Furthermore, in an industry characterized by low prices it is imperative for a firm to form loyal customers that would prefer it over the competitors. Toys R Us should encourage customer loyalty programs to keep its customers and encourage store visits, and recurrent purchases through reward points and other promotions. This is exactly what it has done, Toys R Us is now offering customer loyalty program marketing to customers that it makes the shopping experience more rewarding. It initiated this program in October last year prior to the holiday season of year 2008. It offered incentives of greater value and savings for frequent purchasers and named the loyalty program Rewards R Us. Offering services to members such as Exclusive Member Shopping Nights and Exclusive Savings and E-mail Discount Offers.
The current economic recession in the United States has diminished the discretionary income of the masses. Toys R Us has responded to this by recently introducing $1, $2 and $3 shops in stores nationwide. The news release dated April 2nd, 2009 highlights this initiative on part of the company to “offer more ways for kids and families to have affordable fun”. This initiative has generated positive feedback and praise from pricing gurus. Professional pricing society blog-post reviews it as:
Toys R Us is implementing a new (and I think very intelligent) pricing strategy that will both increase the company’s competitiveness against “dollar stores” and other low cost merchandisers, but that will also tap into a new (and loyal) market – kids.
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