Marketing

Memo: Briefing and critique of three companies

TJ Maxx

TJ Maxx is a discount department store. Its market strategy is to target the bargain shopper, but a bargain shopper of the middle class and upper class who 'knows' the value of a designer label at a discount price. Thus, although the corporate strategy is far-reaching, the market targeted is relatively narrow and segmented and it sells many items, rather than focusing on one or two.

The Kellogg Corporation

TJ Max's relatively segmented marketing mix is thus in sharp contrast to Kellogg, which targets a wide array of consumers, with a wide array of cereal and breakfast products. Kellogg's specific marketing strategies are highly dependent upon the product it is selling, focusing on health with its oat and rice cereals, for instance (including Product 19 and Kellogg's Raisin Brand) as well as an emphasis on fun and humor, such as with its kid oriented cereals as frosted flakes.

Hershey

The Hershey Chocolate brand is not simply a brand name, but an industry. Hershey Park has become synonymous with chocolate products. Unlike top of the line chocolates such as Godiva, Hershey largely targets middle-class consumers of chocolate, who consume chocolate regularly, rather than as a luxury.

SWOT Analysis

TJ Maxx's strength is its ability to sell products at a high rate of turnover its strong market segmentation. However, because it does not specifically have a brand name, a specific focus as a department store, or even an image, as it targets bargain shoppers of a relatively wealthy stratum, it has low visibility as a company. This may be contrasted to Hershey, which has a strong product brand name, but may recede in its positive associations around the nation because of increased health consciousness and also increased interest in gourmet consumption of chocolate products. Hershey is synonymous with chocolate, even when it is not selling that particular item. Kellogg's brand is not as dilute as TJ Maxx nor its market as specific as Hershey, as it can target individuals who consume 'real food' as well as candy -- however, its relatively bland brand name pales in recognition to the far-stretching recognition of Hershey around America.