What is the main marketing challenge now facing the TJX?
In order to withstand competition, the company TJX needs to focus on the marketing messages that should be conveyed to clients. In particular, the organization should lay stress on the idea that shopping in TJX is the unique experience that customers cannot gain in any other store. In turn, one should elaborate on this argument in greater detail. It should be mentioned that TJX is an off-price retailer that sells branded products at a discount.
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The organization can achieve this goal by providing off-the-season goods or items manufactured by companies with excessive inventory (Kerin and Hartley 336; Armstrong 432). Additionally, this company often purchases canceled orders from manufacturers. As a result, this organization continuously offers “rapidly changing merchandise” (TJX Companies par. 2).
In their turn, many customers enjoy looking for various fashion goods (Kerin and Hartley 336). In many cases, they like this unpredictability of merchandise because they can always find a good bargain. This is why they choose TJX among other retailers.
It is vital to remember that the business model of TJX is emulated by other companies. For instance, one can mention Ross Stores (Lewis and Dart 30). The management of this company adopts a similar approach to the pricing policies and selection of goods. Apart from that, this strategy can be applied by conventional discount stores.
For instance, one can speak about such retailers as Wall-Mart and Costco. Each of them can reduce the prices of branded clothing by improving their supply chain operations. Thus, they can erode the market share of TJX. This is the main threat that should be taken into account by the management.
Therefore, the company should focus on the marketing messages intended for the target audience. In this case, one can speak primarily about women aged between 25 and 50. They are more likely to purchase products from TJX. Overall, one should highlight the idea that TJX is the store where clients can always expect to find new brands or new types of products that are usually more affordable.
More importantly, customers can always expect the highest quality of services from shop assistants who can help a client find a new article of clothing. Their commercials should show that the company can offer such benefits as affordable branded products, high quality of services, and an unpredictable selection of merchandise.
Overall, this approach to marketing can enable this company to retain its competitive advantage. Admittedly, it is not the only step that the management should take. For instance, they should work on the development of the supply chain. Nevertheless, marketing messages will be more important for gaining and retaining new clients. The critical task is to show that the company does not only set lower prices. More likely, it enables customers to enjoy shopping activities. These are the main issues that can be distinguished.
Why is this main challenge more important than other problems or opportunities the firm may be facing?
Admittedly, it is possible to identify other challenges that this company should not overlook. In particular, one should consider the growing popularity of online retailers such as Amazon or eBay. They have been able to erode the market share of traditional brick-and-mortar stores such as TJX or Gap. Nevertheless, the challenges can be addressed.
One should keep in mind that the company also intends to operate online. Therefore, this organization can reach clients via the Internet. It is much more important for this company to explain its value proposition to potential clients who should distinguish the company among other retailers that also try to cut the prices of goods.
Furthermore, the company should find ways of increasing the number of potential buyers. For instance, they should be able to reach both males and females. Additionally, they need to find ways of attracting young adults. These tasks are also very important for financial growth. Nevertheless, the company can attain these goals only if they can demonstrate the main benefits they can offer to shoppers. This is why this task should be viewed as the main priority.
Apart from that, the company should work on the development of the supply chain and increase the number of vendors. In this way, they can widen the range of products available to consumers. This task will be important for the ability to TJX to withstand the competition of businesses like Ross Store, however, the performance of this company is more likely to be impaired if the company does not focus on the retention of clients through marketing. This is one of the main aspects that should be considered.
Overall, TJX has been able to become a leading retailer of apparel due to the use of unconventional business model. Many customers perceive this company as a valid alternative to discount stores. Nevertheless, the management of the company should explain that pricing is not the only benefit that they can provide. Buyers need to see that they will enjoy spending time in TJX stores.
This idea should be explored in various marketing messages, such as video commercials or posters. This recommendation is based on the premise that companies should identify a niche they want to occupy. More importantly, they need to explain that other businesses cannot offer comparable goods or services. These are the main suggestions that can be made.
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Armstrong, Gary. Marketing: An Introduction, New York: Pearson Education, 2009. Print.
Kerin, Roger and Steven Hartley. Marketing The Core, New York: McGraw-Hill/Irwin, 2015. Print.
Lewis, Robin and Michael Dart. The New Rules of Retail: Competing in the World’s Toughest Marketplace, London: Palgrave Macmillan, 2014. Print.
TJX Companies. “What is “Off-Price” Retailing?” TJX. Web.