Business managment ­ PM305 International Marketing


International Marketing

Assignment Questions

Background Instructions :

• All learning outcomes will be assessed. This summative assessment represents 50% of total module


• Carefully read the case study and the assignment questions before answering the questions. You

need to undertake additional environmental and academic research beyond this case study.

A case of Toys “R” Us, Inc. looking to international Market [1]

Toys “R” Us, Inc. was founded in 1948 and is based in Wayne, New Jersey.

Toys “R” Us, Inc., together with its subsidiaries, operates as a retailer of toys and baby products. It

operates through two segments, Domestic and International. The company offers products for

newborns and children up to four years of age. It also provides educational electronics and

developmental toys consisting of Imaginarium products in the United States and World of

Imagination products internationally; and construction toys, games, creative activities, and pre­school

merchandise. In addition, the company offers seasonal products, including toys and other products

for holidays and summer activities, as well as bikes, sporting goods, play sets, and other outdoor


Sales and Marketing

The toy retailer utilizes a variety of marketing and advertising channels to reach its target audiences.

Its mass marketing programs include email marketing, national television and radio spots, direct mail,

targeted magazine advertisements, catalogues and ads in national or local newspapers. Other

strategies include targeted door­to­door distribution, direct mailings to loyalty program members, and

in­store marketing.

“What differentiates Toys”R”Us as a specialty toy retailer is the memorable shopping experience we

provide for our customers,” said Andre Javes, managing director, – Greater China and Southeast Asia.

He added. “This includes a combination of the widest assortment of toys and baby products,

including exclusive items not available anywhere else in the market, fun store layouts, interactive instore

experiences, product displays and demonstrations, activities and more.”

As of January 30, 2016, it operated a total of 1871 stores; 361 traditional toy stores, 224 baby

stores, 213 SBS stores, and 68 Permanent Express stores, as well as Temporary Express locations in

the United States; and 756 operated and 252 licensed stores in 38 countries and jurisdictions

worldwide. It generated 62% of its total sales from its US stores during FY2016, another 10% from

Europe, and 10% from Japan. The company’s other major markets are in Canada (7% of sales), the

UK (6%), China and Southeast Asia (3%), and Australia (2%).

The retailer’s revenue tumbled 5% to $11.8 billion in fiscal 2016 (ended January 30, 2016), mostly

because of unfavourable foreign exchange rates tied to the stronger US dollar. Excluding foreign

currency impacts, however, net sales increased slightly thanks to new International store openings

and comparable International store sales growth of 3.2%, driven by higher baby gear/apparel and

construction toy sales.

Toys “R” Us has experienced declining sales despite its being the only truly global toy store chain and

a strong brand name. It has suffered from declining demand in most mature markets as population

ages and birth rate fall. Furthermore, new competition has arisen with pure players and grocery retailers expanding their range of toys and baby products. The company had faced huge competition

from specialist toys stores and retail superstores like Tesco, Walmart (Asda) etc in its major

international operations.


To turn around its situation and set the company up for long­term profitability, the retailer in 2016

reiterated its customer convenience­oriented strategy to integrate both its online and brick­and­mortar

offerings by utilizing its “In­Store Pick Up,” “Ship from Store,” and “Ship to Store” fulfilment


Since then company has introduced its ‘TRU Transformation’ strategy. A new service model will also

be introduced into Babies R Us stores to help first­time parents have a better shopping experience,

along with expanded parenting classes. In addition, mobile devices will be rolled out to store

associates, in recognition of the growing importance of this channel. Toys R Us is putting more

emphasis on becoming a customer­centric company, giving the retailer a competitive advantage over

big­box discounters such as Walmart, Tesco, Target and Amazon. Toys R Us will take customer

insight into consideration to make the in­store and online services an exceptional experience for

multichannel shoppers.

Future International Strategic focus

The toy retailer also continues to expand its stores globally as the US market continues to mature,

opening its 100th store in China in January 2016.In terms of international growth, Emerging markets,

Southeast Asia and China remain the key areas of focus. “International growth remains an important

area of investment for the company and we continue to see significant opportunities for expansion,

said Antonio Urcelay, Chairman of the Board and CEO, Toys”R”Us, Inc.

Expansion into international markets is crucial for Toys”R”Us, However, the questions are how and

where? The company is exploring its options to expand into ONE of four major markets, namely

India, Sri Lanka, Nigeria and Russia.

Sources used :



[1] https://www.retail­­news­analysis­toys­r­us­unveilsturnaround­strategy/5073429.article

Word Limit: 2,500 (excludes appendices) words (Plus or minus 10%)

Learning outcomes assessed:

1. Identify the principal managerial issues and policies necessary for success in international


2. Examine and evaluate methods of identifying and qualifying market potential in different parts of

the world.

3. Illustrate the nature of overseas distribution systems (including agents and joint­ ventures) and

demonstrate the marketing implications of differences in culture in consumer behaviour.

Academic Misconduct

You are responsible for ensuring you understand the policy and regulations about academic

misconduct. You must:

• Complete this work alone except where required or allowed by this assignment briefing paper and

ensure it has not been written or composed by or with the assistance of any other person.

• Make sure all sentences or passages quoted from other people’s work in this assignment (with or

without trivial changes) are in quotation marks, and are specifically acknowledged by reference to the

author, work and page.


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