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Major marketing strategies
Marketing Strategies
Marketing Strategies
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Industry Memo Target corporation’s products are in constant demand along with the products of their competitors Walmart and Costco. Target has a wide array of items that allows them to have constant demand as their products are mostly inelastic as they sell food and clothing primarily. Walmart’s products are also mostly inelastic as they sell alternatives of the same goods. Target’s cost structure is mostly fixed as they buy their products at a set wholesale rate from their suppliers. Two areas that affect the quantity of demand is the demographics and the advertisement of the stores. The demographic area makes the store carry different products like name brand and non-name brand because everyone has different preferences. The demand is high …show more content…
These are the most relevant because the economy affects the prices you charge and finances could limit the amount of products you can sell or bring into the company to sell to the customers. The infrastructure is important because customers need to feel safe to want to buy products from your store and if they dont, they will lose revenue. The trends that are out in society will lead to higher profits in one area so they need to ensure they have more products in this category and still supply what you need to for everything else in the store. Lastly, is the customer base and if you know who you are trying to reach, then you will be successful and have a long lasting company at the end of the …show more content…
Target Corporation uses multiple pricing by providing a variety of deals including buy one get one one free deals and etc. This usage of price is heavily focused on grocery and electronic items. Target used the pricing technique of price matching policy which targets all consumers to save by matching with top retail giants. Target also targets their consumers by their service components throughout the store. They have a credit card service called the “Target Card” which offer saving and discounts throughout the year. The increase their number of efficient registers to have a faster checkout time. Lastly, Target launched a mobile app that includes updates, latest deals, sales, coupons, and weekly ads. The app also included their saving program called
As I have outlined in the charts below, there are various similarities and differences between Wal-Mart and Target. Wal-Mart is Target’s primary competitor, and vice versa. Wal-Mart has a strong market presence in its global markets and has a diverse range of products and services that are affordable and available in stock. Target, on the other hand, does not have a strong market presence or efficient product supply; however, Target’s physical environment and innovative products further the brand’s image and value. Unfortunately, Target and Wal-Mart are both e-commerce laggards with major competitors such as Amazon. Target faces complications with their pricing strategies and their product availability, which hinders their strength when competing
As compared to its rivals, Target has presented its brand as a middle-class brand which assists in attracting customers that find other stores like Walmart unpleasant
Target has many competitors in the market, and the level of competition is highly intense. Some of its main rivals are Wal-Mart stores, Home Depot and Costco Wholesale Corp. All of them produce similar products as well as offer almost the same services to their consumers. Naturally, the organization would need a strategy that helps it to stand out and to distinguish it from its competitors, thus, Target 's positioning was based on more than just pricing; it combined quality and style. This was the differentiation strategy that have always been applied since the launch of the organization.
For example in the economic forces they work to provide higher end discounted items to keep the profits up by allowing shoppers to have quality and cost savings. In the technological forces, Target has used the increase use of mobile platforms to allow their customers to shop online and pick up in the store by saving time. With the political-legal forces Target works to provide a safe and non-discriminating environment for all customers. Environmental forces are taken in to effect by looking at better waste recycling management to decrease their carbon footprint. Target works hard to represent the values and mores of their customer base, by being actively involved within the community and addressing current social
Target must compete vigorously and fairly in the marketplace using our independent judgment to make the best decisions for the Company.
Target, the nation's #2 discount chain, now operates more than 1,500 Target and Super Target stores in 47 states, as well as an online business called Target.com. Target and its larger grocery-carrying stores, Super Target, have carved out a niche by offering more upscale, fashion-forward merchandise than rivals Wal-Mart and Kmart. After years of struggling to turn around its Marshall Fields and Mervyns departments stores divisions, the discounter sold them both in 2004. Target also owns apparel supplier The Associated Merchandising Corp. and issues Target Visa and its proprietary Target Card (www.Answers.com/topic/target-corporation).
Target has seen consistent growth since its inception, and has confidence that future growth will continue (see attached financial statements). In 2004, Target sold two of there business units, Mervyn's and Marshall Field's for approximately $4.9 billion. This allowed for extensive aggregate pretax cash that will be used for future store sites (as well as upper management bonuses). Target's Board also approved a $3 billion share repurchase program which they expect to complete in two to three years.
Target Corporation being a retail industry, the structure by product grouped to a functional level practices works the best. This is necessary for the other functional levels to collaborate as a single team to produce a positive customer shopping experience. Target Corporation further divided the functional level into a geographic area to exercise management tasks effectively with the given authority. Each structure of the management at the geographic level has a strategy discussion, a line of communication, growth, and progress reporting according to the corporate reporting plan. Jana Potts who manages Target Corporation store has closer to 300, 000 employees working for her and the effective can be improved if the role is broken within domestic into channels, stores into broader segments and a separate global position. The rapidly growing online channel and global expansion are necessary to support Target Corporation's strategy of internal growth and sustain it for long term sustainability. These structural changes will allow Target Corporation to connect with its employee at a functional level and bring changes faster, track and monitor the
In other words, it wants to offer lower prices than a competitor like Target in order to drive foot traffic and sales. Wal-Mart has been effective in its quest, but Target has an edge in one area, and it 's an area that has the potential to grow. Target 's secret weapon is its REDcard. For Target customers using the REDcard, Target is actually cheaper than Wal-Mart. This is because Target REDcard members save 5% on most purchases. Plus, Target REDcard members visit the store more often and buy more items. Target is also offering free online shipping for REDcard members, which has led to significant online penetration. Wal-Mart has the edge, but not when you include Target 's
The year 2013 was not one marked for pride for the retail chain, Target. They had one of the largest data breaches known to date that occurred between November 27th and December 15th. Not only was this the one of the largest attacks known to date of this kind, it was also quite eye opening to many who may not have paid any attention to the world of information security. The Target hack resulted in 40 million compromised credit and debit card accounts and that was just the initial known result. After some time, the research revealed that a total of as many as 110 million Target customers were the victims of this gigantic hack. Although computer crimes occur within the United States often, the bigger problem is that criminals from other countries across the oceans are attacking as well.
Last, Wal-Mart is also in direct competition with large supermarket retailers. Production capacity in the grocery industry is quite populated and Wal-Mart poses a serious threat to many supermarket retailers, both large and small. Kroger, Albertson’s, and Safeway are all finding it very difficult to compete with Wal-Mart’s low prices. Because the industry is so crowded, even the large supermarket retailers are seeking to differentiate themselves in order to stay afloat.
1. The Discount Department Store. Target prefers to be called as the latter instead of just department store. Expect more, pay less. With this tagline, the customers expect to purchase more items and pay the least amount possible. Not like other retail industries like its competitor Kmart and Wal-Mart, Target maintains retail value in terms of product offerings. They are known in their designer’s items in clothes, exclusive beauty products, categorized and functional goods, and seasonal offerings. It also sells the greatest number of gift cards among its rival business.
Target is one of the America’s top retailers, but still has a few things that can be improved upon before it can overtake its top competitor. Although Target may not be the top ranked retailer at the moment, it’s not hard to see why this company has stood the tests of time and continues to thrive today.
Definitely, it should be noted that in most cases, we can only dream of purchasing good quality products for a reasonable price. In this regards, I would like to quote Brian Manning, “it’s good to search for the cheapest rate and to buy from the company that guarantees the lowest rate instead of seeking out the provider that is going to offer the best value. “You don’t go to Walmart to buy a Rolex or a Ralph Lauren polo… You go to Walmart for one reason: to get the cheapest priced product”. That sounds logical. On the contrary, it is extremely illogical to expect that the Target’s customers will be ready to purchase low quality products for a high price. It was one of its main business development mistakes; especially taking into consideration that Target started under very favorable circumstances. It purchased the lease agreements of up to 220 Zellers stores for C$1.825 billion . As it stated in The Globe and Mail, “Target inherited leases from Zellers that already came with rents well below market prices, averaging $6 to $7 a square foot, compared to going rates close to $20”
In 1995, Target began offering credit which was known as the Target Guest Card (Target Through the Years). This was a big step for the company in establishing customer loyalty and relations through the use of technology. By 2004, the cards were renamed REDcards and were able to create data portfolios to help Target figure out product demands and create different routes to satisfy their customers even more (Target through the Years). This was a huge step for Target and their use of technology to better their