Strategic Analysis of TK Maxx's Global Marketing in the Indian Market

This report analyzes the global marketing strategy of TK Maxx, focusing on its potential entry into the Indian market. The report begins with an introduction to TK Maxx, its mission, and vision, highlighting its success in other markets. The main body includes a market and competitor analysis, examining the advantages and challenges of entering the Indian market, including its large population, GDP, and existing competitors like Aditya Birla Fashion and Reliance. The report also conducts a PESTLE analysis to evaluate the external factors influencing TK Maxx, including political, economic, social, technological, legal, and environmental factors. An internal VRIO analysis assesses the company's resources and capabilities. The report then outlines a marketing strategy, covering STP (Segmentation, Targeting, Positioning) and the marketing mix. The report concludes with recommendations for TK Maxx's entry into the Indian market.

GLOBAL MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Market and competitor analysis...................................................................................................1
The Current Business Environment.............................................................................................3
Marketing Strategy (STP)............................................................................................................6
Marketing Plan (Marketing Mix).................................................................................................7
CONCLUSION................................................................................................................................9
RECOMMENDATIONS.................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The current report gives emphasis on clothing industry. The chosen company in the
report is TK maxx which deals in home wears, accessories, men's, women's and children's
clothing. The selected company is of British brand and does not operate in India economy. TK
maxx is willing to operate in India to cover big market share and earn greater profit from Indian
market. The mission of company is to comply with four commitments to communities where it
operates its business activities which includes current and future associates, to environment,
vendors and business partner of supply chain to protect self-regard upcoming generation. In
addition to this TK Maxx has vision of being responsible retailer globally and repeating history
to give back best quality service to customers. The report also elaborates market share of TK
maxx which is on top in terms of revenue, CEO efficiency and employees productivity. It has
high profile of selling quality branded and label products 20-60% generally less than traditional
traders as it operates 400 outlets in world. The GDP of country is 7.3% in 2021 which likely to
increase more that grows opportunity for the business to establish in Indian market and sell its
goods. The current report also gives information regarding GNI per capita which is 5.97% that is
a positive indicator for enterprise to enter the mixed economy of India to enhance its turnover.
The Present report shows detail of population as well which is approx 1395.57 million that
encourage to TK Maxx to expand it targeted segment. In addition to this report will describe
market analysis, current business environment, the Marketing and entry strategy of TK maxx.
With respect to this the report will also show business's strategy implementation in Indian
market.
MAIN BODY
Market and competitor analysis
TK Maxx operates in Indian market with motive of earning higher profitability and
substantiality. The company has chosen the mixed market to take various advantages of the
country that can increase its presence in worldwide and make it able to get bigger market share
of industry (Can TK Maxx maintain its success?, 2020). There are several advantages of market
of India as its population can be easily influence by keeping lesser price as the every segment of
this mixed economy go for those products that are less expensive (Liu and Atuahene-Gima,
2018). There is huge scope of Fashion industry which can make TK maxx able to sell its
products in each state of nation as people of India are ready to accept new products regardless of
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differentiating goods based on nations. The population of India is large so selecting a segment
for targeting audience can be easier for company as compared to choosing in other nation.
Gross Domestic Product of India is 7.3% which enhance scope of TK Maxx in retail
industry as clothing sector also contribute good share in GDP. The GNI of India market is 5.97%
that can help company to enter easily as the nation also support British companies to come in
nation and establish there organization which will eventually increases employment opportunity
in the country. With respect to this company also get advantage of lower cost of labour and raw
material etc.
The competitors of TK Maxx in Indian market is Aditya Birla Fashion, Reliance, Avenue
future mart, Shoppers stop, Trend limited etc. that are dealing in clothing industry from decades
and have trust of customers (de Guimaraes and et.al., 2018). With respect to Indian clothing
sector TK Maxx can face higher competition from these companies that can make difficult for
organisation to grow. A segment of specified population is loyal towards their national brand and
may not accept TK Maxx's clothes that can be the biggest competitive element for the
organisation. The Indian retail industry values and adhere taste and preference of their customers
as these competitors have knowledge of festival seasons of different religions of the nation which
can be barrier for TK maxx. Further, there are several barriers that can be hurdled for TK Maxx
for entering the market such as high cost of establishment, lack of appearance due to higher fame
of domestic companies, low existence in rural region of nation etc.
