which is critical to remaining profitable in the industry.
While China continues to enjoy major advantages as compared with the United States, US industry operators

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Large retailers will put pressure on toy manufacturers’ prices,
hampering industry profit
exposing industry operators to greater risks. Due to pricing pressures exerted on manufacturers to achieve
maximum cost savings, to remain competitive and win supply contracts, industry operators will be forced to lower
prices and absorb losses. However, costlier electronic and interactive toys will also help industry operators
maintain and improve profit margins. IBISWorld expects that average profit margins will stabilize at 4.3% in
2019, up from 4.1% in 2014, due to increased sales of
high-tech products and a return to manufacturing in the US.
are planning to increase their capital expenditures and alter their product designs so as to make their production
and packaging process as automated as possible. To achieve this, K’Nex has bought a “Baxter” robot from Rethink
Robotics, Inc, which performs simple packaging tasks to aid in the production of toys in its Hatfield, PA, facility.
Similar investments in capital equipment will enable the industry to benefit from reduced labor costs and reliance
on imports. IBISWorld expects that employment in this industry will fall at an annualized rate of 2.0% to 7,285
over the five years to 2019. While imports are expected to increase at an annualized rate of 1.7% to $20.8 billion,
they will represent the lesser proportion, of 93.3%, of domestic demand over the five years to 2019, as more
manufacturers opt to reshore production to the United States.

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China to lose its advantage continued

Page | 129
In addition to a reduced import segment, exports are also expected to decline further. As the US dollar
appreciates, US exports become less competitive. Therefore, as the US economy improves and domestic demand
starts gaining importance, the significance of exports to the industry will slightly diminish and industry

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operators will maximize their attempts to respond to the needs of the domestic market in order to reap the full
benefits of reshoring production to the United States. Due to the shifting balance within the import and export
markets, exports are expected to fall at an annualized rate of 3.6% to $869.0 million over the five years to 2019.

Page | 131
Life Cycle Stage
The industry is expected to grow at a
slower rate than the economy
The industry is facing a demographically shrinking market
Increased levels of offshoring and outsourcing
are causing the number of establishments to fall

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Recordable Media
Manufacturing

Page | 133
Many industry products are becoming obsolete as
children demand more sophisticated and digital
toys
20 Maturity
Company consolidation; level of economic importance stable
15

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Quality Growth
High growth in economic importance; weaker companies close down; developed technology and markets

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Key Features of a Decline Industry
Revenue grows slower than economy
Falling company numbers; large firms dominate Little technology & process change
Declining per capita consumption of good
Stable & clearly segmented products & brands
10
Quantity Growth
Many new companies;
minor growth in
economic
importance;
substantial 5 technology change
Cardboard Box
0
Manufacturing

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Toy & Craft Supplies Wholesaling Motorcycle, Bike & Parts
Manufacturing
Hobby & Toy Stores
Toy, Doll & Game Manufacturing
-5

Page | 137
Decline Shrinking economic
importance
-10
-10 -5 0 5 10 15 20
% Growth in number of establishments
SOURCE:
WWW.IBISWORLD.COM

Page | 138
Industry Life Cycle
This industry is Declining

Page | 139
The Toy, Doll & Game Manufacturing industry is in the declining stage of its life cycle. Although this industry is
expected to make a modest recovery during the five years to 2019, IBISWorld expects that industry value added
(IVA), which measures an industry’s contribution to GDP, will decline at an annualized rate of 0.4% over the ten
years to 2019. This indicates a slow rate of growth, as compared with an expected growth rate of 2.5% for GDP
during the same period. Enterprises in this industry will continue to decline as the industry consolidates and
operators exit the industry in response to a high level of import penetration. A rise in imports is expected to
continue, aided by a strengthening US dollar. Together, these trends will reduce the number of establishments in
this industry by 3.3% during the ten years to 2019.
This industry’s markets are also facing an imminent demographic and psychographic shift. In 2009, individuals
under the age of 20 accounted for 27.3% of the total US population. According to the US Census Bureau, this
number shrunk to 26.7% in 2012 (according to the latest available information) and is expected to decline further in
the coming years. In addition, children have begun preferring digital and interactive toys to

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traditional ones at a much younger age. They are outgrowing toys more quickly and are turning to tablets, gaming
consoles and other forms of entertainment. Hence, this industry is facing an increasingly shrinking market, which
will contribute to its decline in the long run.
New products and technologies are regularly being launched to keep the market interested and the industry
relevant. Of special importance are licensing deals with film studios such as Disney, and many industry operators
time new product launches to coincide with the releases of Disney movies based on these products. Capital
investment is being made to render this industry more automated and productive. As a result of increased
reshoring, many firms are looking to design products in more cost-effective ways, aiming to reduce labor and
inputs costs. However, IBISWorld believes that widespread reshoring and vast technological improvements will
not occur quickly enough to help this industry recover completely. As children’s interest in toys begins decreasing
even more quickly, families have less leisure time and the industry’s main market shrinks demographically, this
industry will eventually continue on its downward trajectory.

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Products &
Markets Supply Chain | Products &
Services | Demand Determinants Major Markets |
International Trade | Business Locations
Supply Chain KEY BUYING INDUSTRIES
42392 Toy & Craft Supplies Wholesaling in the US
Toy and Craft Wholesalers are major customers for the Toy, Doll and Game
Manufacturing industry and are regarded as the primary link between manufacturers
and the retail market.
45112 Hobby & Toy Stores in the US
Hobby and Toy Stores are able to purchase a range of merchandise
directly from manufacturers whereby they bypass traditional wholesale
channels.
45322 Gift Shops & Card Stores in the US
Operators in Gift Shops and Card Stores purchase a range of merchandise for resale
in novelty stores.
KEY SELLING INDUSTRIES
32221 Cardboard Box & Container Manufacturing in the US
Operators in this industry supply packaging for toys, dolls and games.
32614 Polystyrene Foam Manufacturing in the US
This industry supplies pads, shaped cushioning, polystyrene foam and products

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used for packaging dolls, toys and games.
32619 Plastic Products Miscellaneous Manufacturing in the US
This industry supplies plastics used in the manufacture of toys, dolls and games.
32629 Rubber Product Manufacturing in the US
This industry supplies rubber products, such as rubber tubing, used to manufacture
toys, dolls and games.
33121 Metal Pipe & Tube Manufacturing in the US
This industry supplies metal parts used to manufacture toys, dolls and games.
Products & Services
Produ
cts and services
segmentation (2014)
7
.
9
%
D
o
l
l
s
and action ﬁgures
12% Models and crafts

Page | 143
5.5% Other
33% Electronic toys
14.3%
Children's
vehicles
Total $2.3bn

Page | 144
27.3%
Non-electronic toys SOURCE: WWW.IBISWORLD.COM
Electronic toys
Electronic toys make up the largest product segment within the Toy, Doll and Game
industry, and are expected to

Page | 145
generate an estimated 33.0% of total industry revenue in 2014. This product segment includes electronic pets,
hand-held games, radio-controlled toy

Page | 146
Products & Markets
Products & Services continued

Page | 147
cars and internet plug-and-play games. Over the past five years, this product segment has grown in response to
changing consumer demand. Kids between the ages of eight and 12 are increasingly demanding more sophisticated
toys, such as cell phones, laptops and learning-oriented video games. While youth-oriented electronic toys continue
to grow in popularity, this product segment was badly hit during the recession, as unemployment shot up and
disposable income dipped for the first time in nearly two decades. Unfortunately, the high price tags on many of
these toys remain an obstacle for many cash-strapped parents; therefore, growth in revenue derived from the
electronic segment of the Toy, Doll and Game industry is expected to remain tepid until a substantial economic
recovery takes place. However, upon rebounding from the economic downturn, this product segment is expected to
grow in line with consumer demand.
Other non-electronic toys
Other non-electronic toys, such as board games, puzzles, collectible card games, building blocks and related parts,
will account for about 27.3% of industry revenue in 2014. However, this product segment is forecast to lose ground
in the long term, as children increasingly gravitate toward high-tech toys. While electronic products are favored in
the long run, revenue from this product segment has remained somewhat strong throughout the recession, as
opposed to the electronic toys segment. As a share of industry revenue, this product segment actually grew during
the recession. In response to rising unemployment and a drop in disposable income levels, consumers opted for
relatively less expensive non-electronic toys.

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Models and craft kits
Models and craft kits, which are forecast to comprise an estimated 12.0% of revenue in 2014, are the third-largest
product segment within this industry. Products within this segment include children’s art and painting supplies,
coloring books, science kits and models cars, airplanes and rockets. While demand for these products declined
during the recession, these products have remained relatively stable as a share of industry revenue due to their
traditional and well-established market and relative cost-savings as compared to electronic toys. In the five years
to 2019, the share of revenue generated by sales of models and craft kits will increase marginally as economic
conditions continue to improve and consumer spending increases.
Dolls and action figures
Dolls and action figures will likely account for 7.9% of industry revenue in 2014. While the percentage of revenue
generated by these products is small, this product segment has remained strong over the past five years because of
its low price point and widely recognized brands, such as Barbie, American Girl and G.I. Joe, retaining their
popularity. Additionally, these products have experienced a boost in sales through licensing and cross-promotions
with motion pictures. For example, major company Hasbro Inc. has in place a licensing agreement with Marvel
Entertainment to manufacture dolls, action figures and other toys based off of popular Marvel superheroes, such as
Spiderman, Iron Man, X-Men, the Hulk, Thor and Captain America. Hasbro also owns the rights to produce Star
Wars toys, as a result of Disney’s purchase of Marvel Entertainment in 2009 and Lucasfilm Ltd. in 2012. Similarly,
Mattel Inc., another major player within the industry, has a licensing agreement with DC Entertainment Inc. to
manufacture

Page | 149
Products & Markets
Products & Services continued
Demand Determinants

Page | 150
Superman, Batman and other toys based off of DC Comic superheroes. Major industry players experience spikes in
dolls and action figures sales when comic book character storylines are successfully adapted to high-grossing motion
pictures and video games. Over the next five years, the share of revenue generated by dolls and action figures sales is
forecast to remain strong.
Other
Other toys and games manufactured by this industry include outdoor sports
Demand for toys, dolls and games is linked to trends in real household disposable income, changes in product
design, advances in technology, consumer preferences and seasonal fluctuations. Of these, changes in disposable
income have the greatest impact on demand for toy, doll and game products. As the level of real household
disposable income increases, consumers enjoy greater purchasing power and are able to demand a broader range of
industry products from retailers. The increase in demand at the retail level translates to demand growth for
manufacturers.
Consumer preference plays a vital role in determining demand for toy, doll and game products. As sophisticated
toys have gained popularity, electronic products have become a favorite with customers. While electronic toys
continue to grow in popularity, the amount of time children spend playing

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equipment, toy guns, children’s vehicles, carriages and other baby toys. Poor economic conditions took a toll on
this product segment, as reduced disposable income hurt demand, especially for higher-priced items. However,
emerging from the economic downturn, demand returned thanks to mostly lower price points and improved
economic conditions. In 2014, children’s vehicles are expected to account for 14.3% of revenue, while other toys
are expected to account for 5.5% of revenue.
with these devices has come under scrutiny. Manufacturers have responded to parental concerns by incorporating
educational elements into games. However, technologically advanced toys, such as flying helicopters and online
games, often require special attention or supervision. Parents who spend less time supervising their children may
opt for more traditional toys that their children can safely play with by themselves.
Demand for industry merchandise is largely seasonal. Over 40.0% of toy, doll and game retail sales occur in the
fourth quarter, in the build up to the holiday season. Concurrently, manufacturers experience their highest
product demand leading up to the winter season. Seasonality for toys is exemplified by product types: outdoor
games in spring, travel games for summer vacations and board games for long winter nights.

