Case Study Finance Investment Marketing Essay

Case Study Finance Investment merchandising EssayThe lodge we chose for this assignment is Toys R Us. The purposes of doing this assignment be accomplish the ingestment of the subject ABDT3273 selling and more understandings in Marketing. Our assignment include the Toys R Us background, cleavage, physical objecting and post, merchandising mix strategy, recommendations. Our group pieces included 5 members which argon Teoh Wen Dee, Tan Si Min, Lim Yong Rou, Michelle Lim Mei Chern and Lim Yee Theng.Toys R Us is the biggest range of hot toys and holiday authorises retailer in Malaysia. The intersections change in Toys R Us included education toys, dolls, model cars and so on. In early(a) words, Toys R Us is a comfort qualified place for children and it is in like manner childrens paradise. In this shop, children fundament bang and gain their knowledge tour contend with the toys. R in the Toys R Us represent four varied words which ar rapid, real, reliable and respo nsible. In other words, they volition better(p) serve their nodes, employees, sh atomic number 18holders, communities and kids with the meaning of the R.During the comp permition of this assignment, we man bestrided to flesh up strong kin between our group members and we had learnt how to prep be a proper report of a gild. Due to the cooperation carried out by each member in our group, we able to finish this assignment on sequence.Comp both ProfileBackground of Toys R UsToys R Us is a toy p bentage range headquartered in Wayne, New Jersey, United numberuces. The kitchen stove likewise has military positions in atomic number 63, Asia, Oceania, Africa, and Canada. The gild soon operates 840 stores in the United States and 716 stores in 34 other countries, with both(prenominal) of them under franchises or licenses. The flagship store in New York Citys Times material is the largest toy store in the world, featuring a colorful Ferris wheel. It is the largest toy-center ed retailer and the spot largest over alone toy retailer in the United States.History of the companyFounder Charles Lazarus realized in the companys early days that success in the toy care meant pore on the everyday shopper, much(prenominal) as a parent searching for the perfect birthday gift or a child is hoping to spend their weekly al depressive disorderance on a much coveted toy. Today, Toys R Us embodies those alike ideals by focal pointing on a memorable obtain experience for customers through classic, in-demand and unshared merchandise, unique feature shops, a knowledgeable and toy-trained sales staff and by providing groovy values every day.Charles initially started Childrens Supermart, which would later evolve into the young day Toys R Us in Washington, DC during the post-war baby expand era in 1948 as a baby furniture retailer. Its primary location was at 2461 18th St, NW, where the nightclub, Madams Organ Blues Bar is acceptedly located. Lazarus began rece iving requests from customers for baby toys. After make foring baby toys, he got requests for more mature toys. Eventually, the focus of the store changed in 1957 and Toys R Us as it is know now was born in Rockville, Maryland. Toys R Us was acquired in 1966 by interstate highway Stores, owner of the White Front and Topps part Stores as well as Childrens Bargain Town USA, a sister toy store chain to Toys R Us in the Ameri skunk mid(prenominal)west which would later be re soiled as part of the Toys R Us chain.Li Fung Retailing became a licensee of Toys R Us and acquired 100% ownership of Toys Li Fung (Asia) Ltd in 2002, for the business in Mainland China, Hong Kong, Taiwan, Singapore, Malaysia, Thailand, The Philippines and Macau with provisions for entry into new geographic foodstuffs including other atomic number 16 East Asiatic countries. Until today, there are 131 stores in 8 Asian markets, 22 stores in Malaysia.Nature of BusinessToys R Us is abide a place for children and adults to purchase their favorite toys. Their mathematical returns is non only for philander or fun, they are also selling slightly toys weed be educated. In addition, they are selling some outdoor Toys which is camp tent, it show a family go to outdoor for natural experience. to a fault, baby also basis throw up in their related harvest-festival such as diapers, milk bottle. plentyTo be the dominant toy and educational toy retailer for children in Asia offering the indemnify ingatherings, at the right set, at the right place, at the right term in a pleasurable and convenient shopping environment.MissionTo nurture and develop the core competence of the Toys R Us retailing chain for the benefit of our s viewholders (customers, shareholders, and employees).OperationsAs of mid-Feb, 2011, Toys Li Fung (Asia) Ltd operates 131 stores in 8 Asian markets. In Malaysia, there are 7 main stores, 11 Toys R Us Express stores and 4 Toy Box.Toys R Us stores are located in 6 states in Malaysia where each state have at least one store operated which is Penang, Kuala Lumpur, Johor, Pahang and Terengganu and Sarawak,Stateshop MallPenangGurney Plaza, Queensbay Mall, Sunway CarnivalKuala LumpurIkano Power Centre, One Utama Shopping Centre, Tropi dischargea Mall, Mid Valley Meagamall, Pavillion, Bangsar Village, Hartamas Shopping Centre, Alamanda, Suria KLCC, Great Eastern Mall, IOI Mall, Empire Shopping