The existing companies in Indian market have been established decades ago and have full
knowledge of life cycle of retail industry that when to introduce any new products, when it will
decline from growing stage etc. The new business entering market have to invest capital in
research and development to adapt changes of industry which can be risk for organization as
taste and preference of Indian population changes easily so invested money might not give
desirable result to TK Maxx. In regard to this cooperating with existing level of competition
becomes tough for entering company. So overcoming competition the company need to face all
the challenges to establish, sustain and grow in foreign market. The important aspect that
entering company should focus before establishing into Indian market is economic condition as
this factor decide smooth functioning of any company. Economic condition refers to GDP of
country, consumption and investment rate which affects the business activities widely as
availability of raw material, customers, suppliers, technology etc. depends on country's
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circumstances. It can adopt strategies like providing discount to connect with customers so that
they buy product from TK Maxx.
Market share of the company is good as it has presence in many nations and have gained
good customer platform. It offers wide variety of products to different people at different prices
that has enabled it to enhance its market area (Hafezi and et.al., 2020). According to country's
norms and condition it changes its strategy and structure of organization that makes it capable to
attract customers of different countries. Market share of TK Maxx company is low as compared
to its competitors in worldwide.
The Current Business Environment External Analysis
PESTLE Analyse
The impact of external factors is great on sector of TK Maxx. The analysis of macro
environment can be exerted with help of PESTLE model as it helps company to evaluate its
strategy that can be useful for it to deal with changing surroundings. It includes political, social,
cultural, economical, technological, legal and environmental factors that can influence business
activities.
Political factors
Company has to adhere with political factors as these are uncontrollable which can highly
influence organization's operations. Political factors that TK Max can face are tax policies, trade
restrictions, political stability and tariff while doing business in Indian market. Indian market
promotes inward FDI so it has its own rules and regulation that every entering company need to
follow to have smooth functioning of organization (Perera, 2017). Furthermore, tax policies of
India can be another barrier for TK Maxx as the nation strictly keep control on organization to
avoid tax evasion. Political stability is another governmental factor that can influence working
way of TK Maxx as it is very essential for foreign company to have sustained ruling party as
frequent changing policies can easily affect business activities.
Economic factors
The economic factors that can affect operations of TK Maxx are inflation, rescission,
employment rate, etc. as company operates in that country so it will get affected by these factors
eventually. In addition to this availability of skilled, semi skill and unqualified employees highly
influence organization productivity level. Every business require adequate numbers of all types
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of employees to make a structural hierarchy of organization (AKMAN, 2020). In India the
company can easily obtain all types of employees as there is large population which might be
suitable for TK Maxx operations. The global recession is another important economic element
that need to be considered while doing economic analysis as the purchasing power of buyers
highly decide profit margin of company. With respect to this TK Maxx is foreign company for
India so adapting all changes can be costly for organization if it can not gain higher turnover.
Social Factors
Social and culture factors are very important to be considered to have an adequate macro
environmental analysis. In India there are numbers of religions and cultures that have different
beliefs and values that can highly influence business activities of retail industry as not matching
with taste and preference of customers can result into low sell of organization (Paurova and
Gregova, 2020). TK Maxx can gain competitiveness by selling fashionable clothes as youngsters
of India are attracted towards branded designer clothes that can help it to establish in new
market. It can be difficult for new company to entertain all segment of country as each section of
country have different likings and dis-likings so selecting a portion of market in initial stage can
help business to attract a part of industry.
Technological factors
Technology provides new way of connecting with customers which can be implement
with help of new business based platforms. It has become easy to translate any one language into
another so linguistic barrier can be avoided with assistance of advanced technology. In India
youth and other mass of population are ready to accept such changes to enhance their skills and
to available higher quality products. With respect to this TK Maxx has opportunity to use these
platforms by utilizing technology to get connected with buyers so that it can also get feedback
from consumers which assist institution to make improvements.
Environmental Factors
Every country has some specific standards for protection of environment that operating
companies need to comply with. In India government make strict regulations regarding pollution
and conservation of resources (Phan, 2021). TK maxx highly focuses on environment protection
by making its employees aware about cleanness and recycling of waste material. TK Maxx can
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get the opportunity to attract customers by making them notice of its corporate social
responsibility that will give positive impact on customers.
