The Megamart channel represents large discount retail partners such as Wal-Mart, Target, and K-mart. This channel represented 57% of ToyBlocks' sales last year. Because of their large size, these retailers are able to exercise significant buyer power over their suppliers. As a result, your margins on products sold through this channel are razor thin. There is a high degree of control however in terms of merchandising activity with stores allowing branded shelf space and end of aisle displays.

Stephan Ogden - V.P. Sales

The Toy Boutique channel represents specialty toy retailers such as, FAO Schwartz, Imaginarium, and Zany Brainy. This channel represented nearly 42% of ToyBlocks' sales last year. Your margins on products sold through this channel are generally moderate to high because these companies are frequently regionally organized, which gives you greater negotiating power. This fact also make trade and consumer promotions a successful element of our channel efforts. Specialty toy retailers are an important element in your supply chain because they have been your primary outlets for new product introductions. Note that some of these boutiques are your most loyal customers. They've been with you from the very beginning.

Edgar Jameson - V.P. Sales

The Toys.com channel represents toy e-tailers such as eToys, Amazon.com, and KidsToyShop.com. This channel was just a fraction of ToyBlocks' total revenues last year, however it is expected to grow. A great advantage of using this channel is that it takes very little effort on your part and takes a very low amount of maintenance. You benefit directly from their brand building activities. What about our brand though?

Chad Walker - Director of Sales

The ToyBlock.com channel, should you choose to launch it, will be your own dot-com. It represents your Internet direct selling division. By selling direct to consumers, you cut out the middle agents and gain a direct link to the end customer. If the Internet represents the future of retail sales, then you'll be better off starting now. On the other hand, if this is all a passing fancy, then how much is it going to cost you? Keep in mind, selling direct requires an entirely new set of skills and competencies - resources your organization does not currently possess and will need to develop.

Chad Walker - Marketing Director