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Toys “R” Us

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					      Toys “R” Us

Aaron James & Amber Alcaraz
   International Marketing
         Case Study
        April 14th 2008
                        Background
• Founded by Charles Lazarus (1948)
    – Sold baby furniture at fathers shop and renamed it children’s
•   First baby furniture and children toy supermarket (1952)
•   Introducing Toys “R” Us (1957)
•   51 locations (1974)
•   $ 1 billion dollars (1983)
    – Went over!
• 1st international store in Singapore
    Grand Opening of TRU Japan
•   Tuesday January 6, 1992
•   In Kashihara, Naraken, Japan
•   President Bush appeared
•   5,000 people and 2,000 policemen
           Post TRU Japan
• Large customer traffic
     -$15 to $20 million compared to U.S.
  store bring in about $10 million in sales
• Helped other local business
• Run on push system
               Opportunities
•   Second Largest Toy Market
•   Childhood Spending for children is high
•   Japanese ready to pay high prices for toys
•   Growing rates in toys
         Bumps along the way
• Big stores law 1974         • Individualism vs.
• 3 year battle to open 1st     Collectivism
  store                       • High Land Prices
• Price over quality          • Import costs
• Changing of local toys      • Location problems
• Mom and pop store close     • Training challenges
  with community              • Japanese Customs
• Smaller stores              • Negative perceptions of
• Local Business demand         warehouse labor
  size reduction
          Decisions Made
• Store within a store
• More Catalogs
     -Big toy catalogue
     -Videogame and electronic toys
• Joint venture with McDonalds
    How do they stand now?
• Shoplifting rare
• Introduced discounts
• Gives choice to consumers
 Has Japan as a market changed?
-There is a better look at larger stores
-Helped Japanese retailers
-More choices in toy shopping
           Current Issues?

• Large earthquake in 1995
• Negative growth in 2003
     -Opened new stores that helped
  increase sales
• Gradually becoming accepted by
  community
         Suggested Actions
• More research needed
     -Market analysis
• Better integration into community
            Lessons Learned
•   Transition not always easy
•   Doing everything the American way
•   Cooperation with Japanese customs
•   Smaller warehouse
•   Direct communication with toy venders
Could this have gone better?

				
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