Legal Factors
Changing in rules and regulation of labour law, employees' salary, trade policies, etc. are
legal factors that affects the company's working way . Every company operating within nation
have to follow these laws and legislation for avoiding legal complications. TK Maxx also need to
corporate with these legal factors for efficient and effective working of organization. Internal Analysis
VRIO Analysis
Resources and
capabilities
Valuable Rare Costly to
Imitate
Organized Competitive
performance
Brand Image    Partially
competitive
Supply chain
management
    Sustainable
competitive
advantage
Technology     Sustainable
competitive
advantage
Product
innovation
   Partially
competitive
Pricing
strategy
    Sustainable
competitive
advantage
Financial
stability
   Partially
competitive
Customer
service
    Sustainable
competitive
advantage
From the VRIO analysis it can be interpreted that TK Maxx has supply chain
management, technology and pricing strategy as its sustainable competitive advantage
(Hernández and Garcia, 2018). In addition, it has brand image, product innovation, and financial
stability as less competitive ascompared to its other resources (Rengarajan, Moser and
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Narayanamurthy, 2021). For entering into new market it needs to have good financial stability
and other resources to deal with any contingent situation.
Marketing Strategy (STP)
The marketing strategy for the newly entering TK Maxx brand in India can be defined as
the prospective plan to reach its target customers. Efficient marketing strategy can be build in
respect of proper segmentation of the customers, targeting and accordingly positioning the brand
in the minds of the people (De Mooij, 2018). The strategy derived must be focused based on the
customer taste and preferences.
India shall be the right market for the brand it has the most cheaply available resources in terms
of labour which can be exploited by the British company. Also, because India has the availability
of the range of the rich and poor people, so the main marketing strategy that the company has of
selling the products at the off-discount price with the motive of making the labelled brands
available to all (Kotabe and Helsen, 2020).
Segmentation:- It can be defined as categorization or division of the target market of a
company based on its characteristics so that specific needs of the niche market can be catered.
Various groups of prospective customers can be divided on the basis of demographic,
geographical, psycho-graphic and behavioural factors of the population of India.
The segmentation of TK Maxx can be majorly conducted based on the demographic factors of
India. The characteristics of the Indian population in terms of age, gender, income, education etc.
can be used to group the customers and then build focused penetration strategy to capture the
market (De Mooij, 2019). The major division is built on the categories of gender that is male and
female. As it operates in the clothing, footwear and the accessories segment it offers separate
products for the male, female and the children's in the separate departments. Apart from that they
also categorize on the basis of the income groups like high income, middle income and the lower
income groups. On the basis of these divisions the products are offered, the high and the middle
income group consumers can afford the labelled products at the retail price. Whereas off-
discount rates are offered to the lower income groups of the society who wishes to use the
labelled and the luxurious brands.
TK Maxx also divides its customer based on the psycho-graphic elements in the society like
interests, values, personality traits and the attitudes of the customers (Baena, 2019). The
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offerings shall be based on the beliefs of the people which creates the value for the money of the
customers.
Targeting:- It shall be referred to as the marketing plan to target the specific audience in
the segmented market and meet their specific needs. The process of targeting can be carried out
by mass marketing, differentiated marketing and the concentrated marketing. TK Maxx in order
to enter the Indian markets shall be adopting the differentiated or segmented marketing strategy
to prosper. This approach is best for the brands to identify the target segments and then make
concentrated strategies for tackling each segment (Kasemsap, 2018). The customers get the
labels they adore at the prices they love is the prominent mission of the company.
For the youth of the country specific department is formed “mod-box” whether they can find the
items as per their tastes and preferences.
Positioning:- The positioning strategy is one which tries to influence the perception of
the consumers by effectively placing the brand in the minds of the consumers. It helps in
developing awareness as well as a positive brand image of the products that are offered by TK
Maxx. The higher income group people prefer the products that are luxurious and sophisticated
in nature, so in order to create brand image among such groups of people the brand must be
positioned as high quality and priced brand (Green and Keegan, 2020).
The major positioning strategy of TK Maxx is market penetration through lost cost strategy. To
position the products effectively they shall be selling the labelled goods at the 60% off retail
price to capture the maximum market share. Its strong digital market presence helped it to
ascertain that whether its strategies to position its brand are showing impacts on the reviews of
the customers. As Indian mentality is more of preferring discounts this shall help them further to
better position their brands among the target customer groups.
Marketing Plan (Marketing Mix)
A comprehensive marketing plan shall be discovered covering all the major areas of the
company in the form of marketing mix. The components of the marketing mix like product,
price, place and the promotion, for which effective strategies need to be formed. These elements
shall be working in conjunction with each other.
