Discuss about the Development and Efficiency of Business Method.
There are various organizations that function in the modern world with the aim of earning profit and maintaining a strong market share. The organizations functioning in the current economy try to maintain their share in the market by attracting new customers and retaining the existing customers with the help of quality products and services. It is known that the organizations strategize their business plans according to the changing tastes and preferences of the consumers and therefore, the companies analyze the market to stay updated with the requirements of the consumers.
Retail market is one of the most demanding sector in the economy and therefore, the firms construct retail management programs to properly guide their operational activity. Retailing is a set of business operations that provides value to the services and products that are sold to the customers for their family or personal use. An effective retail market involves proper identification of the target along with the retail mix that are undertaken by an organization (Kim, & Mauborgne 2014). The firms need to choose an ideal target market where there is a demand for the product or service that are provided by the firm.
The current report is prepared with respect to Winners Merchant International L.P, which is a subsidiary of TJX Companies operating in Canada. The firm is a renowned off-price departmental stores that provides branded products like footwear, apparel, clothing, furniture, jewellery etc for the consumers of Canada (Koncar & Lekovic 2016). The organization is an off-price store that offers extensive discount to their customers on various branded products. The discounts offered by the firm attracts new and potential customers and thereby raising the brand value and revenue for the organization. The paper concentrates on the target market and the retail mix strategy that are undertaken by the company in order to increase their sales and the criticisms they face with respect to their retail mix strategy from other researchers and analysts.
This section of the paper critically analyzes the target market, retail mix strategy and the criticisms faced by the organization with respect to their retail mix strategy from various sources in order to undertake further improvements.
The word target market refers to the strategy undertaken by any firm in order to focus on a specific group of consumers and identify their needs and preferences and accordingly manufacture the product and services and place them in the targeted market in order to increase the sales and revenue of the firm (Liu et al., 2016).
Winners Merchant International L.P dictates the market for off-price apparel. It is seen that the company even owns two of the largest discount retail chains namely TJ Maxx and Marshall’s. The company has created a record with respect to operational excellence and judicious growth thereby increasing the wealth of the shareholder (Baker 2014).
Winner’s Merchant International L.P has a simple formula for selecting the target market. It is known that the company sells branded products at more than 20%-60% discounts with respect to the prices of other departmental stores. They provide such massive discounts by purchasing the clothes and other apparels in bunch, which offers discount to the firm (Pashupati et al., 2016). The firm on the other hand, transfers a part of this discount to the consumers by offering them a massive discount. The organization concentrates on the overall demographics of the country as the products they sell are of various kinds. In particular, the firm tries to target women ranging between 25-54 years old who belong to low to higher income group. The organization does not have a particularly innovative or groundbreaking target market strategy, but it does a reasonable job in reverberating with the target customers. It is seen that in the last six months, the company has undertaken immense promotional strategies in order to attract new and potential customers (Smith 2016).
Winners predominantly focus on women as most of the products offered by them useful to women. Winners being an off –price departmental store has variety of products under one roof. Therefore, consumers who are need of purchasing goods for their families get all their desired products in one shop. The discount offered by Winners is actually strategized to attract lower income group into their customer line as low price of a branded product induces the lower income people to be their potential customers for purchasing quality products at a reasonable price (Shamsie 2016). The company runs an integrated marketing effort for their brands in TJ Maxx, Marshall and Home Sense that has an impact on the mindset of the consumers with respect to the need for value. The subsidiaries of Winners Merchant International have different target market as their area of expertise are different.
Home Sense provides home accessories like furniture and home goods for the consumers at a reasonable price and therefore, they attract newly married couples who are settling their new family. Extensive discounts to the newly married couples on furniture and other household products increases the sales and revenue for the organization. TJ Maxx deals with apparels and clothes sells fashionable and trendy outfits in their stores offering huge discount on international and renowned brands (Dibb & Simkin 2016). Therefore, they concentrate on targeting the teenagers and the young adults who wear such outfits to look attractive and trendy.
Marshall another brand of Winners Merchant International L.P mainly sell fashion, footwear, cosmetics and other household items. Their target market constitutes of the entire demography as the products they deliver can be consumed by anyone. The organization try to attract people from the moderate income group and mainly women as the products offered by the firm are mainly useful for them (Ulwick et al., 2016).
Winners target the whole economy as their market as they offer variety of products for sale that can be handy to everyone (Grant 2016). The company being an off-price store offers extensive discounts on branded products and therefore, attracts new customers that leads to the increase in market share and profit for the organization.
The retail mix of the company has been identified in form of the factors ranging from goods and services offered location, pricing and the various types of the personnel needs.
Some of the main products of the company have been identified in form of various types of products Clothing, footwear, furniture, jewellery, beauty products, toys, house wares and bedding products. The main products have been identified in form of opening the first off price store, which has been setup in Canada in 1982. Since 2001, the company has been seen to collaborate with Home Sense, which is identified as one of the leading home accessory. The company has been seen to deal in this along with brands such as Dylex in 2001. It has been further identified that the various types the other products offered by the company has been directly been seen in terms of premium brand of the clothing’s line of items. This has been identified in Marshalls, which is seen to offer varied range of merchandise to consumer who is looking for fashionable products (Terblanche, 2017).
