Case Study Finance Investment Marketing Essay

The company we selected for this task is Toys "R" Us. The purposes of doing this project are fulfilled the necessity of the subject ABDT3273 Marketing and more understandings in Marketing. Our project included the Gadgets "R" Us background, segmentation, targeting and setting, marketing combine strategy, suggestions. Our group customers included five associates that happen to be 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 items retailer in Malaysia. The merchandise sold in Toys "R" Us included education toys and games, dolls, model cars etc. In other words, Toys "R" Us is an appropriate place for children which is also children's paradise. With this shop, children can enjoy and gain their knowledge while using the toys. "R" in the Toys "R" Us stand for four different words that are immediate, real, reliable and accountable. Quite simply, they'll best provide their customers, employees, shareholders, communities and kids with the meaning of the "R".

During the completion of this task, we managed to build up strong romance between our group members and we had learnt how to get ready a proper record of a company. Due to the cooperation carried out by each member in our group, we able to finish this assignment promptly.

Company Profile

Background of Toys "R" Us

Toys "R" Us is a toy store string headquartered in Wayne, NJ, USA. The chain also has locations in European countries, Asia, Oceania, Africa, and Canada. The business currently manages 840 stores in america and 716 stores in 34 other countries, with a few of them under franchises or licenses. The flagship store in New York City's Times Square is the largest toy store on the globe, featuring a colorful Ferris wheel. It's the largest toy-centered shop and the second most significant overall toy dealer in america.

History of the company

Founder Charles Lazarus became aware in the business's start that success in the toy business intended concentrating on the day-to-day shopper, such as a parent looking for the perfect birthday gift idea or a kid is hoping to invest their every week allowance over a much desired toy. Today, Playthings "R" Us embodies those same ideals by concentrating on a memorable shopping experience for customers through traditional, in-demand and exclusive merchandise, unique feature retailers, a knowledgeable and toy-trained sales staff and by providing great ideals every day.

Charles initially began Children's Supermart, which would later develop into the present day Toys "R" Us in Washington, DC through the post-war baby boom age in 1948 as a newborn furniture store. Its first location was at 2461 18th St, NW, where in fact the nightclub, Madam's Organ Blues Club happens to be located. Lazarus commenced receiving requests from customers for babies toys. After adding baby toys, he got demands for more mature toys. Eventually, the target of the store modified in 1957 and Playthings "R" Us as it is well known today was born in Rockville, Maryland. Toys "R" Us was acquired in 1966 by Interstate Stores, owner of the White Front side and Topps SHOPS as well as Children's Deal Town USA, a sister toy store chain to Toys "R" Us in the North american Midwest which would later be rebranded as part of the Toys "R" Us string.

Li & Fung Retailing became a licensee of Toys and games "R" Us and received 100% possession of Toys and games Li & Fung (Asia) Ltd in 2002, for the business in Mainland China, Hong Kong, Taiwan, Singapore, Malaysia, Thailand, The Philippines and Macau with procedures for access into new geographic marketplaces including other South East Asian countries. Until today, there are 131 stores in 8 Asian market segments, 22 stores in Malaysia.

Nature of Business

Toys "R" Us is give a place for children and people to buy a common gadgets. Their products isn't only for play or fun, they are also selling some toys can be educated. In addition, they are selling some outdoor Gadgets which is camp tent, it provide a family go to outdoor for natural experience. Besides, baby can also found their related product such as diapers, dairy bottle.


To be the dominant toy and educational toy shop for children in Asia offering the right products, at the right price, at the right place, at the right amount of time in a wonderful and convenient shopping environment.


To nurture and develop the core competence of the Toys "R" Us retailing string for the benefit of our stakeholders (customers, shareholders, and employees).


As of mid-Feb, 2011, Gadgets 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 Package.

Toys "R" Us stores are situated in 6 expresses in Malaysia where each point out have at least one store run which is Penang, Kuala Lumpur, Johor, Pahang and Terengganu and Sarawak,


Shopping Mall


Gurney Plaza, Queensbay Shopping mall, Sunway Carnival

Kuala Lumpur

Ikano Vitality Centre, One Utama Shopping Centre, Tropicana Shopping center, Mid Valley Meagamall, Pavillion, Bangsar Village, Hartamas Shopping Centre, Alamanda, Suria KLCC, Great Eastern Shopping center, IOI Shopping center, Empire Shopping Gallery


