Toys 'R' Us Vision Statement:

"Our Vision is to put joy in kids hearts and a smile on parents faces." Toys 'R' Us Mission Statement: "Our Goal is to be the Worldwide Authority on Kids, Families and Fun."

Toys R Us unveils multichannel mobile CRM tactics

By Dan Butcher

September 9, 2010

Toys R Us taps Green Tomato to power its iPhone app

Toys R Us has launched a new iPhone application that integrates QR codes and content such as videos and rewards into a daily retail shopping experience to enhance its marketing and loyalty initiatives.

Mobile services consultancy Green Tomato Ltd. developed the iPhone application for Toys R Us Hong Kong. The Toys R Us iPhone application is a consumer engagement tool that blends audio, visuals and rewards with traditional media platforms via mobile bar codes.

The campaigns primary target is Toys R Uss 700,000 Star Card Loyalty Program members in Hong Kong, said Argha Sen, head of marketing and CRM at Toys R Us Asia. The Toys R Us iPhone app is designed to complement all our marketing channels and create fun and rewards for the customer.

Hong Kong people always carry their mobile [device] everywhere, so the iPhone platform provides us a powerful platform to engage our customers wherever they are and provide them significant benefits and fun, he said.

We see the iPhone app as a strategic and integral part of our marketing mix.

Toys R Us HK has recently been very active in the social media scene. It has close to 18,000 fans on its Facebook page and its YouTube channel, HKTOYSRUS, is a top 10 most viewed channel in Hong Kong.

App-etite for toys Customers just use Toys R Us iPhone app to unlock R codes, the name of the QR codes branded by Toys R Us, printed on product catalogs, outdoor ad panels or in-store point-of-purchase materials.

In-store signage featuring R code

When a consumer scans a bar code, the application plays a video promoting the specific toy.

Customers can further earn points and other rewards such as Lego wallpapers by unlocking additional R codes.

With the help of this application, even offline material such as printed catalogs, in-store signage and outdoor bus shelters can be linked to rich online content, for example the videos in the Toys R Us YouTube channel, by unlocking the R codes.

The more R codes customers unlock, the more rewards they get, including membership points and free gifts such as Lego wallpapers.

Customers can shake their iPhone to see what rewards they can get. In addition, they can share the content and rewards with friends via Facebook.

Users of the application can find Toys R Us stores in Hong Kong through Google Maps.

The free Toys R Us iPhone application can be downloaded from the App Store by searching Toys R Us HK.

Toy R Us will soon roll out more features, including a comprehensive Star Card membership program benefit package and access to product information and mobile coupons.

The Toys R Us application was launched in mid-July in Hong Kong, timed for the summer school holidays, and targeting its 700,000 Star Card Loyalty Program members in Hong Kong.

Toys R Us committed both above-the-line and below-the-line marketing initiatives in promoting its iPhone application.

The application was advertised to its target audience on Star Members eDM, direct mailing, Toys R Us Hong Kongs Web site, Facebook page, YouTube channel, in-store collateral, Summer Toy Catalog with a circulation of 500,000 copies, and outdoor advertisements on 268 bus shelter panels throughout Hong Kong.

Here are bus shelter panels featuring the Toys R Us application and an R code:

The objective of the iPhone campaign is to link up Toys R Uss vast database of video contents to real-life shopping so that the great mini-form of entertainment can directly enhance customers in-

store experience and eventually lead to more purchases, said Sammy Wong, business development director of Green Tomato, Hong Kong.

The iPhone and R code campaign integrates Toys R Uss different communication platforms, including catalogs, outdoor advertising and in-store POPs by leveraging on the powerful and convenient iPhone that becomes part of many customers lives, he said.

The iPhone app is part of Toys R Uss CRM effort to strengthen the bonding with its Star Card Loyalty Program members.

Toys R Us has launched a new loyalty program, Rewards R Us, timed for a holiday shopping boost. Rewards R Us members will be eligible for special deals and promotions, as well as members-only shopping hours during sales and store events. They will also be able to earn R Us Dollars rewards on certain promotional purchases. The first of these R Us Dollars promotions offers members a $5 reward for every $150 spent online or in-store through December 24. Another twist, Diaper Rewards, will allow Rewards members to earn one free value box of Pampers diapers when nine other value boxes have been purchased. This is the first loyalty program of its kind in Toys R' Us and Babies R' Us stores, David Sims, director of Rewards R Us, said in an e-mail toDMNews. At Toys R' Us Inc., we're all about kids and families, and we believe this loyalty program meets the needs of the families shopping in our stores, who are looking for additional values and ways to save. Sims added that the program was not aimed a particular type of customer, but was created to build continued loyalty among Toys R Us' entire customer base. We know that today's consumers have many choices of where to shop and spend their discretionary income, and we feel the elements of this program will benefit our broad customer base. The program incorporates Toys R Us' Web site and e-mail marketing capabilities by offering promotions through its site, Toysrus.com, and asking shoppers to register their e-mail addresses. Members who provide a valid e-mail will receive safety notices if a product has been recalled and e-mail-only discount offers. Rewards R Us also maintains a microsite, Rewardsrus.Toysrus.com, where members can track purchases and manage their accounts. Consumers can sign up for Rewards R Us on Toysrus.com, or in Toys R Us and Babies R Us stores. Toys R Us currently runs 585 Toys R Us stores and 262 Babies R Us stores in the US.

