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Toys R Us: Overview and analysis

1234 words (5 pages) Essay in Marketing

27/04/17 Marketing Reference this

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Toys R Us is a chain store specialized in toys, created in 1948 in the United States of America by Charles Lazarus. The company has been bought in 2006 by American and English investment funds (KKR, Bain Capital Partners LLC and Vornado Reality Trust). Today, there are 1566 stores all around the world. We can count 849 stores which are implanted in its origin country that is to say is the USA and 717 stores in 34 others countries. The company is the world leader and owns the biggest store of toys on Times Square in New York with 10 000 m².

Toys”R”Us has been developed in France in 1989 and we can count today 42 stores which Paris la Défense store is the biggest Toys”R”Us of Europe. On the French market, the company is also the leader of the distribution of games/toys and detains 13.2% of the toy market share.

Toys”R”Us leadership is due to its staff’s passion, its daily commitment toward its customers and its ability to be sensitive to its employees’ needs like training and such. Furthermore, there is a strong team spirit and human relationship which is simple and user-friendly.

The following part is based on the information you can find on the official website of the brand. (toysrus.com)

Key figures Toys”R” Us France:

42 stores

Average area sales store: 2600m²

More than 10 000 references

More than 500 suppliers

1524 employees

Toys “R” Us developed its innovative own brand in each universe. For instance, the most popular are Bruin (first age toys and childcare articles), FastLane (boy’s toys), You & Me (Dolls), Just like Home (kitchen), Stats (outdoor toys) and Universe of Imagination (creative play).

Toys”R”Us Missions:

Toys “R”Us has to offer the family a full range of toys, leisure and childcare in a magic universe. Its priorities are about children, customers, staffs, grow and make people grown.

Toys”R”Us it’s choice: indeed the company propose a variety of articles which correspond to people’s needs

Toys”R”Us it’s novelty: the company anticipate children’s requests and needs in order to offer them products which follow trends, the news, and the environment.

Toys”R”Us it’s advice and expertise: with 50 years of experience in the world, and 20 years in France, Toys”R”Us has developed its expertise on the field by selecting toys up-stream and giving advice with a goal of children’s happiness.

Toys”R”Us it’s service: the company pays attention to customers’ satisfaction. Toys”R”Us tries to offer services adapted to children and parents. For instance service birth list, loan stroller…

Toys “R”Us Values:

PASSION

Because we love our profession and we work to serve children.

TEAM SPIRIT

Because complicity exists with our customers but also with our teams.

COMMITMENT

Because we have the choice of products and the quality service for children is something important.

CONFIDENCE

Because relationship with our customers is based on a real knowledge of our products.

RESPONSIBILITY

Because our wish is to share something together: children’s welfare.

Those values are the official ones set by the firm.

Toys”R”Us Strategy:

The company strategy is focused on service and especially on toys selection. Toys”R”Us always tries to anticipate on the trend and locks its orders before its competitors. It allows Toys”R”Us to have a high negotiation power with its suppliers. Another point of its strategy is to practice low prices compared to its competitors in order to make its customers more loyal. Moreover, Toys”R”Us has a development strategy which consist in opening news stores in new strategic places in order to increase its turnover. Finally, the company has adopted a multichannel strategy by creating a website so as to sell its toys for people who live far from a store.

Toys”R”Us Position:

To face up to its competitors, Toys”R”Us has decided to change its position. In this way, in 2000 the company developed a concept of entertainment more transverse with a large range of products like video games, creative leisure…This diversification allows Toys”R”Us to sell products throughout the year. The company positions itself as the largest toy retailer by offering a larger selection of toys than any other retailer at the lowest prices which allows Toys”R”Us to increase its customers ‘loyalty.

Toys”R”Us targets:

The company targets anyone important for the child like parents, grandparents, godfathers or siblings with any income.

Toys Market:

French people are the biggest toys buyers of Europe before England and Germany. In 2009, the toy market has increased of 2.7% in France and represents 3 billion euros, more specifically 235 euros a year a child. This market grows up about 10% every years for ten years.

Toys”R”US Competitors:

There is a high competition between specialists and supermarkets. Specialists represent 44.9% of the market share whereas supermarkets own 40.9% of the market share. We notice that the market share of the supermarkets tends to decrease that benefit from specialists.

Supermarket competitors:

Carrefour

E.Leclerc

Auchan

Specialists competitors:

La Grande Récré

King Jouet

Jouet Club

Jouet Land

We forgot to point out an other important competitor which is Internet! Indeed more and more people buy on the Internet. The mains Internet competitors are Ebay, Priceminister, avenuedesjeux.com, eveiletjeux.com or rueducommerce.

SWOT Analysis:

Strengths :

Own brand which represents 20% of the turnover.

Good Location, near the RER A ans near the Bay 1 mall

World leader, Large distribution networks, Strong reputation, High visibility thanks to the stores opening all around the world

Store layout shaped path

A large references

Low prices

Weeknesses :

Few animations, Few creative workshops, few birthday organizations which only exist in the USA.

Highest prices than supermarkets and on the Internet.

Stock problems

Not enough video games

Opportunities :

Located near a shopping mall so the company can capture the flows of the shopping center.

Threats :

Commercial sites on the Internet

Used sells like flea market

Toys”R”Us Communication

Toys’R’Us has created the « megapack » concept during the holiday season and which allows to benefit from a reduction of 30 to 50% of the first article.

Ways of communication :

Press

Displays

Partnership

Direct mail : to reach our target tat home

Radio: to capitalize on the significant time our target spends listening to the radio, most often while driving

Television: to capture the attention of our target, who spends an average of 12 hours a week watching TV

http://www.toysrus.fr/cms_widgets/20/95/209559_assets/TRU_spacer200.jpg

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