Marketing Strategy Analysis Report: Toys R Us's Revitalization Efforts

This report provides a comprehensive analysis of the marketing strategies employed by Toys R Us, focusing on its resurgence in the Canadian market. The report begins with an introduction that highlights the company's mission, marketing, and financial objectives. It explores the strategies used to re-engage customers, including leveraging nostalgia and adapting to digital platforms like Google and Snapchat. The analysis covers financial performance, challenges from competitors like Amazon and eBay, and the impact of eCommerce. The report also discusses the company's efforts to renovate stores and create a positive customer experience. Ultimately, the report concludes that Toys R Us needs to stay updated with electronic media and adapt to new trends in the market to maintain consumer loyalty. References are provided for further research.

Marketing Strategy 1
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Course code and name
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Marketing Strategy 2
Introduction
This assignment aims to assess the possibilities of providing an insight into the
marketing strategies for “Toy R Us”. The aim is to highlight the mission, marketing, and
financial objectives as well as looking around the aspect of providing information on its
competitor and positioning after gathering inputs from areas like purchasing, manufacturing,
sales, finance, and Human Resources.
Post the demise of Toys R Us in the United States, many customers were not aware
that it’s still functional in Canada and is trying to revamp its business to make sure that this
company should not commit the same mistakes that it did in US market (Dallaire, 2018).
Since it has been taken over by FAIRFAX in Canada it’s 82 stores are active, as compared to
the US where all the 735 stores are closed since it did not have any buyers there.
Mission and Marketing
The comeback has been in a very different way to seek attention and giving assurance
to its large customer base that the Toys R Us is still the best experts when it comes to the
entertainment of Canadian children (Robson, 2018). By connecting to the older citizens they
planned to remind them about how good their experience was good enough for them when
they were a kid.
They are using their reputation to make a comeback in the competition by marketing
all the above-mentioned points. The satisfaction level of the customers is the key to stir the
old strings amongst the satisfied customer (Toneguzzi, 2020). The introduction of a new logo
and the using Geoffrey the giraffe costume in every store, by playing the nostalgia card in
which their competitors and new challenger do not have an edge strategically.

Marketing Strategy 3
Financial Objectives
Soon after taking over the new management decided to generate revenue out of the
limited stores they had in Canada, They decided to renovate the old stores by bringing in new
ways of bifurcating the toys amongst the different age groups. Especially the stores which
were in Windsor and Sarnia near American borders as the loyal American customers are
visiting these store, which had waiting lobby for customers, to buy new toys for their
children. This has proved profitable to them and the revenue drawn has been 1 Billion $
(Canadian) in sales along with 4000 active employees (Walker, 2019).
Majorly these profit numbers are the result of the past nine years of sales gains and
earnings of Toys R Us in Canada, Every year they managed to gain more than 100 million
per year before taxes and interest. This is how they are planning to clear off their debts and
try to enter the US market. They still have direct control over to spin-off stores of Toys R Us
i.e. Babies R Us and clothing store of Kids R Us which according to the reports has over 900
stores in Europe and Asia.
Challenges
Even after having a lot of competition in the market and having an old styled lease
retail shops for its functioning, they were able to generate a revenue of more than 1 billion $
over the last 9 years in the Canadian market, making its way even after having a competition
with the likes in Amazon and eBay in this age of the internet.
The reason for this has been shared above in the points that they still have that
connection with their loyal customers which gives them a strategical edge over their
competitors. The reason behind the downfall for them was because of eCommerce industries,
For example, eCommerce industries like Amazon, Walmart and eBay used to provide the

Marketing Strategy 4
same toys for cheaper price and with home delivery too and their own mistakes with the debt
management to meet up to the competition in the market (Toys R Us, 2019).
But now as per the new mediums and new channel Toy R Us joined hands with
Google and Snapchat to make sure they trend amongst the kids (Rothaermel, 2016). Snapchat
was able to create new filters for their users with the newly launched toys of Toy R Us to
make sure the craze should remain amongst the people and Management has spent a lot in
renovation to make sure that the customers should have a happy and good experience when
they visit the store.
Conclusion
We can derive the conclusion to this that Toy R Us needs to keep itself updated with
the Electronic media so that there should be a touch or a connection between them and
consumers, We cannot expect loyalty with the consumers for a long time one day will be over
because things which do not adapt to new things around is bound to meet its end.
References
Dallaire, J. (2018). Targeting the next-gen of Toys “R” Us kids. Retrieved 12 April 2020,
from https://strategyonline.ca/2018/12/04/targeting-the-next-gen-of-toys-r-us-kids/
Robson, D. (2018). R toys us?. New Scientist, 240(3209-3210), 65-67. doi: 10.1016/s0262-
4079(18)32367-4
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.

Marketing Strategy 5
Toneguzzi, M. (2020). Toys R Us Canada Embraces New Tech Online and In-Store to Gain
Market Share. Retrieved 12 April 2020, from https://www.retail-insider.com/retail-
insider/2020/1/toys-r-us-canada-embraces-new-tech-online-and-in-store-to-gain-market-
share
Toys R Us. (2019). About us. Retrieved From: https://www.toysrus.com/about-toysrus/about-
us.html
Walker, M. (2019). Toys R Us is planning a comeback in time for the holidays. Detroit Free
Press. Retrieved from
https://www.freep.com/story/money/business/michigan/2019/06/07/michiganders-shop-
toys-r-us-stores-canada/1261989001/