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Dedicated Toy And Youngster Products Marketing Essay

Toys "R" Us is the world's leading company that dedicated toy and youngster products store. The company was first proven in 1948 by Charles P. Lazarus at Washington DC. When the shops was first open, the name Toys "R" Us is set with a backward "R. " to bring people attention. Nowadays, the Headquartered of Toys and games "R" Us is located at Wayne, NJ. Geoffrey the Giraff was created in February 1960 as the iconic mascot of Toys and games "R" Us.

Toys "R" Us got grown fast and today they have the ability to experienced more than 625 international stores and over 140 certified stores in 35 countries including Australia, Canada, Germany, Portugal, Spain and the United Kingdom. As Toys "R" Us is the world's leading toy retailer company, it possessed roughly 70, 000 employees worldwide and they're committed to serving its neighborhoods as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need.

At Gadgets "R" Us, their vision is approximately the 'R' value, speedy, real, reliable and responsible, will best serve their customers, employees, shareholders, neighborhoods and kids. To keep as the globe leading toy and youngster product retailer, Playthings "R" Us work hard to fulfil their objective, achieve organizational success, drive expansion in the long-term and help our constituents reach their goals. Toys "R" Us Inc targets creating the right environment to provide results for our employees, customers, shareholders and community. The core value of Toys "R" Us, Inc is they not only offer parents and people a various selection of products to build wonderful playtime stories along with each day essentials, however they also provides the right resources to keep kids safe.

Type of product of the company

Toys "R" Us which known as the World's leading Kids' Brand and has a huge variety of toy products. The products are categories into many section such as Action Results, Arts & Crafts, BABIES TOYS, Bikes, Scooters & Traveling Toys, Books, Music & Dvd disks, Electronics, Games & Puzzles, Learning Toys and games, Outdoor Play, Party Supplies, VIDEO GAMING, Building Sets and so on.

The Company's Market/ Market Segmentation

Demographic Segmentation

Demographic segmentation can defined as divides the market into groups predicated on variables such as age, gender, family size, income, faith and nationality. Babies, children, young adults and adults are consumers of the company. Gender is important in demographic segmentation since it divided their market into three sections which is baby section, boy section and girl section. For example, a few of the toys are especially just for young ladies section such as Barbie dolls. Besides that, each toy has clearly verified this for the basic safety used of consumers. For instance, Lego is good for 3 years old, 6 years old, and 12 years old or above and so forth. This is because some elements of the Lego are little and it will cause newborns or children inadvertently swallow it.

Geographic Segmentation

Geographical segmentation helps Toys and games "R" Us to recognize and segregate the marketplace into segment based on the size and society in a country. Toys "R" Us has 860 stores in United Express of America which amount of stores are almost half of the 1, 650 stores of the business surrounding the world. USA has more stores than other country because the people who lived in USA are wealthier because of the country's stable economy. Toy "R" Us targeted places such as New York, New Jersey, Wessington DC. , Las Vegas, Miami, LA and so on which have large size and population. For example, the company discovered that the people who resided in NY are willing to spend their money on toys because of their kids. Thus, Gadgets "R" Us has exposed at least 9 stores to portion the market in New York.

Psychographic Segmentation

Psychographic segmentation known as the dividing of market into organizations based on cultural course, lifestyle and personality characteristics. Infants, children and young adults from intermediate or rich family are able to afford the investing in gadgets. Besides that, parents who collect playthings as their hobby are willing to spend their money on playthings. In current years, with the growth of superhero videos, animated CGI flicks and gaming, toy lovers are integration in to the contemporary society. Thus, it is becoming one of the approach to life to people surrounding the world. Besides that, Gadgets "R" Us do research on the personality characteristics of consumers whether is toy lovers or non-toy hobbyists. Toy hobbyists have passion, fortitude and aware of tendencies while non-toy lovers are buying toys and games for fun or as a gift to a person.

Behavioral Segmentation

Behavioral segmentation is dependant on the customer knowledge of particular products, uses of products, and reactions to certain products. Consumers can do research about the playthings before purchase it such as producer, characteristics of the products, overview of customers, price and other information. With the info collected, consumers will determine whether purchase for choices or presents. When Halloween or Holiday is next to, consumers especially parents or friends will buy toys and games as show their children or exchange present between friends. They'll buy gadgets which is only available in a season or celebration only.

Problem of logistics procedure of Toys "R" Us

The first problem faced by Toys "R" Us is the poor management of the suppliers which gives the wrong conformity on the timing and level of the products. The incorrect timing and quantity of logistics procedure could loss at the high demand when meet up with the seasonal stock. The demand can change quickly but source takes more time to change. This could overcome problem making the business fail in "first-to-shelf" meaning the business is the first ever to screen and sell the latest product in comparison to their challengers. Besides that, the vendor performance level will affect the grade of service that provided to customers. With past due delivery from merchant to the warehouse and store, the company may lose customers because they cannot find the latest product at the company. Thus, this also will makes the business do not have competitive advantage with their competitors. The customers will see for other company such as Wal-Mart which known as the primary rivals for Toys "R" Us.