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Products & Markets
Major Markets Major
market segmentation (2014)
1
2
.
5
%
W
h
o
l
e
s
alers
46.0
% Exports
41.5
%
Retailers

Page | 153
Total $2.3bn
Exports
Exports make up the largest segment, accounting for an estimated 46.0% of industry
revenue in 2014. This segment’s proportion of revenue has decreased over the past five
years from 68.4% in 2009. In the aftermath of the financial crisis, the US dollar initially
weakened, making US products more competitive in the international market.
Furthermore, due to extremely significant import penetration in this industry, US
manufacturers turned to international markets, such as Canada and Mexico. Given their
proximity to the United States, these neighboring countries allow for cheaper
transportation costs and more favorable trade conditions under the North American
Free Trade Agreement. However, as the dollar began to strengthen during 2011-12
onwards, exports began decreasing, with this trend expected to continue.
Retailers
This segment makes up an estimated 41.5% of industry revenue in 2014. Retailers
include toy and hobby stores, electronic retailers and mass merchandiser stores, such
as Walmart

Page | 154
and Target. Over the five years to 2014, revenue in this segment has experienced some growth due to the rising
prevalence of wholesale bypass. By purchasing directly from manufacturers, retailers have been able to better
control costs, operating margins and product availability, thereby increasing their inventory sourcing from
manufacturers. Manufacturers have also benefited from this trend. By being in direct contact with the end-user
market, they have been able to meet changes in order volumes more eficiently, especially during peak selling
periods, such as the holiday season.
Wholesalers
Accounting for an estimated 12.5% of industry revenue in 2014, wholesalers purchase toys, games and dolls from
manufacturers for resale to various retailers. Revenue has decreased over the past five years due to the growing
practice of wholesale bypass and falling consumer confidence in the economy. However, with a major influx of
lower-cost, foreign-made toys being imported, wholesalers’ role in the distribution chain has moderately
strengthened.

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WWW.IBISWORLD.COM Toy,
Doll & Game Manufacturing in the US July 2014 18
Products & Markets
International Trade
Level & Trend Exports in the industry are High and Decreasing
Imports in the industry are High and Steady

Page | 156
Imports
The influx of imported toy, doll and game products into the United States has significantly altered the domestic
market during the past five years. Imported toys and games from Asia have increased competition within the
industry. This has created a volatile domestic market for US manufacturers, which have had to compete with lower-
cost producers overseas. Chinese operators enjoy more relaxed labor and environmental regulations, allowing them
to produce goods at a fraction of the cost of US production. However, as a share of domestic demand, imports are
expected to decline from 96.5% in 2009 to 94.0% in 2014. This decline will be fueled by several US manufacturers
reshoring production due to various advantages such as eliminating noncompliance issues associated with overseas
manufacturing and gaining greater control of manufacturing processes. Total imports in 2014 are expected to reach
$19.1 billion.
Most industry imports come from China, accounting for 86.4% of total revenue in 2013. However, this number
was down from 90.6% in 2008 and IBISWorld expects that this decline will continue as manufacturing costs in
China rise and industry operators look elsewhere to gain a competitive advantage. Other important trading partners
include Mexico (3.9%), Canada (2.0%) and Indonesia (1.4%).
Despite a high level of imports, this market segment has not been immune to the effects of the recession. In the
five years to 2014, the value of imports fell at an average annual rate of 1.3%. This drop is the result of a booming
2007, during which imports rose 28.3%, alongside a slower but continuously strong 2008, before the market
segment fell significantly in 2009. In the five years to 2019, imports are expected to grow an average of 1.7% per
year, as economic

Page | 157
Industry trade balance
5
0
−5
−10
−15
−20
−25
Year 06 08 10 12 14 16 18 20
Exports Imports Balance
conditions improve and domestic demand picks up.
Exports
Exports of industry products are estimated to total $1.0 billion in 2014, marking an 8.0% average annual decline
since 2009. In 2014, exports are expected to account for 46.0% of industry revenue. This seemingly steep decline
reflects drop-offs from the extreme growth of the mid-2000s, when exports grew by
double-digits. This growth was primarily driven by a triple-digit increase in trade levels with Mexico during the
period and was unfortunately short-lived, as exports fell drastically in 2008.
Canada, Paraguay, Mexico and Chile are expected to remain major export destinations in 2014, accounting for
24.6%, 12.1%, 7.2% and 5.3% of total industry exports, respectively. Exports to Canada and Mexico, in particular,
remain strong, as these countries benefit from their proximity to the United States, and from favorable trade
conditions under the North American Free Trade Agreement. Over the next five years, IBISWorld expects exports
will continue to decline at an average annual rate of 3.6% through 2019, as the dollar gains in strength and
industry operators become more domestically oriented.

Page | 158
Products & Markets
International
Trade continued
E
x
p
o
r
t
s
T
o
.
.
.
I
m
p
o
r
t
s
F
r
om...

Page | 160
4% 6% Mexico
5% Other
Chile

Page | 161
1%
Indonesia
2% Canada
12%
Paragua
y
51%
Other
25%
Canada
Year: 2014 Total $1.0bn SIZE OF CHARTS DOES NOT REPRESENT ACTUAL DATA

Page | 162
86% China
Total $19.1bn
SOURCE: USITC

Page | 163
Products & Markets

Page | 165
Le
ss
th
an
3
%
3
%
to
les
s
th
an
10
%
10
%
to
les
s
th
an
20
%
20
%
or
m
or
e
West
AK
0.2
New
Englan
d

Page | 166
Great Mid- 1.3
Lakes Atlantic 1
2
ND 6.2
3
4
3.0 0.5 0.2
2.7
OR Mountains SDPlains 0.8 3.8 6.0 6
4.3
0.8
0.2
1.3
IN 3.5
West 1.0
0.5
MO 4.8 3.3
0.8
0.3 1.2
1.0 3.8 0.5 3.2
TN
15.9 OK
Southeas
t0.3 0.3 0.7
AL
1.5
1.5
0.3 Southwest 0.2
LA
3.0 0.3 4.8
West
0.0 Additional States (as marked on map) Establishments (%)
1
VT 2
NH 3
MA 4
RI 1.5
0.7 3.7 0.7
5
CT 6
NJ 7
DE 8
MD 9
DC
1.7 2.5 0.2 1.7 0.0

Page | 167
SOURCE:
WWW.IBISWORLD.COM
Business Locations 2014

Page | 168
WWW.IBISWORLD.COM Toy,
Doll & Game Manufacturing in the US July 2014 21
Products & Markets
Business Locations Proximity to downstream markets allows manufacturers to increase delivery speed
while reducing transportation costs. However, due to the large number of downstream
markets and the relatively small number of companies in this industry, the dispersion
of establishments does not follow a clear trend. Analysis suggests that the majority of
industry manufacturers in the United States are located in the West and the Mid-
Atlantic region, which, on a combined basis, comprise an estimated 41.0% of total
establishments.
The West accounts for an estimated 24.4% of total establishments. This is in line
with downstream demand, as the region accounts for the second-highest number of toy
stores at about 18.0%. California, in particular, is the densest state, accounting for

Page | 169
about 15.9% of total manufacturers. The Mid-Atlantic region accounts for an estimated
16.6% of the number of establishments nationally. The region has access to

Page | 170
Distribution of establishments vs. population
30
20
10
0
Establishments Population
some of the largest US seaports, making it an attractive location for manufacturing industries to import raw
materials and ship exports overseas.

Page | 171
WWW.IBISWORLD.COM
Competitive

Page | 172
Landscape
Market Share Concentration | Key Success Factors | Cost Structure
Benchmarks Basis of Competition | Barriers to Entry | Industry
Globalization
Market Share Concentration
Level Concentration in this industry is Low
Key Success Factors
IBISWorld identifies 250 Key Success Factors for a business. The most important for this
industry are:

Page | 173
Cost Structure Benchmarks

Page | 174
Toy manufacturing is big business in the United States. While industry concentration remains low, it has increased
over the past five years and is expected to continue its upward trajectory. As a result of a 4.4% per year contraction
in enterprises, the exit of operators from this industry has been fuelled by a rise in imports. The influx of cheaper
toys into the domestic market created an intensely competitive environment for existing players. Faced with eroding
margins and loss of buyers, some operators were simply forced out of the market. Other manufacturers resorted to
moving their
Establishment of brand names Recognizable brand names and positive images help operators remain competitive
and win supply contracts and shelf space.
Having a diverse range of clients Diversifying of client rosters offsets the risk and potential financial impacts of
losing important customers. Of particular importance is the ability to target a large consumer base segmented by age
and interests so as to diversify risk.
Having links with suppliers Maintaining strong links with suppliers helps in negotiating competitive prices for
inputs, payment, trade credit and delivery terms.
Profit
Declining downstream demand and falling revenue over the past five years has impaired Toy, Doll and Game
Manufacturing industry profit margins (earnings before interest and taxes). Falling revenue has caused industry
operators to experience a higher cost per unit, since

Page | 175
production facilities to overseas locations such as China, in attempts to manufacture goods at a lower cost than
was possible domestically.
Over the next five years, industry concentration will increase further as the number of enterprises decrease at
an annualized rate of 2.6%. As more US operators reshore manufacturing operations, and existing unprofitable
players exit the market, large manufacturers will benefit from purchasing and technical economies of scale and
will account for a greater proportion of industry revenue.
Ability to quickly adopt new technology Patented technology can be essential to competing with imports. In
addition, the adoption of new technology will play a key role in making domestic manufacturers
more competitive as production reshores to the United States.
Must comply with required product standards
Operators should ensure that manufactured products meet design and legislative specifications in order to
avoid tarnishing their reputations and incurring significant losses by having to recall their products
because of safety concerns.
expenses, such as rent and salaried wages, remain fixed. In addition, imported products continue to pose a threat
to profit margins. In order to compete with lower-cost imports, US manufacturers have been forced to discount
prices and absorb losses. Increases in raw material costs have also eaten into profit: the price of plastic

Page | 176
Competitive Landscape
Cost Structure Benchmarks continued

Page | 177
materials and resin has increased at an average annual rate of 1.5% over the past five years. As a result of these
factors, profit margins have declined from 5.1% of revenue in 2009 to 4.1% in 2014.
Purchases
Purchases of raw materials are the largest expense for this industry, accounting for an estimated 46.0% of total
revenue in 2014. This is typical of manufacturing industries, as operators buy large amounts of raw materials to
produce their final outputs. Input materials used for toy, doll and game manufacturing include plastic, wood,
rubber, metal and textiles. The prices of these materials can be volatile, and many have gone up in price over the
past five years.
Wages
Wages are the second-largest expense item, representing an estimated 15.8% of

Page | 178
industry revenue in 2014. Labor is used to assist in the production, packing and distribution of goods, and for
conducting sales, research and development, management and other activities. Over the past five years, many
manufacturers have reduced labor to cut costs and improve margins. Furthermore, many domestic companies
have relocated their production facilities to lower-cost production countries, such as China. This exodus of
manufacturing operations has further reduced the number of US workers in the industry. Wages as a share of
revenue have decreased slightly from 17.7% in 2009 to 15.8% in 2014.
Rent and utilities
Rent and utility costs are expected to account for 2.6% of total revenue in 2014. These costs, which largely cover
expenditures on the use of leased machinery, buildings and storage
Secto
r vs.
Indus
try
Cost
s
A
v
e
r
a
g
e
C
o
s
t
s
o
f
a
l
l
Industries in sector (2014)
100
6.8 10.5
80
60

Page | 180
Industry Costs (2014)
4.1 15.8
46.0

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■ Proift ■ Wages
■ Purchases
■ Depreciation ■ Marketing
■ Rent & Utilities ■ Other
40
20
2.6
2.9 1.3 17.3
0

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1.3 5.0 2.6
25.2

Page | 183
Cost Structure Benchmarks continued
Basis of Competition
Trend Competition in this industry is High and the trend isLevel &
Steady

Page | 184
facilities, have decreased over the past five years as operators have closed underperforming plants to cut costs.
Other
Costs associated with marketing and advertising are expected to account
Until the introduction of electronic and interactive toys, industry manufacturers largely operated in a saturated
product market, differentiating themselves from competitors through price, product range and availability, and play
value. Operators existed in a well-defined product market, which catered to nearly every age category and consumer
preference. Price was viewed as the primary point of differentiation, subject to seasonal fluctuations depending on
product capacity and industry demand.
Internal
In the traditional toy market, product ranges offered by various manufacturers was almost as important as price, as
this enabled enterprises to differentiate themselves in a highly saturated market. The importance of product
availability was also a key factor in remaining competitive, as it was seen as crucial to maintaining relationships with
wholesalers. The ability to produce suficient merchandise, especially for peak buying times such as the winter
holiday season, was critical in an extremely competitive environment. A key strategy for manufacturers was their
ability to predict demand for certain products in order to avoid over or undersupply issues. Manufactures also
tended to highlight a product’s “play value,” an assessment of a product’s value based on its contribution to a child’s
development. The competitive environment faced by manufacturers essentially created a low level of product