Buy Your iPad 2 at Toys R Us with Girls Getting Dolls

By Adam Dickter April 18, 2011 2:30PM

What's it gonna do to your image when you buy your iPad 2 at Toys R Us amid girls getting dolls? Hey, Apple's iPad 2 is in short supply and if you want one, you gotta go where they got 'em. Toys R Us in 30 states will be selling the iPad along with Best Buy, Wal-Mart and other stores. Adding to the shortages are resellers shipping iPads to China. While scoring a Laser Stunt Chaser or Let's Rock Elmo for the kids, shoppers can now try to pick up an Apple iPad 2 at some Toys R Us outlets. According to reports Monday, the nation's top toy store is selling the iPad in 30 states, joining Best Buy, Target, Wal-mart, Radio Shack, Verizon Wireless, AT&T and Apple's own retail and online stores. Despite a slew of competitors rushing into the market, such as Samsung's Galaxy Tab and Motorola's Xoom, the iPad still leads the tablet market with more than 14 million sold in less than a year in 2010. That number could hit 60 million this year, with a million sold in the first month since launch of the iPad 2 in March.

Get It Where You Can

But what kind of self-respecting tech aficionado would wait on line next to girls buying Barbies to get an iPad? "Right now, demand for the iPad is so keen that people would probably buy them at McDonald's if they were given the chance," said Charles King, principal analyst at Pund-It. "Self-respect and tech enthusiasm seldom go hand in hand -- as people lining up hours or days ahead of a hot product launch attest," he said. Further, King noted, the rise of online sales compared to brick-and-mortar outlets "has taken the wind out of technological exclusivity. If Wal-Mart can sell the iPad, why not Toys R Us?" Demand for the iPad 2 is outpacing supply, with shortages

reported and a touchscreen shortage following the earthquake in Japan possibly hampering production goals. Because Apple has commissioned such a large share of the screens, one report said the release of Research In Motion's PlayBook had to be delayed as much as a year. The heavy iPad 2 demand may have caused some red faces at electronics retailer Best Buy, which last week was reported to have held back daily sales of the iPad 2 in order to have sufficient supply for a heavily marketed promotion on Sunday. There was no apparent discount or incentive offered -- just having it in stock was enough of a selling point. But customers told Apple Insider there weren't enough iPads to go around and many customers were put on waiting lists or allowed to leave a $100 deposit for orders.

Boom Time
Best Buy issued a statement last week denying published reports that the chain had fallen on Apple's bad side by holding back inventory. "Best Buy continues to receive iPad 2 inventory from Apple on a regular basis," the company told CrunchGear. One reason the iPads are so hard to come by is the reseller boom. The New York Post and New York Times have both reported recently that hoarders are sending U.S. iPads to China, where they could be sold for hundreds of dollars above the suggested retail price.

ABOUT OUR SUPPLY CHAIN

About Our Supply Chain Standards for Business Partner Conduct California Transparency in Supply Chains Act of 2010 ToysRUs has developed and maintains its Standards for Partner Conduct which require that anyone working on behalf of our company, including business partners (including vendors and suppliers), service providers, independent contractors and each of their subcontractors (jointly Partners), comply with all laws and regulations in each country in which it operates, or in which ToysRUs operates, as well as with company procedures and policies. As such, our Partners must adhere to the same policies as ToysRUs employees when it comes to the treatment of workers.

