Toys R Us Marketing Strategy & Marketing Mix (4Ps)

Published in Services category by MBA Skool Team

Here is the marketing strategy of Toys R Us which analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).

Toys R Us Product Strategy:

The product strategy and mix in Toys R Us marketing strategy can be explained as follows:

Toys R Us is one of the biggest retail chain which specializes in Toys. Toys R Us has other branches like Babies R Us and Kids R Us. Babies R Us carries the baby products and essentials and baby toys, whereas Kids R Us focuses on kids clothing range.

Toys R Us specialize in a very limited range of products rather than generalizing and losing their uniqueness like other retailers. It provides retail chain service in its marketing mix and offers toys in the following categories:

● Action Figures, Learning toys

● Bikes, Scooter and other riding toys

● Building sets, Dolls and stuffed animals

● Arts & Crafts

● Tool sets, Toy blasters

● Children’s books

● Kitchen set and cookware toys

● Electronic and high-tech toys

● Puzzles and Games, Video Games

● Outdoor Play sets

● Party supplies, Kids clothing, Kids furniture

Image: Wikimedia

Toys R Us Price/Pricing Strategy:

Below is the pricing strategy in Toys R Us marketing strategy:

Toys R Us’ competitors include Hamleys, Kay Bee Toys in the toy retail sector and Walmart and Target in the departmental store business. Although Toys R Us is the second largest retailer only after the oldest toy store, Hamleys, it faces issues while pricing its products because it sets them on a bit higher side.

They do not carry a very unique selection of toys and similar toys could be found elsewhere. Also, there are many manufacturers in China who sells toys at a very cheap rate, although not at a comparable quality, could snatch the market of Toys R Us. Since it provides quality products, it markets its products for middle and upper class families who could afford it. In 1990s Toys R Us had a huge market share, but it was soon diminished when Walmart came into picture and took away its market by offering toys which other products. To bounce back into the market, it followed Walmart’s pricing strategy of retailing. It would price a random product cheaper everyday so as to boost sales. The store challenged that they have set the cheapest price for that product and if it is found for any cheaper elsewhere, the customer is entitled to get their money back.

Toys R Us Place & Distribution Strategy:

Following is the distribution strategy in the Toys R Us marketing mix:

Toys R Us has 1500+ stores worldwide, majority of which are located in U.S. Their store in Times Square is the largest toy store in the world. They have their operations in 35 countries in Africa, North America, Oceania, Asia and Europe. Some had been taken up as franchisees while others as licenses. Toys R Us had huge stores and it contained something for children of all age so that everyone gets what they want. It has started to focus on its customer service representatives to enrich the customer experience. It is also present online as an ecommerce site. It has also collaborated with Amazon to sell its products. While some stores have only Toys R Us, others have both Toys R Us and Babies R Us under one roof so that parents can shop for their kids together if they happen to be of different age groups. For convenience to their customers they have went a step ahead and provided several services to their customers based on their needs.

They could order online and have it delivered to their home, pick up from the store, ship from store to home, etc.

Toys R Us Promotion & Advertising Strategy:

The promotional and advertising strategy in the Toys R Us marketing strategy is as follows:

Toys R Us used various kinds of media to make its brand visible to the potential customers. It had TV advertisements. In earlier days, it used to play a segment on television portraying jingles and song which made the kids relate to themselves being a Toys R Us kid. It advertises the importance of playtime. It has forayed into the digital marketing sector by getting involved in digital ads. Apart from advertising, Toys R Us was also involved in in-store promotional activities. Television ads were played in the store showing the importance of toys, radio was played. Kids were made to do fun activities in the store, they were provided with goodies and gifts, discount coupons. There were interactive games present in the play area of the store where children could play free of cost, they were then provided with some kind of a gift after a purchase is made, which led to gaining loyal customers. The Every Day Low Pricing (EDLP) program was started to compete with Walmart and Target.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Toys R Us.

Physical Evidence:

Toys R Us has many physical stores worldwide and people can visit their stores to make their purchases. Toys R Us carry a selection of toys and their stores are the ones where the customer can visit to have a look at the toys. Kids can play demo video games in the store and can play with the display items of their favorite toys. The store is organized into different sections based on age, as well as gender. The color coding of the particular section of the store changes with the contents of that section. The store carries an environment which is welcoming and provides an enriching experience to the shopper as well as the kids visiting them.


Toys R Us has over 64,000 employees worldwide. The Customer Service staff is well trained and very helpful and they are the assets of the store as they are the which are responsible for making the sell. The staff is very courteous and responsive to the queries of the customer. Toys R Us takes utmost care of its full-time employees by providing them 10% discount off the products, 4% of benefits in investment, paid vacations, paid sick time. But Seasonal workers do not enjoy such benefits as compared to the full-time employees.


The Toys R Us shopping experience of the customers usually starts with entering the store and going through the assortment of toys and products that the store has to offer. They could also get a demo of few of the toys that they would want to buy and also be guided by the service staff. After the final choices are made, the customer moves to the checkout counter and makes the purchase and pays either through cash or electronic payment methods such as Credit Card or Debit Card or any gift vouchers of the store. If the customer is unhappy with the product, they could return it to the store or the query can be taken up by the Customer Service department. This concludes the marketing mix of Toys R Us.

About Toys R Us:

Toys R Us is an American toy retailer based in the U.S. It was founded by Charles P. Lazarus in 1948 and has its headquarters in Wayne, New Jersey. Originally started as a children’s furniture store, it now mainly deals in children’s toys. The mission of Toys R Us says that they want to conquer the kids, families and fun market worldwide. Their vision is inclined towards filling kids with joy and making their parents happy. Its focus is not only to provide toys and increase their revenues but it also aims at improving the parent-child relationship through their offerings. This is done by providing toys which need the involvement of their parents which creates a psychological effect and improve the relationship. This can be achieved during shopping, play, and trip. While the customers are surfing through the shop, it provides them with various kinds of interactions and communications such as aisles, in-store labels, checkout materials, direct mail, interactive games, radio, and television.

After its success in Toys R Us, it branched to Babies R Us (baby products and toys retailer) and Kids R Us (children’s clothing retailer). It operates in over 30 countries worldwide and also has online stores.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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