verandaJohorTebrau CityPahangEast Coast MallTerengganuMesra MallSarawak1 Borneo HyperMall, Miri, Hills Shopping Mall, KuchingToys R Us. IncChairman and Chief executive director OfficerGerald L. StorchExecutive guilt President, Human Re writers Dan CaspersenExecutive guilt President, General Counsel, Corporate Secretary David J. SchwartzExecutive Vice President, Chief Administrative Officer Deborah DerbyExecutive Vice President, Chief Financial Officer Clay CreaseyOceaniaAsia (Li Fung Group)North AmericaEurope trey LimitedToys (Labuan) Holding Limited CE O Peter Schats whatchamacallit Retail Asia LimitedLi Fung LimitedMalaysiaSingaporeHong KongOthersToys Li Fung (M) Sdn. Bhd. plain passenger car Carol ChuaThe Organizational Chart of Toys R Us in MalaysiaCountry ManagerAccount ManagerLogistic Manager gross sales and Merchandising ManagerOther Department ManagerBranch Manager(3 in Penang, 12 in Kuala Lumpur, 1in Johor, 1 in Pahang, 1 in Terengganu, and 4 in Sarawak)SupervisorsRetail/ Promoter and Royalty Card Recruiters and Others wariness Structure of Toys R Us in MalaysiaCorporate Social Responsibilities savoury Wheels Celebrity Drive for Charity Challenge aftermath in 2010.Malaysias kickoff F1 driver Alex Yoong put his filmable skills to the test as he took to the tropic Wheels track racing against the clock and three other young drivers from the beacon light Children Welfare Home Association. Alex Yoong clocked in a time of 2.5 seconds with his silver baking hot Wheels no.11 Mustang, entirely was beat by a young racy Whe els driver, Micheal, from the beacon light Welfare Home Association who led the pack with a strange time of 2.3 seconds. From the 19th to the 28th border, any Hot Wheels enthusiast that partakes in the Hot Wheels Race World Challenge and manages to beat Alex Yoongs time of 2.5 seconds, a toy entrust be donated towards the Childrens Home of Hope (under the National genus crabby person Society of Malaysia) and the Lighthouse Children Welfare Home Association.Buy a Toys R Us shopping bag and help a charity.RM1 from each get result be donated to charity.Toys R Us gives RM10, 000 to Trinity Childrens HomeToys R Us (Malaysia) donated RM10, 000 to Trinity Childrens Home, Petaling Jaya, at the opening of a new store at Empire Shopping Gallery, Subang Jaya in June 2010.EventDescriptionHot Wheels Celebrity Drive for Charity Challenge event in 2010A toy result be donated towards the Childrens Home of Hope (under the National Cancer Society of Malaysia) and the Lighthouse Children Welfa re Home Association once any Hot Wheels enthusiast that manages to beat Alex Yoong.Buy a Toys R Us shopping bag and help a charity.RM1 from each purchase leave be donated to charityToys R Us gives RM10, 000 to Trinity Childrens HomeRM10,000 donated to Trinity Childrens Home, Petaling Jaya.Future PlanToys R Us retailing is given to Li Fung (Asia) Ltd who have a series of plan in Asia to develop a core competence of the Toys R Us retailing.Consumer marketThey have mean to open more and more Toys R Us branches in Malaysia. This pass on benefit the stakeholders. For consumer, they will be more convenient to taint toys for their children. Toys R Us also provides some educational toys. So that children are not only playing toys for fun but at the same time they are gaining extra knowledge. Besides, company will relieve oneself more rubber eraser toys to children and parents which fulfill the rules and regulations. Consequently, parents wont worry well-nigh the toys are dangerous or harming their children while the children feel happy playing with their toys.Furthermore, company will cut employees to another level which is in marches with the 2010 Incentive Plan of Toys R Us Ltd. They will arrange some courses or trainings to employee. Through the courses and trainings, employees can improve their knowledge and skills. This would be benefited to the employees and company. Company will be operated in effect and efficiently as the employees are capable and trained. On the other hand, employees will get higher salary and their ability is improved. In addition, company possesses employees of great ability to realize fun and better toys to children. Consumer will not be worry about the safety issues and enjoy consuming our proceedss.They are think to make Toys R Us as the retailer of dominant toys and educational toys in Malaysia as well. The company wants to offer a right merchandise and right cost to consumers. Moreover, they also want to maximizing wealt h of shareholders to settle with them. It will be benefited both sides which are consumers can get right product and right price and shareholders can maximize their wealth. The company will achieve a good reputation in toy industry. These are the future plans in Toys R Us in Malaysia. part, Targeting and PositioningSegmentation is dividing a market into smaller segments with distinct needs, characteristics, or behaviors that skill require separate market strategies or mixes. The segmentation made by Toys R Us is according to the demographic segmentation, which consists of dividing the market into groups based on variables such as age, sexuality, family size, income, occupation, education, religion, race, and nationality.Toys R Us is differentiated by the ages and gender of customers. set on Population of Malaysia is 28.25 million which is including 27.2% is