In particular, the Standards for Partner Conduct require that all ToysRUs Partners adhere to an absolute prohibition on the use of involuntary labor of any kind, including child labor and indentured labor. Partners must comply with all applicable laws, whether they be at the national or local levels, concerning age requirements, child labor, working conditions, hours worked, and wages earned. Working conditions must adhere to all applicable laws regarding safe, healthy and clean work site conditions; these requirements extend to any housing provided to workers by Partners. In many instances, ToysRUs requires its Partners to certify and warrant their compliance with these standards. For example, the companys standard purchase orders and agreements expressly require its Partners to warrant that the products they provide are manufactured, produced and packaged in accordance with all applicable laws and employment requirements and without the use of forced labor of any kind, including child labor and indentured labor. ToysRUs employees undergo regular training regarding these Standards and their enforcement requirements. Partners who produce exclusive-brand items for ToysRUs are subject to random, unannounced assessments by both ToysRUs teams and third-party conformity labs. All other ToysRUs Partners are required to arrange factory assessments through an accredited third-party lab, and assessments must be conducted in accordance with the ToysRUs Standards for Partner Conduct. ToysRUs has the right to monitor compliance with this policy through the unannounced inspection of facilities by third party monitors as well as by ToysRUs representatives. Partners are required to maintain on site documentation regarding their compliance with these Standards and permit full access to facilities for the inspection of worker records. Partners must also make workers available for confidential interviews without fear of retaliation. In addition, as part of our Standards for Partner Conduct, business partners, contractors and service providers may not harass, discriminate against or retaliate against any worker because of his or her race, religion, national origin, gender, age, marital status, sexual orientation, gender identity, personal characteristics or beliefs, or other category protected by applicable law. The company also engages an independent auditor to ensure that Partners who produce exclusive-brand items for ToysR Us adhere to the standards set forth by the Customs-Trade Partnership Against Terrorism (C-TPAT) program, which includes processes to guard against human slavery and trafficking. Partners who use raw materials in the manufacture of exclusive-brand products must maintain records certifying that all raw materials used are sourced in compliance with the applicable laws on forced labor. In addition to ensuring the ethical treatment of workers at all points in our supply chain, we take very seriously the trust parents place in us to provide only the safest products for their children. As such, all ToysRUs exclusive-brand products are tested by accredited third party labs to standards that meet or exceed federal requirements related to each individual product. Other Partners must have their products tested by accredited laboratories, and ToysRUs can request verification of such testing at any time. All testing documentation must be provided to ToysRUs within 48 hours of such a request. To maintain internal accountability for ensuring these standards and procedures are upheld, these policies are documented and available online for the companys employees and Partners. Special attention to these standards and procedures is required for ToysRUs employees with responsibility for sourcing and supply chain management. Furthermore, company employees and Partners who supply exclusive-brand products for ToysRUs are regularly provided with training on the companys standards and requirements from accredited third-party labs, as well as the companys internal teams. Compliance with all provisions of these standards is mandatory for ToysRUs Partners. We reserve the right to assess any business partner, contractor and/or service provider, and their facilities, to ensure they are in compliance. ToysRUs also reserves the right to terminate its business relationship with any Partner that violates the law, the ToysRUs Standards for Partner Conduct, or any other applicable company policy and/or fails to remediate areas of non-compliance.

rder Management and Direct-to-Store Delivery

Customer Profile
Toys "R" Us, Inc. is the world's leading dedicated toy and baby products retailer with more than 1,500 freestanding destination toy and baby specialty stores worldwide. Toys "R" Us offers an unparalleled selection of new toys, old favorites, Toys "R" Us exclusives and many other great values under one roof. Toys "R" Us positions itself as THE authority when it comes to finding the perfect toy.

Customers Challenge
In a word: Visibility. A major challenge was management of the vendors Toys R Us utilized to ensure compliance on timing and the quantity of video games, accessories, and hardware on Direct to Store shipments. Being first-to-shelf is critical for success in the gaming industry, an industry which has surpassed Hollywood in terms of dollars spent. Toys R Us wanted to capitalize on this robust market.

Agilitys Solution
Agility ensured that the vendors and manufacturers Toys "R" Us chose met release dates with the correct amount of product to fulfill the allocation and meet the demand of a new release video title at the store level. With multiple strategic locations, combined with technology, flexibility, and proven expertise to deliver services tailored to the retailer needs, Agility origin locations configured product according to store specifications. Being able to process shipments the same day shipments provides a huge edge for Toys "R" Us regarding in-store availability. It also helps with shipping cost by allowing them to ship at a slightly slower pace. This competitive edge also allows Toy "R" Us to purchase excess game units with little notice and meet in-store time tables. Flexibility in speed-to-market helps Toys "R" Us achieve their marketing goals and match product availability with advertising adds without breaking the bank on shipping costs. On behalf of our partner, Toys "R" Us, we also use some logistics tools to further reduce shipping costs such as LCR (Least Cost Routing). This service allows Agility to meet an in-store deadline using several levels of service at the same time. If an in-store date is two days away, Agility is able to move approximately 65 % of the product via Ground Service and the balance two day air. Our internal maps tell us which stores are reachable within two day ground service. This results in tremendous savings on freight cost.

Agility Results
With EDI integration with the couriers system for shipment status, we are able to report back to Toys "R" Us on success of the shipments and which stores receive partial or no product. This provides Toys "R" Us one point of contact for all of the components of the Direct-to-Store vendor-to-shelf" supply chain.

Special Services Provided for Toys R Us

Order Management Vendor Management Inventory Management Fulfillment Product Assembly