Page | 185
for 5.0% of industry revenue in 2014. Other expenses incurred by this industry include insurance, freight and
administrative costs. Collectively, these expenditures are estimated to account for 25.1% of total revenue in
2014.
differentiation between competitors which commonly led to new designs being hastily copied by existing players.
Many product segments such as dolls and soft toys are characterized by widespread imitation of popular designs.
While factors such as availability and play value continue to be important in today’s toy manufacturing
environment, the development and introduction of technology which facilitated the introduction of electronic and
interactive toys to the market, created an entirely new basis of competition for players. The concept of merging
technology and toys was considered revolutionary, aided to a large extent by ever-shrinking microchips and their
ability to create robotic toys that follow instructions or interact with children. However, the addition of technology
to the competitive landscape has created setbacks. Manufacturers have come to acknowledge that once introduced,
technological products require constant upgrading via the addition of new features, if they are to remain relevant
to today’s consumer.
External
Toys have traditionally competed with other leisure activities for children’s attention. Before video games and
electronic toys, children spent the majority of their time playing outside, partaking in activities such as hiking,
climbing trees, riding bikes and watching birds. It was widely perceived that outdoor play boosted the creativity
and social well-being of children. The gradual

Page | 186
Basis of Competition continued
Barriers to Entry
Level & Trend Barriers to Entry in this industry are
Medium and Steady

Page | 187
migration of children to indoor activities over the past three decades has often been labeled a cause of obesity
epidemic in the United States during this period. However, a strong rise in highly structured activity organized
sports or cultural classes (art and music) can also be attributed to this decline. As a result,
Prospective operators planning to enter the Toy, Doll and Game Manufacturing industry will face a number of
challenges. The most significant barrier to entry is the amount of time, research and capital required to establish a
brand, along with the complexities involved in developing unique product designs, and protecting intellectual
property rights and trademarks. The high-cost and long-term nature of brand reputation is, hence, the largest
barrier to entry. Already established brands such as Hasbro and Mattel have respective product offerings and new
entrants will be compelled to invest money and time to persuade consumers to shift away from recognizable brands.
Once a new product has been developed, manufacturers must invest in trademarks to protect themselves from
copyright issues. The development and protection of intellectual property rights ranks high with manufacturers, as
this enables them to exclusively produce a brand or use a patented product design.
The market share controlled by existing industry players can act as a natural deterrent to new operators. Today,
the retail landscape for toys is dominated by a few large stores including Walmart, Target and Toys “R” Us, and a

Page | 188
increasing consumer awareness of the importance of exercise and healthy lifestyle choices has heightened the
level of competition among sporting good manufacturers. Sporting manufacturers have marketed the health
benefits associated with sports participation in a bid to boost sales.
Barriers to Entry checklist Level
Competition High Concentration
Low Life Cycle Stage Decline Capital Intensity
Low Technology Change Medium Regulation & Policy
Heavy Industry Assistance Low
large portion of these retailers’ shelf space is occupied by products manufactured by incumbent players. As a
result, new entrants will find it dificult to compete against the industry’s largest players in gaining new supply
contracts, thereby ensuring sales.
New players also face the issue of finding skilled labor. It can be particularly dificult to secure skilled
production workers such as CAD-trained designers and tertiary qualified management. Also, the development of
new products can demand alternative labor during the production process. Manufacturers must assess their labor
requirements on a regular basis. Experienced workers are approaching retirement and can be costlier for a
company over the long term.

Page | 189
Industry Globalization
Trend Globalization in this industry is High and the trend isLevel &
Increasing

Page | 190
The Toy, Doll and Game Manufacturing industry has experienced increasing levels of globalization over the past five
years. The key driver has been the rapid increase in imported goods into the US market. The influx of imports has
largely come from developing Asian countries such as China. Imported goods are often considerably cheaper to
produce than domestically manufactured items, but are also synonymous with lower quality.

Page | 191
However, due to the price competitive nature of this industry, imports have been well-received, often viewed as
offering better value for money. Their impact on the domestic market has been extensive, with US manufacturers
forced to compete on price as opposed to product range and quality. The overall effect of imports on the local
economy is possibly best surmised by its share of the domestic demand, which is expected to be 95.2% in 2014.
International trade is a major determinant of an industry’s level of globalization.

Page | 192
Trade Globalization
200 Export

Page | 193
Going Global: Toy, Doll & Game Manufacturing 2000-2014
Global 200 Export Global
Exports offer growth opportunities for firms. However there are legal, economic and political risks associated with dealing in foreign
countries.
Import competition can bring a greater risk for companies as foreign producers satisfy domestic demand that local firms would
otherwise supply.

Page | 194
150
100 Toy, Doll & Game
50 Manufacturing
0 Local Import 0 40 80 120 160
Imports/Domestic Demand

Page | 195
150
100
50 2014
0 Local 2000 Import 0 40 80 120 160
Imports/Domestic Demand

Page | 196
Major
Companies Hasbro Inc.
| Other Companies
Majo
r
playe
rs
(Market
share)
90.3
%
Other
Hasbro Inc. 9.7% SOURCE:
WWW.IBISWORLD.COM
Player Performance

Page | 197
Hasbro Inc.
Market share: 9.7% Industry Brand Names Playskool
Transformers
My Little Pony

Page | 198
Hasbro Inc. is the second-largest US toy manufacturer by revenue, with a large portfolio of brands including
traditional trading cards and board games, puzzles, action figures, plush toys and dolls, children’s electronics and
learning aides. It is the largest toy manufacturer that still manufactures in the United States. Hasbro’s products are
broken down into four categories: Games and puzzles (including Monopoly and Scrabble), Boys’ toys (G.I. Joe and
Transformers), Girls’ toys (My Little Pony and Baby Alive) and Preschool toys (Playskool). The company employs
about 2,500 people in the United States and is headquartered in Pawtucket, RI. US and Canada operations, which is
the most industry-relevant segment of this company, accounted for about 57.5% of the company’s consolidated
revenue as of December 2010.
Hasbro manufactures its products through company-owned plants in the United States and via third-party
facilities. However, the major player has substantially increased the level of outsourcing to Asian countries over the
years, predominantly to China. This practice has allowed the company to take advantage of low labor and overhead
costs, resulting in significant cost savings. These products are then distributed to domestic operators, such as
wholesalers, specialty toy stores, discount retailers, mail-order and catalog houses, department stores and mass
merchandisers across the United States.

Page | 199
As with other operators in the industry, Hasbro has suffered from the “age compression phenomenon,” a trend
whereby children began trading in traditional toys for more sophisticated gadgets, such as video games and
electronics, at younger ages. In response to this trend, in 2005, Hasbro launched several new brands (e.g. Tiger
Electronics) to target the 8-to-12-year-old demographic, in hopes of maintaining its market share through selling
electronic-based games. However, the company experienced little success, as it faced high competition from video
game manufacturers. Furthermore, poor spending conditions due to a weak economy deterred consumers from
paying premium prices for electronic toys. Consequently, Hasbro announced in early 2009 that it would abandon
its electronic division. Instead, the company refocused its strategy to emphasize its core products, which have ties
to motion pictures and television shows. To achieve this, the company entered a joint venture with Discovery
Communications to create a new children’s channel during the same year. This channel, called “The Hub,” was
launched in October 2010.
Financial performance
Hasbro’s industry-specific revenue is expected to decline at an average annual rate of 0.5% to $220.4 million in
the five years to 2014. Improvements in disposable income and consumer confidence helped boost sales by 7.9%
in 2011, despite a 6.1% decline in revenue

Page | 200
Major Companies
Player Performance continued

Page | 201
during 2010 due to a decline in boys’ toys sales. During the recession, Hasbro demonstrated solid growth as toys
with movie and television tie-ins exhibited strong sales. For instance, theatrical releases of both Transformers and
G.I. Joe in 2009 increased demand for related action figures and other similar products, leading to a 1.7% revenue
growth in the same year. Hasbro’s income also remained strong in 2009; industry specific operating income
increased by

Page | 202
47.3% as a result of a rise in total sales, positive product mix and decreased marketing and sales expenses. In
2014, Hasbro’s US industry-specific revenue is expected to slightly rise. This will most likely occur because of
strong first quarter sales, as compares to the previous year. Additionally, Hasbro’s long-standing investment in
technology and productivity will continue to pay off and will boost its operating income by 17.6% for 2014.
Hasbro Inc. (US industry-specific operations) – financial
performance*
Revenue Year ($ million)
2009 226.5 2010 212.7 2011 229.5 2012 215.7 2013 215.3
2014 220.4

Page | 203
(% change)
1.7 -6.1 7.9 -6.0 -0.2
2.4

Page | 204
Operating Income ($ million)
35.2 32.3 34.9 40.1 34.0
40.0

Page | 205
(% change)
47.3 -8.2 8.0 14.9 -15.2
17.6
*Estimates
SOURCE: ANNUAL REPORT AND
I
BISWORLD
Other Companies Although a considerable portion of the Toy, Doll and Game Manufacturing
industry is dominated by global players Hasbro and Mattel, the remainder of the
industry is characterized by a large number of small and medium-sized companies.
Larger players have been increasingly offshoring or outsourcing production overseas to
take advantage of cheaper labor and overhead costs. As a result, smaller manufacturing
facilities dominate the domestic production of toys and dolls.
Alivan’s
Estimated market share: 0.8%
Founded in 2002 and headquartered in Panama City, FL, Alivan’s is one of the largest
producers of handcrafted magic

Page | 206
wands in the world. The company, which employs about 75 people, offers a multitude of different wands, wizard
staffs and other magic-themed toys, including merchandise based on the popular Harry Potter movie series. As a
private company, Alivan’s does not disclose financial information to the public. However, in 2014, IBISWorld
projects Alivan’s will generate $17.1 million in revenue, giving it an industry market share of 0.8%.
Mattel Inc.
Estimated market share: N/A Mattel Inc. is the world’s largest manufacturer and marketer of toy
products. The company offers a diverse range of products for children of all ages,

Page | 207
Major Companies
Other Companies continued

Page | 208
including toys for infants and preschoolers, girls’ toys, boys’ toys, youth electronics, hand-held games and
educational toys. Mattel’s domestic segment is divided into three categories: Mattel girls and boys brands, which
include toys such as Barbie dolls and Hot Wheels; Fisher-Price brands, which include Little People, BabyGear,
Power Wheels and Dora the Explorer; and American Girl brands, which include the My American Girl and Bitty
Baby collections. Mattel has also entered into licensing agreements to produce and market toys based on Disney
characters, Disney films, Nickelodeon characters, Warner Bros. characters such as Batman and Superman, and
Sesame Street characters. However, in 2010, the Sesame Street license was granted to Hasbro. This license includes
a deal with Sesame Workshop for rights to produce Sesame Street toys through 2020.
Mattel manufactures toy products via company-owned facilities and third-party manufacturers. Over the past five
years, the company has focused most of its core-product production in
company-owned plants in order to achieve greater flexibility in the production and delivery of its products. Mattel
has moved most of its manufacturing facilities from the United States to China, Indonesia, Thailand, Malaysia and
Mexico as part of its continuing effort to reduce overall manufacturing costs. This move has enabled the company to
take advantage of cheap labor and low overhead costs. The company closed its last major US production facility in
2002, and has since focused only on design, marketing and distribution for its US-based operations. IBISWorld
expects that Mattel will earn $478.1 million from its US sales in 2014, representing a growth of 4.8% as compared to
2013.

Page | 209
K’Nex Brands LP
Estimated market share: 1.6%
K’Nex was founded in 1991 and sent its first shipment for sale to Toys “R” Us in 1992. The company is
headquartered in Hatfield, PA, and employs about 400 people. K’Nex and its afiliated manufacturer, The Rodon
Group, have an estimated combined revenue of $100 million, according to The Wall Street Journal. In 2012, the
company took over the production of Tinkertoys under license from Hasbro. Like other industry players, K’Nex
had moved most of its manufacturing operations to China and the Far East. However, over the past few years,
K’Nex has brought a significant amount of its production operations back to its headquarters in Hatfield. The
company believes that it can gain long-term advantages such as lower compliance costs, shorter response times
and a greater ability to monitor production quality and design. According to estimates, K’Nex will generate $36
million in revenue from its US industry-specific operations in 2014, putting its estimated market share at 1.6%.
Little Tikes
Estimated market share: N/A
Little Tikes was established in Aurora, OH, in 1969 and is currently headquartered in Hudson, OH. The company
employs about 800 people at its only manufacturing facility in the US, in Hudson. Little Tikes is another industry
player that exemplifies the recent preference for reshoring toys, dolls and games manufacturing back to the US.
Over the past few years, the company has brought back many of its manufacturing operations back to the US,
citing significant logistical problems and high freight costs as two of their primary concerns. Company oficials
contend that labor cost is not the only

Page | 210
Major Companies
Other Companies continued

Page | 211
concern when making a decision regarding where to produce. Equally important are logistical, quality and response
time concerns alongside energy costs. The United States has an advantage in those areas, claimed the company in a
Cleveland Business article in July 2013. Little Tikes has seen growth in recent years after moving more of its
manufacturing back to the US and is making considerable capital investments to ensure that it remains competitive,
despite increasing labor costs in the

Page | 212
United States. The company recently invested $3.0 million in new injection modeling technology, which will
become operational in 2014. Since Little Tikes is a privately held company and is a subsidiary of MGA
Entertainment, it does not publicly report its revenue. However, IBISWorld expects revenue to be significant,
given that, according to some sources, Little Tykes contributed $250 million in revenue to Newell Rubbermaid
before being acquired by MGA Entertainment in 2006.

