University of Ulster, Coleraine

MKT527 Marketing Management

Marketing Analysis

Toys R Us Ltd

Chris Halliday B00356190 Chris Cupples B00356195 Matthew Gray B00356620 Louis Wright B00356168 Dimitri Francis B00509970

MKT527 Marketing Management.......................................................1 Marketing Analysis.............................................................................1 Toys R Us Ltd.....................................................................................1 Introduction........................................................................................3 Industrial Analysis..............................................................................5 Economic........................................................................................5 Social .............................................................................................5 Environmental ................................................................................6 Significant Growth and Changes in the Toy and Games Industry ...........................................................................................................6 Main Product categories in the Toy and Games Industry................7 Markets...........................................................................................9 Firm Analysis....................................................................................10 Brief History..................................................................................10 Products........................................................................................10 Markets.........................................................................................12 Customers.....................................................................................12 Overall Strategy............................................................................14 Competitive Analysis........................................................................15 Analysis of Retailers ........................................................................15 Mixed Retailers ............................................................................16 Toy Specialists..............................................................................16 Early Learning Centre................................................................17 Disney Store..............................................................................17 Hamleys of London....................................................................17 Smyths.......................................................................................17 Catalogue Stores..........................................................................18 Argos.........................................................................................18 Tesco Direct...............................................................................18 Market Analysis................................................................................19 Performance and Success................................................................28 Evaluation........................................................................................29 Appendix 1 Real GDP Growth (%) ..................................................................................................31 Appendix 2 The UK market for Traditional Toys & Games by Product Sector by Product Value (m at rsp and %), 2007......31 Appendix 3 - Relative sales figures and profit margins of toy retailers.....................................................................................32 Reference List ................................................................................33

Introduction
This report aims to produce a detailed analysis that evaluates the marketing strategy of Toys R Us ltd. The main goals are to present relevant and up-to-date marketing information on: The industry as a whole through the use of the PESTEL framework and recent industry information, major macro environmental factors, recent growth and changes in the industry, market location and main product categories will all be examined. The company itself through company research and use of the company website, the report will examine what products the company sells, the markets in which it operates, the main customers, the market position and the overall strategy. The main competitors using industry and competitor information, with specific attention on why and how they compete. The marketing strategy through detailed research of the available company information, a market analysis will be carried out with specific attention to the positioning, pricing, promotion and distribution strategies. Key performance measures and overall strategy drawing together the findings from the report and make recommendations were necessary.

The report will achieve this analysis through detailed and relevant research into the marketing activities of Toys R Us in conjunction with the work of key marketing writers. Company advertisements, website, brochures and stores will all be examined to assist with this. Various marketing and business resources will be used throughout the report in order to fully understand the companys marketing strategy.

Industrial Analysis
The P.E.S.T.E.L analysis is a structured approach to analysing the external environment of an entity. The influences (current and possible future influences) of the environment on the entity are grouped into categories (Wilson and Claussen, 2007). There are a number of macro-environmental influences that are likely to affect the Toy and Game industry over the next number of years. The PESTEL model helps to categorise them into various sections. The key sections in relation to the toys and games industry are mentioned below:

Economic
A number of factors are currently having a negative impact on world economic growth. These include the ongoing fall-out from the credit crunch, declining house prices in many of the major industrialised economies and rising commodity prices (DETI, 2008) (Appendix 1). Consumer confidence has been considerably lowered as consumers have found themselves with less disposable income and an inability to attain credit.

Social
The UK has seen an increase in birth rates in recent years due to rising fertility among UK born women and partly because there are more women of childbearing age due to inflows of female migrants to the UK. (UK Statistics Authority, 2008) (Table 1). Table 1

Overall the UK population is increasing year on year with a number of factors contributing: higher birth rates, migrants staying longer and a drop in mortality rates. (UK Statistics Authority, 2008) Recent government reports have shown an increasing obesity trend in the UK, with a rise in the percentage of children aged two to fifteen who are obese. This has led to government legislation to encourage and change peoples healthy living attitudes (UK Statistics Authority, No. 38, 2008).

Environmental
Increasing pressure from the European Union for local government and councils to recycle means that the industry has had to look at ways to reduce packaging on products and use packaging materials that can be recycled (UK Statistics Authority, No. 38, 2008).