Tebrau City


East Coastline Mall


Mesra Mall


1 Borneo HyperMall, Miri, Hills RETAIL CENTER, Kuching

Toys "R" Us. Inc

Chairman and LEADER Officer

Gerald L. Storch

Executive Vice Chief executive, Human Resources Dan Caspersen

Executive Vice President, Standard Counsel, Corporate Secretary David J. Schwartz

Executive Vice Leader, Chief Administrative Official Deborah Derby

Executive Vice President, Chief Financial Official Clay Creasey


Asia (Li Fung Group)

North America


Trinity Limited

Toys (Labuan) Holding Small CEO: Peter Schats

Convenience Retail Asia Limited

Li & Fung Limited



Hong Kong


Toys Li Fung (M) Sdn. Bhd. Country Director: Carol Chua

The Organizational Graph of Toys and games "R" Us in Malaysia

Country Manager

Account Manager

Logistic Manager

Sales and Merchandising Manager

Other Division Manager

Branch Manager

(3 in Penang, 12 in Kuala Lumpur, 1in Johor, 1 in Pahang, 1 in Terengganu, and 4 in Sarawak)


Retail/ Promoter and Royalty Card Recruiters and Others

Management Structure of Toys "R" Us in Malaysia

Corporate Friendly Responsibilities

Hot Wheels Super star Drive for Charity Obstacle event in 2010 2010.

Malaysia's first F1 driver Alex Yoong put his significant skills to the test as he needed to the Hot Tires track racing from the clock and three other young individuals from the Lighthouse Children Welfare Home Association. Alex Yoong clocked in a time of 2. 5 seconds with his sterling silver Hot Rims no. 11 Mustang, but was beat by a Hot Wheels drivers, Micheal, from the Lighthouse Welfare Home Relationship who led the load up with a amazing time of 2. 3 mere seconds. From your 19th to the 28th March, any Hot Tires aficionado that partakes in the Hot Tires Race World Challenge and manages to defeat Alex Yoong's time of 2. 5 mere seconds, a toy will be donated to the Children's Home of Anticipation (under the National Cancer Population of Malaysia) and the Lighthouse Children Welfare Home Association.

Buy a Playthings "R" Us shopping handbag and help a charity.

RM1 from each purchase will be donated to charity.

Toys "R" Us provides RM10, 000 to Trinity Children's Home

Toys "R" Us (Malaysia) donated RM10, 000 to Trinity Children's Home, Petaling Jaya, at the starting of a fresh store at Empire Shopping Gallery, Subang Jaya in June 2010.



Hot Wheels Star Drive for Charity Challenge event in 2010

A toy will be donated towards the Children's Home of Wish (under the National Cancer Population of Malaysia) and the Lighthouse Children Welfare Home Relationship once any Hot Rims enthusiast that handles to overcome Alex Yoong.

Buy a Toys and games "R" Us shopping bag and help a charity.

RM1 from each purchase will be donated to charity

Toys "R" Us provides RM10, 000 to Trinity Children's Home

RM10, 000 donated to Trinity Children's Home, Petaling Jaya.

Future Plan

Toys "R" Us retailing is given to Li & Fung (Asia) Ltd who've some plan in Asia to build up a key competence of the Toys "R" Us retailing.

Consumer market

They have prepared to open increasingly more Playthings "R" Us branches in Malaysia. This will benefit the stakeholders. For consumer, they'll be more convenient to buy toys and games for his or her children. Toys "R" Us also provides some educational gadgets. So that children aren't only playing toys for fun but at the same time they are getting extra knowledge. Besides, company will produce more safeness toys and games to children and parents which fulfill the rules and regulations. As a result, parents won't be concerned about the toys are dangerous or harming their children as the children feel happy using their playthings.

Furthermore, company will lead employees to some other level which is based on the 2010 Incentive Plan of Playthings "R" Us Ltd. They'll arrange some training or trainings to employee. Through the training and trainings, employees can enhance their knowledge and skills. This might be benefited to the employees and company. Company will be controlled effectively and efficiently as the employees have the capability and trained. Alternatively, employees will get higher salary and their ability is improved. In addition, company possesses employees of great potential to create fun and better toys and games to children. Consumer will never be worry about the basic safety issues and enjoy consuming our products.

They are intended to make Toys "R" Us as the shop of dominant gadgets and educational toys in Malaysia as well. The business wants to provide a right product and right price to consumers. In addition, they also want to increasing wealth of shareholders to meet them. It will be benefited both sides that are consumers can get right product and right price and shareholders can increase their wealth. The company will achieve a good reputation in toy industry. These are the future ideas in Toys "R" Us in Malaysia.

