TM's Marketing Mix and Unique Selling Proposition: A Case Study

TM's Marketing Mix and Its Impact on Sales Targets

The marketing mix plays a crucial role in TM achieving its sales targets. TM offers a wide range of products, including hardware, home appliances, electronics, furniture, automotive parts, and office supplies. This extensive product range caters to diverse consumer needs, expanding its customer base and sales potential.

TM's primary aim is to offer the lowest prices in the market. This pricing strategy is supported by lean production methods, just-in-time (JIT) practices, and outsourcing to minimize costs. By offering competitive prices, TM attracts consumers and maintains a competitive edge.

TM effectively promotes its low prices and extensive product range through various marketing channels, including promotional materials and mission statements. This integrated approach enables TM to capture market share, maintain customer loyalty, and achieve its sales targets effectively.

The Importance of a Unique Selling Proposition (USP) for TM

A USP is vital for TM to differentiate itself from competitors and attract customers. TM's USP is its focus on offering the lowest prices in the market. This strategy attracts price-conscious consumers and enables TM to gain market share and establish itself as a dominant player in various regions.

TM's emphasis on low prices influences its lean production methods, cost-cutting measures, expansion into new markets, and product categories. A compelling USP is crucial for TM's success, helping the company maintain a strong market position, attract customers, and drive growth.

Autocratic vs. Paternalistic Leadership at TM

TM exhibits an autocratic leadership style, characterized by a strict, centralized approach where employees have little to no empowerment. Employees are expected to follow detailed work instructions and procedures without question, with strict practices in place to prevent them from communicating freely or taking unscheduled breaks. TM imposes consequences for employees who voice complaints, maintaining a rigid organizational structure and controlling all aspects of employee performance.

In contrast, paternalistic leadership involves a protective and caring role towards employees. Henri, a manager at TM, demonstrates paternalistic leadership when he chooses not to report young employees who were writing graffiti protesting wages and management style. Instead, he opts to handle the situation himself, showing concern for their well-being and future job prospects.

Key Features of TM Operating as a Public Limited Company (PLC)

As a PLC, TM can raise capital by offering shares to the public through stock exchanges. This access to public capital provides TM with the financial resources necessary for expansion and investment in new markets.

Another key feature is limited liability, meaning the liability of TM's shareholders is limited to the amount of their investment in the company. This protects shareholders and encourages investment.

Impact of External Environmental Factors on TM's Business Objectives

The increasing use of e-commerce by global competitors poses challenges to TM's business objectives. TM faces competition in the online marketplace, which could affect its ability to maintain or expand its market presence. To remain competitive, TM may need to invest in e-commerce capabilities, impacting its distribution strategy and operational objectives.

The trend towards customized production also impacts TM's business objectives. Customized production necessitates a more flexible and responsive supply chain, impacting TM's operational efficiency objectives. Additionally, TM may need to adapt its product range to accommodate customization options.

Analysis of TM's Vision Statement

TM's vision statement is SMART:

• Specific: Clearly aims to have the lowest prices in the market and provide a wide range of goods and services.
• Measurable: The goal of having the lowest prices can be measured through market research and competitor price comparisons.
• Achievable: Achievable through lean production methods and strategic pricing.
• Relevant: Aligns with TM's mission of being a one-stop shopping destination.
• Time-bound: While a specific timeframe is not mentioned, the continuous expansion and growth strategies suggest an ongoing commitment to achieving and maintaining market leadership.

Advantages of Being a Multinational Corporation (MNC) and a Small Business

As an MNC, TM benefits from economies of scale, enabling it to offer products at competitive prices and attract a large customer base. Diversifying operations across different regions and markets spreads risks and increases profits.

Small businesses like Henri's family hardware store offer a personalized approach to customer service and a strong connection to the local community, resulting in loyal customers. Additionally, small businesses are agile and adaptable to market changes.