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Lannie Myles Q.

Flores
Bsba-4

Marketing Management
Mrs .Rosalie Seryll Rosales

TOYSRUS COMPANY CASE STUDY

I. Introduction
Today marketing automation systems enabling advanced segmentation allow
companies to send highly targeted email communication. Practices such as dynamic
content have been introduced to create a near 1-2-1 experience between the user and the
brand; and with more emphasis on relevance and engagement in order to achieve a good
email reputation, quality is replacing quantity as a strategic approach to email marketing.
The rise in automated and behavioral led programmers have seen a reduction to
the traditional newsletter approach as email strategies have evolved to focus on the
specific needs and wants of each individual user.

II. The Case


In 1948, 25-year-old Charles Lazarus turned his dream of creating a childoriented business into a reality. A visionary for his time, Lazarus started a baby furniture
store, Childrens Bargain Town, in Washington, D.C. to cater to the post-war baby boom
era. Lazarus filled his store with cribs and baby furniture and ran it single-handedly,
overseeing everything from bookkeeping to delivering merchandise to customers homes.
Continually looking for new ways to satisfy his customers needs, Lazarus introduced
infant products and toys for older children into the stores growing product assortment.
The first toy he added to the inventory was a cradle gym. When it proved a strong seller,
he added tricycles, books and other toys. Lazarus learned early on in the toy business that
unlike furniture, toys broke or fell out of fashion with children, prompting parents to
return to the store again and again.
Almost 10 years later, Lazarus adopted the supermarket model for his store, which
allowed customers to examine and pick out products on their own and pay for them at a
checkout stand. With the opening of his second store, he settled on the name ToysRUs
with a backward R. Although the name drew ire from parents and teachers alike for its
grammatical incorrectness, Lazarus knew it was an attention-getter.
Toys "R" Us is failing in its core consumer promise of best assortment and
competitive prices. Sales continue to fall, and the company is cutting staff and closing
stores in response to intense profit pressure from the owners. This can turn into a vicious
circle that could doom the company and severely affect the major toy manufacturers.
III. Analysis of the Problem
The three primary problems that affects the fundamentals of ToyRUs
mission-broadset products and services selection, because of it the company fell
down.
Modernization
- Poor innovations on producing interesting new designs of products
in the market old school.
Consumers choice
- Lack of ideas on what are the trend toys in the market. Toys that
are wants and needs of the customers.
Being common
- Poor on constructing new strategy to generate new products.

IV. Alternative courses of Action


Strategic plans are important for this business nowadays since toy industry are not
that in demand for the childrens, how to sell this product is the major problem for Toys
R Us. Using different kinds of advertisement to expose the mind of the children to look
back from the old time playmates or toys can help the company to regain its position in
the market.

PROSPECT OF ACTION
Modernization
Advantage
- This will create interesting and more competitive products in the
market.
- This will give a newly innovated toys.
Disadvantage
- It is very expensive in the part of the toy company.
- This might cause a long period of time.

Consumers Choice
Advantage
- This will give them an idea what are the trend toys in the market.
- This will help them identify the wants and needs of their
customers.
Disadvantage
- There are possible exiting errors in the result of the survey.
- It is very expensive.

Being Common
Advantage
- The customers will not be innocent about the product.
- The customers will be loyal to the products.
Disadvantage
- Since it is common, the customers might look for other features
that are new in their eyes.
- The product might be stagnant.

V. Conclusion
I therefore conclude that if the business still wants to remain functioning, they
should modernize and innovate their product and expose their target market to some
advertisement that can make them want the ToysRUs products. This can help the
company to survive the completion in the market.
Business owners should consider strategic plans living documents that direct the
work of the organization but that are flexible enough to be modified as changes in the
environment require shifts in direction for the organization.
It is important to have a process to monitor changes and incorporate them into a
company's planning efforts.

VI. References
http://www.toysrusinc.com/about-us/