Assignment 1 – Fall 2022

Principles of Marketing – International Marketing Mix Strategy

Toys R Us – Jordanian Toy Market

Introducing Toys R Us:

After World War II, Toys R Us first opened its doors in 1948 in Washington, D.C. by
Charles Lazarus. The company started off by selling baby products and then expanded to
toys. The successful toy store launched its first store in the Middle East in 1995. Just like any
other company, Toys R Us had its ups and downs and faced numerous challenges.

Even though Toys R Us filed for bankruptcy in 2017 and had to completely shut
down most of its stores, the toy store is back in business to face new obstacles ahead. Apart
from that, the continuous need to stay in the market has always been a challenge for Toys R
Us. Since Toys R Us is a toy store, children are the target market, whereas their parents are
the target audience. The strategy used in targeting that market determines whether an
effective marketing mix was achieved or not. The company needs to keep track of the rapid
changes happening globally in addition to paying attention to their customers’ interests and
their response to marketing actions.

The success of a company or a business relies heavily on their ability to enhance

market share and develop a successful marketing mix strategy. For this to happen, Toys R Us
needs to focus on 4 main tools (products, price, place, and promotion) to achieve a desired
response from its customers.

Product:

The products are one of the key elements used to connect the seller and the
consumer. Initially, Toys R Us needed to stand out and open a massive store with
many toys and options for children, starting from infants to toddlers, middle
childhood and even teens. In order to achieve a high market share, various products in
Toys R Us should be offered, with unique designs and features that portray fine
quality.

To visualize, new and trending characters or products from movies or books that may
interest the target segment should be offered and sold as toys, for example, the famous Star
Wars Lightsaber. Also, using developed and durable materials is a great step that would help
Toys R Us gain loyal customers when offering exceptional and resistant products and toys.

Additionally, the company needs to work on diversifying its products and services
since the toy industry has declined with the rise of video games. It’s important to keep up and
stay ahead of technology to stay in competition. The company could distribute questionnaires
and surveys to understand its customers’ needs and work on fulfilling them. For instance,
providing action figures or products related to video games that interest not only kids but also
teens and adult gamers is one way to bounce back in business.

Pricing:

Toys R Us prices are known to be way more expensive than any other toy selling shop
or website. So, Toys R Us could adopt a price-cutting strategy to be able to increase their
sales, customer base, and eventually compete with other companies once again.

Firstly, discounts result in both short and long-term impact. Even though prices are
reduced occasionally, this strategy is helpful when it comes to improving cash flow and
getting rid of unwanted or discontinued products and toys.

Secondly, the company could consider rebranding by using different materials to

produce toys with less features and smaller size which will technically lower the total cost of
the toy. This way, toys will be available and affordable for every family.

Alternatively, Toys R Us could match prices with other competing companies but
adopt an effective and exceptional packaging strategy to create an unforgettable experience
for their customers, hence have the upper hand.

Place:

Knowing where to sell your product is an important part of attaining an effective

marketing mix strategy. For this to happen, Toys R Us will identify its target market based on
its sales data then reach those customers. After that, they will find places where their
customers are most likely going to need goods and services like theirs and locate their stores
accordingly. To be specific, the presence of Toys R Us outlets should be near schools, parks,
and malls to be in young age groups’ sight. Moreover, children are about 40% of the total
population in Jordan and they’re mostly living in Amman. Knowledge of this information
will result in expanding locally in that area and even globally. Which will lead to reduction in
transportation costs and expansion of the brand globally.

Nonetheless, the distribution of Toys R Us stores should be done in a careful way in

which every store covers the needs of its customers in that area. As for the distribution
channels, Toys R Us could either adopt a direct or an indirect distribution. With direct
distribution, the seller interacts directly with the buyer, which maintains a strong relationship
between the two, but with indirect distribution, Toys R Us will reach more customers.

Promotion:

Promotion remains one of the most important elements needed to create a rewarding
marketing mix. It enables the seller to effectively display the products to the clients and
encourage them to make a purchase. Promotion depends on numerous combinations of its
elements, which are employed to achieve the organization's marketing goals.

The company marketing strategy could be promoted by different types of media such
as television, music, and outdoor advertising. In addition to social media and its different
applications like Instagram, Twitter, and TikTok.

Toys R Us could start paying attention to the different social events held around the
world. In addition to starting a charitable foundation that aids and provides help for children
in need, which also gifts children around the world (or specifically in Jordan and Palestine)
Toys R Us special toys. This will support both the business and the community, hence
increase its brand recognition when contributing to such worthy communities.
References List:

 Toys R Us UK - The World's Greatest Toy Store is Back!

 https://www.history.com/news/toys-r-us-closing-legacy
 https://www.indeed.com/career-advice/career-development/place-strategy