Marketing Essentials Assignment | TK Maxx

Marketing

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
PORTFOLIO...................................................................................................................................3
Overview......................................................................................................................................3
Promotional techniques...............................................................................................................4
TASK 2..........................................................................................................................................11
Application of 3 marketing theories to TK Maxx.................................................................11
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Marketing is an essential part for every organisation, this is critical to market product
otherwise it can not be sold effectively and profitability can never be attained. Through
marketing the product and organization both are m advertised and prorated to make people aware
about them. Marketing plays a crucial role in growth, development and profitability of a
company as with this only the sales are increased. The present report in about the marketing
plans and strategies used by the clothing brand TK maxx. In the report the marketing portfolio,
promotion mix and theories which are used and applied by the organisation is explained in detail.
TASK 1
PORTFOLIO
Overview
In store:
TK Maxx is referred as American department store chain and selling at prices which are
lower as compared to similar stores. It comprises in Retail industry and founded in 1976, 42
years ago by Bernard Cammarata. It has presence of more than 1000 stores in Puerto Rico and
United States as one of the largest retailers of clothing in US. Its products are of clothing,
furniture, jewellery, handbags, beauty products, bedding and domestics. It is located more
approximated 1238 places. They have approx 249000 employees with $35864664 sales as on 3
February 2018 (Annual report of TK Maxx, 2018).
Location High street
Layouts Flexible store layouts
Size of shop 3500 sq meters
Special offers Black Friday deals, A white Christmas.
New launches Australia
Waiting time at tills 1- 2 years
Atmosphere
High quality clothing, footwears, accessories and great value of
homewares
Music Background Instrumental music
Customer Relationship Appropriate feedback and personal queries will be solved,

proper queues.
It will impact organization for setting competitive advantage.
Staff
249000
The staff is enough for every activity of fashion store and to give
attractive brand image.
Away from store:
Promotional techniques
 Advertising: TK Maxx uses various technique for presenting goods, ideas and services
through determined sponsor. It advertises messages in customised aspect for employing
mass media like newspaper, television, magazines and radio. Advertising might target its
individuals on basis of their profile features and behaviour. The advertising is highly
focussed for promoting retail banners instead of individual products such as promoting
numerous banners and it also contributes in advertising budget.

Figure 1 TK advertising
(Source: Campaign, 2018)
 Digital marketing: It covers huge ground through websites, search engines, social media
marketing and content as well. The tools of digital marketing and its techniques evolve in
rapid manner with different technological advances. This undertakes each mode of digital
technologies for marketing and selling products, ideas, experience and services. TX
Maxx has to make interaction with the consumers which will help them in retaining the
higher attention of the professionals which are being enrolled and working in the
business.

 Flexible store layouts: There is presence of flexible off-price business model which
comprises opportunistic buying, logistics, inventory management and flexible store
layouts which is designed for purpose of delivering consumers to appropriate value
proposition of quality, fashionable, designer merchandise and brand name at its excellent
value of each day. They have upgraded in store experience along with simple and flexible
store layouts which makes easy to shop and to reflect merchandise in better aspect.

 Pricing strategy: TK Maxx operates with low cost structure, as they have designed there
stores for giving convenient shopping environment, pleasant as they do not spend huge
amount of fixtures of store. In the similar aspect, there distribution network is framed for
running cost in effective aspect. They offer fashionable, quality, designer merchandise
and brand name in its store with retail prices which are usually 20 to 60% low than full
price retailers. They do not involve in activity of promotional pricing like coupons or
sales as they have gained capability to react on fluctuations of price in wholesale market
for maintaining pricing gap on basis of offering through traditional retailers along with
merchandise margin from different economic cycles.
 Social media marketing: The most common tools for promoting especially in fashion
industry such as TK Maxx is internet. It offers numerous opportunities for reaching wide
people. It had developed innovative website along with featuring videos of endeavour of
fashion with application of virtual tours of boutique. Its website is very creative as it
serves detailed information about products and gives source to venue on basis of internet.
It is essential that the business must make appropriate connection among the external
parties which will be helpful in developing the soothing relationship among them.
Connect to individual through Facebook, YouTube etc. platforms will be beneficial in
developing the new identity in the market. However, it will a easy mode of making
appropriate contact as well as taking reviews which will govern them in making most
appropriate decisions.