Significant Growth and Changes in the Toy and Games Industry

The Toys and Games Industry has been in a period of growth since 2003 (Figure 1). Figure 1 The Total UK Market for Traditional Toys and Games by Value at Current Prices (m at rsp), 2003-2007

Keynote (2008) Until recently, the market has benefited from a positive trading environment where an upturn in the birth rate has led to a rise in the child population. The recent changes in demographics will ultimately mean that there will be more customers for the industry, especially over the next few years as the children grow older and as birth rates continue to grow. The aforementioned economical factors have and are likely to lead to a considerable slowdown in the industry growth and sales levels. If the UK economy does slip into a recession these effects will only worsen. The industry can expect this slowdown to affect the current 6

growth levels for at least a year if not longer. The previously discussed obesity trend has led to the introduction of government legislation to encourage and change societys attitudes to healthy living. The results of this pressure can be seen in society today, through an increased awareness of healthy living alternatives. As expected, the industry has seen a growth in activity toys and outdoor toys and games. This active/healthy living market is growing and more opportunities exist for the industry to capitalise (Social Trends, No. 36, 2006 and 38, 2008). The industry will need to react to environmental demands and look at how they can change their packaging to use fewer materials and to recycle more. This could be done through altering the manufacturing process, using recycled materials in packaging or adapting production to fit with new legislation.

Main Product categories in the Toy and Games Industry

The main categories in the market are: Infant/pre-school toys and games Activity toys Games and puzzles Outdoor and sports toys and games Dolls Action toys Vehicles Plush toys Other products.

(Appendix 2)(Keynote, 2008) Figure 2 shows the percentage of sales each of these categories contributes towards the industry total. Figure 2 Contribution of each category to the total sales of the toy and Games Industry

(Keynote, 2008)

Markets
The Toys and Games Industry is a global industry, however Toys R Us ltd only operates within the UK market. Distributors rather than manufacturers dominate the UK market. More than 80% of products are imported from China (BBC, 2008). Three main types of outlet dominate the retail distribution of toys and games: 1. Mixed retailers, 2. Toy specialists and 3. Catalogue showrooms (Keynote, 2008) Toys R Us is classed as a Toy Specialist.

Firm Analysis
Brief History
Toys R Us originated in the USA in 1957. Toys R Us UK was founded in 1985 with the opening of the Sheffield store. Since then a further 72 stores have opened across the UK. This was the first toy retailer to use a superstore structure. Toys R Us is the largest toy specialist retailer with 566 million of sales in 2007/08 (FAME, 2008).

Products
Toys R Us started out as a toy retailer operating within the toys and games market. They have since diversified in order to offer a much wider range of products, within the following categories outlined in Table 2:

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Table 2 Categor y Outdoor & Sports Target Market

Mixed

Associate d Brands
K&D Designs Universal Power Play Fisher Price Barbie Disney High School Musical Hannah Montana Thomas the Tank Engine Hannah Montana Toshiba Ipod Sony None Bruin Chicco

Details
Includes products such as: slides, bouncy castles, trampolines, and a range of sporting equipment.

Toys

Children

Toys are still the prominent source of income as their range of toys caters for various ages. They include: dolls, board games, dressing up costumes and play kitchens. This product range compromises of childrens bedroom furniture, including beds, duvet sets and storage.

Kids Room

Parents & Children

Learning Parents

With increasing emphasis on childrens education, the Learning section has been introduced. It offers a variety of products encouraging creative play, applying science and electronic learning. A range of TVs, DVD players, MP3 players are available for purchase, therefore encouraging adult consumers. Gadgets including: electronic games, flying toys and remote control vehicles are stocked by Toys R Us This is the main form of diversification by Toys R Us. This section specialises in products for newborn babies. It includes items including prams, cots, car seats and clothing Using prestigious brands, Toys R Us market an array of computerised products including, Sat nav systems, PCs and Laptops.

Sound & Vision

Adults

Gadgets Babies R Us

Teenage Adults New Mothers

Comput ers

Adults

Garmin Sony Apple HP Nintendo

Video Games

Teenage

Toys R Us offers the full range of games consoles in order to keep up with the changing market. They also

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 Mixed Bikes and RideOns (Toys R Us, 2008)

Sony X-Box Playstatio n Disney Barracuda

stock accessories and games.

Mens, Womens and Childrens bikes are all stocked by the store, along with a range of scooters and battery operated quads.

