Table of Contents
Issues in the Market
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- The market for toys is very challenging
- Life for the specialist toy retailers is tough
- Traditional toys are no longer the automatic gift for children
- Definitions
- Abbreviations
Insights and Opportunities
Market In Brief
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- Toy market suffering
- Parents will always spend on kids
- Core audience shrinking
- Supermarkets gaining share
- So who is losing share?
- Woolworths is on the defensive
- Argos rides high
- Toys ‘R’ Us
- Independents in decline
- Escaping the price war
- Taking a lifestyle approach
- Improving the shopping experience
- The Mintel toyshop improvement matrix
- Market prospects
- How the retailers will fare
Fast Forward Trends
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- Trend 1: “Hire Hire!”
- Definition
- Context
- Market touchpoints/implications
- Trend 2: “Rise of the Procurator”
- Definition
- Context
- Market touchpoints/implications
- Trend 3: “Failure To Launch”
- Definition
- Context
- Market touchpoints/implications
Industry Insights
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- Market conditions
- Impact of toy crazes
- General retailers vs specialists
- Different shopping trips
- Differentiate to survive
- Seasonality
- Toys falling in the pecking order
- Price deflation
- The role of brands
- Deals and special offers
- Buying groups
- Ambience and environment
- Service a key differentiator
- Online shopping – opportunity or threat?
- Outlook remains challenging
Internal Market Environment
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- Price discounting
- High dependency on current fads
- Children losing interest in toys at younger age
- Consumers likely to indulge children
- Demand for educational toys strong
- Toys in supermarkets create more scope for impulse buying
- Selective extravagance
Broader Market Environment
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- Rising costs
- Economic growth
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- Figure 1: PDI and consumer expenditure, at current and constant 2001 prices, 2001-11
- Employment levels on the rise
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- Figure 2: Levels of employment, by gender, 2001-11
- Population trends
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- Figure 3: UK population, by age band, 2001-11
- Population shifting upmarket
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- Figure 4: UK population, by socio-economic group, 2001-11
- Divorce rates increasing
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- Figure 5: Marriage and divorce, UK, 2000-10
The Market in Context
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- Clothing vs toys
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- Figure 6: UK consumer expenditure on toys and childrenswear, at current prices, 2001-05
- How children spend their money
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- Figure 7: How pocket money is spent – 7-10s, 2005
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- Figure 8: UK audio-visual markets, 2000-05
- Figure 9: Market for mobile phone handsets, 2000-05
- Mobile phones popular with kids
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- Figure 10: Ownership of mobile phones by children, by age group, 2005
Strengths and Weaknesses in the Market
Who’s Innovating?
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- Own-label
- E-commerce
- Store design
- Personalised mailings
- Other services
Market Size and Forecast
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- Spending on toys
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- Figure 11: UK spending on toys, games and hobbies, 2001-05
- Market segmentation
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- Figure 12: Spending on toys and games, by type, 2004 and 2005
- Specialist toy retailers
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- Figure 13: UK retail sales, all non-food retail sales and all other non-specialist non-food retailers sales, 2001-05
- Outlet data
- Few specialist chains
- General retailers significant and growing
- Some retailers add edited toy ranges
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- Figure 14: UK toy retailers, store numbers, 2001-05
- Forecast
- Clouds on the economic horizon
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- Figure 15: Spending on toys, 2001-11
The Consumer – Where They Buy Toys
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- Consumers use wide variety of outlets
- Supermarkets expanding
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- Figure 16: Where toys/games bought from for child under 16 in the last 12 months*, June 2006
- Males less likely to purchase toys
- AB groups favour educational stores
- Argos appeals strongly to Ds
- Supermarkets mount strong attack on toy retailing
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- Figure 17: Where toys/games bought from for child under 16 in the last 12 months*, by gender, age and socio-economic group, July 2006
- Specialist online retailers favoured by ABC1s
- Disney Store attracts young buyers
- Boots attracts an older profile
- Core audience
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- Figure 18: Where else toys/games bought from for child under 16 in the last 12 months*, by gender, age and socio-economic group, July 2006
- Number of stores used
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- Figure 19: Number of shops toys bought from, July 2006
- Destination stores
- ELC shoppers use a wider range of stores
- Many stores only used as part of a much wider repertoire
- Supermarket shoppers often use at least two other shops
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- Figure 20: Number of shops toys bought from, by retailer, July 2006
Where They Buy Toys – Detailed Consumer Demographics
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- Figure 21: Where toys/games bought from for child under 16 in the last 12 months*, by marital status, lifestage, age of children, Mintel's Special Groups, working status, region, ACORN categories, media usage, commercial TV viewing habits, store used regularly for grocery shopping, household size and car ownership, July 2006
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- Figure 22: Where toys/games bought from for child under 16 in the last 12 months*, by marital status, lifestage, age of children, Mintel's Special Groups, working status, region, ACORN categories, media usage, commercial TV viewing habits, store used regularly for grocery shopping, household size and car ownership, July 2006
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The Consumer – What Are They Buying?
