TJX–parent company of T.J. Maxx and Marshall’s–has cleverly launched its first joint marketing campaign, per MediaPost’s Marketing Daily article, TJX to Launch Joint Marketing for T.J. Maxx, Marshall’s, Seek Shopping Interventions.
The advertising spots: fashionistas chase down errant friends and admonish them for paying full price on their latest clothing purchases. In true friend fashion, they chide their pals’ errant ways and offer their assistance: “Are you ready to take the first step?” Thus, the term “shopping interventions.”
All of this as the article states: “In an effort to convince recession-walloped women that they can afford to shop”. This is clever in more ways than one. First, it shows women that they can buy the latest fashion brands and save a lot in the process. According to TJX claims in its new marketing push, they’ve saved consumers 1 billion since January.
Second, as a TJX spokesman succinctly pointed out in the article: “There are many shoppers who don’t shop the stores because they don’t understand the off-price concept. Given the economy, this is the perfect time to educate them on the concept of off-price and why it’s the better way to shop. And what better way to learn than from friends who are in the know?”
Great strategy, in my view. Department store sales continue to deteriorate and there is a real “shopportunity” to borrow Marshall’s coined word for consumers to buy smarter and TJX to benefit, by extension. It’s wise for the retail group to push its underlying value more than ever now.
Why scream about discounting and slashing prices when you can tout designer labels, a constant flow of fresh, branded merchandise and everyday off-price bargains? How’s that for value in a depleted economy? Consumer proposition: why would you pay full price when you don’t have to?
And how about using a poor economy to further solidify TJX’s retail brands? No better time than the present. This is a shrewd move. By running ads in major TV markets and launching a guerilla marketing effort in 9 key cities–New York, Boston, Los Angeles, Chicago, Philadelphia, Washington DC, Atlanta, San Francisco and Miami–TJX is positioning itself to pick up new customers and more volume.
As the article states: “As consumer demand continues to build–after all, the average consumer can go only so long before needing to freshen up her wardrobe somehow–some off-price retailers appear to be better positioned to gain sales”. Exactly.
Questions:
* What do you think of TJX’s new marketing campaign? Do you think it will be effective? If not, what do you think they should do instead?
* Since almost every discount retailer screams about low, lower or the lowest pricing, what do you think they should do instead to promote their value?
* Which discount or off-price retailers do you like and why? What is it about their marketing approach that makes you want to buy?
I’d love to hear from you.
Related posts:
Ted,
This sounds very much like Target’s marketing strategy some years ago–”to educate them on the concept of off-price and why it’s the better way to shop.” It occurs to me that this strategy is always appropriate for retailers.
Although not off-price, Starbucks, as one example, used this strategy to grow it’s business. Educating consumers to our value, should represent an ongoing Marketing effort, no matter our products, services, and price points.
Good insights, Lewis, and I thank you for sharing them with us. What also occurred to me after writing this post is that retailers have a number of challenges in a tough economy. . .not the least of which is e-tailing. Internet retail sites are constantly making huge inroads vs brick and mortar retailers, further eroding their business. It is going to take a great deal of ingenuity to demonstrate their value, for retailers of every stripe to survive.
Ted, hmmm, this positioning is probably the right route for off-price retailers but they are facing pretty tough competition from retailers like Macy’s that are offering very aggressive sale prices–sometimes throughout the store. Lots of competition for fewer dollars.
Paul, department store retailers like Macy’s are in a lot of trouble. While competition is intense and fewer dollars are being spent, consumers continue to shun department stores. Service is generally abysmal, unfortunately. Remember that stores like Macy’s built their brands on service and enjoyed great success when they lived up to their brand promise.
With its value proposition now, I believe TJX has a great opportunity to pick up more business and customers than it has ever had. . .a continuous flow of fresh, fashion merchandise, excellent pricing and numerous locations make it very alluring to shoppers.
Thanks for weighing in, Paul. I appreciate it.
Ted,
I can share some additional insights into TJX because we have done business with the company in the past. First, unlike most retailers, TJX pays its bills net 30, so manufacturers are eager to ship to them. Second, they can snap up merchandise from canceled orders by major retailers quickly. Third, some designer label merchandise is made specifically for TJ Maxx and Marshall’s due to their volume potential, and the fact they pay their bills in a timely manner. All of these things add up to being positioned as a fashion-forward retailer with a constant flow of fresh, desirable merchandise. If the current advertising works well in bringing new customers into the stores, then the strong assortments and pricing–their value proposition–will either ensure they’ll be back, or fail to win them over. I do think TJX is taking the right approach for their brand and for the times.
Claire, I appreciate the additional insights. Spoken like a true marketer: positioning and value propositions will never go away. They are very much part of the equation for all brands. How companies work to build their brands in changing and sometimes challenging times is very much part of the conversation, isn’t it? Thank you for weighing in, Claire. I appreciate it.