From the products stocked (Table 2), it is evident that Toys R Us are catering for both males and females of the different age groups, this reinforces their ethos of selling everything under one roof. This has been made possible through adopting a strategy similar to that of a supermarket retailer. Toys R Us market a variety of brand named goods, a brand name is intended to identify the goods or service of one seller and differentiate them from those of competitors (Kottler and Keller, 2006). Stocking branded products could increase their sales as customers perceive these products to perform at a higher level, customers can become loyal to a brand and branded products are less vulnerable to competitive marketing.

Markets
As a company, Toys R Us trades from 73 retail outlets nationwide, it is apparent that Toys R Us UK are serving the needs of several local marketplaces. Each store is located close to a major city or an easily accessible area; this ensures they each have a local catchment area. Through the use of the Internet, Toys R Us have been able to access smaller, more rural geographical areas. Customers can enter their website, browse through their products, purchase items and receive home delivery. This therefore allows the company to increase their catchment area.

Customers
Traditionally the toy industry has targeted the 0-14 age group (Keynote, 2008), however through diversification, Toys R Us have managed to stock products marketed at both males and females in various age groups. These different age ranges are reflected in the items stocked within each department, for example the computer department stocks products aimed at adults, whereas the toy department aims 12

products at young children. This reinforces their company message: the ultimate one-stop shop for all the familys needs, (Toys R Us, 2008) and demonstrates that they are a company catering for all of the family. Although the majority of customers will be the parents of children, it is key for the company to remember that the child usually will have a say in the item or items purchased.

Market Position
In the Toys and Games industry, Toys R Us are the current market leader (Figure 3). A market leader is a brand, product or firm that has the largest percentage of total sales revenue of a market (Business Directory, 2008). Being the market leader, Toys R Us lead other firms in price changes, new product introductions and distribution coverage.

Figure 3

(Keynote, 2008) Toys R Us have become the market leader by:

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Being the first to enter this market using the superstore structure Serving a wide geographical area Offering a wide product range Expanding rapidly The volume of sales Being the first to offer extended opening hours through seven day shopping

Toys R Us are Britain's biggest Family Leisure, Baby Care and Toy Megastores with 73 stores nationwide (Toys R Us, 2008)

Overall Strategy
The overall strategy adopted by Toys R Us is centred on the differentiation of their product lines. This captivates a wide range of customers and therefore maximises sales potential. Toys R Us are able to do this with the clear outline of departments within each store that all specialise in a diverse ranges of products. Toys R Us currently stock branded good as part of their overall strategy, as this can lead to the retailer building a reputation for selling high quality products and consequently achieve a loyal customer base. The key drivers for Toys R Us are that they are the biggest toy specific company in the UK. This status alone drives sales, as customers will be able to find a large range of toys in the one shop. Another driver for the business is the brand name Toys R Us has built over the past 23 years. This has created the image that Toys R Us is a safe, reliable organisation that are specialists in the toy industry. Consequently brand loyalty to the company has been created, therefore increasing the number of returning customers. The business should do their utmost to maintain this perceived brand.

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Competitive Analysis
The toys and games industry is highly competitive in the UK. Products are sold through a wide range of sales channels. Not all retailers in this industry sell toys exclusively; some are major competitors in other markets. The percentage of toy and game sales in each retail channel in 2007 is shown in Figure 4. Figure 4 Percentage of toy and game sales in each retail channel in 2007.

The three main types of outlet in the toy industry, as seen above, are mixed retailers, toy stores/specialists and catalogue stores (Keynote, 2008)

Analysis of Retailers
There are only three potential generic strategies to outperforming other firms in an industry: overall cost leadership, differentiation and focus. (Royer, 2005) Cost leadership This strategy involves gaining advantages by reducing economic costs below that of competitors. Differentiation - This strategy removes the product from the most direct elements of competition by differentiating the marketing mix to the different buyer groups. Focus This strategy involves operating around a certain focus, these could be based upon a price, quality or service focus. (Hollensen, 2003) 15

