Toys "r" Case Study

Identification/description of alternatives

Provide better customer service

Toys "R" Us can increase the level of customer satisfaction by providing good customer service. Friendly and well trained employees who understand customer needs better and who understand the importance of satisfying the customers will not only assist in encouraging customers to shop at Toys "R" Us but also contribute to differentiating the company from its competitors. It is important to make each customer feel important and to serve each customer feel like he/she is the only customer.

Provide better shopping experience

It is key for Toys "R" Us to make the shopping experience unique and fun. The experience would encourage the parents and their children to stop and shop more often. The unique shopping experience can make the store the best place to shop for toys. The experience would leave a lasting impression in the minds of customers and would make them want to come back and come often. Setting up a game room at the store would attract kids to come to the store to try out new games, interact with other kids and also provide the store an opportunity to introduce and market new products and while the families enjoy a unique and fun shopping experience. Introducing characters in the store like Goeffrey the Giraffe would provide entertainment to the families and improve the shopping experience.

Promotions

Toys "R" Us can attract customers by sending out discount coupons and providing special discounts on occasions. Providing various incentives based on what customers spend would help increase consumer spending. Customers buy several toys throughout the various ages of their kids and more than often buy toys for various kids in their family and for friend's kids. Incorporating rewards/points systems helps Toys "R" Us establish a long-term relationship with the customer and the relationship only grows as the customer buys each time at the store. This "lock-in" mechanism would also play a vital role in bringing the customers back to the store as opposed to shopping at the competitor's store for their needs.

3 in 1 experience

The company can bring its umbrella of product offerings from its various stores such as Toys "R" Us, Kids "R" Us and Babies "R" Us under one roof. Providing several products in one store provides the customers more than one reason to stop at the store. Families with kids in different age groups and families with varying needs can find their needs in one place presenting the customer with a "one stop" shopping experience. Combining the stores enables the company to save money in operating expenses and also help save money in marketing.

Marketing Strategy

The store can come up with a new and improved marketing strategy that emphasizes quality, variety and shopping experience to differentiate itself from its rivals.

Promote the online store

Promoting online sales helps the store reduce the operating costs. Online shopping also enables the store to serve more customers and customers in various geographical locations than possible via a traditional brick and mortar store.

Recommendation

We recommend all of the above alternatives be implemented. If all of the above mentioned alternatives are implemented, the alternatives will help position Toys "R" Us better and also present a competitive advantage over its customers. The combination of above alternatives