BACKGROUND
My team was tasked with coming up with a new brand strategy for a fictional client Toys R US.
Toys R Us started out as a brick and mortar toy specialty store providing customers with the best bargain and largest variety for toys. It established itself as a leader and an iconic brand in the toy industry until competitors like Amazon and Walmart came into perspective. The advantage that the competition has over Toys R Us, is the convenience of purchasing toys online.
CHALLENGE
We performed secondary research and a competitive analysis to understand where Toys R Us stood in the landscape of the toy retail industry. We also did social media listening to detect the overall brand sentiment that customers were feeling about the brand.
What we found:
The company did not fare well between 2012 and 2013 and recorded about $1.0 billion in revenue losses, largely due to declining competitiveness in the domestic toy retail market.
Lack of consumer engagement challenging the credibility of Toys “R” Us in consumers minds
Its failure to keep up with its promise to consumers has made it a stale brand.
OPPORTUNITY
Whilst the competition leverages price point as advantage, Toys R Us has the ability to serve as advisory and not just commercial. Parents are taking away a kids moment of discovery when they shop at Amazon and Wal-Mart. Also shoppers are willing to look beyond price and are willing to pay a slight premium in exchange for quality and a great toy-shopping experience. The brand can reclaim it’s position in the toy industry by leveraging the following initiatives:
Engaging shoppers in the pre-planning stage of finding a toy for their child
Educate shoppers as an expert in personalizing toys that fosters a child development
Leverage in-store experiences to drive customer engagement and brand loyalty
TARGET
Digital / New Age Parents (with kids between the ages of 6 - 14)
They know each child is unique and want what is best for them.
They are willing to splurge on experiences that make their kids learn about the world and themselves. Schools, theme parks, museums, summer camps and so on. However, when it comes to toys, they are they are stuck in consumer inertia with the convenience that stores like Amazon and Target offer.
When picking a toy they are influenced by either media, their own expectations, or other parents who have kids same age as them.
Christmas, birthdays and Easter are the main occasions that warrant toy purchases. However, good behavior is another opportunity to reward their child.
STRATEGY
Preserve the Lost Art of Play
Toy R Us can become the go-to source for parents to show their kids how to harness the power of imagination.
BRAND ESSENCE VIDEO
I created this video to translate the essence of the new brand strategy.