You have to grow up after all. (A marketing strategy opinon from an amateur perspective.)
Everybody knows the theme song, "I don't wanna grow up, I'm a Toys 'R' Us kid." For some time now Toys 'R' Us has been going through some financial troubles. Some industry analyst's don't expect the company to fully recuperate its losses with stores closing all across the country and those that aren't closing becoming Babies 'R' Us.
I’ve had some thoughts about what the company could’ve done to stay afloat for a long time and finally found the time to write them down.
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First and foremost I have to talk about their pricing. I don’t know if they just didn’t watch market trends or because they were a nationwide company they, for accounting reasons I imagine, chose to keep the same pricing across the board for their products. Expensive. They were way too expensive. I remember Toys ‘R’ Us was always crowded. They had the inventory, they just didn’t have the right pricing to make people walk out with their toys.
Name Recognition
Every kid I knew recognized the colors, the name, the song, their mascot and in my area even the freeway that passed by it. The Toys ‘R’ Us freeway as it was know for miles around brought joy to kids everywhere as they drove towards it and sadness as it led them away empty handed. As far as Toy Stores go, I knew no other and thousands of other children felt the same. They had the name recognition and they did not take advantage of their control over the toy industry. Exclusivity and slapping the Toys ‘R’ Us brand on their products was never anything I saw them push for aggressively that I believe would’ve helped them become a success this generation as much as the last.
Video Games
What I believe was a key reason Toys ‘R’ Us lost their industry power has to do with the video game boom. In the 80’s gaming was a niche hobby for young children and typically geeky Simpson’s comic book guy collector types. After the introduction of the Super Nintendo and the Sony Playstation in the early 90’s, video gaming moved beyond the niche hobby it used to be and became an entertainment medium that was not limited to a relatively small consumer base, like toys. The stores, at least the Toys ‘R’ Us stores I used to frequent, were at one time innovative. Allowing children to play with the toys and offering a broad range of brand name toys and lesser known knick-knacks. The video game section was a small isle with categorized and alphabetized cover art with paper tickets that you would take back to the cage to pick up your “cartridge.” This was smart and much better than the chaos that is Best Buy’s ${}!+-pile. But unlike hoola-hoops and jump-ropes the video game industry is constantly evolving and erratic with its pricing. Toys ‘R’ Us just wasn’t keeping track of the changes in this industry and lost the potential foothold they could have had. You would go to the video game section and they would have old NES games labeled as new and still fully priced. Stocking the new inventory was rare and they wouldn’t spend too much time advertising the products or making the labels for their intuitive ticket scheme. The
Spin-Off
Kids ‘R’ Us and Babies ‘R’ Us. The prior is long gone and the only reason Babies ‘R’ Us survives today is because of the greedy mother’s and their baby registry’s. (The term Mother’s is to be taken literally.) What they needed to do instead of concentrating on clothes was to stick to what they new best, TOYS! Electronic toys to be exact. It wasn’t until after the release of the XBox that they got their act together and created the ‘R’ Zone but it was already too late. The lack of an online plan and other crucial mistakes began the downfall of the once larger-than-life toy giant Geoffrey.
Community
Social events. There is a stigma associated with video games that people see the video gamer as a dark dungeon scavenging lonely individual that fears social relationships. If the fantastic success of XBox Live has proven anything is that gamers have been waiting for the opportunity to play together. Some of the first (arguably popular) video games were Pong and Space War. Those and Combat on the Atari 2600 were all TWO-PLAYER GAMES! Mario & Luigi, Sonic & Tails, Ken & Ryu. An entire library of games on every system dating back to the very beginning of gaming set the trend. What could have helped the company was to host special video game sponsored social events and competitions. They had the power and the industry respect to succeed at this.
Too Little, Too Late
Animal Crossing, a game with Toys ‘R’ Us opportunity written all over it, fairly recently came out with an online capable iteration on Nintendo’s newest handheld, the Nintendo DS. This self-proclaimed “communication game” finally gets to live up to its title. It involves a little character that you control as it goes through his/hers daily regimen of cavity-inducing sweetness including but not limited to, fishing, writing letters, visiting friends, picking and planting fruits. This game prides itself in its little surprises. Tiny toys, new outfits, stylized furniture for your home and even classic NES emulated games. Some limited edition ornaments for your home have recently been made available only in Toys ‘R’ Us via download station. You take your Nintendo DS and download these little trinkets for free. This is the type of event that, although seemingly pointless, spur consumer traffic, social interaction and will greatly improve product name recognition and assist in establishing a positive brand image. As if the colorful nature of the Toys ‘R’ Us locations weren’t enough, an outside carnival-type atmosphere would attract much more attention. Last I checked they had plenty of space available in their parking lots to hold these events.
Conclusion
What would normally be a small part of a larger event schedule has become a sad and pitiful attempt in exclusivity by a company that moved too slowly to adopt to the online and video game explosion. A good intention too late after stores like GameStop and Best Buy engulfed the electronic entertainment retail market.
Hang on to that 2 X 4 all you want Geoffrey Giraffe; it’s not enough to keep you from drowning.
~HL
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