Page | 213
WWW.IBISWORLD.COM
Operating

Page | 214
Conditions
Capital Intensity | Technology & Systems | Revenue
Volatility Regulation & Policy | Industry Assistance
Capital Intensity
Level
The level of capital intensity is Low

Page | 215
The level of capital intensity in this industry is low. On average, this industry spends $0.08 on capital per dollar
spent on labor, which reflects the importance of manual labor to the product assembly process and the need for
qualified personnel for the design components of production.
The level of capital requirements for manufacturers can be extensive, covering items such as plant and equipment
used in the production process. The level of research and development activity undertaken by a company also affects
investment in plants and machinery. The development of new products has generally been associated with
substantial changes to existing

Page | 216
Capital intensity Capital units per labor unit
0.5
0.4
0.3
0.2
0.1
0.0
Economy Manufacturing Toy, Doll & Game
Manufacturing
Dotted line shows a high level of capital intensity SOURCE: WWW.IBISWORLD.COM
machinery and production processes, and an overall rise in capital investments. Manufacturers also tend
Tools of the Trade: Growth Strategies for Success
New
Age
Econo
my
Recrea
tion,
Person
al
Service
s,
Health
and
Educat
ion.
Firms
benefit
from
person
al
wealth
so
stable
macroe
conomi
c

Page | 217
conditions are imperative. Brand awareness and niche labor skills are key to product differentiation.
Toy & Craft
Wholesaling Traditional Service Economy
Wholesale and Retail. Reliant on labor rather than capital to sell goods. Functions cannot be outsourced therefore firms must
use new technology
or improve staff training to increase revenue growth.

Page | 218
Investment Economy
Information, Communications, Mining, Finance and Real Estate. To
increase revenue firms need superior debt management, a stable
macroeconomic environment and a sound investment plan.
Motorcycle, Bike & Parts Manufacturing Cardboard Box & Container
Manufacturing
Hobby & Toy Stores
Toy, Doll & Game Agriculture and Manufacturing.
Recordable Media Traded goods can be produced using cheap labor abroad.
To expand firms must merge or acquire others to exploit
economies of scale, or specialize in niche, high-value products.
Change in Share of the Economy SOURCE:
WWW.IBISWORLD.COM

Page | 219
Operating Conditions
Capital Intensity continued
Technology & Systems
Level
The level of Technology Change is Medium

Page | 220
Revenue Volatility
Level
The level of Volatility is Medium

Page | 221
to spend more on capital investments to remain competitive within the market by investing in new technology. This
trend was exemplified by the launch of electronic and interactive toys into the market.
Growth in the level of capital investment for this industry has had a resulting negative impact on the demand for
skilled labor. While skilled production staff has always been required for the assembly of products, a rise in
automation technology has effectively made such staff redundant. The demise of labor across this industry has also
been
In terms of manufacturing technology, the types and extent of technology vary across product segments. However,
there are some common technologies employed by larger manufacturers to streamline production and reduce costs.
For instance, most large manufacturing operations utilize computer-controlled machinery and other automated
handling and assembly technology to perform repetitive tasks. Although these forms of machinery are relatively
expensive to set up and install, the associated productivity gains are substantial. An increase in output volume
reduces the cost per unit, as fixed costs are spread across more units.
Types of materials used as inputs to the manufacturing process are also changing, with lighter and more durable
materials being utilized for product
Revenue for the Toy, Doll and Game Manufacturing industry is influenced by variations in the level of personal
disposable income and consumer confidence. Spending on industry products increases when consumers are more
confident about their financial

Page | 222
driven by the trend of keeping the number of employees to a minimum and using temporary employees during
peak times (the third and fourth quarters of each fiscal year). The level of capital intensity has increased
significantly from 2009, when on average, the industry spent $0.05 on capital per dollar spent on a labor.
IBISWorld expects that the industry will continue to become more capital intensive over the next few years as
industry operators reshore manufacturing to the United States and attempt to substitute capital for labor to
compete with low-priced imports.
modifications. In addition, per children’s product safety laws, Consumer Product Safety Improvement Act of 2008
(see Regulation and Policy), manufacturers have transitioned to using lead-free paint and non-toxic raw materials.
Over the five years to 2014, changes in technology have been accelerated by the age compression phenomenon
in the industry. In response to this trend, manufacturers have launched more sophisticated toys with advanced
electronic components. For example, microchips that provide lifelike features to toys and complex operating
systems have been installed for learning platforms. With youth electronic toys sales projected to increase, such
advancements in technology are expected to continue in the industry over the next five years.
position. The decline of these drivers, triggered by the economic recession, significantly hindered demand over
the five years to 2014.
Demand has also been adversely affected by growing competition from low priced imports. Imports from Asia,

Page | 223
Revenue Volatility continued

Page | 224
A higher level of revenue volatility implies greater industry risk. Volatility can negatively affect long-term strategic decisions, such as the
time frame for capital investment.
When a firm makes poor investment decisions it may face underutilized capacity if demand

Page | 225
Volatility vs Growth
1000
100
10
1
suddenly falls, or capacity constraints if it rises quickly.

Page | 226
0.1
–30 –10 10 30
50 70
Five year annualized revenue
growth (%)
Hazardous Rollercoast
er
Toy, Doll & Game
Stagnant
Manufacturing
Blue
Chip
* Axis is in logarithmic scale
especially China, have placed increasing pressure on the industry by offering retailers a
broad range of toy products at highly competitive prices. As a result, domestic operators
have been forced to reduce their price points in order to remain competitive, causing
overall revenue to decrease in the process. Conversely, advances in product technology
and design have fueled rise in demand for interactive toys. Age compression in society
prompted a shift in consumer preferences, which initially

Page | 227
caused concern within the industry due to a gap in product availability; however, the introduction of new goods
soon filled the void.
Over the five years to 2014, changes in demand and price have resulted in a moderate revenue volatility of
7.2%. However, IBISWorld expects that as economic conditions normalize and a shift in production from China to
other countries continues, industry revenue will stabilize and volatility will decrease further.
Regulation & Policy
Trend The level of Regulation is Heavy and the trend isLevel &
Steady

Page | 228
Consumer Product Safety Improvement Act
Consumer Product Safety Improvement Act of 2008 (CPSIA) is the most recent industry-relevant regulation to be
introduced. This act aims to protect children from unsafe levels of lead and phthalates by banning the sale of all
children’s products that do not meet the new federal regulations. CPSIA also requires manufacturers to test all
products and parts intended for children under 12 years of age, including all toys, dolls and games that are sold. If
stores are found selling items do that meet the new federal regulations, violators are subject to criminal

Page | 229
and civil charges under the act, with fines up to $100,000 for each violation and prison sentences up to five
years.
Because most industry products are geared toward children under 12 years of age, operators in this industry
experienced considerable testing costs. In addition, many stores have also incurred large disposal costs for goods
that do not meet the new regulation and governmental standards, which have hurt profit margins in the past five
years.
Other regulations
Along with many other manufacturing industries, the Toy, Doll and Game

Page | 230
Regulation & Policy continued
Industry Assistance
Level & Trend The level of
Industry Assistance is Low and the trend is Steady

Page | 231
Manufacturing industry is subject to federal, state and local environmental laws, and health and safety laws and
regulations that impose workplace standards and limitations on the discharge of pollutants into the environment.
These laws also establish standards for the handling, generation, emission, release, discharge, treatment, storage
and disposal of certain materials, substances and wastes. Such laws include US Clean Air Act and the Clean Water
Act. The US Clean Air Act requires compliance with air quality standards and empowers the Environmental
Protection Agency
The Toy Industry Association, Inc. (TIA) was founded in 1916, and is the national trade association for US producers
and importers of toys, games and children’s entertainment products. Together with the US government, TIA has
developed toy safety standards. TIA also works with consumer organizations, such as the International Consumer
Product Health and Safety Organization (ICPHSO) and, most recently, the National SAFE KIDS Campaign, to
communicate the importance of safe play throughout the United States.

Page | 232
(EPA) to establish and enforce the limits on the emission of pollutants. The EPA also establishes allowances for
sulfur and nitrogen oxides, along with strict requirements applicable to ozone emissions and other toxic
materials. The Clean Water Act regulates the discharge of pollutants into the surface water. This act establishes a
system of minimum national efficiency standards for water quality, on an industry-to-industry basis. Industry
operators are also subject to occupational health and safety, wage, overtime and other employment laws.
The National Association of Manufacturer’s mission is to enhance the competitiveness of manufacturers and
to increase understanding among policymakers, the media and the general public about the importance of
manufacturing to US economic strength. With the implementation of the Uruguay Round agreement effective
January 1, 1995, all US duties on dolls and traditional toys were completely eliminated.

Page | 233
Key Statistics
Industry Data
Revenue ($m)

Page | 234
Industry Value Added ($m)

Page | 235
Establish-
ments Enterprises Employment

Page | 238
Wages Domestic ($m) Demand

Page | 239
Per capita
disposabl
e income
($)
2005 4,425.6 889.2 811 801 17,861 1,070.2 16,243.6 662.4 19,599.0 34,428
2006 4,506.2 838.5 787 776 16,075 1,325.2 16,972.0 602.3 20,153.0 35,461
2007 3,237.5 620.3 777 770 12,349 1,983.0 21,768.9 448.9 23,023.4 35,870
2008 3,328.4 605.5 712 705 11,044 1,554.1 22,820.3 409.3 24,594.6 36,082
2009 2,314.0 502.2 667 660 9,814 1,582.8 20,424.0 374.0 21,155.2 35,600
2010 2,317.7 477.2 598 593 8,800 1,500.5 21,430.1 356.2 22,247.3 35,705
2011 2,359.0 484.4 589 583 8,260 1,437.6 18,991.6 361.0 19,913.0 36,294
2012 2,361.7 451.5 566 559 7,481 1,322.9 17,871.1 327.7 18,909.9 36,759
2013 2,327.3 480.7 555 548 8,248 1,193.7 17,346.8 358.3 18,480.4 36,771
2014 2,278.2 483.6 535 527 8,049 1,045.7 19,116.2 360.6 20,348.7 37,709
2015 2,289.9 494.5 525 517 7,884 1,169.2 20,949.4 354.7 22,070.1 38,708
2016 2,311.5 499.2 508 498 7,711 1,029.0 20,924.1 348.4 22,206.6 39,496
2018 2,346.2 480.8 483 472 7,413 929.9 20,817.2 337.6 22,233.5 41,232
2017 2,334.1 485.4 499 488 7,567 996.6 20,882.2 343.2 22,219.7 40,351
2019 2,360.6 482.1 475 463 7,285 869.0 20,758.7 333.0 22,250.3 42,016
Sector Rank
Economy Rank

Page | 246
32/338 242/369
34/397 1005/1293

Page | 247
101/338 N/A
119/396 N/A
Annual Change
Revenue (%)

Page | 248
Industry Value Added (%)

Page | 249
Establish-ments (%)

Page | 250
Enterprises Employment (%) (%)

Page | 253
Domestic Wages Demand
(%) (%)