Mixed Retailers
Mixed retailers sell a variety of products and therefore compete in a variety of markets. Together, these companies control the largest segment of the toys and games market. A selection of mixed retailers are analysed below: Woolworth This company is a mixed retailer yet is focused on home, family and entertainment. They operate in midsized high street stores (FAME, 2008). There are 820 Woolworths stores in the UK. (Woolworths, 2008) Supermarkets Supermarkets, especially larger stores such as Tesco, Asda or Sainsburys often have a small range of toys and games on sale. These retailers particularly benefit from seasonal sales, for example, at Halloween and Christmas. The following table has been created after studying relevant theories and comparing Toys R us against its competitors. Table 3 looks at why and how the mixed retailers compete with Toys R Us. Table 3 Mixed Retailers Supermarkets E.g. Tesco Why they are Competitors to Toys R Us? How they compete with Toys R Us?
Mixed Retailer

Woolworths
Mixed Retailer

They offer lower priced products Benefit from spontaneous sales Loyal customer base that returns Convenience

They offer lower priced products They offer more convenient stores

Toy Specialists
These stores specialise in toys and games. By doing this they gain 16

some advantages of specialisation including product specific marketing along with greater expertise and experience in the area. This group of retailers is the one in which Toys R Us competes as the market leader. Toy stores will be analysed in more detail with reference to companies market positions and competitive strategies and compared to Toys R Us: Early Learning Centre As the name suggests this retailer competes by specialising in educational toys for children. Since the mid 1970s the early learning centre (ELC) has expanded and now has 215 stores in the UK (ELC, 2008). ELC had sales of 174.4 million in 2007 (FAME, 2008). Disney Store The Disney Store sells toys and games based on Walt Disney characters from movies and TV shows. They are the only store to do this and therefore specialists. The company benefits from the success of Disney movies and the strength of the brand name. They have 56 stores in the UK (Disney, 2008), with sales for the in 2007 totaling 91.7 million (Keynote, 2008). Hamleys of London Hamleys originated in 1760s London. It now has 16 stores in the UK and turnover of 35.8 million in 2007 (Keynote, 2008). Hamleys has an emphasis on quality and a reputation to match, helped by their long history of toy manufacturing and sales. Their specialist marketing position is based around high quality and high price (Hamleys, 2008). Smyths In Northern Ireland Smyths toy store competes with Toys R Us. Last year the firm had sales of 2.54 million in their 6 Northern Ireland stores alone (Keynote, 2008). Smyths are currently in the process of expanding into the UK market with 11 stores in the mainland. Similar to Toys R Us, this company uses megastores and opens 7 days a week (Smiths, 2008). Smyths operate in a similar style to Toys R Us and are currently followers in the market. The threat exists however that they will soon expand to become challengers for the market leader status in this group of retailers. Appendix 3 shows the relative sales figures and profit margins of these toy retailers.

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The following table has been created after studying relevant theories and comparing Toys R us against its competitors. Table 4 looks at why and how the toy specialists compete with Toys R Us. Table 4 Toy Specialists Smyths Why they are Competito rs to Toys R Us? How they compete with Toys R Us?
Toy Retailer Market Follower

Disney
Disney Toy Retailer Market Nicher

Hamleys
Luxury Toy Retailer Market Nicher

Early Learning Centre

Infant Toy Retailer Market Nicher

They offer the same products They have a similar store structure They compete on pricing

They offer a wider range of Disney branded products Better knowledge on Disney products

They offer higher quality products Catering for high end customers

They offer a unique service They are educational ly based

Catalogue Stores
Catalogue retailers save on overhead costs by displaying their products in a catalogue rather than a shop floor. This method negates the need for a large selling area and enables customers to view products from home. These companies are generally mixed retailers in terms of the range of products offered but their collective success in gaining market share has led to them being classed separately. Major catalogue retailers are briefly outlined below: Argos Argos is a catalogue retail company offering home delivery or store collection. They have been a major competitor in the toys and games industry for 35 years. Argos is a large company with over 700 stores in the UK, employing 34 thousand nationwide (Argos, 2008). Tesco Direct Tesco is the largest supermarket chain in the UK. Recently Tesco

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have diversified to offer a home delivery catalogue featuring a wide range of products at lower prices than retail stores. Its product range includes a selection of toys and games. The launch of the new catalogue has changed them from being a small competitor in the toys and games market to a major one (BBC, 2008). The following table has been created after studying relevant theories and comparing Toys R us against its competitors. Table 5 looks at why and how the catalogue retailers compete with Toys R Us. Table 5 Catalogue Retailers Argos Why they are Competitors to Toys R Us? How they compete with Toys R Us?
Catalogue Toy Retailer

Tesco Direct
Catalogue Toy Retailer

They compete on pricing Offer more than just toys and games They offer more convenient stores

They offer lower priced products Offer more than just toys and games They offer more convenient stores

Market Analysis
The goal of the market analysis is to determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of a firm (ICMBA, 2008). Positioning Positioning is a crucial phase for the creation of the operational strategy (Kotler et al, 2006); the marketing mix of Toys R Us will be influenced by the positioning of their products within the various market segments.

