TK Maxx Marketing Strategies

The assignment is a business analysis report on TK Maxx, focusing on their marketing strategies, rivalry with competitors like ZARA and Next, importance of maintaining effective human resources, and formulating strong strategies to address external factors. The report also provides references to relevant books and journals.

TK Maxx In The Uk
Highstreet Fashion
Industry
Table of Contents

INTRODUCTION...........................................................................................................................1
Overview......................................................................................................................................1
Competitive advantage................................................................................................................2
Human resources.........................................................................................................................5
Recommendations........................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

INTRODUCTION
Business project is defined as actions which must be taken in a given time period for
development of resources for satisfaction of need or making a use of chance by their financial
gain, development or rendering benefits to the user (Cavusgil and et. al, 2014). Basically, it
denotes a pre-feasibility of study by which project can be explicated for reducing uncertainties.
This report deals with TK Maxx which deals within retail sector and is subsidiary of TJX
companies. It was founded by Bernard Cammarata in 1994 and is headquartered in Watford, UK.
They have near about 600 stores in different countries. This report comprises of overview of
organisation along with competitive advantage and their position in market.
Overview
TK Maxx deals within retail industry and furnish their customers with products such as
clothing, furniture, giftware, domestics, bedding and footwear. Their parent company is TJX
which was founded in 1976. TK Maxx has started their operations within United Kingdom and
Ireland. They expanded their operations in Europe in 2007. After that they started their stores in
other locations also and have a belief that each associate is liable for bringing creativity as well
as uniqueness within collective culture. They aim at diversity and they are proud of this along
with this, they treat their associates as well as customers with respect and dignity. Management
of TK Maxx deliver ever changing selection of their brand name along with this they furnish
designer products at around 60% less as compared to recommended retail price. Within this
relevant discount to prices in high street or departmental store is being given by them. This
makes them to attract more number of customers towards their services. As per UK fashion
industry statistics, this sector comprises of around 7 percent market share as well as value is
around 66 billion pounds. In addition to this, fashion industry provides employment to around
5,55,000 individuals. Apart from this, within the market of United Kingdom their occurs almost
4,14,000 retail sales within sales.
Mission of TK Maxx, is to furnish fresh, exciting as well as speedily altering variety of
brand name merchandise at enhanced values of their customers. As per them, value denotes
aggregation of fashion, quality as well as price. TK Maxx believes that they are well positioned
within market along with this working towards accomplishment of their goals (Engemann and
Henderson, 2014). Their core strengths comprises of trenchant relationship with suppliers as well
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as manufacturers, inventory management systems along with distribution networks and expertise
within off-price buying. This assists them to make choices with respect to their behaviour that
leads to drive success within their business as well as contribute within their effectualness.
Competitive advantage
For effectual accomplishment of their business activities in an affirmative manner, it is
necessary for firm to carry out analysis within their external environment. As this, leads to
creation of significant influence on operations that are being conducted by an organisation. Pestle
analysis refers to a framework or a tool that can be used by firm for monitoring and analysing
macro-environmental factors which leads to formulation of hefty influence on operations of
overall organisation (Gamble, Peteraf and Thompson, 2014). Management of TK Maxx can
utilise Pestle analysis for attaining competing position in a market. This is illustrated below:
Political factors: Government possess capability for inspiring organisation to opt for
fabrics locally. For an instance, taxation on imports which is brought in from other countries
increases. Within United Kingdom, people opt for buying products from their own country rather
than opting for fabrics from overseas. In these taxation policies in both present as well as future
strategies, relationship among other countries must be evaluated with respect to direct or indirect
impact on organisation. At current time, political environment is good for cloth retailer. TK
Maxx is one of the old retailer organisations this denotes that they have wide experience with
respect to alterations within political regulations as well as laws. But some assumptions can be
assumed in laws by management with respect to alterations within relationship of other countries
(Guffey and Loewy, 2012). Due to these there can be problems with suppliers as well as vendors.
This will lead to have impact on TK Maxx, if there vendors belong to those countries as it will
create an impact on their performance in terms of off-price retailer.
Economic factors: The overall economical situations that prevails within country leads
to impact on industry. For an instance, if United Kingdom is going through economical recession
then there will be relevant impact on organisation's growth as well as performance. In addition to
this, it has created a deep influence on fashion retail industry as it contributes its large part within
global economy there has been a adverse impact on fluctuations within economy (Engemann and
Henderson, 2014). Economic volatility creates impact on volume of sales as well as profits. TK
Maxx has strong part within economy of country which has improvised the employment
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globally. In addition to this, economical factors also comprise level of government spending,
ability of customers spending and currency exchange rates (Groebner and et. al, 2013).
Social factors: Performance of organisation is affected through alterations within society
for an instance, within modern society no one opt for products that are old fashioned. People
prefer to new brands, fashions and styles with enhanced quality and often they look for a brand
that gives discount on their services. TK Maxx has opted for making use of concept named off-
price retailing and it provides them affirmative results for beating social factors in an effectual
manner. They aim at providing their customers with an option of giving them whatever they
want to buy. The off-price retailer provides them with better deal with respect to new fashion. On
the other hand, the attitude of customers towards services is also considered within social factors.
Technological factors: This has vital role within industry, enhanced technology is very