Toys "R" Us also experienced the situation of the indegent management of private warehouse. The purpose of the warehouse is to keep the stock and goods from vendors before delivery to each store. The indegent management of warehouse is due to the receiving and sending out the inventory to every store. Thus, the company afraid the inventory cannot delivery with time to every store. With slow process of packaging and handling of the stock in the warehouse, it'll make the goods to be overdue delivery and may not meet up with the demand of customers. This issue will become most severe when meet up with the seasonal or festival month which has a huge demand and can upsurge in inventory compared to non-seasonal month. Besides that, this issue also will improve the cost of the stock because the area for the warehouse is limited. Furthermore, the longer the inventory retains in the warehouse, the higher the chance of the inventory such as destruction or stolen.

The last problem that Playthings "R" Us experienced is the cost of processing returns goods from customers. This issue is area of the reverse logistic. Change logistic define as all activity associated with something or service after the point of sale. The entire idea of change logistics can be time consuming and costly that calls for manufacturer, dealer and customer. Customers will go back their goods to Toys "R" Us because customers realize something wrong with a product such as obsolete, spoiled, broken or flawed. The business must solve customers' problem and it will take a great deal of time to solve it. This will not only affect the complete logistic procedure of Toys "R" Us and increase their cost. Besides that, Toys "R" Us also must go back the spoiled product back again to the manufacturer. It will take plenty of time for producer to come out solutions to Toys and games "R" Us. The conclusion of this problem is once customers come back good to Toys "R" Us, it will cause frustrating, have an effect on the logistic procedure of Gadgets "R" Us, the company's reputation and profit percentage.

Problems fixing of logistics procedure of Toys "R" Us

The solutions for the indegent management of the suppliers about wrong timing and level of logistics procedure has been solve by Gadgets "R" Us with the using of Agility logistic Company. Agility logistic Company is a publicly exchanged global logistics company and one of the world's leading providers of involved logistics with have about 22, 000 employees in over 550 offices and 100 countries.

By using Agility Company, Toys "R" Us could actually deliver the right amount of product at the right timing to fulfil the allocation and meet up with the demand of a new release product of the store level. This company provides Toys "R" Us one point of contact for the entire component of the Directs-to-store and "vendor-to-shelf" resource chain. With the combo of technology, multiple proper location and the proven of expertise have allow Agility logistics company to deliver the deploy product to the appoint store easier and faster. Furthermore, Toys "R" Us having the ability to process shipments the "same day" shipments give a huge advantage for Toys "R" Us regarding in-store supply. It can supports shipping and delivery cost by allowing them to ship at a marginally slower tempo. Besides that, Agility Company also using some logistics tools to further reduces the shipping and delivery costs such as A minimum of Cost Routing (LCR). This service allows Agility to meet an in-store deadline and in a position to move approximately 65 % of the merchandise from the reachable store and this really helps to save a great deal of freight cost.

Besides that, Toys "R" Us can make another vendor to supply product for them. This is because failure of sending the merchandise to the warehouse and store with time is the problem of owner, not Toys "R" Us. Thus, the business can opt for another vendor which can supply stock and deliver the stock with time. This solution can help Toys and games "R" Us to save additional time and costs since they are doing the business enterprise for an extended terms.

The second problem encountered by Toys "R" Us is fail to reach just-in-time to customer. However, this problem has been resolved with the make use of of Electronic Data Interchange (EDI) to execute effective combination docking. EDI is a standardized way for transferring data between different personal computers or computer systems. Mix docking is a syndication system where in fact the item that received at the warehouse is right been well prepared for shipment goal to another location or store.

Cross docking is suited to Toys "R" Us because their products have high and stable demand. With the implement of this solution, it will help in reduces logistical costs and speed up products to marketplaces. Furthermore, this also eliminates the needs to schedule and stage the delivery later, which save well on labor costs. This method can prevent stock out at other retail store and leading Toys "R" Us more into a just-in-time method. Besides that, this will also increase available sales space because the greater fast the latest toy is on sales in the store, a lot more products can be sales to the customer. Cross docking will help in lowering handling cots, operating costs, and storage in the warehouse. With less handling and shipment of the merchandise, the product will be more secure because accident will appear if the merchandise keeps transport to here and there.

The last problem which is the price tag on processing go back can be solve by Toys and games "R" Us with the increasing of opposite logistic. Change logistic is an activity of remanufacturing and refurbishing the merchandise that given back by the client to Playthings "R" Us or from Toys and games "R" Us to seller.

The increasing of the change logistic help to increase client satisfaction and commitment by paying more attention to the break down goods and through the restoring of the products. This can help Gadgets "R" Us to get feedback from other customer and make improvement and also to understand more about the true reasons of the returning goods. Besides that, instead of spending time, manpower and costs of recycleables to improve the product. The reviews from the customer will make a lot of help because there is much information that may be extracted from the return products. Furthermore, invert logistic can lessening the overall costs of group. This is because the produce will sorted, reassembles or recycled the merchandise that is taken back from the client or sending back of unsold product. A good standing and trustworthiness of being a in charge company that takes care of their waste products and dangerous product will form in the attention of the client.


Through out this task, we can conclude that Toys "R" Us is facing some logistics problems including the poor management of owner and warehouse and the condition of reverse logistics. This problem had made the company undergo an unnecessary loss. Furthermore, through this project, we've learnt that how Toys and games "R" Us overcome their logistic problem to keep up the company's reputation and earnings. This can help us gain the knowledge on how to cope with the situation about the business enterprise logistic operations we might face in the future.

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