Being an off price retailer Marshalls is able to offer value to the consumers in terms of offering various range of the products in a clothing item. It has been further seen that Marshalls is able to deliver 20% to 60% discount in the various types of the clothing items. Hence, unlike the regular departmental stores, the brands under the Winners are not seen to involve in any promotion or sales operation. The main pricing strategy of TJX has been further identified to be a low cost structure strategy (Litvin & Rosene, 2016). This has allowed the savings to customers and brings profit to the shareholders at the same time. It has been further observed that the company has been seen to manage the various types of the resources in form of the avoiding the costly markdowns. The various types of the inventory has been able to get the advantage of careful quantization of the cost components so that the consumers are able to reap the most benefit out of the different types of the items which are seen to be available with the company. The key statistics of TJX has been able to show that the company has been able to contribute with total revenue of $ 21.58, net income of $ 1.48, EPS of $ 3.40 and net margin of 6.6 %. It has been further discerned that the various types of the pricing strategy set by the company has been able to maintain return on capital of 38% (Antoni & Basso, 2016). Some of the more number of the variations in the company has been further observed in terms of the discounts, which are offered in the special occasions. In addition to this the company is seen to use a clever technology of tracking the personal needs of the consumers and further relating the different aspects of the needs which are seen to be related to the providing the discounts by relating the various types of discounts with the personal life events of the potential buyers (Cachinho, 2014).
The various types the strategies adopted by the company to meet the personal needs of the company has been identified in terms of the being staying up to date with the different range of the clothing items as well as the home furnishing needs. It has been further observed that the various types of the products offered by the company has been to relate to the various necessities of the consumers and the brand of products they want to deal. In regards to this, the company has been seen to follow a progressive strategy in which it has been able to identify the various types of the requirements which has been seen in terms of the trends analysis for depicting the various types of short term and long term needs.
The main location of the company is ideal to attract large number of customers. The customers of the company based in Canada have been seen to respond positively in terms of the various types of the products such as toys, bedding, clothing and footwear. The specialty departmental stores situated in Canada have been seen to be the most contributing factor towards the sales of the company. It has been further observed that the company is seen to deal with various line of items of the products in US market also. Hence, these two location of the market of the company has been seen to be conducive in drawing more number of the customers and in generating more amount of the sales for the company (Berens, 2015).. The most dominating market of the store has been observed with 255 departmental stores situated in Canada and the company is able to provide the most amount of the price off in this region. It has been further observed that the company is able to get a sales of more than 60% from the stores located in Canada itself (Reference. 2017).
As per the different types of the analysis based on the marketing and the financial perspectives the company has been seen to own more than 1700 stores both in US and Canada. Despite of contribution of 61% in the previous there has been seen to be several scope of improvement for the company to be made in terms of customer sourcing ad and increasing the financials. It has been further observed that the company needs to take considerable step in reducing the various level debts taken by the company. It has been further observed that the company has the ability to support the various types of the new openings in TJX. The important considerations made by thee company have been further identified in terms of increasing the sales abroad. As per the latest operations of the company, it is already able to contribute to the various types of the business operations present n Canada. The various types of the expansion plans taken by the company will be conducive in increasing the sales abroad. It has been further seen that the company can increase its range of the products and introduce more number of items in its products. Some of these items has been able to be seen with the inclusion of sunglasses and watches (Imran et al., 2013). By collaborating with companies such DKNY, Police and Casio, the company will be able to have the scope to include broader range of the items in its product line. It has been further discerned that the various types of the opportunities of the company has been seen in terms of the focusing on the higher age group of the consumers. The different types of the other opportunities have been identified in terms of the expansion in the EU stores of TJX. Winners Merchants International has been further seen to improve the different types of the operations of the company in the (Homsense Ingene & Takahashi, 2014). The company can consider introducing more amounts of brands to this section. The different types of the other growth opportunities have been able to be further discerned in form of looking for new expansion opportunities in the Asian Market. The different types of the other consideration can be made in seeking for in joint ventures in EU, US and Canada market (Warnaby & Medway, 2017).
The main form of the recommendation has been identified in form of customer sourcing ad and increasing the financials. It has been further observed that the company needs to take considerable step in reducing the various level debts taken by the company. The main form of the recommendation has been discerned in form of making more avenue to introduce departmental store. It has been also observed that the Winners Merchants International can go into more number of collaborations for seeking for new areas of profit.
Conclusion
The different aspects of the study have been able to provide a comprehensive report on the “Winners Merchants International”. The important discussions made in the study has been able to Identify the its target market, provide the relevant description on the retail mix. This has been seen in term of the various types of the discussions related to factors ranging from goods and services offered location, pricing and the various types of the personnel needs. The main discussions made in this section have been able to focus on the important aspects of the research which are seen to discuss on the existing brands of the company such as Homesense, Marshalls and Tjx Style. The latter part of the report has been able to emphasize on the growth opportunities has seen in terms of areas for potential improvement in retailers mix. The final part of the report has been able to provide recommendations; including improving the operations of the company in Europe and looking new market penetration in the Asian market.
Reference List
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