Situational Overview

Toys R Us is a company that was in business for many years and served a variety of customers during its tenure. The company went into liquidation in 2018 closing virtually all of the retail stores throughout the world. They attempted to save the business with multiple strategies but did not have enough luck to do so. The company failed to adapt to the pressures of competition in the market including segmentation of specialty goods (Babies R Us) and eCommerce toy sales. Although the landscape was changing rapidly, Toys R Us continued to connect with consumers in a large scale retail model. Even though their marketplace and their marketing environment changed, they remained stagnant and ended up filing for bankruptcy.

Watch the Video

View the following video to learn more about the rise and fall of Toys R Us by clicking on the play button below.

https://youtu.be/7Actdg5JcM8

Answer the following questions:

• What marketing strategy did Toys R Us utilize? Explain how that strategy contributed to the downfall of the company.
• Identify the marketing mix (4 P's) that Toys R Us implemented to connect with consumers (include explanations of all four factors).
• What environmental factors had the largest impact on Toys R Us? Why?
• Why was it important for Toys R Us to understand the wants and needs of the customer?
• In your opinion, what changes should Toys R Us have implemented to make a profitable business?