Page | 254
Per capita disposable income (%)
2006 1.8 -5.7 -3.0 -3.1 -10.0 23.8 4.5 -9.1 2.8 3.0
2007 -28.2 -26.0 -1.3 -0.8 -23.2 49.6 28.3 -25.5 14.2 1.2
2008 2.8 -2.4 -8.4 -8.4 -10.6 -21.6 4.8 -8.8 6.8 0.6
2009 -30.5 -17.1 -6.3 -6.4 -11.1 1.8 -10.5 -8.6 -14.0 -1.3
2010 0.2 -5.0 -10.3 -10.2 -10.3 -5.2 4.9 -4.8 5.2 0.3
2011 1.8 1.5 -1.5 -1.7 -6.1 -4.2 -11.4 1.3 -10.5 1.6
2012 0.1 -6.8 -3.9 -4.1 -9.4 -8.0 -5.9 -9.2 -5.0 1.3
2013 -1.5 6.5 -1.9 -2.0 10.3 -9.8 -2.9 9.3 -2.3 0.0
2014 -2.1 0.6 -3.6 -3.8 -2.4 -12.4 10.2 0.6 10.1 2.6
2015 0.5 2.3 -1.9 -1.9 -2.0 11.8 9.6 -1.6 8.5 2.6
2016 0.9 1.0 -3.2 -3.7 -2.2 -12.0 -0.1 -1.8 0.6 2.0
2018 0.5 -0.9 -3.2 -3.3 -2.0 -6.7 -0.3 -1.6 0.1 2.2
2017 1.0 -2.8 -1.8 -2.0 -1.9 -3.1 -0.2 -1.5 0.1 2.2
2019
0.6 0.3 -1.7 -1.9 -1.7 -6.5 -0.3 -1.4 0.1 1.9 Sector Rank
324/369 247/369 349/369 347/369 326/369 331/338 31/338 199/369 14/338 N/A Economy Rank
1202/129
3
967/1293 1253/1292 1246/1292 1209/1293 389/396 40/397 878/1293 18/396 N/A
Key Ratios
IVA/Revenue (%)

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Imports/ Demand (%)

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Exports/ Revenue (%)

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Revenue per Employee ($’000)

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Share of the Economy (%)
2005 20.09 82.88 24.18 247.78 14.97 22.02 37,086.39 0.01
2006 18.61 84.22 29.41 280.32 13.37 20.43 37,468.12 0.01
2007 19.16 94.55 61.25 262.17 13.87 15.89 36,351.12 0.00
2008 18.19 92.79 46.69 301.38 12.30 15.51 37,060.85 0.00
2009 21.70 96.54 68.40 235.79 16.16 14.71 38,108.82 0.00
2010 20.59 96.33 64.74 263.38 15.37 14.72 40,477.27 0.00
2011 20.53 95.37 60.94 285.59 15.30 14.02 43,704.60 0.00
2012 19.12 94.51 56.01 315.69 13.88 13.22 43,804.30 0.00
2013 20.65 93.87 51.29 282.17 15.40 14.86 43,440.83 0.00
2014 21.23 93.94 45.90 283.04 15.83 15.04 44,800.60 0.00
2015 21.59 94.92 51.06 290.45 15.49 15.02 44,989.85 0.00
2016 21.60 94.22 44.52 299.77 15.07 15.18 45,182.21 0.00
2017 20.80 93.98 42.70 308.46 14.70 15.16 45,354.83 0.00
2018 20.49 93.63 39.63 316.50 14.39 15.35 45,541.62 0.00
2019 Sector Rank
Economy Rank

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20.42 93.30 249/369 10/338
973/1293 10/396

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36.81 324.04 33/338 267/369
40/396 597/1293

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14.11 146/369
747/1293

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15.34 322/369
604/1292

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45,710.36 265/369
744/1293

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0.00 259/369
1055/1293
Figures are inflation-adjusted 2014 dollars. Rank refers to 2014 data. SOURCE:
WWW.IBISWORLD.COM

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Jargon & Glossary
Industry Jargon
IBISWorld Glossary

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AGE COMPRESSION A phenomenon whereby children are outgrowing toys at a younger age and demanding more adult-like products.
OFFSHORE The relocation of a company’s business process, such as manufacturing or accounting, from one country to another, whether the
work is outsourced or stays within the company.
OUTSOURCE The act of procuring goods or services under contract with an outside supplier.
PHTHALATE A substance is added to many plastics (to increase flexibility, transparency, durability and longevity) that is being phased out of
many products in the United States over health concerns..
BARRIERS TO ENTRY High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new
companies to enter an industry.
CAPITAL INTENSITY Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor. IBISWorld
uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium
is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of labor.
CONSTANT PRICES The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year
published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the “real” growth or decline
in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price
deflator.
DOMESTIC DEMAND Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by
adding imports to industry revenue, and then subtracting exports.
EMPLOYMENT The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and
executives within the industry.
ENTERPRISE A division that is separately managed and keeps management accounts. Each enterprise consists of one or more establishments
that are under common ownership or control.
ESTABLISHMENT The smallest type of accounting unit within an enterprise, an establishment is a single physical location where business is
conducted or where services or industrial operations are performed. Multiple establishments under common control make up an enterprise.

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TWEEN The stage between middle childhood and adolescence in human development, generally ranging from 8 to 12 years of age.
WEBISODE An episode, such as a TV show, which may or may not have been telecast but can be viewed at a website.
WHOLESALE BYPASS A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating
the middleman.
EXPORTS Total value of industry goods and services sold by US companies to customers abroad.
IMPORTS Total value of industry goods and services brought in from foreign countries to be sold in the United States.
INDUSTRY CONCENTRATION An indicator of the dominance of the top four players in an industry. Concentration is considered high if the
top players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less than 40%.
INDUSTRY REVENUE The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other
operating income from outside the firm (such as commission income, repair and service income, and rent, leasing and hiring income); and
capital work done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA) The market value of goods and services produced by the industry minus the cost of goods and services
used in production. IVA is also described as the industry’s contribution to GDP, or profit plus wages and depreciation.
INTERNATIONAL TRADE The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For
exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand: low is less than 5%,
medium is 5% to 35%, and high is more than 35%.
LIFE CYCLE All industries go through periods of growth, maturity and decline. IBISWorld determines an industry’s life cycle by considering its
growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments; the amount of change the industry’s
products are undergoing; the rate of technological change; and the level of customer acceptance of industry products and services.

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Jargon & Glossary
IBISWorld Glossary continued

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NONEMPLOYING ESTABLISHMENT Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by
self-employed individuals.
PROFIT IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as revenue minus
expenses, excluding interest and tax.

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VOLATILITY The level of volatility is determined by averaging the absolute change in revenue in each of the past five years. Volatility levels:
very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%; and low volatility is less than ±3%.
WAGES The gross total wages and salaries of all employees in the industry. The cost of benefits is also included in this figure.

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Appendix 2: Interview with Salamander Games
Interview with Chad Scott and Josh Fry: Creators of Salamander Games
1. What is your background in the gaming industry?
Mr. Scott – We are a couple of knuckleheads that decided to make our own game. We both have a
background in production processes and engineering, but we also enjoy gaming. We had some ideas for
games, so we tried to give things a whirl as an independent gaming company.
Mr. Fry - My partner Chad Scott and I started a board and card game development and publishing
company back in 2001 with the intention to design, develop and produce board games for the hobby game
market. Since then we have designed a number of games, published one, and have one being published
this year under our own label.
2. What games did you create?
Mr. Scott – We published our first game back in 2002 called Summonaria. Then life really got in the way
and we took a long time off and are now in the process of publishing All Hands on Deck!
Mr. Fry - We developed a fantasy strategy board game called ‘Summonaria’ as our first foray into self-
publishing. We have a family card game called ‘All Hands on Deck!’ coming out in 2015. We also
developed an online version of Summonaria that ran for some time and an online multi-player game called
‘Hobgoblins’ that was free on our website. Aside from that, I am always working on game designs that I
have come up with trying to work them into something that is good enough to move forward with.
3. How did you get started in the gaming industry?
Mr. Scott – Everyone who plays and enjoys games is eventually going to have an idea for their own
game. We decided to act on one of those ideas and see what we could do. We did as much research as we
could and then jumped in with both feet into the realm of self-publishing.
Mr. Fry - Together we decided we wanted to try designing and developing games for the hobby market.
We have always enjoyed designing games and player experiences together over the years and thought this
would be a good creative outlet that could become a career.

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4. Is getting into the gaming industry recommended?
Mr. Scott – It depends on what your goals are. The gaming industry is a very high risk, low reward
industry. As far as a hobby game goes, most games don’t go past their first print run of about 1500 units.
If you are looking to get rich making games, it can be done, but you are going to have to have a
blockbuster game, most are small successes. If you want to do it for the experience or just enjoy it as a
hobby then you should definitely join the industry.
Mr. Fry - That is a hard question to answer directly. The gaming industry (video AND analog) is a hard
one to break into. Video gaming usually involves getting a very technical or artistic skill set and working
for others to make their dreams a reality for a long time before you get a shot at designing something of
your own. Tabletop gaming is somewhat similar. While the barrier to entry is smaller in the non-
electronic market in terms of development and delivery costs, you are still looking at designing games and
trying to pitch them to existing publishers which can be hard to find success with or you can try to self-
publish which can be expensive for an individual. I definitely wouldn’t get in to the market if money is
your aspiration, you should get into it for creative fulfillment.
5. How challenging is it to get into the gaming industry?
Mr. Scott – The barrier to entry is very low. If you are going the self-publishing route, KickStarter has
made getting a game out there and started much easier than it used to be. To get a game out there on
KickStarter, you need your game prototype, some graphics, a polished campaign, and a marketing
presence to get funded. If you are going to sell to another publisher, you need a good prototype and
enough salesmanship to get heard and get them to love the game as much as you do.
Mr. Fry - It is very challenging to SUCCEED in the gaming industry but getting into it, at least on the
non-digital side, is not that difficult. If you have an idea and the willingness to work tirelessly to improve
it enough to make it marketable, you can become a tabletop game designer.
6. What obstacles could you face when getting into the gaming industry?
Mr. Scott – There are plenty of obstacles that can trip you up upon entering the industry. First you have
to make sure your game is different enough from existing games out there. Staying positive and motivated
can be tough if you are getting tough feedback. However, you have to be open to feedback both positive
and negative. Life also often tends to get in the way, be it someone is getting married, the birth of a child,
death of a family member, job/location change, or even a falling out in your group.
Mr. Fry - There are many obstacles, most notably getting noticed. There are a lot of people designing
games at different levels of professionalism and kickstarter reflects this. Getting noticed by a publisher
can be extremely difficult as many are small enough that they only publish a few new games a year.

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Publishing your own games requires a lot of effort marketing, developing, play testing, and publishing
your product that requires more than just a desire to make a fun game. You have to be willing to take on
the (unpaid) duties of a full time publisher while you are likely also working a full time job to keep the
bills paid.
7. What obstacles did you face when entering the industry?
Mr. Scott – When we first started out things were tougher as the industry was not friendly to self-
publishers. There were not the number of resources available then as there are now. We had an argument
in our group that resulted in one person parting ways. We had to come up with all the money to publish
the game ourselves as opposed to being able to use a platform like KickStarter. The social media tools
that we have today were also not available, so we had to do more conventional marketing and advertising.
Mr. Fry - In getting started the largest obstacles are development costs and understanding the process.
When we first got into it, information was not available at ALL on the Internet and we had to go blindly
into the publishing process making assumptions based on what we observed in the market. Nowadays,
with social media it is a little easier to reach out to others in the space, see how they do things, watch their
development process and learn from the mistakes of others. You will also likely be out of pocket on your
prototype development costs and play testing expenses while you refine your idea into something someone
would want to buy.
8. What is the success rate for a first time game maker?
Mr. Scott – I am not certain what the success rate is. I can tell you that a lot of games on KickStarter fail
to fund. If I remember correctly there is about a 30% success rate in funding. However, as with all
statistics you need to take that with a grain of salt. That number includes companies that are already in the
industry and have a large following. It also includes projects where the goal is $50 and you know it is
going to fund. On the failure side there are those that are just horrible games as well as those that have
very poorly designed campaigns or no market following.
We are one of the failures on KickStarter. We got a little over 60% funded on there, raising $7,000. Our
main problems were not a large enough following, timing with reviews, and I think our price point was a
little high.
Mr. Fry - I’m not sure I’ve seen this quantified but I would imagine if you are talking about success as
getting your first designed game published, I bet it is less than 20%. If you are talking about making any

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real MONEY from it, it is probably less than 2%. Most first time game publishers end up breaking even
or even sacrificing a little development money to see their idea become a reality.
9. What is the failure rate for a first time game maker?
Mr. Scott – See answer to number eight.
Mr. Fry - Many first time game developers hit a wall where it stops being something fun to mess around
with and requires actual work and diligence to turn your idea into a product. The large majority falter and
quit here. You have to truly enjoy the process and like the idea of creating something people will enjoy to
push through the process and get to the other side. Like I have said to several people before, if you like
your game enough to want to play it 1,000 times and explain it to people until you have the explanation
burned into your brain and do all of that endlessly without significant income from it, you might be the
kind of person to be a game designer.
10. How well do critical thinking games do in the gaming industry?
Mr. Scott – It depends on what are you calling a critical thinking game. There are plenty of strategy
games out there that require a lot of thought to play, and many of them are very popular. There are also
classics like Go and Chess, if that is where you are going with critical thinking games. Ultimately any
game can be successful, but certain types of games will have a smaller market share than others.
Mr. Fry - Honestly, it is very hard to find a place for ‘educational games’ in the market. Strategy games,
particularly ones that involve a lot of problem solving, can do very well but they have to have an
interesting premise to hook people. Typically, people do not react well to the notion that a game is going
to make you have to really think. People don’t equate critical thinking and fun very often and as our
society moves to even shorter attention spans, it becomes more difficult to convince them that a critical
thinking exercise can be fun in the process. It is possible to design for the educational market (i.e. games
used in a classroom setting) but the market for that is extraordinarily narrow and schools are notoriously
tight with money.
11. How much monetary needs does one need to start a game?
Mr. Scott – If you use KickStarter, you really only need enough money to create a few prototypes to send
out to reviewers to get some buzz going. However, if you don’t have any graphical folks on your team,
you may need to hire an artist for anything you need in that department. Then you will need a video
made, which you can do with an iPhone if you want to, but you are seeing more and more professional
videos out on KickStarter these days. However, to make the game your KickStarter will need to raise
enough money to cover all your production costs.

