Orland Malziu
BUS 141
10/23/2017
Marketing Plan
T.J. Maxx: All of Your Favorites in One.
With trends constantly changing, along with the economy fluctuating, fashion seems to
have become a luxury only the upper-class can afford. However, a company like T.J. Maxx adds
variety, style, and money in your wallet. They differ from your typical manufacturer, outlet, and
department/designer store. How so? T.J. Maxx is all of those combined, with prices that plummet
20%-60% below the original retail price. There are no limitations as to colors, styles or fabrics;
the quality showcased in the store, is nothing less than you’d find at the designer store it came
from.
Your nearest T.J. Maxx will most likely be the one located in the Town Square Plaza, in
Vestal, New York. In the plaza, you will also find many other options that will suit you and your
family to a great night. From planning a movie night at AMC Loews, to treating yourself to some
frozen yogurt at Sweet Frog. Not only is the plaza limited to entertainment and clothes. But you
will also find all of your household needs, with SAM’S Club and Walmart at your service. What
other way to save lots of money, and find everything you’d like in one location. T.J. Maxx is
definitely unique, there’s a reason the company has only experienced a loss in one year, out of
the 40 years they’ve been in business. There are a few tactics TJX uses to maintain and execute
their business. Along with the six marketing forces that affect the company.
The tactics used by TJX, has influenced their success exponentially throughout the recent
years. (refer to Fortune) The company has an annual sales revenue of $27.4 billion, which has
risen 50% over the past six years. Not to mention TJX shares have skyrocketed 200% within this
time period. While most companies, especially department/clothing stores, have had to resort to
becoming an online-only market; TJX has maintained and excelled over the recent technological
spike consumers have created. How’s this possible? I believe this has a lot to do with the
utilization of the strategic planning by company. (p26)
They’ve managed to effectively develop a long-term customer relationship. As well as, using
their economic force, which includes thousands of stores world-wide to minimize the cost of
spending. Partly by the way they purchase, handle, and capture a customer relationship with the
shopping experience. By being effective and efficient in this aspect, resulted in TJX being one of
the most lucrative off-price companies. Their inventory turnover rates are one of the highest in
the retail market. Merchandise is sold so fast, that they have a “door–to–floor” approach, which
minimizes the resources needed for storage and more employees. To add onto that, whatever
items that aren’t sold within several weeks, an additional discount would be added. By having a
wide array of luxury apparel, to your everyday clothing, enhances the consumer experience due
to the “shopping gems” hidden throughout the store. Along with many other factors that you’d
just simply have to go and see for yourself, TJX definitely has a positively unique way of
captivating the consumer’s shopping experience.
TJX, along with every company has many different outside forces that either benefit, or
restrict the business to some extent. These forces include: Economical, Political, Competitive,
Sociocultural, Technological and Legal/Regulatory forces.
Economic Forces
The economical force is relatively beneficial for the organization. The size makes it
possible for them to buy in bulk, which allows them to save big. Also with the thousands of retail
stores nationwide, and recently expanded overseas, they have the opportunity to spread their
merchandise. However, most of the vendors that work with TJX, do not advertise that they are
involved with off-price retailers, assuming the loss of profit the vendors would undergo.
The way TJX deals with their vendors, in my opinion is how they maintain such a
successful relationship. Most department stores have policies that will back-charge their vendors
for late deliveries and returns; TJX is the exact opposite. Another tactic used to give TJX an edge
economically, is that they typically wait longer to buy off vendors. This gives them an
opportunity to update their knowledge on the latest trends, but also will result in a lower buying
price.
Political Forces
Political factors include trade regulations and tariff’s related to services, especially due to
the fact that TJX has expanded to the UK & Europe. The decision to join the global market, TJX
corporate leaders must maintain healthy relationships with government. Due to the fact that
politics influence the enactment of laws. Involvement in helping elect officials through campaign
contributions; those who positively back our mission statement and presence.
Legal & Regulatory Forces
Legal & Regulatory forces include anti-trust laws, discrimination policies, employment
regulations, copyright, patents /intellectual property laws. Dealing with these legal and
regulatory issues, TJX’s Social Compliance Committee, hold meetings to oversee their ethical
sourcing initiative. This committee is comprised of senior board members from the U.S, Canada
and Europe. Their “Vendor Code of Conduct” prohibits any involuntary labor, as well as goods
being manufactured in compliance with all laws and regulations. The company also conducts
third-party audits, to evaluate and expose the risks of forced labor, slavery and human
trafficking. Thousands of audits have been initiated since 1999. TJX also has a Global Social
Compliance Manual, which is in seven languages that’s composed of audit procedures, and
factory evaluations. “Vendors are expected to cooperate fully with the audits, to provide auditors
with full access to their facilities, employees and documentation.” (TJX.com)
Sociocultural Forces
The sociocultural influence includes factors such as demographics, the culture & recent
trends arising in the market. Along with the nature of the society, if a store is located near BU,
like the TJX in the Town Square Plaza. It’s surrounded by an entrepreneurial culture, college
students already have many worries, spending too much money to look good shouldn’t be one of