effective with respect to reduction within prices of products as well as improvisation within their
quality. TK Maxx does not have their own manufacturing units related with production. But still
technology has crucial role within enhancement of their sales. For an instance, online facility for
their customers as well as e-commerce facilities can be opted by organisation. In addition to this,
even in logistics this factor has crucial impact (Cavusgil and et. al, 2014). TK Maxx has to
ensure the kind of fabrics that have been utilised by their vendors as well as what kind of
dealing, they are being offered. It provides them with a unique way for carrying out
communication with their customers. It also leads to reduction within cost along with
improvisation in quality of products as well as online shopping.
Legal factors: There exist certain authorized components that create impact on industry.
For an instance, future alterations within legislation, regulatory bodies, alterations within trading
policies and laws. Due to off-price retailer TK Maxx gets affected either directly or indirectly.
Organisation do not have their own production unit this means that there is indirect impact on
their operations but in case vice-versa happens then there will be impact of these legal factors.
There are certain elements that will lead to have negative influence on them; they are
enhancement within wages, age restriction as well as employment laws (Hair Jr And et. al 2015).
Other factors within legal factors are health and safety, trade policy, product safety, etc. It is
necessary for employees as well as organisation to take into priority their safety while furnishing
their services.
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Environmental factors: These factors comprises of elements such as pollution that is
created while delivering services, recycling consideration, customer’s attitude and media must be
taken into account. But with respect to TK Maxx there has been very less impact on cloth
retailers. For ensuring that environment is neat as well as clean it is responsibility of every
organisation to work in enhanced manner which will lead to elimination of adverse impact. TK
Maxx needs to render training to their employees with respect to ways in which operations must
be carried out by them as well as recycle their waste (Lewicki, Barry and Saunders, 2016).
Porter’s five forces can be utilised by TK Maxx to acknowledge their competitors within
market as per different aspects. The threats which organisation goes through while their
sustainability is mentioned below:
Threat of new entrants: The fashion industry is growing rapidly as due to demands of
customers. There is fluctuation within demands. Along with this, government also inspires and
facilitates within this sector. But in this other factors must also be taken into consideration like it
is not easy for a new store to find an apt location where they can grab attention of more number
of customers. In addition to this, there exist certain barriers like funds must be strong enough
through which they can enter within market (Young and Dhanda, 2012). With respect to TK
Maxx, as they are furnishing their operations many years and have strong customer base there is
a minimal threat of new entrants.
Threat of substitutes: There are diverse options which consumers have with respect to
opting services or products that are being given. The substitutes for TK Maxx are local brands of
United Kingdom as well as other brands which offer services at cheaper rates as compared to
them. But the quality of products that is being given by TK Maxx cannot be compared by others.
This is the reason that they are surviving within the market from longer interval of time (Min,
2015). For maintaining their position as well as ensure their sustainability they need to build
strong strategies and keep on updating them with alterations in the trends. There is hardly any
threat of substitutes.
Bargaining power of buyers: If compactness of buyers is larger with respect to other
organisations within industry then they are subjected to high bargaining power of buyers. As
there is high competition within market, TK Maxx needs to have a long term relationship with
their customers so that they can retain them for longer time interval. This also denotes that
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bargaining power of customers is high but when high quality services are furnished by TK Maxx,
it makes low.
Bargaining power of suppliers: Within fashion industry, this factor is high as the kind
of material that is furnished by suppliers will have strong impact on final product that has been
given by them. The power is low as they are being paid for this and they have least options as
TK Maxx is known brand it also helps suppliers to have more options (Robyt, 2012).
Rivalry among existent firms: There is intense rivalry in between fashion industry as
well as there is hardly any cost of switching. The major competitor of TK Maxx is ZARA and
Next. This means that there is higher competition within market for which organisation needs to
make sure that they furnish quality services.
Human resources
They are the crucial source which acts as strong asset for every organisation. It is necessary for
TK Maxx to take into consideration their basic needs by which they can boost up their morale.
This will lead them to have better results and also results in higher profitability (Wilson, 2014).
Recommendations
It is recommended that, human resources must be maintained effectively by an organisation.
In addition to this, TK Maxx must also take into account all the external factors that can harm
their working. For this they need to formulate strong strategies which will lead them to have
affirmative results.
Conclusion
From above it has been observed that, organisations must take into consideration different
aspects while rendering their services in diverse countries. This will assist them to furnish their
operations in required manner. For this they can build strategies according to these policies and it
will also acts as a guidelines for employees & way in which they carry out their operations.
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References
Books & Journals
Cavusgil, S. T. and et. al, 2014. International business. Pearson Australia.
Engemann, K. J. and Henderson, D. M., 2014. Business continuity and risk management:
essentials of organizational resilience. Rothstein Publishing.
Gamble, J. E., Peteraf, M. A. and Thompson, A. A., 2014. Essentials of strategic management:
The quest for competitive advantage. McGraw-Hill Education.
Groebner, D. F. and et. al, 2013. Business statistics. Pearson Education UK.
Guffey, M. E. and Loewy, D., 2012. Essentials of business communication. Cengage Learning.
Hair Jr, J. F. And et. al 2015. Essentials of business research methods. Routledge.
Lewicki, R. J., Barry, B. and Saunders, D. M., 2016. Essentials of negotiation. McGraw-Hill
Education.
Min, H., 2015. The essentials of supply chain management: New business concepts and
applications. FT Press.
Robyt, J. F., 2012. Essentials of carbohydrate chemistry. Springer Science & Business Media.
Wilson, J., 2014. Essentials of business research: A guide to doing your research project. Sage.
Young, S. T. and Dhanda, K. K., 2012. Sustainability: Essentials for business. Sage.
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