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When it comes to actual manufacturing costs, it really varies depending on what the components of your
game are. You are most likely going to have to do a print run of at least 500 units unless you go with a
print on demand service. It also depends on quality and printing company as to what your final per unit
cost will be. If you are doing a small card game with a set of rules, the cost can be around $3.50 or so per
unit for a print run of 500, with costs going down the more you print.
Mr. Fry - To develop a game idea from inception, you will need costs to allow you to build iterative
prototypes, which is usually minimal but does depend upon your game components. There are several
companies out there which will ‘Print on Demand’ copies of games, allowing you to produce in a
semiprofessional fashion your own game design idea. This can be good for concepting although it will
cost about half what you would normally sell the game for to print this way so it is not a commercially
viable production solution really. If you opt to just do designs, you do not need to create a business
necessarily for that and can work as many designers do on a purely freelance basis. If it is your intent to
publish your own game (as I suspect it is from the sound of this project), you would need to set up an LLC
or S Corp and put a few straightforward business elements in place. A PO Box, a website, a business
phone number, lining up a CPA and possibly a lawyer. All of these are business necessities and while
they don’t cost a lot, you would need to spend several thousand dollars and some of your time to make
that happen. Beyond that, you are looking at printing, shipping and advertising costs, warehousing costs,
and order fulfillment expenses if you are going to publish and sell your own product which can get you up
into the $20-60K range.
12. If someone sells their vision to a larger gaming company, how much percentage would they
receive for their game?
Mr. Scott – A typical contract to a designer is 3-5% of MSRP. 5-6% of Wholesale. 20-25% of Net Profit.
If you go this route, look for clauses like a guarantee that the game will be out in 2 years or you get to take
the game to a different publisher.
Mr. Fry - For a first time game designer, the percentage would likely be a flat fee. Many first time game
designers simply sell their design to a company that then has full rights to it. Since they are taking on the
risk, they limit their risk in payout of potential profits if the game is (likely) not a huge seller. In the
instances where a designer signs over the production rights on a game, the percentage varies widely based
on the publisher but I have seen examples of a flat fee of 4-10K plus a percentage (like 5-8%) of the sales
on the game. As you can see, you aren’t going to make big money selling designs to a publisher unless
you churn out quite a few that are good enough to buy every year. Obviously once someone makes a
name for themselves in the industry like Eric Lang for example, his designs are highly regarded and I’m
sure he is paid much better for them in turn.

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13. What is the hardest aspect of creating a game?
Mr. Scott – This is going to vary from person to person. When we first started, it was being new, not
knowing enough and trying to get your name out there. Nowadays the biggest hurdle for me is time. It is
tough to balance your day job and family and still have time to work on games. This is especially true with
a young child. It seems like I get interrupted by someone or something every 10 to 15 minutes unless I
say up really late and then I am exhausted, so that is really not an option.
Mr. Fry - Coming up with an idea is the easy part, the hard part is refining it, play testing it, refining it
more, finding people to play it and give feedback repeatedly over and over until it is good enough to put
out there for the world to see. You really have to stick with it, have thick skin, and be prepared to
compromise on your idea to turn it into something sellable. Once you have it produced, visibility is by
FAR the most difficult thing to achieve. Without an enormous marketing budget, getting your game out
there for people to look at and try is an uphill battle.
14. What is the process to set up a new game?
Mr. Scott – I am not sure what exactly you mean by set up a new game, so I am going to assume you are
talking about for manufacture. You will find a place to print your game, and they should be able to help
you in the process of what they need to get things done and the format that they need to be in. You will
need your rulebook laid out to their size specs. You will need all your art files (cards, board, box, etc.)
also laid out to their specs. Try to stick to standard sizes, as if you do something different you will get
charged for the creation of a custom tooling and dies for cutting. The printer will walk you through a
round or two of proofs to make sure things are looking the way you want them to as oftentimes print
colors are a little different than what you may see in your art files. The printer will then print off whatever
quantity you ordered, but there will be overage (if you order 500, you might get 532 for example). Then
they will box or palletize them for shipping. What you do from there is all up to you in getting that game
out. You can try to sell yourself or go through distributors. Here is a link to a distributor. They have
several videos that can help. For example, video 22 will tell you how best to price your game and what
you need on the box as there are different numbers you need to get and make sure you use.
http://www.impressionsadv.net/impressions-news/?paged=3
Mr. Fry – I’m not sure what you mean by ‘set up’ a new game. You need to determine your core
audience and then start building a game design that is interesting to that audience. Add every element you
can think of until it’s all out there. Then look at it critically for parts that are too complex or require
special rules or components. Ask yourself, ‘Does this need to be here for the game to be fun? Can it be
fun without it?’ and pare back all the things that don’t meet that criteria. Playtest it with yourself and
others. Things that slow down the game or make it confusing need to be removed or streamlined. Keep
doing this until you can’t cut anything else. Then you probably have a decent game design. If you are

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going to publish it yourself, you need to add it to the boardgamegeek.com database just as you begin to
market it and add images and content so that people can look it up and find out more about the game.
15. How difficult is it to sell a game to a school system?
Mr. Scott – I honestly have no idea. We work in the hobby game market and have not researched selling
to schools at all. I would imagine that it is not an easy task though. I would think you have to get it
approved by someone as meeting certain curriculum requirements and that the game is appropriate for the
school setting. With what seems to be ever shrinking school budgets, which might get in the way as well.
However, if the game is cheap enough a teacher might pick it up with his/her own money as they are
known to supplement their teachings with tools of their own.
Mr. Fry - I would think it is very hard to sell a game to a school system. I have not seen it done much,
though I do know there are a handful of companies/individuals who develop materials for educational
games. I think the reality is that school budgets are notoriously tight and something like an educational
game ends up as ‘class materials’ and has to be purchased from that budget which, as I understand it, is
usually spent before the teacher gets it. It would have to offer a major learning advantage a teacher
couldn’t get elsewhere and be VERY inexpensive to do well I would think.
16. How long does it take from start to finish to make a game?
Mr. Scott - If you are talking from concept to finished product, that varies widely based on the creator.
Once you have the game designed and the rules are set, it can still vary depending on art needs, play
testing, marketing, and then manufacturing. Once you have it at the printer, it can be a quick turnaround
of about a month or two, or it could be longer if you are using a popular printer and they have a large
queue ahead of you, it could take more like four months. Overseas printing you also have to take things
into account like Chinese New Year and customs when freighting it back to the US.
Mr. Fry - How long does it take to build a mountain? No, in all seriousness game development can be a
long drawn out process. It depends on several factors: Are you doing game development as a full time
job? Do you have the financial resources to expedite play testing iterations and get your art and creative
design done in a rapid timetable? Do you have the money to send it off to a printer and have it done or are
you going to have to raise funds to help with this? I have seen games done by contracted full time
designers with the big publishers take about 8-10 months from concept to release but that’s very rapid.
Usually smaller developers can take 6 months to a year or more to develop the game, then 4 to 8 months to
get their product ready for market and fund an initial print run.
17. What are some tips or advice you would give somebody who wishes to create a board game?

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Mr. Scott - The main advice is play test. Don’t just play test with your friends and family. They are
usually going to be supporting and tell you your game is great. Sometimes you get those friends that are
always honest no matter what and will tell you your game sucks if they don’t like it. Take your game to a
Protospiel. At Protospiel there are people testing and giving good feedback and publishers are there
looking for new games. Also, blind play testing is encouraged as well. Blind play testing is where you
drop off the game and don’t say a word. You let them read through the rules and play the game on their
own.
Mr. Fry - First I would make sure you are doing it because you have a passion for design or a desire to
create something to share with others. If you don’t start there, you will tire of the process. Secondly, I
would look at how other companies go through the process and try to learn from their direction. We have
all screwed up out there trying to get to the end of the process and seeing how others have gotten around
problems can help you avoid them in the future. Nowadays the Internet and social media makes some
amount of that possible. Thirdly, don’t be afraid to get out there and share your idea. Show it to everyone
who will look at it. Share your passion for it, get them excited. Listen to feedback and have an open mind
to it, try to look at your design from the eyes of other people and see if there is something you can do to
make it better. Finally, don’t get discouraged. As with any major creative endeavor, you will have people
tell you why you can’t do it or why you shouldn’t. You will have people tell you that the sum of your
labors is crap. They have no investment in it, so it is easy to brush it off of their radar. If you think your
design has some merit, refine it and build it and show it to people and you will find others who agree.
18. What was the biggest challenge?
CHAD - The two biggest challenges for me have been finding time to work on things and getting the word
out. Advertising costs money, and when this is a hobby for you that often means that advertising budget is
at a minimum. I also am not big fan of social media, though that is a great way to get the word out. It is a
struggle for me to bog, post on Facebook and Twitter as it just doesn’t come natural to me.
JOSH - For us, the biggest challenge was funding our own production and getting it out there to enough
people to build significant interest. We had to invest a fair amount of our own money and TONS of
unpaid time to develop and produce our first game and it dragged out the development and printing cycle
as we had to often wait to do the next step when we had the money to do so. Once we had it in hand,
finding ways to get people to look at it and play it was an endless challenge in such a small market that is
hard to market too effectively.
19. Did you enjoy working in the board game industry?
Mr. Scott – Absolutely. Working on something you truly enjoy and seeing it all the way to completion, it
is going to be a wonderful experience. The board gaming community is also a very friendly community to

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work in. People are always willing to help each other out as we are all interested in seeing new and
exciting games come to the market.
Mr. Fry – I love working in the industry! It is my passion and I enjoy both game design and the
production aspects of it. I am a very technical person in my primary career and this allows me to explore
my creative needs and my interest in product development and entrepreneurship. While it doesn’t make
us lots of money, for me it is rewarding in other ways.
20. What is your opinion of Brain Train?
Mr. Scott – This is not my style of game. I don’t know if this is for music class to deepen the studies, or
if this is more of a party game. I am not a student of music, so I don’t really know what kind of questions
to ask about the words. I need an example of the questions you are talking about. Would a question be
something like “In the song Ain’t No Sunshine, how many times does Bill Withers repeat the phrase ‘I
know’”? I may just need to see the game played to get a better understanding of what this game is exactly.
I am not a big fan of party games though, so take my feedback with a grain of salt. I am more into games
with a lot of theme, a little randomness here and there, and hard decisions to make. Games like Le Havre,
Blood Bowl, and Mr. Jack are all high on my list.
Dr. Fry - I think Brain Train is indicative of so many attempts at designing an educational game that I
have seen before. I think it has an interesting premise, but dances awfully close to the ‘this is a learning
exercise’ line that will turn off a lot of gaming hobbyists. It is a notoriously tough area of the market to
build enthusiasm in because most people (i.e. the people who spend money on games) are looking to have
fun and don’t necessarily want to learn anything. You have to work the latter so well into the former they
can’t see the separation.
21. Could it be successful?
Mr. Scott – I think you will have to come up with that deck of cards that you referred to. As I read it, this
is a set of rules and some chips (counters). Not many people are going to want to purchase just a set of
rules when they are looking for a game. You will have to tailor your cards towards the audience you want
to go for though. If you are going the educational/school route, then they should be more study related. If
you are going for the general public, you will want to make them more party like. I definitely cannot help
you in the school realm, as I said before that I am not a student of music. If you wanted to go more the
party route, you might have to ease back on the learning aspect and dumb it down for broader appeal.
Mr. Fry - I think you have an interesting idea but you need to spend some time determining what your
sellable product looks like. I don’t see any components to this game other than rules at the moment. You
won’t be able to sell game rules. You could give it out for free if you wanted to share this on the Internet