less than 15 historic period old, 68.1% is 15 to 64 years old and the rest of 4.7% is more than 65 years old.Their produ ct is selling to customers who are 15 to 64 years old. This is because the customers are more buy magnate to buy toys. They already have source of income to satisfy their wants. For example, teenagers have received their pocket money from their parents they are bringing to buy their toys for collection. Adults have salary from their live ons they will spend part of salary to fulfill their wants. Besides that, young parents also is including in 15 to 64 years old. They are young and modern, so that they will be buy more toys for their children, the education toys also is popular for them, they hope their children can get knowledge through playing toys.Targeting is the second stage of the segmentation, targeting and stance (STP) branch. After the market has been disjointed into its segments, the marketer will select a segment or series of segments and target it. Resources and effort will be targeted at the segment.Their targeting strategies is using differentiated (segmented) marketing which is targets several segments and designs separate offers for each. For example, Toys R Us is segmenting to a small group which is based on income, age and gender. Their products target in toys collector who are more purchasing power to buy their toys. Besides that, toys collector is not miss out any opportunity to buy their favourite toys or limited edition. Compare to children, children is not enough power to influence their parents buy toys for them every moments. Parents only buy toys for them in special events such as birthday, Christmas. They are salutary a partly customers in Toys R Us.Positioning has come to mean the process by which the marketers try to create an image or identity in the minds of their target market for its product, distinguish or governance. Toys R Us is positioned as the worldwide potence on kids, families and fun.At Toys R Us, they believe that by being rapid, real, reliable and responsible, we will best serve our customers, employees, s hareholders, communities and kids. Rapid, we believe that repair is a reflection of our culture. Our aggroup is focused and clear with common, user-friendly processes and solutions truehearted and urgent in decision-making an speed-to-market and quick in adapting to change. Real, our team is urgent, sincere, authentic, helpful to turn with and confident. Reliable, being reliable means working as a team so everything can move faster. We are a company that is reliable and we produce what we promise. Responsible, we believe that honesty, integrity and compassion are the foundation upon which we work together and conduct our business. Keeping kids safe is a cornerstone of the brand.Marketing MixFour Ps of Toys R UsMarketing mix is a composite of product, place, price, and promotion, also referred to as the 4Ps. Each of these elements is an important work out in a companys marketing strategy. These four Ps are the parameters that the marketing manager can control, subject to the i nternal and external constraints of the marketing environment. The conclusion is to make decisions that centre the four Ps on the customers in the target market in order to create perceived value and develop a positive response.The Toys R Us marketing mix is unceasingly being fine-tuned and thus is never static. Toys R Us is a for-profit organization that has implemented a winning marketing mix within its marketing strategy.ProductsFirstly, the companys products, products is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need of consumer.Types of consumer goods in Toys R Us is a shopping products, thats, it is bought less frequently and there is brand comparison on basis of price, quality and style. The distribution channel which they are using is selective distribution, the outlets can easily found in the area. Besides that, the advertising and personal selling of their product is undertaken by both manuf acturing business and reseller.Toys R Us is famous for their products quality, their product is in the performance product quality dimensions. For their product feature, the cost of the company is usually trim back than others and creates a value to their customer and therefore, they always is the first choice of consumer. The branding and encase are also the attracted part of their product. Toys R Us have a high recognition within consumer, consumer usually will choose the brand which is well-known that can help them to identifies the product quality and consistency. Besides that, a giraffe cartoon was introduced as Toys R Us mascot with the name of Geoffrey the Giraffe. In the packaging part, the product of Toys R Us is fit the consumers safety. They will ensure that the products do not bring any harm for childrens health and safety and the instructions of using is provide for every single toys.Toys R Us was also introduced its own private brands such as Babies R Us. They intro duced the exclusive line of baby essential-diapers, wipes, baby foods and toys. The product in the store is separated to six different zones. In Family and Fun zones, they provide the games which help parents to take interest in children, communicate, and spend time enjoying entertaining activities with them. For Educational zones, the children can learn the natural