P’kolino Company’s Business and Target Market

The business aims at satisfying children’s need for play material and equipments. The company deals with product development and marketing. They aspire to improve children play at home, through their creatively designed playroom furniture. The product within the business will provide room for adaptation within children stage of development. P’kolino is to design and produce classic play furniture in large quantity and supply to the ready market, where they are to compete in the children’s playroom furniture space. The business objective is to increase value of children playroom by developing furniture products integrated with toys and activities (Bygrave and Zacharakis, 2011).

Competitiveness of the Product

There is strong competition experienced from foreign firms making their sales at comparatively lower prices. These calls for P’Kolino Company to invest in technology to enable them compete favourably in terms of speed and quality. The Company will be able to compete favourably since within furniture market, most of the local manufacturers have been so much focused in the making of household furniture. On the other hand, Toy industry is known to be one of the highly concentrated industries, also experiencing high percentage of import from other countries. Toy industry experiences high sales during holiday seasons (Bygrave and Zacharakis, 2011).

In order to achieve a significant market presence, P’kolino products are made in various tastes for the benefit of population. In addition, the playroom furniture are produced in sizes which are economically feasible to both consumers and the manufacturer in order to cater for lower end category of consumers within the population. The second tactic is enhancing effective robust distribution of the products. Since a significant proportion of the population is not adequately catered for, the company should consider either investing in building dedicated distribution infrastructure or result to outsourcing distribution from committed distributors. This enhances availability of these products within the market to cater for the increasing demand.

P’kolino Company targets to venture also into mid and high-end play furniture products currently dominated by only two companies i.e. Pottery Bam Kids and Land of Nod. This is in addition to competing within the highly price sensitive consumer market. Their products will be of high quality and beauty for the purposes of satisfying the high-end segment. P’kolino products will be very competitive in the market since they serve functional and multi-purpose tastes. The play furniture’s attributes of being safe, beautiful and providing the necessary fun to children presents one of their success points. At the same time the Toy kits are packaged to fit specific stages of child development, this saves the parents the difficulties they at times encounter on selection (Bygrave and Zacharakis, 2011).


P’kolino and the all the stakeholders would benefit from the business, more so the designers contracted for the first one year. Eventual hires would also benefit since they are all included within the payroll for the purposes of product development, sales and marketing efforts. P’kolino’s staffing plan presents one of the promising plans which create some sense within the cost projections within the first and second year into the business.

Internal Analysis

Competition within the Industry

P’kolino is able to match the competition within the market place since they will always implement constant product innovation. One of P’kolino Company’s strategies used to attract customers is the differentiating benefit of their furniture products. The improved educational value of the product, increased functionality and the multi-purpose nature of the products offer them advantage over others. The strategies implemented by P’kolino focuses on business growth based on market penetration as well as achieving specific performance objectives.

P’kolino’s strategies of developing their brand by targeting influential customers appear very effective. Their plans of expanding product line and building customer base through extension into new markets presents a strong point. P’kolino’s competitive nature is improved through maintenance of long relationships with customers by offering upgrades that match appropriately with development stages. The company is also banking on repeat sales for the purposes of serving the large customer base. The competition is further improved through implementation of appropriate methodologies and hiring proven talents which fits the dynamic and innovative environment. The other aim which could see the company compete favourably and expand within the market is the idea of acquiring modern computerized automated machines (Bygrave and Zacharakis, 2011).

Management Team

According to P’kolino Company sales strategy, the founders serve as sales representatives. This provides up-to-date advantages since the managers are able to get primary information concerning the market environment and act on it appropriately. This also makes it easier for the management when it comes to the selection of productive retailers; this provides good grounds before hiring prospective sales manager. The management team comprises of experienced and well educated personnel which provides solid ground for performance.

The idea of working in partnership with Rhode Island School of Design (RISDI) ensures quality design mechanisms. Outsourcing of manpower will ensure that the company has one of the best human resources for respective positions. This would improve the company’s ability to negotiate with potential manufacturers and make innovation and speed to compete more reliable and able to counteract other competitors within the market.

Required Resources

P’kolino products are relatively built from wood, high-density foam as well as the use of fabrics. They could also utilize the use of panel products such as chipboard and soft board. The use of imported softwood and hardwood could also boost the manufacturing process. The presence of qualified and loyal staff also presents an added advantage to the progress of the company.

Can they make money from this business model?

For success to be realised within this market, P’kolino should develop clear financial schedules as well as activity protocol. The P’kolino business success in this area lies in full utilization of the four product concepts which are under the process of development in partnership with Rhode Island School of Design (RISD). The company is capable of realising high returns owing to the fact that play is considered to be a child’s work and education. Children’s lives revolve a round play making parents to be more willing to spend on products which promotes play in their children lives.

Tab. 1: Market and Margin-Related Issues.

Criterion Higher Potential Lower Potential
Profit after tax More than 20% Less 5% fragile
Break-even point Less than 2 years Greater than 3 years
Cash-flow Less than 2 years Greater than 3 years
Return on Investment potential Over 60%- durable Less than 15% – fragile
Value Higher Strategic Value Low Strategic Value
Capital Low-moderate: fundable Very high: Difficult to fund
Exit Mechanism Defined: IPO, acquisition Undefined: Liquid, Investment
Overall Potential
Timing profits Higher
Liquidity Low
Cash-flow Higher


  1. P’kolino Company should focus on offering the employees’ days for training so as to improve the knowledge and skills of the employees. The company at the same time should obtain information on trends within the current market environment. This would provide them with up-dated information hence not relying so much on their past achievements.
  2. Promotional strategies should be applied by the company within the first year, for the purposes of familiarizing the market on the availability of their products. The use of price-offs and catalogues are appropriate on the preliminary stages.
  3. Since other major competitors within the mid-market and high market environments utilizes the use of heavy computerized and automated services in the production process, P’kolino should strategize on how to incorporate computerized system within their various departments like sales and marketing as well as management. This would make it easier for them to display their products to a large market hence reaching many consumers through the internet.


Bygrave, B., & Zacharakis, A., 2011. Entrepreneurship, (2nd Edition). Hoboken NJ; Wiley & Sons. Web.