VALUE PROPOSITION

Value proposition is defined as a promise that company does to fulfill its customer needs. It is
a statement which helps the customers to identify why they should buy a product.

Toys ‘R’ Us provides value to its customer in following ways:

 COMPANY REPUTATION: Being in the market for past 73 years now Toys R Us
has built a strong reputation and trust among the customers through its past records of
selling quality products.

 BROAD PORTFOLIO: As the company is offering a large variety of products

including games, stuff toys, catering services for children of all ages, it has built a
strong portfolio which attracts customers.

 EASY ACCESSIBILITY: The company has being distributing its products to various
retail stores as well as online stores which makes it easily accessible for the
customers.

 INTERNATIONAL REACH: The company through its various distribution channel

reaches to the domestic markets of US and other parts of Asia, Africa etc.
 DIFFERENTIATION
Differentiation refers to creating specialized products and services so that it attracts to a niche
market and gains competitive advantage.

 PRODUCT DIFFERENTIATION: Toys R Us caters a large range of products

targeting the different segments of market. Babies R Us brand mainly targets the
newborn through its apparels, baby gear, infant care products, toys such as dolls,
action toys, role play toys etc. Also this company provides educational electronics,
developmental toys etc. for the youngsters.

 SERVICE DIFFERENTIATION: Company has partnered with various different retail

stores in order to provide services on its behalf to the domestic market. It also
collaborated with various non-profit institutions on various social projects. Some of
the partners of Toys R Us are:
 Retail tie-up with Moose toys
 Global partnership with Claire’s Inc
 Charitable partnership with Save the Children

 CHANNEL DIFFERENTIATION: Toys R Us operates a consumer facing website

which allows the customer to get details about its offline and online stores. Customers
can also purchase their products through this website. The main channel of its
distribution is retail stores available around the world.

 PEOPLE DIFFERENTIATION: Toys R Us targets the children of all age and its
customers are generally the young families or parents. It also differentiates its
customers according to their child’s age. For example: Babies R Us targets the parents
of newborns.