After obtaining a degree in Business Administration in the USA, Felix Tena, the founder of the Imaginarium toy shop, returned to Spain. In 1980, he started “Publijuego,” a small company specializing in producing and selling educational toys. Sadly, the business failed as a result of a deal Mr. Tena made with some Italian colleagues who were only interested in exploiting his company for distributing their own products. However, in November 1992, Mr. Tena launched the first “Imaginarium” store in Zaragoza after conducting an extensive market study that revealed numerous opportunities within the toy industry.
The company’s current focus is on producing, buying, selling, and retailing toys. They offer a wide range of high-quality toys at competitive prices to satisfy children worldwide. Their physical stores can be found in various countries including Portugal, Italy, Ireland, France, Germany, Austria, Hong Kong, Andorra, Switzerland, Greece,
the Netherlands,
Ukraine,
Russia,
Romania,
Mexico,
Argentina,
Uruguay,
Ecuador,
Peru,
Honduras,
Colombia,
Panama,
the Dominican Republic,
Venezuela
and more. Additionally,
they have plans to enter
the Chinese market by 2013.
In May 2012, IMAGINARIUM reported a sales increase of 6%, which amounted to around 138 million euros, effectively closing its financial year. The company’s achievement can be credited to Tena’s visionary leadership and an astute marketing approach. Tena identified that the Spanish toy industry was becoming dull and repetitive during the video game era in 1990.
By doing so, he took the chance of developing a fresh assortment of toys that would offer children something unique: imagination, connections, and interactive games to enjoy with their parents. These toys were designed to be different from trendy fads and cartoon characters. The goal was to create games in which children could actively participate rather than simply watching, resulting in a truly enjoyable experience. This idea was well-received, prompting the opening of four additional stores in Spain in September 1993. These stores were located in Madrid’s La Vaguada and Arturo Soria shopping malls, as well as in Barcelona.
At this time, he began developing his marketing strategy, realizing that Imaginarium’s image was created and communicated through various means. These included the trademark, store décor, the opening of new well-located stores, the wide range of products available, and the personalized attention provided by toy experts. The way children were treated was especially important, as they were treated as distinguished guests and their opinions were valued. No child would ever be told not to touch anything. In 1994, the company opened a total of seven new stores: five under its own ownership and two as franchised locations.
Tena believed he could open approximately sixty toy stores in Spain using this approach. However, this number was surpassed in 1998 and doubled by 1999. The year 1996 marked the Imaginarium’s expansion into other countries. To achieve this, Tena had to analyze the “4 Marketing Ps.” Firstly, he focused on the product aspect. The toy range consisted of carefully selected quality toys that were educational, non-sexist, non-racist, and non-violent. These toys included content activity areas such as preschool, games, music, theater, dolls, manual work, science and nature, professions, and movement. No changes were necessary as they were already suited for children (an ethnocentric orientation). Secondly, Tena aimed to sell at the lowest price possible. Thirdly, the stores were strategically located and had a fun atmosphere specially designed to cater to children’s needs. The national and international distribution, restocking, and shipping were efficiently managed as well. Lastly, Tena allocated a minimal budget for promotion and advertising.
The promotion for Imaginarium was primarily conducted through various channels. These included distributing catalogues at the store, engaging in activities and events through the Imaginarium club, organizing inaugurations of new stores, and offering gift promotions. Online promotional efforts were also made through Navegalia and banner advertisements on other portals. Additionally, a major public relations campaign was undertaken which included television, radio, and press releases in different technical and business journals as well as media outlets targeting families.
As a result, the initial marketing strategy focused on providing strong support to the stores by distributing extensive catalogues and limited advertising. However, the company soon realized the potential of using the internet as a valuable promotional tool. This led to the creation of Imaginarium’s first website in August 1999.
Originally, the website provided a basic overview of the company and its products, lacking any interactive features. However, Tena recognized the significance of engaging with guests and members. As a result, Imaginarium Net was established along with its “Club Imaginarium.” Presently, this club, overseen by Imaginarium, stands as potentially Spain’s largest community for families, boasting over 500,000 families globally.
To promote the launch of the new website, three distinct activities were undertaken. Firstly, a partnership was established with Navegalia, an internet portal owned by Airtel, a telecommunications company which offers free access to its users. Secondly, a banner campaign was initiated on numerous popular portals and websites catering to both general and children’s audiences. Finally, a comprehensive public relations campaign was executed across television and radio platforms, supplemented by press releases published in various technical and business journals that specifically target family-oriented audiences.
Another interesting marketing feature of this company is the creation of a loyalty card for loyal customers. Additionally, there is a periodic newsletter that is sent to miles of users via email every two weeks. This newsletter provides updates on news appearing on the internet and in the shops, as well as information about animation activities in the shops. The company’s marketing department publishes four to six different catalogues each year. These catalogues come in several sizes and over 600,000 copies of each one are printed in 11 different languages.
The Imaginarium Club activities have now expanded to countries where the company operates, with adjustments made to accommodate each country’s specific requirements and calendar. This highlights the ethnocentric orientation of Imaginarium since its inception. It is evident that the company makes minimal changes to its products when operating overseas, providing the same toys for children worldwide and implementing the same marketing strategy used in the domestic market. However, it is still possible for the company to introduce necessary changes without altering its overall orientation.
Imaginarium applies the same marketing strategy across different countries, utilizing image stores, distributing catalogues, advertising on TV and the internet, as well as promoting the Imaginarium club. The only aspect that requires alteration is the language. Why doesn’t Imaginarium have to modify its product? The answer is simple: children are universally children. Toys remain toys; they are arguably the most innocuous product globally and do not require any modifications. They hardly offend anyone, and the children’s desire for fun is quite similar regardless of their nationality.
In Spain, Dubai, or England, a bike remains the same and does not require any modifications. This is also true for other products such as a blackboard, ball, small kitchen, soft toy, or piano. Consequently, Imaginarium can efficiently promote their products without the need for any changes. This advantage allows for consistent marketing efforts without requiring additional investments in advertising. As a result, Imaginarium has a centralized marketing team that saves them money. Additionally, internet marketing is the primary form of promotion, which is more economical than advertising through television, newspapers, or magazines.
The company benefits from the product’s expandability due to its toy nature, increasing its likelihood of success. Additionally, their strong online presence allows for deeper connections with customers and families, enhancing the company’s attributes and values. By identifying customer purchase breakdowns, they gain a better understanding of customers and can execute more comprehensive relational-marketing efforts. The Imaginarium Club provides a communication channel specifically for interacting with children.
Additionally, utilizing a guest database can assist in spreading out sales throughout the year which increases the likelihood of guests visiting the store, making purchases, and remembering Imaginarium when choosing a toy store. This data can also be valuable for future purchasing and financial forecasting, as well as identifying new opportunities and problem resolution. Creating a guest database allows for targeted advertising and promotion. The information collected helps determine whether less active members should be included in higher unit cost activities, such as mailing catalogues.
Further, the internet helps to improve sales both online and in physical stores for Imaginarium. It promotes the use of multiple channels for sales and encourages incorporating corporate values into each channel. However, this approach also comes with its disadvantages, such as the need to invest in website improvement, e-commerce expertise, and advertising costs. Additionally, transforming the company’s existing information technology infrastructure incurs new expenses. It is worth noting that internet sales also face a significant challenge of intense international competition.
