Toys R Us Pricing Strategy
Not what you're looking for?
1) Describe the PRICING STRATEGIES and TACTICS of Toys R Us using the proper marketing terminology. Pricing strategies can be simplistically referred to as above-the-market (higher than competition); at-the-market (same as competition); or below-the-market (lower than competition). You also can use terms such as skim pricing, penetration pricing or other marketing terms.
2) Analyze the pricing strategies and tactics followed by Toys R Us. Be as specific as possible and be sure to draw on the INTEGRATION of the MARKETING MIX (for pricing).
3) Briefly, explain Toys R Us COMPETITIVE ADVANTAGE relative to PRICING.
Purchase this Solution
Solution Summary
The solution discusses the pricing strategies and tactics for Toys R Us marketing terminology
Solution Preview
1) Describe the PRICING STRATEGIES and TACTICS of Toys R Us using the proper marketing terminology. Pricing strategies can be simplistically referred to as above-the-market (higher than competition); at-the-market (same as competition); or below-the-market (lower than competition). You also can use terms such as ?skim pricing?, ?penetration pricing? or other marketing terms.
Toys R Us is the worldwide leader in relation to its products. The company has stores nationwide and also has an international division that serves 16 countries.
Prior to 1995, Toys R Us held a happy ground as the market share leader for the sale of toys, then Wal-mart silently grew to become the world's largest retailer and this retailer is decreasing Toys R Us' profit margin and market share.
That being said, the understanding of today's pricing strategies and tactics for the company can be clearly understood. In 1997, Toys R Us implemented a "customer friendly strategy" which consists of price matching tactics. (Bloomberg 1997) This pricing strategy is a tactic that makes the brand more competitive. A consumer could say "Why should I buy the product at TRU when I can get the same item cheaper at Wal-mart?" This statement is true and the implementation of the "consumer friendly pricing strategy and tactic" remains in existence today.
The company's current pricing strategy is "at-the-market" as it will match any competitor's price. Toys R Us does not have the marketing power it used to do be the pricing leader when they were "lower than the competition" through their below-the-market pricing. As seen above, when matching the competitor's pricing, it could cost the company significantly. Wal-mart has the purchasing power to buy in large quantities for less than Toys R Us can due to Wal-mart's power in the marketplace.
I must say that ...
Education
- Master of Business Administration, University of Phoenix
- Bachelor of Science in Paralegal Studies, Kaplan College
- Business Diploma, Katharine Gibbs Business College for Women
Recent Feedback
- "Thank you!!!"
- "Thank you"
- "Thank you so much "
- "Thank you very much"
- "Thank you so much "
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Motivation
This tests some key elements of major motivation theories.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.