Segmentation, Targeting and Positioning

Segmentation is dividing market into smaller sections with different needs, characteristics, or actions that might require individual marketing strategies or mixes. The segmentation created by Gadgets R Us is in line with the demographic segmentation, which consists of dividing the marketplace into groups predicated on factors such as get older, gender, family size, income, occupation, education, religion, contest, and nationality.

Toys "R' Us is differentiated by the age range and gender of customers. Predicated on Human population of Malaysia is 28. 25 million which is including 27. 2% is less than 15 years old, 68. 1% is 15 to 64 yrs. old and the rest of 4. 7% is more than 65 years of age.

Their product is advertising to customers who are 15 to 64 yrs. old. It is because the customers tend to be purchasing power to buy toys. They curently have source of income to gratify their wants. For instance, teenagers have received their pocket money using their parents; they can be saving to buy their toys for collection. Men and women have salary from their works; they will spend partly of salary to satisfy their needs. Besides that, young parents is including in 15 to 64 years of age. They are really young and modern, in order that they will be buy more toys for his or her children, the education toys also is popular for the kids, they expect their children can get knowledge through playing toys.

Targeting is the next stage of the segmentation, focusing on and positioning (STP) process. Following the market has been separated into its sections, the marketing consultancy will decide on a segment or group of segments and concentrate on it. Resources and effort will be directed at the segment.

Their targeting strategies is using differentiated (segmented) marketing which is targets several sections and designs different offers for each. For example, Toys and games "R" Us is segmenting to a small group which is based on income, time and gender. Their products target in toys and games collector who are more purchasing capacity to buy their playthings. Besides that, toys and games collector is not miss out any opportunity to buy their favorite gadgets or limited edition. Compare to children, children is not enough power to effect their parents buy playthings for the kids every occasions. Parents only buy playthings for the kids in special events such as birthday, Holiday. They are only a partially customers in Toys "R" Us.

Positioning has come to signify the process by which the marketers make an effort to create a graphic or id in the intellects of their marketplace because of its product, brand or corporation. Toys R Us is positioned as 'the worldwide expert on kids, people and fun'.

At Gadgets R Us, they assume that by being immediate, real, reliable and in charge, we will best provide our customers, employees, shareholders, areas and kids. Swift, we think that velocity is a representation of our culture. We is targeted and clear with common, user-friendly techniques and solutions; fast and urgent in decision-making an speed-to-market; and quick in adapting to improve. Real, our team is urgent, honest, authentic, beneficial to work with and self-confident. Reliable, being reliable means working as a team so everything can move faster. We have been a company that is reliable and we produce that which you promise. Responsible, we believe that honesty, integrity and compassion are the foundation after which we work together and carry out our business. Keeping kids safe is a cornerstone of the brand.

Marketing Mix

Four P's of Toys R Us

Marketing mixture is a composite of product, place, price, and campaign, generally known as "the 4P's. " Each one of these elements is an essential aspect in a company's marketing strategy. These four P's are the variables that the marketing manager can control, subject to the inner and external constraints of the marketing environment. The goal is to make decisions that centre the four P's on the clients in the prospective market to be able to create identified value and generate a good response.

The Toys "R" Us marketing mix is usually being fine-tuned and therefore is never static. Toys "R" Us is a for-profit organization that has applied an absolute marketing mix within its marketing strategy.


Firstly, the business's products, products is anything that can be offered to market for attention, acquisition, use, or ingestion and that might fulfill a want or need of consumer.

Types of consumer goods in Gadgets ''R'' Us is a shopping products, that's, it is bought less frequently and there is brand assessment on basis of price, quality and style. The syndication channel which they are using is selective syndication, the outlets can easily found in the region. Besides that, the advertising and personal offering with their product is carried out by both maker and reseller.

Toys ''R'' Us is well-known for their product's quality, their product is in the performance product quality proportions. Because of their product feature, the cost of the business is usually less than others and creates a value to their customer and therefore, they always is the first choice of consumer. The branding and presentation are also the attracted part with their product. Toys ''R'' Us have a high recognition within consumer, consumer usually will choose the brand which is well-known that can help those to identifies the merchandise quality and steadiness. Besides that, a giraffe cartoon was released as Playthings "R" Us mascot with the name of Geoffrey the Giraffe. In the packaging part, the merchandise of Playthings ''R'' Us is ensure the consumer's safety. They'll ensure that the merchandise do not bring any damage for children's health insurance and safeness and the instructions of using is provide for each single toys and games.

