Paper on Marketing Plan

Big-box stores and online technologies

Big-box stores and physical retail locations are becoming obsolete as a result of the development of online technologies. The internet is infused with the potential of companies like Toys R Us. Toys R Us has a substantial store network that can be used to grow its online presence and connect with tech-savvy customers. The company’s physical locations as well as its online-only avenue for purchasing are both posting sizable revenues. This suggests that Toys R Us ought to put an equal amount of work into both of its distribution channels to boost its long-term growth. The organization will have a higher competitive advantage in the market by providing the best services and goods across the integrated channel.

Investing in Omni-channel distribution strategy

In this case, this plan recommends for continuous investment in Omni-channel distribution strategy. This shows that Toys R US should intensify its efforts in integrating the Internet, social, local, mobile, and physical stores components. The company should leverage its existing operational assets in order to provide new services to the customers. With the integrative distribution channel, the company will utilize its distribution centers, store base, mobile platforms, social networking sites, and the e-commerce enterprise to provide information and products to the customers. This will also facilitate the interaction of the customers with the Toys R US brand and improve the experience of the stores to deliver more than expected. For instance, the social media can be used to collect information regarding the types of toys liked by kids. As a result, the company can design such toys to meet the preference of the kids. Moreover, the smartphone applications like My Store feature should be improved to reach out the internet savvy customers who can provide their experience regarding the products developed by the company.

Promotional Plan

Situation Analysis

The increasing growth of online shopping is negatively affecting the product sales of the company. The company lacks a robust promotional strategies despite the existence of the Omni-channel integrative distribution channel. Accordingly, the filed corruption case has affected the company’s reputation in the market. This implies that the Toys R US need to formulate an effective promotional plan to restore its brand image and improve sales. Therefore, this promotional aims to achieve three main objectives. First, to increase sales by 20 percent by the end of second quarter of 2018 financial year. Second, to expand the customer base by 30 percent through the acquisition of new customers. Third, to assure customers that Toy R US is the best store to carry out holiday shopping.

Target Segments

The first target groups should be parents with kids or toddlers below five years. The kids are assumed to depend on their parents on deciding the type of toys or games to choose. Therefore, most of the purchasing decision regarding the toys are made by the parents. The second target segment entails kids between five and twelve years. These kids make the purchasing decision by selecting the toys they need. These two groups of customer group purchase from the physical stores. The last category entails kids from 10 years to teenagers who are internet savvy. Most of these groups use the internet and social media in making purchasing decisions. This shows that the group purchases toys from online platforms. However, parents also use the internet to search for more interesting toys and also making purchasing decisions.

Marketing Programs (Promotional Mix)

In order to reach the target customers identified above, the promotional plan will integrate an effective promotional mix. The promotional mix will ensure that the company establishes a strong market presence across the identified customer groups.

Direct Marketing

First, the company needs to use direct marketing through available channels like social media, poster, press, mailing, and catalogs. In this case, Toys R US should capitalize on its platforms like ‘My Store’ and social media campaigns to reach the internet savvy customers (both parents and teenagers). The promotion message, in this case, need to encourage recommendations and positive reviews of the firm’s products.

Advertising

Second, the company should foster its advertising synergies to reach the wider audience and spread awareness of the new toys being offered in the company’s stores. This will be achieved through TV, magazine, and radio channels. The advertisement should be integrated with online marketing to reinforce the message and differentiate Toys R US from other competitors. The message for this channel should assure customers that the firm has designed more innovative toys which meets the needs of their kids.

Personal Selling

Third, Toys R US should use the personal selling which entails face-to-face communication and demonstrations done in the stores. In this approach, the company needs to use demonstrations that shows parents that play to children is essential to their development. Through face-to-face communication, the salesforce needs to convince the target customers on the importance of various toys and plays offered by the company.

Sales Promotion

Lastly, the company needs to create the brand value through intensive sales promotion. In this case, the company should use promotional pricing techniques and provide incentives to customers. Toys R US should provide coupons, discounts, and provide free plays to kids in the stores to increase their experience with the offered toys.