TK Maxx also shall focus on the marketing mix of the company so that they can make the
effective strategic decisions and can expand their business into the new markets by capitalizing
on the strengths and working on the weaknesses as posed by the markets of India.
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 Product- The product of TK Maxx are in the lines of clothing, footwear and the
accessories. In order to introduce its brand in India it has to design its products such that
it satisfies the needs and wants of the target consumers of the country. The products it
creates should be based on the preferences of the customers that are segmented (Agarwal
and Wu, 2018). The products must be differentiated from that of the existing competitors
in the industry so that competitive advantage can be generated. In the country like India
the products has to be diversified based on the culture and tradition of the people. Price- It is another element in the marketing mix of TK Maxx which is highly focused
upon to build edge over the customers. The low cost pricing strategy is used to
differentiate and penetrate in the markets. This can be effected by the bulk buying and
vigilantly controlling the cost through producing at the economies of scale (Steenkamp,
2017). By operating at low cost differentiation strategy they are able to generate better
profits as against occasionally providing the deals like buy one get one free, money-off
deals etc. They make their labelled goods also available at discounted rates for those who
cant afford the retail price. This strategy helps it penetrate into the markets and acquire a
larger market share.
 Place- This component of the marketing mix shall include the channels of distribution
that are used by the company. It can include the various levels that are there between the
company and the buyers of its products. The selection of these channels shall be
dependent over the various factors like competitors, cost and the customer preferences.
TK Maxx shall use a very short channel of distribution of buying the goods. For buying
they use different means like the wholesale, retail, manufacturer or a supplier which is
referred to as the opportunistic buying system (Griffith and Lee, 2016). It has unique
approach from that of the competitors whereby it keeps different logistics,
distribution network and warehousing. But for the purpose of selling the goods they
shall employ the vast distribution network which shall be spread across the country to
generate brand awareness.
 Promotion- It is the major component in which activities like advertising, personal
selling, sales promotion and public relations takes place. These are essential for any
company who is planning to enter the new markets where there is no existing identity of
the brand (Schlegelmilch, 2016). Promotion shall be helpful spreading appropriate
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information, contributing to customer traffic and ultimately maximizing the profits and
sales of the company.
TK Maxx shall be using aggressive marketing strategies like extensive advertising
campaigns to promote the goods and services of the company. Its strap-line that it uses
“Do it yourself ” promotes the individuality of the variety of people and their fashion
sense. Apart from that majority of the promotions is also conducted uses the digital
marketing channels by heavily depending on the social media applications. This helps
them in knowing the changing market trends and the reviews helps us to derive at the
tastes and preferences of the consumer.
CONCLUSION
It can be summarized from the project that for any business to enter new markets globally proper
planning regarding the marketing of the products and services has to be done. The internal and
external analysis of the company shall highlight its strengths to enter newer markets based on the
opportunities that are provided by the market. Before entering the market analysis of the various
competitors already existing in the industry is very important. Based on the competitors
strategies the company shall form their own strategies which are differentiated and unique to
capture the market share. Apart from that marketing plan as to segmentation, targeting and
positioning are also an important part of strategy formulation. The segmentation and targeting
shall help in defining the target market and the niche market that is to be focused. And finally the
product is positioned effectively to persuade the buying decision of the prospective customers.
Marketing mix elements are also defined in terms of 4P's which determines the approach that is
used by the company and the strategies in respect of product, price, place and promotion is
ascertained.
RECOMMENDATIONS
There can be certain recommendations for TK Maxx in order to expand its market in India:-
 To enter into the Indian markets which are diverse in nature, firstly the TK Maxx needs
to identify that whether there is demand for its products, who are the major competitors,
who are the target market segments, which resources of the country can be exploited and
shall be cheap and what are the challenges that will be faced by the company.
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 Since in India there are higher levels of political instability so the company needs to
study that factor and also ascertain and how will the threats as posed by the external
environment be improved by the company.
 Availability of the various resources is also a factor that is to be considered by the newly
entering company like proper infrastructure, labour, technology and other raw materials.
 Economic factors like the taxation policy, foreign exchange, current status of the
economy etc. are the factors that shall also be affecting the business of the entering
company.
 Intercultural competence is very essential for the company to operate globally. The
knowledge about the culture and tradition shall be very important to smoothly and
efficiently conduct the business in foreign countries.
These are some important elements to be studied before any global expansions to be made.
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