Toys "R" Us was also released its own private brands such as Newborns "R" Us. They unveiled the exclusive type of baby essential-diapers, wipes, baby foods and gadgets. The merchandise in the store is separated to six different areas. In Family and Fun zones, they offer the games that assist parents for taking desire for children, connect, and hang out enjoying amusing activities with them. For Educational areas, the kids can learn the natural skill while having fun. Inside the Tween zones and Outdoor and Athletics zones, the toy is usually for the children above 2 yrs old and can allow children writing the fun using their friends or with parents.

Besides that, the item in Toys "R" Us is also made to meet up with the specific needs of children such as Barbie Shop, The Automobile World and etc. The buyer can easily found and spot the toys they need due to the cleverly designed of the store. For instance, one entire section of shelves is fully specialized in dolls. The shelves in this section are colored pink with small flowers designing them, and it can easily being seen and recognise by children. Doll clothes and doll accessories are also provided in the same section.


Price is the amount of the money incurred for a product or service. It's the only component that produces the earnings while all other factor is representing the cost.

Toys ''R'' Us is using competition-based pricing meaning they are placing prices based on the competitor's strategies, costs, prices and market offerings such as Parkson, Jusco and Tesco. When consumer compare predicated on their own judgement of a similar product's value, Playthings ''R'' Us continually be consumer first choice. The cost of the company of Toys ''R'' Us is obviously lower because of their low priced of supply as they using largest maker, Hasbro and Martell, and hence they could in a position to satisfying the customer by the reduced price and create high customer value. For instance, as a competition for Playthings ''R'' Us, Jusco also provide a high quality toys however the toys is limited and not as many choice as Toys ''R'' Us. As for pricing, Toys ''R'' Us is a lot more lower than Jusco. For example, the price of the Electric battery Operated Rabbit at Playthings ''R'' Us is only RM39. 95 while for Jusco is RM49. 90.

The pricing modification strategy of Toys and games ''R'' Us is seasonal pricing. They will have a promotional during special event such as college holiday or yuletide season Holiday. And sometimes, they will temporary decrease the price to boost the short run sales by using promotional price modification strategies. With member cards or the star card of Toys ''R'' Us, the member can purchase that with low price while enjoying the rewards and benefits.

Besides that, they are using market penetration pricing as their new product rates strategies. They placing low first price because of their new product to promote their sales quickly and increase their market share. For example, Toys and games "R" Us comes with the low price guarantee and they're request that if you find the same playthings being sold anywhere else at a lesser price, customer can just bring original receipt within 7 days and will happily refund the difference.


Promotion is referring to the short term incentives to encourage the purchase or deal of something or service. The campaign can be towards final buyers, merchants, customers or the person in the sales team.

Promotion of Gadgets "R" Us normally is during college holidays. This is because Christmas and New 12 months is in college holiday seasons. Toys "R" Us will advise people through send email, post notice in their website or public network (Facebook) and banner before their outlet stores for promotion.

During the institution getaway, children usually will put in their time by doing offers and thus it is the right timing to experienced a promotion. As well as for the yuletide season such as Xmas, parents can purchase their children a toys as a presents at a lesser price. In addition they offer coupons and the surprise certificates to the people member and non-member that assist them to draw in new customer and keep the current customer.

Toys ''R'' Us having a personal selling towards their customer and allow them to interact with the consumer through in person and permit them to gain access to to customer needs and needs efficiently. For example, they provide increased sales assistance to helps the client to access the details of that they needed.

One of the strategy of Playthings ''R'' Us to create the long term customer marriage is provide the membership to raise the customer value and satisfaction where users can purchase that with member price which are more cheaper than the initial price and today they are also offering ''Superstar Credit card'' which customer can like a lots of rewards and benefits.

Besides that, Toy ''R'' Us is offered a a lot of services, such as, delivery service, free wrapping service and also exchange and refund service where the item purchased can be exchanged or refunded within 14 days from day of purchase.


Place or a syndication is where in fact the product can be found, such such as physical stores and online purchase, it includes everything linked with getting the product from the spot to the client. A distribution channel is the road a product needs from the place it is made to the customer who's the finish users.

Toys ''R'' Us is consider as consider as selective distribution, that is, their retailers can being found by customer in a area. The sort of distributing channel they are using is multichannel distributing whereby they create several marketing channel to attain more customer segments. Besides that, Gadgets "R" Us which located in a retail center can let the customer found it easily and helped bring more convenience for customer that they don't need drive to a location only for seeking for toys. For example, in Penang, there are Toys "R" Us store in Queensbay Mall, Gurney Plaza and Sunway Carnival. You will find 20 stores of Playthings ''R'' Us in Malaysia: 6 Main stores, 7 Toys "R" Us Exhibit stores and 5 Toy Pack.