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- Games and puzzles strong
- Soft toys very popular
- Active lifestyles
- High-tech goods
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- Figure 23: Toys bought for own or someone else’s child in the last 12 months, July 2006
- ABC1 groups favour educational toys
- 25-44s are core target group
- Older and female consumers buying board games
- Cuddly toys for 25-34s
- ABs favour games and creative pastimes
- Ds attracted to fashion dolls
- 35-44s favour sports sets
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- Figure 24: Top seven toys bought for own or someone else’s child in the last 12 months, by gender, age and socio-economic group, July 2006
- Generally the 25-44s buy more often
- ABs encourage imagination
- Handheld consoles appeal to C2s
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- Figure 25: Other toys bought for own or someone else’s child in the last 12 months, by gender, age and socio-economic group, July 2006
- Influence of age
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- Figure 26: Toys bought for own or someone else’s child in the last 12 months, by age of child, July 2006
- Impress the buyers
- ABC1s creative and imaginative
- Families have wide sphere to buy for
- Bung it in the boot
- Encourage the part-timers
- M&S and Tesco have potential in educational toys
- What bought by where shop
- Number of toys purchased
- Fairly large group of very active shoppers
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- Figure 27: Number of toys bought in the last 12 months, July 2006
- Toys that come lower in the pecking order
- Most toys in a range of four or more
- Typical gifts often in smaller repertoire
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- Figure 28: Number of toys bought in the last 12 months, by type of toy, July 2006
What Are They Buying – Detailed Consumer Demographics
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- Figure 29: Top seven toys bought for own or someone else’s child in the last 12 months, by marital status, lifestage, age of children, Mintel's Special Groups, working status, region, ACORN categories, media usage, commercial TV viewing, store used regularly for grocery shopping, household size and car usage, July 2006
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- Figure 30: Other toys bought for own or someone else’s child in the last 12 months, by marital status, lifestage, age of children, Mintel's Special Groups, working status, tenure, region, ACORN categories, media usage, commercial TV viewing, store used regularly for grocery shopping, household size and car usage, July 2006
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- Figure 31: Other toys bought for own or someone else’s child in the last 12 months, by gender, age, socio-economic group, marital status, lifestage, age of children, Mintel's Special Groups, working status, region, ACORN categories, media usage, commercial TV viewing, store used regularly for grocery shopping, household size and car usage, July 2006
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- Figure 32: What toys bought, by where conusmers are shopping for toys, July 2006
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- Figure 33: What toys bought, by where conusmers are shopping for toys, July 2006
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The Consumer – Motivations and Wish List
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- Special celebrations drive demand
- Happy birthday
- Impulse and other
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- Figure 34: Reasons/occasions that prompted toy purchasing, July 2006
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- Figure 35: CHAID analysis of triggers for toy purchasing, July 2006
- Reasons for purchasing
- Gifts for children’s friends
- Rewards
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- Figure 36: Top five prompts/occasions for buying toys, by gender, age and socio-economic group, July 2006
- 25-44s purchase toys for smaller occasions
- Women more inclined to give toys for Easter
- Toys for holidays
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- Figure 37: Other prompts/occasions for buying toys, by gender, age and socio-economic group, July 2006
- Wish list
- Trying out the toys
- Guidance is helpful
- World-wide Web
- One-stop shopping
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- Figure 38: Things that would make shopping easier and encourage more shopping for toys, July 2006
- Lower socio-economic groups look to test toys
- AB customers shop at home
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- Figure 39: Top seven improvements that would make shopping easier and encourage more shopping for toys, by gender, age and socio-economic group, July 2006
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- Figure 40: Other improvements that would make shopping easier and encourage more shopping for toys, by gender, age and socio-economic group, July 2006
- How many improvements are needed?