skill while having fun. In the Tween zones and Outdoor and Sports zones, the toy is usually for the children above two years old and can let the children sharing the fun with their friends or with parents.Besides that, the full stop in Toys R Us is also designed to meet the specific needs of boys and girls such as Barbie Shop, The Auto World and etc. The consumer can easily found and spot the toys they need due to the cleverly designed of the store. For example, one completed section of shelves is fully devoted to dolls. The shelves in this section are particoloured pink with tiny flowers decorating them, and it can easily being seen and recognise by children. Doll clothes and doll rise to powerories are also provided in the same section. setPrice is the amount of the money charged for a product or service. It is the only element that produces the revenue while all other element is representing the cost.Toys R Us is using competition-based pricing which means that they are conniption prices based on the contentions strategies, costs, prices and market offerings such as Parkson, Jusco and Tesco. When consumer equalize based on their own judgement of a similar products value, Toys R Us always be consumer first choice. The cost of the company of Toys R Us is definitely lower due to their low cost of lend as they owning largest manufacturer, Hasbro and Martell, and hence they could able to satisfying the customer by the low price and create high customer value. For example, as a competitor for Toys R Us, Jusco also provide a high quality toys but the toys is limited and not as many choice as T oys R Us. As for pricing, Toys R Us is much more lower than Jusco. For example, the price of the Battery Operated Rabbit at Toys R Us is only RM39.95 while for Jusco is RM49.90.The pricing adjustment strategy of Toys R Us is seasonal pricing. They will have a promotional during special event such as teach holiday or brave season Christmas. And sometimes, they will fugitive reduce the price to affix the short run sales by using promotional price adjustment strategies. With member card or the star card of Toys R Us, the member can purchase the item with low price while enjoying the rewards and benefits.Besides that, they are using market penetration pricing as their new product pricing strategies. They setting low initial price for their new product to stimulate their sales quickly and increase their market share. For example, Toys R Us comes with the low price guarantee and they are request that if you find the same toys being sold elsewhere at a lower price, customer can just br ing original receipt within 7 days and will gladly refund the difference. promotional materialPromotion is referring to the short term incentives to further the purchase or sale of a product or service. The promotion can be towards final buyers, retailers, customers or the member of the sales force.Promotion of Toys R Us normally is during school holidays. This is because Christmas and New Year is in school holidays. Toys R Us will specify members through delegate email, post feel in their website or social network (Facebook) and criterion in front of their outlets for promotion.During the school holiday, children usually will spent their time by playing games and thus it is the right timing to had a promotion. And for the festive season such as Christmas, parents can buy their children a toys as a presents at a lower price. They also offer coupons and the gift certificates to those member and non-member which help them to attract new customer and keep the current customer.Toy s R Us having a personal selling towards their customer and stick out them to interact with the consumer through face to face and enable them to access to customer needs and wants efficiently. For example, they provide more sales assistance to helps the customer to access the details of the item they needed.One of the strategy of Toys R Us to build the long term customer relationship is provide the membership to increase the customer value and satisfaction where members can purchase the item with member price which are more cheaper than the original price and now they are also offering Star Card which customer can enjoy a lots of rewards and benefits.Besides that, Toy R Us is offered a lots of services, such as, delivery service, free wrapping service and also exchange and refund service in which the item purchased can be exchanged or refunded within 14 days from date of purchase. regulatePlace or a distribution is where the product can be found, such as in physical stores and onli ne purchase, it includes everything connected with getting the product from the place to the customer. A distribution channel is the route a product takes from the place it is made to the customer who is the end users.Toys R Us is consider as consider as selective distribution, that is, their outlets can being found by customer in a area. The type of distributing channel they are using is multichannel distributing whereby they set up two or more marketing channel to reach more customer segments. Besides that, Toys R Us which located in a shopping mall can let the customer found it easily and brought more convenience for customer which they do not need drive to a place only for want for toys. For example, in Penang, there are Toys R Us store in Queensbay Mall, Gurney Plaza and