Description of one target market and buyer behavior4
Positioning the product6
Product type: The product for this project is interactive and programmed toy/bear for children. The name is Bozzy Toy Company: The Company chosen for producing this product is Toys R s
Highly differentiated competitive market
Many market drivers e.g. decreasing child population, increasing PDI Demand for consoles & computer games growing faster than for traditional toys Internet buying is large section of the market
Future Market goals:
Build robust and enduring strategies
Diversification of products to maintain its position
Emphasis on customer satisfaction – customers believe that Toys “R” Us are the best at what they do lack of intermediaries
strong ‘In Stock Position’
Toys “R” Us, are the largest toy specialty retailing chain. The key to their success is widest choice and everyday prices. At Toys “R” Us customers can feel confident of finding a suitable toy and paying a price which is unlikely to be beaten a rival outlet.
Description of one target market and buyer behavior:
The target market is grandparent in particular the young grandparents and below is why this segment was chosen and the target market behavior.
About one-third of American adults are grandparents
As a group, American grandparents spend more than $30 billion a year on their grandkids, a two-fold increase over what was spent a decade ago. Grandparents represent 15% - 25% of the annual toy dollars spent, depending on the individual toy category.
Grandparent purchases are a significant factor in the United States, representing between $3.5 Billion- $4 Billion dollars annually for purchases of toys and games; the entire annual traditional toys business in the USA represented $22.3 Billion market in 2006.
Toys“R”Us, can target the more internet-savvy and technologically competent group of younger grandparents, who have the dollars and the inclination to spend on their grandchildren.
Research indicates that 10% of all grandparent dollars spent on toys are ordered online. The new American grandparent is young (47 years old) and wants to actively take part in their grandchildren’s lives. With today’s life expectancy at 76 years, they may have as much as 30 years of grand parenting ahead of them.
Many have waited for years to indulge in their grandkids, since their own children have waited until later in life to become parents. This enthusiastic demand will especially affect the infant and preschool market for kids’ age 0-4, where grandparents feel the most comfortable with purchasing toys. As children grow older, their tastes and preferences are more discerning, making it more difficult for grandparents to select the perfect product.
A Holiday 2006 wish-list study revealed 52% of grandparents and 68% of young grand parents had consumer electronics products on their own wish lists, with nearly one-third of those surveyed, requesting a Portable Gaming System, for their own use.
This generation, currently 43-63 are technophiles, outdoor enthusiasts, health-conscious, and guitar heroes who often share a love of classic rock tunes with children who enjoy the oldies along with their own generation’s music. It was the young grandparents’ love of music that exploded the trend in video game sales for Guitar Hero I and II (Red Octane Games), which were found to be just as popular with young grandparents as they were for teens and young adults not too far ago. This musical bond has now spawned a plethora of similar guitar-focused products for kids, launched...