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The TJX Companies Inc.’s Marketing Plan

Introduction

TJX is one of the leading fashion retailer company in the USA, Canada, and Europe. The company offers business-to-consumer (B2C) products: apparel and home garments. TJX performs over three thousand stores worldwide, and its annual profit equals to over $29 billion per year (The TJX Companies, Inc., 2015). Nowadays, the company takes an advantageous position in the market and continues to grow. Competitive marketing strategies, product diversification, and efficient pricing policies contribute to TJX’s excellent performance in the industry.

Product

The main features of the company’s branding efficiency are “brand awareness” and identification, a wide scale of placement, low-pricing strategies, the value of customers, and quality (Corral, 2005, p. 1; Perreault, Cannon, & McCarthy, 2014). The TJX product range is wide and diverse. The business includes the operation of such brands as T.J. Maxx, Marshalls, HomeGoods, Sierra Trading Post, etc. Women, men, and children’s clothes can be purchased in the TJX stores. The high quality of TJX goods and services maintain a high “shopping frequency” and persist in attracting new customers (MacroConsultants, 2014, par. 3). The products are designed in compliance with the diversification strategies and up-to-date fashion trends. The garments are designed to meet the needs of many and, at the same time. They reflect the distinct and recognizable styles of the brands.

All the brands and stores are in the direct possession of TJX. The company implements a B2C strategy providing heterogeneous products for its customers. Along with owning the physical stores, it conducts e-commerce business. For the traffic increase, the company plans to introduce a couple of new brands and add the multiple “exclusive selection categories” to its online shops (MacroConsultants, 2014, par. 2). The representation of products in the electronic retailing is considered one of the most “effective strategies to secure sustainability for comfort-zone and growth-oriented enterprises” (Ashworth, 2012, p. 165). In combination with the extensive assortment of products, the distribution, and marketing strategies applied by TJX lead to favorable outcomes.

Competitive Advantage

Diversification of products and brands can be regarded as one of the crucial TJX’s core competitive advantages. The company constantly expands the range of brands both in physical and online stores. The wide assortment supported by the customer-oriented approach contributes to the “enhancing greater shopping among its chains” (MacroConsultants, 2014, par. 3). The products offered under the various brand names meet the demands of a large number of people. TJX diversifies its products according to gender and age differences as well as social status and the level of income. The customers’ appreciation and loyalty increase TJX’s competitiveness in the market and ensure a high level of profitability.

TJX brands and stores are recognizable. The off-prices along with a good quality of products facilitate the growth of the brands’ familiarity rates. In the long term, the company intends to increase the number of stores and plans to make a focus on European countries (MacroConsultants, 2014). A great number of the launched stores make the products more available for the customers, and the e-commerce business gives opportunities to draw new consumers as well as implement new marketing and advertising methods in the Internet arena.

The excellent quality of products constitutes one more competitive advantage of TJX. Most frequently, quality is a crucial aspect of provoking a high level of customer satisfaction. In a retailing business, customers’ loyalty plays an essential role in the promotion and improvement of the companies in the market. Therefore, the consideration of product quality is beneficial.

References

Ashworth, C. (2012). Marketing and organizational development in e-SMEs: understanding survival and sustainability in growth-oriented and comfort-zone pure-play enterprises in the fashion retail industry. International Entrepreneurship and Management Journal, 8(2), 165-201.

Corral, C. (2005). TJX hopes marketing can offset competition. Home Textiles Today, 26(46), 1-2.

MacroConsultants. (2014). TJX Companies: A closer look at its growth strategies. GuruFocus. Web.

Perreault, W., Cannon, J., & McCarthy, J. (2014). Essentials of Marketing: A marketing strategy planning approach. New York, US: McGraw-Hill Education.

The TJX Companies, Inc.: Our company. (2015). Web.