Popular Brand
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European countries have experienced a relatively slow growth in toy sales in the last decade. However, Jot established in 1998 can boast about the considerable growth they achieved since beginning. Presently, Jot offers relatively a small range of 34 products which are aimed at only two age groups–
Group-01
3-5 years
Group-02
5-8 years
With this small range of offerings Jot remains as one of the popular brand. One of the reason is Jots products include electronic features which has been seen as its strength. Apart from that Jot launches around 5 totally new products each year to grow or create new demands for their products. Jot also makes enhancement in certain features of products to keep their sales consistently well. Jot holds claim of IPR for their designed products and sell some licensed products too.
Jot has its own in-house designers to come up with innovative products. Since, Jot operates in a seasonal business; they research on the global trends and incorporate cutting edge chip components in its products before launching them in January (peak sales season). Each of the new products is fully tested before launching off. Jot relies on the off shore manufacturers (till date 20 manufacturer) in china for production after they electronically send them designs. The reduced costs in production helps Jot make their product positioning and pricing competitive. Jot aims to expand its market which has grown demand for their products.
About 13 years in operation, Jot has a steady financial growth. It recorded a 17.9% sales growth in year ended 31 December, 2011 with an operating profit margin of 5.58%. Each year Jot spends around €1.2m to develop new products. As a young company in operation, Jot is dependent on bank loans. Their current amounts of loans accumulate to €1,600,000, each with 10% interest rate, are due for repayment as follows:
Bank loan of €500,000 due in January 2014.
Bank loan of €500,000 due in January 2015.
Bank loan of €600,000 due in January 2020.
Though Jot has positive response from the bank for funding their growth but they dont have assurance of additional long time finance. In an addition to it, Bank offers an overdraft facility at maximum of €1,500,000.