Design of Cross Cultural Marketing Plan For TKMaxx

EXECUTIVE SUMMARY
In this era of globalisation, many companies are coming to find better
opportunities for themselves in terms to enhance their market value. It leads to
competitive spirit of companies at international level market. Similarly, TJMaxx grabs
the opportunity for the expansion in global market. So it introduced it's subsidiary
TKMaxx in UK, as it possesses wide ranges of clothing, home décor and furnitures. This
report carries the different criteria of possible entry in new markets for TKMaxx furniture
range in Germany and Croatia markets. This report consists several approaches,
marketing strategies and market analysis which help the company to step in the new
market with risk assessments.
An cross market analysis STP is discussed in the first part of the report. Further it
has discussion on the market analysis using PESTEL analysis after that its competitive
advantage is mentioned. In step forward there is market strategies like entry in new
market, 4 P's, cage framework is used to describe about the products in more details.
Company has chosen Croatia and Germany in order to expand its business in
European countries, company has segmented its markets in psychographic,
demographic and on the basis of geographic segmentation. On the basis of
segmentation its targeted customers are its office furniture users and construction
places which require furniture. Company has adopted low cost pricing strategy at initial
stages and then when business will be established have decided to go for premium
pricing as it offers a best quality furniture to its customers. Company has also focused
on social media marketing strategy which will prove effective for attracting customers
and gain competitive advantage in the market.
This report gives the possibilities of successful expansion of company in global
market. It has discussion about the marketing entry strategies in which it sets their goals
to achieve and it has proper assessment of the market demand, competitors and many
more things. International marketing programme concludes the 4 P's strategies,
analysis of the economic, political or social factors of the country which help the
company to establish. All such assessment report helps in preparing the business plan
for the company to launch in the country.
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Design of Cross Cultural
Marketing Plan For TKMaxx
In order to succeed, your desire of
SUCCESS
should be greater than your fear of
FAILURE
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Table of Contents
1. INTRODUCTION AND COMPANY BACKGROUND....................................................4
2. CROSS-CULTURAL MARKET......................................................................................4
Cross Cultural Marketing-STP.......................................................................................4
Target Analysis...............................................................................................................7
Position Analysis............................................................................................................7
Product Attributes ..........................................................................................................8
Competitors....................................................................................................................8
Ease of application.........................................................................................................8
Price quality matrix.........................................................................................................8
3. Deciding of market entry strategy and mode ................................................................9
Set clear goals................................................................................................................9
Research market............................................................................................................9
Study the competition.....................................................................................................9
Choose mode of the entry............................................................................................10
Budget..........................................................................................................................10
Develop strategy document .......................................................................................10
Cage framework...........................................................................................................10
4. Designing of an international marketing programme ..................................................12
Design of international market mix (4 Ps for the company)........................................12
Pestle Analysis.............................................................................................................13
Competitive advantages...............................................................................................15
5. Recommendations.......................................................................................................16
REFERENCES................................................................................................................18
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1. INTRODUCTION AND COMPANY BACKGROUND
International marketing or global marketing is a marketing which is run at the
international level. International marketing is developed by the many multinational
companies in the world. These companies are operating their all marketing strategies
from the home country to other countries. When any company need to expand their
business across the particular country, in this condition company need to take action of
the international marketing. This is helping company to trading goods and services
among different countries. Present report discusses the product expansion with
establishment of manufacture and production unit of the company in emerging markets
that could prove to be profitable for the company.
TKMaxx is a subsidiary of the American apparel and home goods company TJX
companies. Company are operating their stores in many countries l United Kingdom,
Australia, Germany, Poland, Ireland, Austria etc. It deals in the retailing industry of
United States and other parts of the world. Parent company was founded by Bernnard
Cammarata established in Framingham, Massachusetts, US in year 1976. In 1994, the
first international store opened in Bristol. TJ Maxx modified the name to TKMaxx to
avoid confusion with the established British retail chain. Company offers many items
like; clothing, footwear, bedding and domestics, furniture, giftware etc. Company began
their first store in the United Kingdom in year 2007, Croatia between 1999 and 2001,
and then in the Germany opened on October 4, 2007. In the march 2009 company
launched their first e-commerce site. At the first stage company only selling handbags
on the e-commerce site but later company start selling other accessories as well.
Company's Australian store was started from 2017. Currently the TKMaxx is one of the
most popular retailers in the UK, because company's prices of the products are
generally lower than other major stores (Akter, Rahman, and Radicic, 2018). Now
Company have more than 500 stores in the Europe. It has reported a gross profit of
£464m within 52 weeks in February ending 2019 and also profit before tax rose from
£87.1 million to £120.5 million during the same period and also sales increase upto
6.4%. TKMAxx is aiming to launch its business in two European countries which are
Germany and Croatia which can profitable markets for the company. As, TKMaxx is a
departmental store and besides there has been a growth in retailing sectors in these
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two countries and it can prove profitable for the company to establish its stores in these
countries. In order to establish a business there are various tasks which a company has
to go through such as conducting cross cultural market analysis which is important.
After gathering a proper information company have to decide and select proper mode of
entry. Once entering in the market company has to design a proper marketing program
for attracting and successful business process which is mentioned in this report.
2. CROSS-CULTURAL MARKET
Cross Cultural Marketing-STP
Segmentation
Segmentation in the market research is primarily needed to decide the target
audiences for the company's product. Target countries of the company are Germany
and Croatia. TKMaxx operates wide range of the retail stores in clothing and home
related items. They have many stores in the US, Great Britain, Austria, Asia continents.
But they have planned to cover the market in Germany and Croatia. Target customers
of the company are the office or business furniture user and house hold furniture users.
So the market research according to the demographics, psychographics, geographic
segments are as follows
Basis of
segmentation
Strategies
Demographics
Segmentation
It is very important characteristics of the country that helps to
evaluate the target market, also it gives the idea about the
customers segments. It is necessary when company plan for the
international expansion. For this purpose, two countries from
same continent is evaluated.
Germany's current population is 83,663,787 (Germany
Population, 2020). It has mixed economy and their GDP is
6.45% (Germany GDP, 2020). Croatia population 40.8 lakhs
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