Professional Documents
Culture Documents
MMS 08 - 10
Pushkar Jadhav - 14
Mayank Lalpuria - 22
Anand Padwal - 32
Mandar Patil - 37
Company Background
• The two main
Strategies of Toy “R” Us
are :
-Every day low price
(EDLP)
-Keeping Toys in stock
• Faster expansion &
increase in market
share
• Change in management
Company Background
• Conversion of Toy ‘R’ Us
stores into Babies ‘R’
Us
• Expansion of babies ‘R’
Us stores and its
product line
• Decrease in profit of Toy
‘R’ Us in last three years
International Expansion
• In 1983 TRU entered the
children’s clothing market with
Kids “R” Us and established
the International Division.
Learning and
educational toys
TRU Japan Stake reduced
from
80% to 48%
The Changing Market
Toy Annual Sales Annual Sales %Change
Category 2002 2003
Action $1.4B $1.2B -14.6
Figures &
Accessories
Building $766M $625M -18.4
Sets
Dolls $2.7B $2.8B 3.5
• 300 different
private label toys.
• Worked closely with
both small and large
vendors.
• Sales of Private
label products went
up from 5% to 20%.
• The ‘TOY BOX’
The Brink
• Revamped store
operations
- Executives trained to
indulge in customer care
-Acquisition of
exclusive toys Eg.
Mattel’s Hokey pokey
• Ad campaign
-30 sec 60 sec slots in
New York and Los
Angeles
Revival Attempt
• Re-order with vendors
for Hit toys
-eg. Acquadoodle, Hair
Fairy tale
• Defined objectives to
conduct business
- Not to compete with
Wall mart but to
equate prices
-Keep Heavy stocks of
hit items
The end ?
• Attempt to modernize.