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and start to build interest in your game designs. Often times designers will give away small games or easy
to print games online for free to build awareness of their brand and that makes it easier down the road to
present something a little more robust that you are trying to sell. If you came up with something less open
ended, say a deck of cards that had questions on it for example, you could present this in a couple of ways
as a small box game comprised of a card deck, instructions, and some kind of point marker tokens/pieces.
Maybe you don’t listen to a song up front, but the questions force you to have to think of the words in a
song and answer a question about them. This could be very challenging. The point markers could be
some kind of plastic music note maybe, those would be fun to toss back and forth around the table. If you
printed questions about specific musical works, you’d want to discuss with a lawyer first and make sure
you could reference those works in that way without having to pay royalties. I think you can if you only
quote a part of the lyrics and give a reference to the songwriter/artist. If you were going to put music on a
CD to include, I KNOW you would have to pay royalties and most likely you will end up very upside
down on that monetarily unless the game is a huge hit (that means you sell more than 5,000 copies). You
could approach this either as a party game or an educational game but I don’t think both. Either it would
be fun and rather easy questions for the general populace and you make it a Q&A that could take group
play as you mentioned or you make it more of a game that centers on musical structure, etc. and would be
more of a game that reinforces elements of musical study. The latter is MUCH less of a broad appeal
topic.
22. How likely will people buy Brain Train if it is marketed to a general market rather than
school systems?
Mr. Scott – I kind of go back to my previous answer. I think as it is intended as a teaching tool, it
probably will not have much mass appeal. Now if you do something to make it more of a party game,
which will help. I don’t know many music party games, because I don’t play them, but some that pop into
my head are Name That Tune, Songburst, and Rock the Beat. There are certainly others, but these are the
three that I can think of.
Mr. Fry - I think your best bet if you wanted to release it to mass market would be to try and make it a
party game of some kind. A party game is any game that forces small amounts of group participation and
interactivity, typically but not always in groups, in an effort to win some relatively simple structured
contest. You could make this a kind of musical charades game or trivial pursuit style question and answer
with reward kind of thing. If the questions weren’t too hard to answer, it might have some appeal as a
group activity like a party game. The big problem with getting people to come up with their own
questions is that lots of people don’t like being put on the spot like that in a group setting, particularly if
you don’t know everyone, and they will shrink away from the experience and not find it fun. Only your
most outgoing people will be comfortable coming up with questions spontaneously and voicing them in
front of everyone without it feeling like jeopardy. Also, if you incorporate having to listen to a song

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before the questions commence, it draws out the game some and forces people, in a group setting, to have
to sit and really listen and pay attention to the music which can be hard to do. People in group get
together tend to act like ten year olds and talk over the music, not pay attention, etc. which would seem a
MAJOR detriment to playing this game. I could see people trying to get a game started and people losing
interest because they didn’t listen or sit quietly at the beginning or because they don’t want to think up
questions. These are all things you have to address to make it something that has mass market appeal
enough for people to consider buying it. It has to appear ‘FUN’ and not ‘WORK’.
23. What critiques would you give to the creators of Brain Train?
Mr. Scott - I cannot say much on the school front as I have never investigated that route of selling a game.
I can say that you need more of a product than just a set of rules. Why would I pay you for something that
I can learn the rules from someone then find some counters of my own to play (poker chips, pennies, etc.),
it is like charging for Beer Pong or Hide and Go Seek. Come up with that deck of cards, and things
change as you then have a product to sell.
I would encourage you to make a video of people playing the game to help visualize what this game is as I
am still kind of confused (I have never heard of Song of Socrates). Put some example questions/scenarios
in the rules to help illustrate things. Also, come up with your elevator pitch of two or three sentences that
tells me what the game is, you will use this frequently when trying to market as people have no attention
span.
Mr. Fry - I have presented most of my critiques above I think. Definitely you need to make it something
that you can put in a box. A deck of cards, a bunch of chips with question kernels on it maybe (i.e. “Ask a
question about the person the song is about.” Or “Ask a question about a place the song mentions”). You
need to figure out who your audience is and tailor the game to that audience. Trying to make it something
for everyone will only make it feel too unfocused. You need to determine a price point that makes sense
and work your way back to what your production costs need to be. This will limit your components. The
rule of 5 is usually a good one: Figure about five times what it costs to produce as your MSRP. If that is
more than a similar product would go for, you have to scale it back or risk it being too pricey. If you are
going to make it a party style game, It needs a funny/engaging name and premise to get people to look at it
or be willing to play before they know what it’s about (i.e. ‘Scattergories, Cranium, Apples to Apples’).
24. What are some things to be careful of in the gaming industry?
Mr. Scott – The community is awesome as everyone is willing to help. Just ask and people will help, but
be ready to get honest feedback. Also, join the community by helping others. It can be as small as
looking at someone’s art and letting them know what you think.

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If you do self-publish and are sending out games, watch out for shipping costs, especially international.
Everyone wants free shipping, but it is just plain expensive.
Also, don’t ever use the phrase “that’s my baby” when referring to your game. You have to remove
yourself from the game to a certain degree. People are going to beat it up and you have to be willing to
accept criticism. If you are too attached, you won’t retain a word they say and you might be missing out
on some good feedback.
Mr. Fry - Lots of people go in fearful of having their idea stolen if they show it off. This likely will not
happen. Ideas are easy to come by, building them into something is the hard part. People in the gaming
industry in general like to share ideas and help provide feedback on the ideas of others, you should take
advantage of that. The gaming industry can be an unforgiving one and particularly at the customer level
you will find people who love to flame your idea to dust without even giving it a fair shot. You have to
stick to your guns and stand behind your product. There are also LOTS of new ideas hitting the market all
the time and you have to work very hard to make yours stand out if you hope to have it have any sticking
power for the relatively short life cycle that most game products have.
25. What are the advantages to Brain Train?
Mr. Scott – Being from the hobby side and not the educational side it is hard for me to say. Also, I don’t
think I have a great grasp on the game so it is difficult as well. I would say an advantage is that I don’t
think there is much going on in the music sector in the hobby game space. One good thing is that if you
go the party game route, there is a pretty wide market. You have stated that people are enjoying playing
the game, so that is also a good thing and hopefully you can harvest that into word of mouth fans.
Mr. Fry - I think the idea behind the game is an interesting one and while maybe auditory challenges have
been done in other ways in the past, I think it’s an area that could be developed further with the right spin.
26. What are the disadvantages to Brain Train?
Mr. Scott – I am still confused as to what the game exactly is, and I think I need to see it played to fully
get it. Even so, without that deck of cards I still don’t see what you are going to sell to people other than a
small rulebook and maybe some counters. So currently the biggest disadvantage I see is that nobody
really needs to purchase your game; they just need to know the rules.
Mr. Fry - I think you just need to lock down an audience and an approach that gives you something to
package as a game. You need to be careful to not make it too open ended or require too much setup
outside of what comes in the game or that will limit the willingness of people to engage with it and give it
a try. Lastly, you need to build more passion into your pitch. I need to hear why this game is so much fun
I can’t NOT play it! That’s what will get people excited about it. The rules aren’t terribly complicated but

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I need to be able to visualize how this would create a really fun experience with my own friends or family
that I play games with.

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Appendix 3: Survey Introduction Email for Professors
Subject: WCU Educational Survey for Professors
All,
We are three seniors at Western Carolina University currently enrolled in our senior capstone class for
business majors. Our team is working with a client who is in the beginning stages of creating an
educational game.
Our team has been tasked with gaining information about educational games for our client. As part of our
research, we have come up with a survey to gain knowledge about what Western Carolina University
professors think of educational games in a classroom setting to help us better assist our client.
An online Qualtrics link can be found below that will take you to the survey. The survey is anonymous
and consists of eleven questions. We estimate it will take you less than 5 minutes to complete.
Our team would greatly appreciate your responses by taking the 3 to 5 minute of your time to complete the
survey that will provide valuable information to our client and enable our team to complete our research.
We appreciate your time and consideration in taking our survey.
Follow this link to the Survey:
https://qtrial2014az1.az1.qualtrics.com/SE/?SID=SV_bxtEz07hhrJ4nZj
Sincerely,
Elizabeth Kilmer

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Appendix 4: Survey Introduction Email for Education Majors
Subject: WCU Educational Survey for Education Majors
All,
We are three seniors at Western Carolina University currently enrolled in our senior capstone class for
business majors. Our team is working with a client who is in the beginning stages of creating an
educational game.
Our team has been tasked with gaining information about educational games for our client. As part of our
research, we have come up with a survey to gain knowledge about what Western Carolina University
students who are pursuing a degree in education think of educational games in a classroom setting to help
us better assist our client.
An online Qualtrics link can be found below that will take you to the survey. The survey is anonymous
and consists of eleven questions. We estimate it will take you less than 5 minutes to complete.
Our team would greatly appreciate your responses by taking the 3 to 5 minute of your time to complete the
survey that will provide valuable information to our client and enable our team to complete our research.
We appreciate your time and consideration in taking our survey.
Follow this link to the Survey:
https://qtrial2014az1.az1.qualtrics.com/SE/?SID=SV_066dhLrmJvl93fL
Sincerely,
Elizabeth Kilmer

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Appendix 5: Western Carolina University Professor Survey
Brain Train Professor Survey Questions
a. Male
b. Female
b. Some college
c. Associate degree
g. Doctorate degree
b. Self-employed
c. A student
d. Military
e. Retired
f. Unable to work
4. What college and department do you current teach in?
a. ___________________________________________________________________

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a. ___________________________________________________________________
6. What is the highest class level do you teach?
a. 100 level
b. 200 level
c. 300 level
d. 400 level
(1 being not at all likely, 10 being extremely likely)
a. 1 2 3 4 5 6 7 8 9 10
a. Very Unlikely
b. Unlikely
c. Somewhat Unlikely
d. Undecided
e. Somewhat Likely
f. Likely
a. ____________________________________________________________
a. ____________________________________________________________
a. ____________________________________________________________

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Appendix 6: Western Carolina University Professor Survey Results
Western Carolina University Professor Survey
Initial Report
Last Modified: 11/17/2014
# Answer Response %
1 Male 15 39%
2 Female 23 61%
Total 38 100%

Page | 296
Statistic Value
Min Value 1
Max Value 2
Mean 1.61
Variance 0.25
Standard Deviation 0.50
Total Responses 38
# Answer Response %
1
High school
diploma/GED
0 0%
2 Some college 0 0%
3 Associate degree 0 0%
4
Bachelor's
degree
1 3%
6
Professional
degree
3 8%
7
Doctorate
degree
25 68%
Total 37 100%

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Statistic Value
Min Value 4
Max Value 7
Mean 6.41
Variance 0.86
Total Responses 37

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# Answer Response %
1
Employed for
wages
37 100%
3 Student 0 0%
4 Military 0 0%
5 Retired 0 0%
Total 37 100%
Statistic Value
Min Value 1
Max Value 1
Mean 1.00
Variance 0.00
Total Responses 37

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4. What college and department do you currently teach in?
Text Response
College of Education and Allied Professions School of Teaching and Learning
WCU College of Education and Allied Professions
College of Education and Allied Professions
WCU
College of Education and Allied Professions; School of Teaching and Learning
College of Business; Business Administration and Law and Sport Management
Business
College of Business/Entrepreneurship, Sales and Marketing, and Hospitality and Tourism
Business / Business Admin. & Law and Sport Mgt.
College of Business – Entrepreneurship
Accounting
Global Management and Strategy
Fine and Performing Arts/Stage and Screen
Western Carolina University, College of Business
College of Business, Accounting, Finance, Information Systems, and Economics Dept.
Global Management
Business Management
Art
Art Department
College of Fine and Performing Arts - School of Music
Business
College of Business, Hospitality and Tourism
Business
College of Business, Dept. of Business Law
WCU College of Education and Allied Professions, School of Teaching and Learning
FINANCE
S&S
Business
College of Education and Allied Professions – School of Teaching and Learning
College of Business, Accounting, Finance, Information Systems, and Economics
Fine and Performing Arts, Stage and Screen
College of Business - Bus. Admin & Law and Sport Mgt

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Statistic Value
Total Responses 38