 The above picture is captioned through its websites, its has explained classification about
size of shoes, types of clothing and accessories.

 Special offers: The TK Maxx also promotes via marketing campaigns and videos. The
above has stated example of videos about never ending stock and availability of
Christmas collection.

 Enhancement of Sales: The inventory has been marketed by promoting fashion parties
as they have constructed catalogue along with sales kit and samples for application of
conducting its home demonstrations of merchandise. In the similar aspect, fashion
business had been marketed and took advantage from viral style method of marketing
with outcome of attraction among various potential consumers. It had shown press
releases for announcing various milestones for attaining fashion business. These
milestones consist of appropriate introduction of its brands, reallocation of premises as
well.

STP management:
Segmentation Marmaxx and Home goods in US, TJX
International and TJX Canada
Target: Middle and upper-class people.
Positioning Offering designer brands at prices which are
affordable
Segmentation:
Marmax is in US and gathered for largest retailer of off-price with 22858 stores. It sells
family apparel, home fashions along with various other merchandise. It has expansion of
assortment of fine accessories and jewellery in designer section (TK Maxx, 2018). Home-goods
offers electric assortment of different home fashion comprises rugs, furniture, soft home,
lighting, decorative accessories, cookware and table top. TJX Canada operates winners, marshals
chain and Home Sense in Canada and offers fine jewellery and designer section. It had expanded
by footwear and cube juniors’ department which is differentiating through winner’s stores.TJX
International is only major brick-mortar off price retailer of home fashion and it also offers
merchandise mix as it had brought off-price home fashion concept.
Target:
The consumer demand and traffic for merchandise is directly influenced with various
marketing efforts. They use marketing for driving consumer traffic via media such as radio,

television, outdoor, print, email, direct mail, mobile and digital/ Social media with various other
approaches as it gives competitive advantage to organization. Consumers have expectations for
shopping in stores or it might be through e-commerce and involvement of business with various
channels such as technology like internet based, digital or mobile channels along with particular
for of outlets of social media as it might vary across the demographics and evolve in rapid
manner. The consumer spending is growing and for accomplishing these expectations involved
for determining right opportunities and to take right investments at perfect time and speed and it
also impacts financial outcome.
Positioning:
They have gained brand reputation of organization and their retail banners are very
essential for continuing success. They operate in different market and work to build relationship
from consumers via marketing campaigns and other activity as well. Further, it has provided
digital marketing as promotional information to its websites which reflects similar messages,
offers and designs in different adds posted in website, YouTube, twitter, Facebook and other
social media. TK Maxx has boosted sales by £3 and opened raft of additional stores as budget
chain which is defied gloom in high street. The pre-tax profits have decreased to £87.1 m for
specific duration and down through £111.4 m in year 2017 (TK Maxx boosts sales to nearly
£3bn, 2018).
CRM Management:

In relation with such practices there have been consideration over taking feedback and
making adequate changes in the operational practices. There have been taken into consideration
which in turn will be useful and appropriate in making the adequate decisions. Promoting the
business operation which will be helpful in creating the identity among the society. Therefore,
there are various tools and techniques which are needed to be implicated by the professionals in
terms of making adequate changes in the operational analysis. It can be through new launching
events and making special offers which will enhance the sales growth. Along with this,
implication of Consumer relationship management practices (CRM) will be effective in retaining
the potential buyers in the society. Recently, the TK Maxx have launch in Australia which have
been determined that the organisation have been appreciated in the market which have retained
them the high returns and adequate gains.
TASK 2
Application of 3 marketing theories to TK Maxx
1. The communication process:
This is a process which comprises integrated activities that identifies target audience and
coordinated promotional programs are developed to generate desire response from the audience.
Most of the issues are related with preferences, image and immediate awareness of target
customers and this is focused by the marketing communication (The Marketing
Communication Process, 2018). But there are certain drawbacks related with the concept of
communication. These limitations include high cost and short-term duration that cannot generate
the desired results from the targeted customers.
Element of Marketing Communication Process;
For Effective Communication, the marketer should know how communication works, following
are the elements of communication process in marketing:
1. Sender: this is the person who is sending the message to other party, in this case it is TK
Maxx.
2. Encoding: to convert though into meaningful symbols or massage to be communicated
and which is easily understandable.
Message: this the symbols which is transmitted by sender is called as massage. In preset case this
is the promotion of goods and products of TK Maxx.