Sunway Carnival. There are 20 stores of Toys R Us in Malaysia 6 Main stores, 7 Toys R Us Express stores and 5 Toy Box.In addition, they are using the selling direct strategies where the product is selling dire ct to customer in their outlets without go through intermediaries. For example, Toys R Us are act as the franchise for Li Fung where the product are taking directly from them and selling to the customer.CustomersToys R Us (Producer) component (Li Fung Group)Toys R Us also has an online store, which provides customers the convenience of allowing them to make Internet purchase and purchase returns. Customer can also search the actual location of stores of Toys R Us through internet.RecommendationsOur group had investigated on marketing section of Toys R Us in Malaysia such as their company background, segmentation, targeting and positioning (STP) and also marketing mix strategy (4Ps product, price, promotion and placement). So, we give some recommendations to Toys R Us company in Malaysia.Based on our research, the segmentation of the company is using demographic characteristic such as gender and age. We recommend it should add in local culture which is region of country. Since the company have franchises in difference countries, so they can sell some toys related to the cultures of the country. Toys R Us can produce some traditionalistic toys such as congkak represent the culture of Malaysia. When foreigners come to toys R Us Malaysia, they can buy toys as souvenirs for their friends or relatives.Furthermore, most of the toys sold in Toys R Us are based on Disney movies or cartoons such as Spiderman, Transformer, Toy Story and etc. They need to pay procure fees or other administration fees to relevant departments before produce the toys. So the price of toys is relatively higher, so we recommend that the company can produce and design their own toys it will lead their cost to be lower and develop their own products. For example, they can produce more series of toys or relevant products such as Geoffrey and friends.Moreover, promotion of the Toys R Us is loosely during school holidays. It is because usually Christmas and New Year are in school holidays. The y will send an email to each member place notice in social network (facebook) and standard in front of their outlets inform the public about their latest promotions. However, their promotion is not publicly known by everyone. This resulted losing potential customers. A smart consumer will only buy things during promotions, so to get more customers in Toys R Us, we have put more effort in some special event. In line to that, we suggest promotions held by Toys R Us should be more actively run some event related with their products such as logotype competition, fashion show of Barbie doll.In conclusion, we recommend Toys R Us add in local culture for produce some toys represent Malaysia, produce more own toys and also conduct some special event for their company.Dont forget that your explanation or examples MUST BE in MALAYSIA context, as I saw some of it using US context.Format of the assignment, fonts size, tab..please take over checkConclusionToys R Us is a company which sells to ys to children all around the world. It provides many types of toys to parents to choose for their children. There are 22 stores in Malaysia which is in Penang, Kuala Lumpur, Johor, Terengganu, Pahang and Sarawak. Besides, Toys R Us is doing Corporate Social Responsibilities, for example, Buy a Toys R Us shopping bag and help a charity. In their future plan, they planned to open more branches in Malaysia.Toys R Us is using demographic segmentation for their business such as age. Toys R Us are focusing on the age of the children so that they can produce more toys according to the ages. Toys R Us is targeting parents who have purchasing power to buy toys for their children and those toys collectors. Toys R Us positioned as the Worldwide authority on kids, families and fun and there are many meaning about the letter R which is real, rapid, reliable and responsible.The marketing mix of Toys R Us is products, price, promotion and placement. Their product is a shopping product, their cate gory different soma of toys. For example, Boys zone, Girls zone, family fun games, educational toys, tween zone, sport outdoor and Baby R Us. Price is based on competition-based pricing because customers more sensitive in price, they will compare price of product with different company. Most of their promotion is banner in front of outlets, send email to member, notice in website and social network. Place is Toys R us produce toys to agent, then agent is selling to final customer.Recommendation by us is produce some toys to add in local culture, produce more own toys represent Toys R Us and also conduct some special event for their company.Department of Statistic Malaysia , http//www.statistics.gov.my/portal/index.php?option=com_contentview=articleid=54%3Apopulation-updated-31072009catid=35%3Akey-statisticsItemid=53lang=en,2010, Population,2 July, view 2 March 2011.Toys R Us, http//www.toysrusinc.com/about-us/, 1999, company info, view 25 February 2011.Marketing Teacher, http//ww w.marketingteacher.com/lesson-store/lesson-segmentation.html, 2010, segmentation, 28 February 2011.Toys R Us Malaysia, http//www.toysrus.com.my/inside/about.htm, company info, view 18 February 2011.