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- Figure 41: Number of improvements consumers would like to see, July 2006
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- Figure 42: Number of improvements consumers would like to see, by improvement, July 2006
- Improvements wanted by store
Motivations and Wish List – Detailed Consumer Demographics
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- Figure 43: Top five prompts/occasions for buying toys, by, marital status, lifestage, age of children, Mintel's Special Groups, working status, region, ACORN categories, media usage, commercial TV viewing, store used regularly for grocery shopping, household size and car usage, July 2006
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- Figure 44: Other prompts/occasions for buying toys, by marital status, lifestage, age of children, Mintel's Special Groups, working status, region, ACORN categories, media usage, commercial TV viewing, store used regularly for grocery shopping, household size and car usage, July 2006
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- Figure 45: Top seven improvments that would make shopping easier and more shopping for toys, by marital status, lifestage, age of children, Mintel's Special Groups, working status, region, ACORN categories, media usage, commercial TV viewing, store used regularly for grocery shopping and car usage, July 2006
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- Figure 46: Other improvments that would make shopping easier and encourage more shopping for toys, by marital status, lifestage, age of children, Mintel's Special Groups, working status, region, ACORN categories, media usage, commercial TV viewing, store used regularly for grocery shopping and car usage, July 2006
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- Figure 47: Improvements wanted, by where shopped for toys, July 2006
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Channels of Distribution
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- Industry associations/buying groups
- British Toy & Hobby Association
- Toy Retailers Association
- Buying groups
- Toy Fairs
- Market segmentation
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- Figure 48: UK toy market: channels of distribution, 2005
Retailer Competitor Analysis
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- The retailing scene
- Share of the market
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- Figure 49: Estimated market shares of leading retailers in toys, 2003 and 2005
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- Figure 50: Summary of main toy retailers, 2006
- Recommendations for retailers to maximise their potential
Retailers
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- Specialists
- The Disney Store Ltd
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- Figure 51: The Disney Store Ltd: Sales as share of spend on toys, games and hobbies, UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 52: The Disney Store Ltd: Group financial performance, 2000-05
- Store portfolio
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- Figure 53: The Disney Store Ltd: Outlet data, 2000-05
- Retail offering
- Market positioning
- Brands
- Product offer
- Operational issues
- Advertising and marketing
- E-commerce and home shopping
- Early Learning Centre Ltd
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- Figure 54: Early Learning Centre Ltd: Sales as share of spend on toys, games and hobbies in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 55: Early Learning Centre Ltd: Group financial performance, 2000-05
- Store portfolio
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- Figure 56: Early Learning Centre Ltd: Outlet data, 2000-05
- Retail offering
- Market positioning
- Brands
- Product offer
- Operational issues
- Advertising and marketing
- E-commerce and home shopping
- The Entertainer (Amersham) Ltd
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- Figure 57: The Entertainer (Amersham) Ltd: Sales as share of spend on toys, games & hobbies in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 58: The Entertainer (Amersham) Ltd: Group financial performance, 2001-05
- Store portfolio
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- Figure 59: The Entertainer (Amersham) Ltd: Outlet data, 2001-05
- Retail offering
- Market positioning
- Product offer/brands
- Advertising and marketing
- E-commerce and home shopping
- Operating issues
- Games Workshop Group
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- Figure 60: Games Workshop Group: Sales as share of spend on Toys, Games & Hobbies in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 61: Games Workshop Group: Group financial performance, 2000-05
