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Essay / Research Paper Abstract
A 6 page paper commenting on an article warning of the decline of Toys 'R' Us and what that decline likely means for the toy industry. Wal-Mart, Toys 'R' Us and Target account for 48 percent of the toy sales in the US, but they do not account for 52 percent of sales. The paper urges manufacturers to seek out other distribution channels, taking advantage of online opportunities in direct sales, retail sales and online auctions. Bibliography lists 3 sources.
Page Count:
6 pages (~225 words per page)
File: CC6_KSmktgToyInd.rtf
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Unformatted sample text from the term paper:
industry has doggedly clung to marketing methods that date back nearly half a century. Though no other industry has been able to successfully retain old methods, the toy industry
collectively seems surprised that the old approaches no longer work as well as they did in the past. The industry, consumers and several types of retailers could benefit from
changes in the toy industrys approach. The Toy Industrys Situation Price Pressures Toys R Us was the undisputed leading toy retailer by the
early 1960s, before Kmart and Wal-Mart came into being and began to provide it with competition. Sears old "Wish Book" gave young baby boomers a means by which they
could formulate lists of the toys that caught their fancy, but only in a Toys R Us store could parents and children alike inspect, handle and assess toys that caught
their interest. Smaller toy stores could be found in every major city, and specialty toy retailers such as FAO Schwarz gave new meaning to the term "high end."
Wal-Mart is famous for many things, one of which is the pressure it places on manufacturers that want their products in the stores of
the worlds largest retailer. By the end of 2004, Brown (2004) reported that Wal-Mart was expected to have 22 percent of the toy market. Toys R Us share
was down to 16 percent; Targets was 10 percent. All other sellers accounted for the remaining 52 percent of the market, and none of them have the coverage that
these three retailers have. Wal-Marts ability to sell product is legendary, but so is the pressure it places on its suppliers. Manufacturers
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