1) Describe the PRICING STRATEGIES and TACTICS of Toys R Us using the proper marketing terminology. Pricing strategies can be simplistically referred to as above-the-market (higher than competition); at-the-market (same as competition); or below-the-market (lower than competition). You also can use terms such as skim pricing, penetration pricing or other marketing terms.
2) Analyze the pricing strategies and tactics followed by Toys R Us. Be as specific as possible and be sure to draw on the INTEGRATION of the MARKETING MIX (for pricing).
3) Briefly, explain Toys R Us COMPETITIVE ADVANTAGE relative to PRICING.© BrainMass Inc. brainmass.com October 9, 2019, 10:23 pm ad1c9bdddf
1) Describe the PRICING STRATEGIES and TACTICS of Toys R Us using the proper marketing terminology. Pricing strategies can be simplistically referred to as above-the-market (higher than competition); at-the-market (same as competition); or below-the-market (lower than competition). You also can use terms such as ?skim pricing?, ?penetration pricing? or other marketing terms.
Toys R Us is the worldwide leader in relation to its products. The company has stores nationwide and also has an international division that serves 16 countries.
Prior to 1995, Toys R Us held a happy ground as the market share leader for the sale of toys, then Wal-mart silently grew to become the world's largest retailer and this retailer is decreasing Toys R Us' profit margin and market share.
That being said, the understanding of today's pricing strategies and tactics for the company can be clearly understood. In 1997, Toys R Us implemented a "customer friendly strategy" which consists of price matching tactics. (Bloomberg 1997) This pricing strategy is a tactic that makes the brand more competitive. A consumer could say "Why should I buy the product at TRU when I can get the same item cheaper at Wal-mart?" This statement is true and the implementation of the "consumer friendly pricing strategy and tactic" remains in existence today.
The company's current pricing strategy is "at-the-market" as it will match any competitor's price. Toys R Us does not have the marketing power it used to do be the pricing leader when they were "lower than the competition" through their below-the-market pricing. As seen above, when matching the competitor's pricing, it could cost the company significantly. Wal-mart has the purchasing power to buy in large quantities for less than Toys R Us can due to Wal-mart's power in the marketplace.
I must say that ...
The solution discusses the pricing strategies and tactics for Toys R Us marketing terminology