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INDIVIDUAL ASSIGNMENT

SUBJECT:

MARKETING MANAGEMENT

COURSE:

DIPLOMA IN BUSINESS ADMINISTRATION

LECTURER:

MADAM MUSALMAH ABDUL MAJID

NO. NAME STUDENT ID

1 THASNE RAVI 192021161


1. List all the factors and changes that contributed to the decline in Toys R
Us commercial success.

o Toys R Us signed to do online marketing partnership with Amazon to sell its


product on their websites. But later on, toys R Us found that Amazon is
selling third party items due to the competition with Toys R Us. This caused
Toys R Us financially decrease when partnering with Amazon to sell online.
o Walmart, Target and Kmart started selling toys in their stores so that the
customers will come and buy toys in their stores. They merely started to
have
o Some great discounts in their stores than Toys R Us. So that Toys R Us
stuck in doing promotion because there is no customers come in to their
shops.
o The falls of the Toys R Us stores causes that other three of the investors
paid 6.6 billion to the stores to increase and make sure all the publics get to
know about Toys R us upcoming and also it troubled them by paying debt in
2005.
o As the stores ran into bankruptcy, Toys R Us signed sales form of the private
retailers. The retailers started to sell the products to the customers to
increase its sales.
o The debt payment by investors causes Toys R Us to fall again and again,
but the other competitors like Walmart, Target and Kmart started to moving
forward and increasing their sales with lots of discount.
o This decreasing in Toys R Us stores, made them to start new business for
babies. It is called as Babies R Us. They opened the new business by
getting money by other investors and opened a new stores. They started to
sell baby diapers and more baby products in online and also stores.
o But in early 2000 due to the advance in technology with new computers
laptops, smart phones and tablet, caused the kids nowadays to use and play
games in the new technology era like video games, online games and more.
o The toys industries around the world started to flop and decrease their sales
annually and caused no customers purchase toys from the stores because
of the technology advancement. All those publics around the world are now
using the new trends and each one of us have own hand phones, tablets,
laptops and so on.
o When the Christmas and school holidays season started. Toys R Us started
to do flash sales in their stores. They also started to shipped out product by
cash on delivery and deliver the products to the customer’s house. After the
holiday season has ended, Toys R Us started to decrease their sales
because no customers purchasing from their stores. This caused Toys R Us
go into bankruptcy and other major retailers pay less. Toys R Us nearly
closed 800 hundred stores across the United States.
2. Categorize these factors into the main marketing environment
component of the internal environment, the micro environment, and the
macro environment.

Internal Environment Micro Environment Macro Environment


Events Competitors- the Technological
competitors as Walmart, enforcement- as in
Target and Kmart started 2000’s, the advancement
to sell toys in their stores in technology caused the
with great discounts Toys R Us sales
decrease because of new
online games and video
games.
Cultures Publics- the retailers Demographic
promote the product or environment- Toys R Us
sell the toys to them to is made to kids around
increase sales the world, but some
competitors turnover the
sales for Toys R us
Assets Customers- whom Economic environment-
purchase the toys from due to bankruptcy, Toys
the store R Us signed the private
retailers sales form and
also low the interest rates

Employees Market intermediaries- Environmental factors-


investors invest money due to winter season, all
for Toys R Us survive the kids don’t play
from the bankruptcy outdoor games so it
causes the demand from
Toys R Us for outdoor
games decrease
3. Rank the factors (based on the video and below information) in terms of
which ones were the most significant in the downfall of Toys R Us.

The factors based on the short video and the information that provided. The
factors that most significant in the downfall of Toys R Us is the new technology
advancement in this era of 2000’s. The technology advancements has causes most
of the toy stores around the world has lost its sales annually and also causes the
stores affects financially.

The new technology development is the creation of new innovative and creative
hand phones, tablets, computers and also laptops. Technology advancement is
where we can develop new app and so on, like games and social apps. In this new
technological world, kids, teenagers, adults and also old lady and man nowadays
uses smart phones and laptops to play online games and also video games.

All the people around the world are now using smart phones and so on, especially
kids nowadays are more addicted to computers and smartphones because they are
attracted to the video games and also online games. Due to this, many toy stores
around the world are going to face some problems like financially affected and also
sales problem because lack of customers are purchasing from the store. Customers
are not purchasing from the store to their kids is because, kids nowadays are
attracted towards online games.

In this new technology era, kids nowadays are not watching the toys
advertisement that will telecast in TV and also cartoon shows. This is because now
they can access for many choices of games in the App Store or Play Store. They can
also watch cartoon shows in YouTube or in any social media applications. Before
this technology advancement, they will purchase from the toy store if there is any
new cartoon or advertisement on the TV. Not only kids, parents nowadays also
addicted to such online games.
Toys R Us are not able to adapt with the new technology because they were left
behind due to the bankruptcy and paying debts. So they lost many customers and
lots of sales every year. Each one in the world has a smartphones in their hands, so
they were visiting the stores to buy gifts, toys, indoor and outdoor games and also
dolls, because they can now access everything in their smartphones. Kids loses
interest in playing toys and dolls. They are now more likely to play online and video
games which is more adventure and addictive to them. Not only kids, parents also
are now attracted to those games.

Many toy stores are now trying their best to come out with something new and
attractive to the kids. Toys R Us gets help from the investors and opened a store for
babies. It is named as Babies R Us. So, parents or future parents will get the things
for baby from their stores. This will increased the sales every year.

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