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The purpose of positioning is to give the product a specific place in the consumers mind in relation to the competition (Johnson, 2005). Companies must segment the market according to the needs of the buyers and place each of its products into the most appropriates segment. In the consumers mind, Toys R Us have positioned themselves as the leading toy specialist, having a well-established brand image with a wide variety of products at each megastore location.

This position has been achieved through: Stocking a diverse product range Their brand name clearly stating their purpose and position Advertising focused on their size and brand name Being the first megastore toy retailer in the UK

Table 6, overleaf, has been created after studying relevant theories and comparing Toys Rs positioning strategy against its competitors.

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Toys R Us POPs
- Toy Retailer

Smyths
- Toy Retailer

Hamleys
- Luxury Toy Retailer

ELC
- Infant Toy Retailer

Argos
Catalogu e Toy Retailer Catalogu e Retailer Househol d Name - Wide Market

Tesco
- Mixed Retailer

PODs

- Diverse Range Recognise d Brand -Toy Expertise

- Diverse Range - Dominance in NI Market - Toy Expertise

- Luxury Toys - Prestige

- Unique Brand Educationally Based

- Mixed Retailer - Dominates High Street - Household Name

Positio - Market Leader ning Strateg y

- Follower

- Niche Market

- Niche Market

- Wide Market

Table 6 Positioning Strategy

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Pricing Strategy The pricing strategy plays a very important role in the market strategy. The decision to fix a price can influence the demand, the profitability of the firm, the brands perception or the comparison with competitors (Shuiling, 2005). The pricing strategy depends on: Company Objectives a company objective may be to provide customers with a reasonably priced product or to achieve high product margin through high pricing.

Targeting the perceived wealth of the target market. Elasticity of Demand inelastic demand will allow a higher price to be charged with a minimal effect on sales. Product Cost has to be absorbed into the retail price to ensure a profit. Competitors the price set must be inline with that of competitors to remain competitive (Peter and Donnelly, 2004).

As the market leader, Toys R Us set the benchmark price that is generally followed by the competitors. The growing trend of price comparison websites makes it easier for consumers to compare the prices of numerous retailers. To defend against any pricing attack from competitors, the company offers price matching. This is carried out in two ways: if a customer mentions that they saw a product 22

cheaper with another retailer then the store will match this price, head office also compare their prices against major competitors and change their prices to match these. Table 7, overleaf, compares Toys R Uss pricing strategy against that of a number of its competitors. It has been compiled after studying marketing pricing strategies and that used by Toys R Us.

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Table 7 - Pricing Strategy Toys R Us Pricin g Strate gy

Competitiv e orientated - Market Based

Smyths
Competitive orientated - Market Based

Hamleys
- High Price - High Quality Specialised

ELC
- High Price - High Qualit y

Argos
Competitive - Market Based

Tesco
- Low Price - Create Demand

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Promotion Strategy Promotional strategies are one of the main forms of marketing communication, this is the means by which firms attempt to inform, persuade, and remind consumers about products and brands they sell (Kottler and Keller, 2006) The basic promotional mix consists of advertising, sales promotion, personal selling and public relations (Blythe, 2008). Toys R Us makes use of this promotional mix, in order to boost the sales of certain products at particular times of the year. The main forms used include: Advertising

Seasonal Advertising Toys R Us put a large focus on television, radio and newspaper advertisements leading up to the Christmas period.

Sales Promotions Coupons Coupons are posted out to those customers who are on their loyalty scheme. These coupons can be redeemed against the cost of a particular product. This encourages customers to stay loyal and allows Toys R Us to market certain products at certain consumers.

Flyers These are sent out to the surrounding market, via the local paper. These flyers contain discounts for customers when a substantial payment is made for a product, for example, 10 off when you spend over 100 on a bicycle. This allows the company to promote the sale of the slower moving consumer goods that are more expensive.

Personal Selling In Store They use their stores to achieve personal selling to customers. This involves personal interaction with sales staff, pre and post purchase.

