Toys R Us Marketing

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Within the service category, retail channel segments are taken into consideration. The various channels in which toys are sold throughout the world are different from one country to another. In the United States retailers such as Toys R Us rely on merchants across the globe, and according to current statistics this makes up to 35% of global sales. This of course is something for Toys R Us to consider when looking to expand in new merging markets.[pic 5]

(Source: Porter value chain, 2013)

In marketing and sales, the manager of toy R us has to convey the appropriate information about the products and services to their customers so that they can purchase easily. In last, service, the process and activities which are performed by employees should support the ongoing value of the products and services with customers.

Support activities – These activities are not directly involved with the producing of goods and services to customers. It involve human resource management, these are related with the to recruit the potential employees for contributing their efforts to achieve the objectives of company (Nikolaou and Evangelinos, 2010). It also involves technology development, infrastructure activities.

Margin - The managers has to make profit margin on primary and support activities and to deliver the customer services for reducing the cost and creating value.

Summary of findings

From the information above we can see that toys r us has a complex supply chain, this also implies to the complexity and advancement of infrastructure as they would require high skilled employees to deal with their large supply chain and develop products in order to create value for increased profit margin.

SWOT Analysis

STRENGTHS

WEAKNESS

- Wide range of products

- Operating in 34 countries

- Franchise and license for wide range of products

- Large employment team of up to 70,000 around the word

- High revenue $13.6 billion

- Toys are not unique can be found in different retailers

- Sometimes sales depend on seasons i.e. Christmas

- The company has not gain the competitive advantage because their brand is having sole source (Parra-Medina and Messias, 2011). Sometimes the company is not selling the unique toys so become difficult for them to attract large number of customers.

OPPURTUNITIES

THREATS

- The company can do alliance with their competitors to attract the customers. Through this it will encourage the buying power also.

- Strong market competition

- Low cost toys being produced in china and can be an alternative buy for consumers

- 87 store closures across the world highlights unreliability

Question 3: 12C implementation to international markets.

INDIA

SRI LANKA

NIGERIA

RUSSIA

Country

GDP of $1750.60 per capita (US Dollars) year ending of 2016

(Trading Economics, 2017)

GDP of $3637.54 per capita (US Dollars) year ending in 2016 (trading economics, 2017)

GDP of $2548.20 per capita (US Dollars) year ending in 2016 (trading economics, 2017)

GDP of $11038.82 per capita (US Dollars) year ending 2016 (trading economics, 2017)

Concentration

Current statistics show 0-25 years old make up 50% of population (india online pages, 2017)

0-25 years old make up 39% of population (index mundi, 2017)

0-25 years old make 63% of population. (index mundi, 2017)

0-25 years old make 27% of population (index mundi, 2017)

Culture/consumer behaviour

77 score for hierarchy structure top down. Power distance. Long term orientation score of 55. (geert hofstede, 2017)

80 score for hierarchy structure top down. Power distance. Long term orientation of 45. (geert hostede, 2017)

80 score for hierarchy structure top down. Power distance. Long term orientation of 13. (geert hofstede, 2017)

93 score for hierarchy structure top down. Power distance. Long term orientation of 81. (geert hofstede, 2017)

Choice

Aspiring market products. (ET Retail, 2017)

Adapting to western trends. (ET Retail, 2017)

Limited choice as the economy is unstable and under developed. (ET Retail, 2017)

Russia is brand oriented and follows western trends. (taylor and francis online, 2017)

Consumption

Last record shows approximately 1.34 billion.

(india online pages, 2017)

Last record shows approximately 21.2 million. (trading economics, 2017)

Last record shows approximately 182.2 million. (trading economics, 2017)

Last record shows approximately 146.5 million. (trading economics, 2017)

Channels of distribution

Poor channel of distribution due to transportation and warehouse complications. (vanik.com, 2017)

422 retail stores, distributors and dealers 896. (asia, 2017)

Mostly supplier