In addition, they are using the selling direct strategies where in fact the product is retailing direct to customer in their stores without proceed through intermediaries. For example, Gadgets ''R'' Us are become the franchise for Li Fung where in fact the product are taking straight from them and retailing to the client.


Toys "R" Us (Manufacturer)

Agent (Li Fung Group)

Toys "R" Us also offers an web store, which provides customers the convenience of permitting them to make Internet purchase and buy comes back. Customer can also search the real location of stores of Toys and games ''R'' Us through internet.


Our group got looked into on marketing team of Toys and games "R" Us in Malaysia such as their company backdrop, segmentation, concentrating on and placing (STP) and also marketing combine strategy (4Ps - product, price, advertising 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 years. We recommend it will add in local culture which is region of country. Because the company have franchises in difference countries, to allow them to sell some toys and games related to the cultures of the country. Toys "R" Us can produce some traditional toys such as congkak signify the culture of Malaysia. When foreigners come to toys and games "R" Us Malaysia, they can purchase gadgets as souvenirs for his or her friends or family.

Furthermore, most of the toys sold in Toys "R" Us derive from Disney movies or cartoons such as Spiderman, Transformer, Toy Report and etc. They have to pay copyright fees or other supervision fees to relevant departments before produce the playthings. So the price of playthings is relatively higher, so we advise that the business can produce and design their own toys and games; it'll lead their cost to be lower and develop their own products. For instance, they can produce more group of playthings or relevant products such as Geoffrey and friends.

Moreover, campaign of the Playthings "R" Us is mainly during school vacations. For the reason that usually Xmas and New Time are in college holidays. They'll send an email to each member; place notice in public network (facebook) and banner before their outlets inform the public about their latest deals. However, their advertising is not publicly known by everyone. This resulted burning off potential customers. A smart consumer will only buy things during promotions, so to obtain additional customers in Toys "R" Us, we've put more effort in some other dressing up event. In line compared to that, we suggest offers held by Gadgets "R" Us should become more positively run some event related to their products such as Emblem competition, fashion show of Barbie doll.

In realization, we recommend Toys and games "R" Us add local culture for produce some gadgets signify Malaysia, produce more own playthings and also execute some other dressing up event for their company.

Don't forget that your explanation or examples MUST BE in MALAYSIA framework, as I observed a few of it using US framework.

Format of the assignment, fonts size, tab. . please double check


Toys "R" Us is a company which offers playthings to children all around the world. It offers many types of playthings to parents to decide for their children. You will find 22 stores in Malaysia which is in Penang, Kuala Lumpur, Johor, Terengganu, Pahang and Sarawak. Besides, Gadgets "R" Us is doing Corporate Social Responsibilities, for example, Buy a Toys and games "R" Us shopping bag and help a charity. Within their future plan, they prepared to open more branches in Malaysia.

Toys "R" Us is using demographic segmentation because of their business such as age. Toys "R" Us are focusing on age the children in order to produce more playthings according to the ages. Toys "R" Us is targeting parents who have purchasing power to buy toys because of their children and the ones toys enthusiasts. Toys "R" Us placed as 'the Worldwide specialist on kids, young families and fun' and there are many so this means about the notice "R" which is real, fast, reliable and accountable.

The marketing mix of Playthings "R" Us is products, price, advertising and location. Their product is a shopping product, their category different kind of toys and games. For example, Males zone, Girls area, family fun & games, educational toys and games, tween area, sport & outdoor and Baby "R" Us. Price is based on competition-based rates because customers more very sensitive in price, they will compare price of product with different company. Most of their promotion is banner before stores, send email to member, notice in website and communal network. Place is Toys "R" us produce gadgets to agent, then agent is offering to last customer.

Recommendation by us is produce some toys to include in local culture, produce more own gadgets represent Playthings "R" Us and also execute some other dressing up event for their company.

Department of Statistic Malaysia, http://www. statistics. gov. my/portal/index. php?option=com_content&view=article&id=54%3Apopulation-updated-31072009&catid=35%3Akey-statistics&Itemid=53&lang=en, 2010, Society, 2 July, view 2 March 2011.

Toys "R" Us, http://www. toysrusinc. com/about-us/, 1999, company info, view 25 February 2011.

Marketing Educator, http://www. marketingteacher. com/lesson-store/lesson-segmentation. html, 2010, segmentation, 28 Feb 2011.

Toys "R" Us Malaysia, http://www. toysrus. com. my/inside/about. htm, company info, view 18 Feb 2011.

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