- Store portfolio
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- Figure 62: Games Workshop Group: Outlet data, 2000-05
- Retail offering
- Product offer
- Advertising and marketing
- E-commerce and home shopping
- Gamleys Ltd
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- Figure 63: Gamleys Ltd: Sales as share of spend on toys, games & hobbies in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 64: Gamleys Ltd: Group financial performance, 2001-05
- Store portfolio
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- Figure 65: Gamleys Ltd: Outlet data, 2001-05
- Retail offering
- Market positioning
- Brands/products
- Advertising and marketing
- E-commerce and home shopping
- Hamleys of London Ltd
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- Figure 66: Hamleys of London Ltd: Sales as share of spend on Toys, Games & Hobbies in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 67: Hamleys of London Ltd: Group financial performance, 2001-05
- Store portfolio
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- Figure 68: Hamleys of London Ltd: Outlet data, 2001-05
- Retail offering
- Market positioning
- Brands
- Product offer
- Advertising and marketing
- E-commerce and home shopping
- Toys `R’ Us
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- Figure 69: Toys `R’ Us: Sales as a share of toys, hobbies and games UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 70: Toys `R’ Us: financial performance, 2002-06
- Store portfolio
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- Figure 71: Toys `R’ Us: Outlet data, 2002-06
- Retail offering
- Market positioning
- Brands
- Product offer
- Advertising and marketing
- E-commerce and home shopping
- Toyworld Group plc
- Strategic evaluation
- Background
- Financial performance
- Store portfolio
- Retail offering
- Market positioning
- Product offer
- E-commerce and home shopping
- General retailers with toys
- Argos
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- Figure 72: Argos: Sales as share of all non-food retailers in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 73: Argos: Group financial performance, 2001-05
- Store portfolio
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- Figure 74: Argos: Outlet data, 2001-05
- Retail offering
- Market positioning
- Brands
- Product offer
- Operational issues
- Advertising and marketing
- E-commerce and home shopping
- Space allocation
- Woolworths Group plc
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- Figure 75: Woolworths plc: Sales as share of all non-food retailers in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 76: Woolworths plc: Group financial performance, 2000-06
- Store portfolio
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- Figure 77: Woolworths plc: Outlet data, 2000-06
- Retail offering
- Market positioning
- Brands
- Product offer
- Operational issues
- Advertising and marketing
- E-commerce and home shopping
- WH Smith UK
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- Figure 78: WH Smith UK: Sales as share of all non-food retailers in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 79: WH Smith UK: Group financial performance, 2001-05
- Store portfolio
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- Figure 80: WH Smith UK: Outlet data, 2001-05
- Retail offering
- Mothercare Plc
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- Figure 81: Mothercare Plc: Sales as share of all non-food retailers in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 82: Mothercare Plc: Group financial performance, 2000-05
- Store portfolio
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- Figure 83: Mothercare Plc: Outlet data, 2000-05
- Retail offering
- Market positioning
- Brands
- Product offer
- Operational issues
- Advertising and marketing
- E-commerce and home shopping
- Department stores
- John Lewis
- Debenhams
- House of Fraser
- Harrods
- Grocery retailers
- Tesco
- Asda
- Other retailers with toys
- Boots
- M&S
- Hobbycraft
- Mamas and papas
- Internet specialist toy retailers
- Brightminds.co.uk
- Otherlandtoys.co.uk
- Letterbox.co.uk
- Myfirstyears.co.uk
- Knottoys.com
- Jigsawpuzzlesdirect.co.uk
- Thekidswindow.co.uk
- Coolgiftsforkids.co.uk
- Other Internet sites retailing toys
- Amazon.com
- Ebay.co.uk
- Big-book mail order companies
Advertising and Promotion
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- Adverts to reach the kids
- But restrictions may increase
- Children's TV channels increased opportunities
- What the parents think
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- Figure 84: Leading toy retailers, advertising, 2001-05
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