3. Media: this is the channel of communication through which the massage is being
transferred from sender to receiver. TV, radio, print media etc.
4. Decoding: the conversation when reached to receivers, the symbols are converted into
meaning (Explain the Marketing Communication Process in Detail, 2015). The consumer
understands the advertisement and have willingness to purchase the products.
5. Receiver: sent message received by another person or party is called the receiver.
6. Response: this is the traction given by the receiver upon receiving the massage.
7. Feedback: The portion of the response of the receiver that is sent back to the sender is
called feedback.
8. Noise: this can be defined as the unplanned distortion which is experienced during
communication process. In present case it can be the delay in advertisement, implication
of new regularization on promotion of products etc.
Marketing Communication Process Tools:
Written Marketing Communications:
This can be defined as a person specific marketing that directly speaks to consumers.
This is done through: Poster, Brochures, Catalogs, Flyers, Yellow Pages, Billboards, News
media, Magazines, Coupons, Mailers, Email, Website, Online, Branding, Documentation,
Packaging this can be effective communication tool as all these are strong media tools

Multimedia Marketing Communication:
This is considered as best media as it manages the overall process and when involved and
working with multimedia experts avoid simply using technology (Marketing Communications,
2015). This is done through websites, online events, radio, tv, product placement and
underwriting. This can be effective tool as these are the thing which are mostly used by every
consumers. In this modern technology is used by TK Maxx to attract people to by is conductor
from a wide range offered to them.
Process of marketing communication process:
1. Identifying the target mass
2. Determination of the objective for communication.
3. Formulating the design of massage.
4. Determination of content for promotion.
5. Deciding the structure and format.
6. Choosing the media through which promotion will take place.
7. Collection of feedback from peers and consumers as well.
2. AIDA model:
It is an effective model that are used in marketing process which evaluate the steps in
which a customer goes through in order to purchase the product. The A.I.D.A is an important
theory of marketing and advertising the product of TK Maxx Ltd. These models help the
marketing team of TK Maxx ltd to make the strategies which helps in providing the insight to the
customer's mind and represent the need for the product. It will help in increasing the sales of the
company (Hassan, Nadzim and Shiratuddin, 2015). The four stages of AIDA includes attention,
interest, desire(decision) and action. This model can be well implemented by making different
promotional campaign, planning of how and when to communicate to the customers, analysing
different information of the buying habits of customers. The TK Maxx Ltd should make effective
strategies to implement these steps into core action. The four steps in AIDS models are:
Attention: In order to make the customer aware about the product, the marketing team
needs to make strategies to catch their attention. TK Maxx can evaluate different platform and
strategies of promote the product. Advertising the product at different platform, targeting the
customer individually will be more effective. The marketing team can add provocative campaign
which will also help in customers.

Interest: once, getting the customer attention to the product, the marketing can make
strategies to increase the interest for the product. It is tricky stage, if customers find no interest in
company's product. To increase the interest of customer for the product, the marketing should
plan to provide more information about the product, the specialized variety that are different
from other company's product (Ghirvu, 2013). The marketing team should make strategies which
can provide full information about the products that are available to the customers via different
modes like on company's website, promotional videos, customer rating on internet etc.,
Desire or Decision: in this step the marketing team has succeeded in grabbing the
attention of costumer. The promotional campaign should be strong enough which can turn their
desire decision of purchasing the product. The marketing team should promote what the best are
about the product. The marketing should resolve the query of customer regarding the product
immediately. It will help making customer sure about the product.
Action: it is the stage where, customer wants to purchase the products (Petit and et.al., 2011.).
This step can be well implemented through different marketing channels that will help the
customer to buy the products through company's website, lading pages, inbound phone calls etc.
However, it can be critic that implementing AIDA model can be costlier for the TK
MAXX Ltd. It will take a lot of marketing team in research and in promotional campaign.
3. Push and pull strategies:
These are the two promotional strategies of marketing which can help in
increasing the sales of company if implemented effectively and efficiently.
Push Strategies:
it is the process through which the TK MAXX has to perform in order to get the product
to the customers. It involves setting the distribution channels through distributors, suppliers in
order to stock the products. It can be well implemented in TK MAXX as the company has fast
moving consumer goods. In these strategies the company wants that products are always
available to the customer when they want to or decided to buy it.
Pull strategy:
In this strategy, customers are seeking to buy the products from the company or through
the retailers. It is a direct customer demands for the products. The product and the company
should be high brand in order to adopt this strategy. TK MAXX should develop its brand image
through mass-media, promotion and advertising in order to increase the sales. The company