Public Relations Through the media Toys R Us use press releases to

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announce important news and events. Although the business has a promotional strategy in place it is not a key element in their marketing strategy. These promotional activities are mainly used at certain times of the year, especially Christmas, and to increase sales of certain products.

Distribution Strategy The distribution strategy is simply the method by which an organisations product reaches the market. Distribution strategy decisions are about which distribution channels should be used for the product (Blythe, 2008) Toys R Us use two methods of distribution to get their products to the target market, these include: 1. Direct Selling where the customer visits the store, interaction takes place between the buyer and seller and the product is purchased.

2. Online Selling Products purchased online are delivered to the customers home address. Toys R Us outsource their deliveries, therefore a third party company delivers the product to the consumer.

Toys R Us play an important link in the indirect distribution strategy used by manufacturers, as they carry out the Retailer function (Figure 5) (Figure 5) Indirect Distribution strategy

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Performance and Success

As the market leader the company must continually assess and review their performance against key performance measures. This allows them to maintain their position as market leader and helps them to set strategic aims and objectives. As this is a continuous process they can adapt quickly to any change in the market. The key performance measures that Toys R Us have used are: Increasing sales turnover Since 1995 the companys sales have been steadily increasing. This is illustrated in Figure 6. This is done on a store-by-store basis as each store competes to better their sales.

Figure 6 Toys R Us Company Sales

Jul Jun 1995/ 96 Sales ( 000) Number of outlets 290,56 5 51

1996/ 97 315,64 3 57

1997/ 98 363,62 7 61

1998/ 99 371,10 4 62

1999/ 00 390,03 6 64

2000/ 01 430,62 2 63

2001/ 02 488,30 4 64

2002/03 535,796 64

2003/04 496,676 64

2004/05 502,030 67

2005/06 508,826 65

2006/07 525,610 71

2007/08 566,553 73

(FAME, 2008) Size Through offering the largest number of specific toy specialist outlets, growing year on year (Figure 6). Service By offering skilled employees that have an extensive knowledge of their products, for example, in the bikes department staff are trained to offer detailed safety 28

information.

Evaluation
Having evaluated the competitive strategies, in relation to market leaders, the following recommendations have been formed: From the evidence shown in the industry analysis it is apparent that the Toys and Games Industry has been growing since 2003. This growth is expected to continue, despite the effect that current UK economic conditions may have on market growth. Due to the expected market decline, it is suggested that the company adapt their strategy to incorporate the promotion of their own branded products, giving the consumer a cheaper alternative. This could be carried out through the use of an advertising campaign focusing on this range and the benefits it provides for the consumer. Although this economic slowdown is generally seen as a threat, being a well-established company with a firm base they can use this slowdown to their advantage by devising a long-term growth strategy. This can be done through: Land banking as land is currently cheaper due to poor market conditions Competitor buy-outs Small companies are at more risk of failure in the current economic climate. Buying property Due to the lack of available credit, property prices have decreased.

As this report has shown, the promotion strategy is not a key element in the companies marketing mix. The company could look to increase their sales throughout the year, focusing on the period immediately after Christmas when sales often slump. This can be done through January promotions and sales that increase the number of customers into their stores. Based upon the successful business model used by catalogue stores, we recommend that Toys R Us introduce a catalogue that allows orders to be made via telephone or online. This will improve the exposure of the brand name and product range to the wider market as catalogues are distributed throughout homes in the UK.

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As shown in the PESTEL analysis, there has been an increasing pressure on companies to improve their environmental policies. It is recommended that the company look to adhere to this readily and use it to benefit their brand image. To do this they should promote and publicise the steps they are taking to help the environment. The company can take simple steps such as; reducing packaging, using recycled plastic bags and using renewable energy sources. To promote these activities the company should use local and national media along with providing environmental information on their website. The PESTEL analysis has also highlighted that there has been a change in healthy living attitudes with consumers wishing to live healthier lifestyles. It is suggested that the company increase promotion of their of active/outdoor goods. This can be carried out through an advertising focus on this range.

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Appendices
Appendix 1 Real GDP Growth (%)

Appendix 2 The UK market for Traditional Toys & Games by Product Sector by Product Value (m at rsp and %), 2007.

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Appendix 3 - Relative sales figures and profit margins of toy retailers.

FAME (2008)

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