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Text Response
Mathematics methods for elementary and middle grades majors as well as education seminars for
clinical experiences
Methods
Primarily literacy education courses
Elementary/Middle Grades
GRAD
Face to Face
Education
Methods, lecture
LAW
Business law
Marketing
Sport Mgt.
Face-to-face undergrad & on-line undergrad & Masters
Intro
Quantitative
Accounting
Economics
Studio/lab, lecture
Introduction to Business
Face to face and online. Accounting classes.
Graduate online
Face to face and online
Art
Studio and Lecture
Private lessons, ensemble, classroom
Law
Hospitality and Tourism
Finance
Business Law
Junior level methods
FINANCE
Lectures, practical’s
Face to face
Education
Personal Finance
Performance and lecture
LAW, seated and online; liberal studies, core, and major

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Statistic Value
Total Responses 38
6. What is the highest class level you teach?
# Answer Response %
1 100 level 1 3%
2 200 level 2 6%
3 300 level 4 11%
4 400 level 29 81%
Total 36 100%
Statistic Value
Min Value 1
Max Value 4
Mean 3.69
Variance 0.50
Total Responses 36

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7. I would use educational games to engage students actively while in class.
# Answer Response %
0 0 3 8%
1 1 1 3%
2 2 1 3%
3 3 4 11%
4 4 2 5%
5 5 4 11%
6 6 2 5%
7 7 5 13%
8 8 5 13%
9 9 5 13%
10 10 6 16%
Total 38 100%

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Statistic Value
Min Value 0
Max Value 10
Mean 6.18
Variance 9.78
Total Responses 38

Page | 305
# Answer Response %
1 Very Unlikely 1 3%
2 Unlikely 2 6%
3
Somewhat
Unlikely
2 6%
4 Undecided 10 28%
5
Somewhat
Likely
7 19%
6 Likely 8 22%
7 Very Likely 6 17%
Total 36 100%

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Statistic Value
Min Value 1
Max Value 7
Mean 4.89
Variance 2.39
Total Responses 36

Page | 307
Text Response
They have to be of the utmost quality in meaning making for me to utilize them
can be fun, but not always appropriate
I think the quality can vary, but I think the research is strong on the use of gaming (not just digital) in all
types of classrooms.
This can be an effective strategy as long as it is varied with other approaches.
Not many. Don't really think about it.
NA
If they can be completed in less than one 70-minute class period AND if they support my own objectives,
I may use them.
Fine as long as education remains the focus
Depends on how educational games is defined...is the same has a simulation?
Questions about their ability to appropriately challenge students
I am willing to try
could be useful
How focused on learning outcomes?
I'm willing to try anything that will encourage engagement..
I am an advocate
I've used many over the years, starting with recording monopoly transactions in accounting ledgers, two
business simulations, making play-doh horse and riders and making punch and keeping track of costs,
accounting baseball... My impression is they work well in small classes but generally not as well when
there are 40-50 students. Except monopoly, played outside of class, worked. It's difficult to keep the
entire class engaged in learning when play is involved.
None
need to be easy for faculty to learn
why not
It depends! Hands on learning is a large part of experiencing the arts... I guess a game could replicate
the tactile experience of art- but maybe not?
If they carry with them a heavy lesson applicable to the course, I am all for it.
love them; hard to find good ones
Some are useful
help critical thinking
The games I am familiar with are not effective, and largely silly.
MY SON IS A GAME PROFESSIONAL, SO I AM SUPPORTIVE BUT DOUBTFUL THAT I COULD USE THEM
EFFECTIVELY IN MY CURRICULUM.
depending on the class, useful
Good
If adequate training is provided, I believe they can be very beneficial.
Properly constructed, they would be of great help.

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Not much experience with them
Statistic Value
Total Responses 32

Page | 309
10. What are the advantages of educational games?
Text Response
engagement, proficiency
Engaging
They can be engaging and a different way of helping students learn
Engagement, modeling of this strategy for teacher candidates (e.g. so that they might use this approach
in their own classrooms)
Engagement.
NA
The good ones can engage students and they provide and they offer another way to teach.
Students can relate
Can apply real world situations and give better understanding of concepts
Student engagement
experiential learning
application of theory
interactive, engaging, collaborative
?
Students are often receptive to alternative means of delivering content.
Helps to engage students
For those students that get engaged and involved, games can make learning more fun and it can bring
real-world aspects into the classroom (such as keeping track of costs as you make something in class, as
they do in manufacturing plants.
good learning process
students enjoy them
collaboration/competition
We just love games as a culture
Learning without knowing!
significant lasting learning if game is good
Have to see it first, but would hope it would mock the real world
new perspectives
I suppose if done well they would be engaging.
Interactive, engaging
?
engagement of student
Fun
In teacher education, it provides our students with an additional strategy to use in the classroom.
They engage students, they get the message across in a non-lecture way, and they can be more
memorable to students.
I would think it would engage the students in the learning process

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Statistic Value
Total Responses 33

Page | 311
Text Response
distraction, level of rigor
Don't require critical or creative thinking
If there is no real substance or they are simply to help with memorization, they are a distraction rather
than a true learning tool.
There might be the potential to focus so much on the gamification that learning goals and objectives are
less of a focus. Fun is only effective when learning is at the center.
Management
NA
Sometimes, they take too long, are expensive to buy, or the instructions are ambiguous.
Life is not a game
Some students may not take it seriously
Could be boring, too easy
learning curve
Hard to manage sometimes
Detracts from actual content
This can't be the sole method of delivery, but I don't see a downside as long as students remain on task.
learning curve for the professor
Can be distracting for students, can allow a lit if social ladino, and if complicated can be frustrating and
therefore counterproductive (like the simulations I tried).
difficult to set up and play
often take more than 50 minutes
collaboration competition
Screen time as opposed to face time
Potential to get distracted and miss the "lesson"
not enough of them; sometimes students don't take seriously so impact is not great
None
They are not realistic.
?
classroom size can limit attention
Time
Not all students/classrooms have the equipment or technology available.
They are blown off as just being fun and games by the students.
Over-use may cause traditional study skills, such as reading, writing, and other things that require
sustained concentration, to wither.

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Statistic Value
Total Responses 31

Page | 313
Appendix 7: Western Carolina University Education Majors Survey
Brain Train Education Survey Questions
a. Male
b. Female
b. Some college
c. Associate degree
g. Doctorate degree
b. Self-employed
c. A student
d. Military
e. Retired
f. Unable to work
4. Do you find games helpful for learning? Please explain why:
________________________________________________________________________
5. Which type of learning tool do you learn best with (choose the one that defines you the best)
a. Auditory
b. Tactical (Hands-on)
c. Visual
d. Written

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6. What level of education are you currently teaching or actively pursuing?
a. Elementary
b. Middle School
c. High School
d. College
e. Other
7. How important is implementing technology into the classroom?
(1 being not important, 10 being very important)
a. 1 2 3 4 5 6 7 8 9 10
(1 being never, 10 being always)
a. 1 2 3 4 5 6 7 8 9 10
a. ______________________________________________________
a. ______________________________________________________
a. ______________________________________________________

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Appendix 8: Western Carolina University Education Major Survey Results
Education Major Survey
Initial Report
Last Modified: 11/17/2014
# Answer Response %
1 Male 10 67%
2 Female 5 33%
Total 15 100%

Page | 316
Statistic Value
Min Value 1
Max Value 2
Mean 1.33
Variance 0.24
Total Responses 15
# Answer Response %
1
High School
Diploma/GED
0 0%
2 Some college 10 67%
3
Associates
degree
1 7%
4
Bachelor's
degree
4 27%
6
Professional
degree
0 0%
7
Doctorate
degree
0 0%
Total 15 100%

Page | 317
Statistic Value
Min Value 2
Max Value 4
Mean 2.60
Variance 0.83
Total Responses 15

Page | 318
# Answer Response %
1
Employed for
wages
5 33%
3 Student 9 60%
4 Military 0 0%
5 Retired 0 0%
Total 15 100%

Page | 319
Statistic Value
Min Value 1
Max Value 3
Mean 2.27
Variance 0.92
Total Responses 15
4. Do you find games helpful for learning? Please explain why
Text Response
Yes, they help engage students
Yes, i like challenges.
No. They distract me.
No
Yes, it helps make certain topics stick
Yes, the act of playing a game is much more memorable than a lecture
Yes because games, for the most part, require the person to follow directions to complete a puzzle.
Sometimes. It depends on how the game functions as compared to what I am trying to teach.
Computer labs are also hard to book and get everyone into in a crowded school.
yes, for some people
Somewhat, it depends on how the person learns.
For skills that are muscle memory dependent
no
Statistic Value
Total Responses 12

Page | 320
5. What type of learning tool do you learn best with?
# Answer Response %
1 Auditory 0 0%
2
Tactile (Hands-
on)
5 33%
3 Visual 5 33%
4 Written 5 33%
Total 15 100%

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Statistic Value
Min Value 2
Max Value 4
Mean 3.00
Variance 0.71
Total Responses 15
6. What level of education do you plan on actively pursuing after college?
# Answer Response %
1 K-5 0 0%
2 6-8 6 40%
3 9-12 2 13%
4 College 7 47%
Total 15 100%

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Statistic Value
Min Value 2
Max Value 4
Mean 3.07
Variance 0.92
Total Responses 15

Page | 323
7. How important is technology in the classroom?

Page | 324
# Answer Response %
0 0 0 0%
1 1 0 0%
2 2 0 0%
3 3 0 0%
4 4 0 0%
5 5 2 13%
6 6 2 13%
7 7 5 33%
8 8 2 13%
9 9 1 7%
10 10 3 20%
Total 15 100%
Statistic Value
Min Value 5
Max Value 10
Mean 7.47
Variance 2.84
Total Responses 15

Page | 325
# Answer Response %
0 0 1 7%
1 1 0 0%
2 2 0 0%
3 3 0 0%
4 4 0 0%
5 5 1 7%
6 6 2 14%
7 7 2 14%
8 8 6 43%
9 9 1 7%
10 10 1 7%
Total 14 100%

Page | 326
Statistic Value
Min Value 0
Max Value 10
Mean 7.00
Variance 5.69
Total Responses 14

Page | 327
9. What are your thoughts on educational games?
Text Response
They are great, not used enough in the class though
Very helpful
Can be used to lighten the mood in a productive way.
They can be helpful
They are very helpful
They helped me learn growing up, so I think they are great
Could be useful in improving students retention rates
Not much experience, but I think if a school had the resources it would be beneficial.
Educational games help kids stay focused
They are important for different styles of learning in children
It’s good for different learning styles
They promote communication between classmates
They aren’t really used very much
Good
They are out dated.
Statistic Value
Total Responses 15

Page | 328
10. What are some advantages of educational games?
Text Response
Inexpensive, reusable, fun.
Attention retained
They're fun for kids.
Fun learning
Help reinforce what is taught in the classroom
They can teach kids basic information outside of the classroom and make it fun. Pajama Sam helped me
learn to read and think critically, as well as helped with some math. They can help tremendously.
Using all learning styles in a single lesson and could make learning "fun"
Motivation, a change of pace, more work being done.
Focused kids, and less worries
Children can learn from different approaches
It gives kids different learning opportunities
Communication, learning
Fun and engaging
Get bored students involved
they can engage younger students
Statistic Value
Total Responses 15

Page | 329
11. What are some disadvantages of educational games?
Text Response
Not all students are engaged.
Motivating students
They can be a distraction.
Distracting
Staying on task
Kids could possibly miss the point, but if it's made well that shouldn't be an issue
Some students may excel more than others or the take away lesson may be missed.
Students will get off task quickly.
None
Not everyone favors games
Not every kid loves games
Some games suck
They can be expensive, not all the students like games
They get old
Students can get off track/ won't take it seriously
Statistic Value
Total Responses 15

Page | 330
Appendix 9: Patent Information
Trademark, Patent, or Copyright?
A trademark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of the
goods of one party from those of others. A service mark is a word, phrase, symbol, and/or design that
identifies and distinguishes the source of a service rather than goods. The term “trademark” is often used
to refer to both trademarks and service marks.
Must all marks be registered? No, but federal registration has several advantages, including a notice to the
public of the registrant's claim of ownership of the mark, a legal presumption of ownership nationwide,
and the exclusive right to use the mark on or in connection with the goods or services set forth in the
registration.
A patent is a limited duration property right relating to an invention, granted by the United States Patent
and Trademark Office in exchange for public disclosure of the invention.
A copyright protects works of authorship, such as writings, music, and works of art that have been
tangibly expressed.
The Trademark Operation of the United States Patent and Trademark Office (USPTO) handles trademarks
only. For information on patents, please visit Patents or contact 800-786-9199. For information on
copyrights, please contact the U.S. Copyright Office (a division of the Library of Congress).

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