should ensure that there are enough stock in retail store. It ids the demand and supply process in
its purest form. The demand from customer will increase the supply from company.
However, it can be critique that, these strategies have some disadvantages in
implementing too. In order to implement pill strategy, it can increase the cost to company. As
distributors can ask for their financial contribution which can decrease the revenue. High
promotion will also increase the cost. For the greater administration will requires to fulfil the
customer's order.
Above the line and Below the line:
These are the techniques which have been implicated by various organization in relation
with managing the operational practices as well as making adequate marketing of the products
and services. It can be analyzed as:
Figure 2 ATL and BTL strategies
(Source: Promotions, 2014)
Above the line advertising:
This is the technique of marketing the product and services which will be among the mass
media. However, there have been no target group and the specific are of making marketing of the
product and services. Tk Maxx will have higher revenue generation as well as effective
marketing growth with will be approached as if the firm will have promotion based on above the
line tactics.

Below the line advertisements:
This technique consisting promoting the business on the initiative level such as among
individual by interacting with them face to face, telecommunication etc. therefore, this will
consume more time and efforts as well as costs but there are higher changes of attracting the
buyers to the organization. Tk Maxx have to make plans in relation with interacting with buyers.
It will bring them appropriate returns and large number of buyers which will be helpful in
reaching to the higher sales revenue growth.
CONCLUSION
From the above report it can be concluded that Tk maxx has been targeting the upper and
lower middle class of the society and present them goods on a price which are lower than what is
offered by other similar stores. This is a basic marketing strategy used by the firm to gain
competitive advantage and to cover a large area of the market. It has been interpreted from the
report prepared above that it sales used television, radio and other promotional media to market
its product and to increase awareness among people about its product, this lead to the fact that
sales and revenue of the firm gets a boost with a change in marketing mix and promotional
strategies. Further it can be articulated from the report that the marketing theories plays a vital
role in which helps in attracting the target audiences and sales a particular product from the
organization.

REFERENCES
Books and Journals
Dawson, C. and Henley, A., 2012. “Push” versus “pull” entrepreneurship: an ambiguous
distinction?. International Journal of Entrepreneurial Behavior & Research. 18(6).
pp.697-719.
Di Stefano, G., Gambardella, A. and Verona, G., 2012. Technology push and demand pull
perspectives in innovation studies: Current findings and future research
directions. Research Policy. 41(8). pp.1283-1295.
Ghirvu, A.I., 2013. The AIDA model for advergames. The USV Annals of Economics and Public
Administration. 13(1 (17). pp.90-98.
Hassan, S., Nadzim, S. Z. A. and Shiratuddin, N., 2015. Strategic use of social media for small
business based on the AIDA model. Procedia-Social and Behavioral Science., 172.
pp.262-269.
Petit, C. and et.al., 2011. A new, innovative and marketable IP diagnosis to evaluate, qualify and
find insights for the development of SMEs IP practices and use, based on the AIDA
approach. World Patent Information. 33(1). pp.42-50.
Prayag, G. and Ryan, C., 2011. The relationship between the ‘push’and ‘pull’factors of a tourist
destination: The role of nationality–an analytical qualitative research approach. Current
Issues in Tourism. 14(2). pp.121-143.
ONLINE
Annual report of TK Maxx. 2018. [Online]. Available through
<http://www.tjx.com/files/pdf/annual_reports/tjx-2017-annual-report.pdf>.
TK Maxx boosts sales to nearly £3bn. 2018. [Online]. Available through
<https://www.telegraph.co.uk/business/2018/10/09/tk-maxx-boosts-sales-nearly-3bn/>.
TK Maxx. 2018. [Online]. Available through <https://www.tkmaxx.com/uk/en/>.
The Marketing Communication Process. 2018. [Online]. Available through : <http://www.sales-
and-marketing-for-you.com/marketing-communication-process.html>.
Explain the Marketing Communication Process in Detail. 2015. [Online]. Available through :
<http://www.businessstudynotes.com/marketing/principle-of-marketing/explain-the-
marketing-communication-process/>.