Detailed Marketing Analysis of TK Maxx: Strategies and Theories

This report provides a comprehensive analysis of the marketing strategies employed by TK Maxx. It begins with an overview of TK Maxx's portfolio, including its in-store and out-of-store elements, store layouts, special offers, and customer relationship management. The report then delves into the promotional techniques used by TK Maxx, such as advertising, digital marketing, and social media marketing, providing examples and visual aids to illustrate these strategies. Furthermore, it examines the company's Segmentation, Targeting, and Positioning (STP) management, as well as its CRM practices. Finally, the report applies three key marketing theories, including the communication process, to the context of TK Maxx, offering insights into how these theories influence the company's marketing efforts. The report concludes with a summary of the key findings and their implications for TK Maxx's marketing success.

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: