Marketing Target
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Mathan Kannayan
MKT 3050 Individual Case Analysis #2
Alexis Carcamo Escoto
27 September 2022
A Case Analysis on Target: A Serious Contender in the Same-Day Delivery Business
Target, a general merchandise retailer created in 1994 now owns stores in all U.S states. As technology advances, Target has now continued to sell merchandise through not only its stores but also its website- reaching consumers nationwide. With constant heated competition through other big name merchandise retailers, Target has faced many losses within the recent years; specifically through competitors such as Amazon, Kroger, Publix, and Walmart. With Target’s mission statements revolving around "Expecting More” and “Paying Less" Target continues to maintain their values even through their competition. Target has taken multiple steps to “up their game” including investing in various companies that can assist Target’s marketing audience to create a larger network. Specifically, Target invested in a hobby store FAO Schwarz. With this partnership, Target store toy departments will feature more than 120 toys from FAO Schwarz as part of a multi-year deal between the two retailers (Smith, 2021). Another larger investment target has been strategically chosen is Shipt. Shipt is seperate American delivery service that has private workers that purchase and deliver groceries to the convenience of a customer's home. With known competition, Target purchased lift to have a competitive edge on the rising competitive digital space. Target is also working with Shipt at the sorting center to pilot the use of larger delivery vans, which can hold up to eight times more packages per route (Case, 2022). With these advancements Target hoped to expand their value delivery network to better cater to their consumers.
Target is a standalone producer company that sells products to consumers. However with the new acquisition of Shipt, Shipt acts as an intermediary as it provides services that takes the goods sold to the end-user through their innovative at-home grocery shopping network. As explained in figure 1, target has now created a stronger value delivery framework that allows their products to be sold and and now distributed through their subsidiary company Shipt. With this intermediary between the producer and consumer, Target was able to successfully increase sales while increasing customer outreach as digital accessibility is now available.
Targets partnerships are vital to their growth as these innovations help keep targets from falling off from other giants in their industry. After Targets purchase of Shipt, many other
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