Case

5831 Words Aug 13th, 2013 24 Pages
Universidad de la Sabana
Escuela Ciencias Económicas y Administrativas
Mercadeo 2013 – 2
Case 4: From “Expect More” To “pay Less”
Agosto 23 - 2013 * Camila Andrea Pinzón Gómez 201213506

WHAT IS ALL THIS CASE ABOUT?
The principal idea of the case is examine Target, a discount retailer who was always known for their ‘cheap chic’, “Expect More, Pay Less” value proposition. The evaluation between
BACKGROUND:
Target Corporation originally the Dayton Dry Goods Company and later the Dayton Hudson Corporation,
1902–61:
1902: Dayton Dry Goods Company was founded in 1902 by George Draper Dayton, a banker who built his wealth by buying farm mortgages in southwest Minnesota and an active member of the Westminster Presbyterian
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Target's president, Douglas J. Dayton, went back to the parent Dayton Corporation and was succeeded by William A. Hodder, and senior vice president and founder John Geisse left the company. Geisse was later hired by St. Louis-based May Department Stores, where he founded the Venture Stores chain.[10] Target Stores ended the year with 11 units and $130 million in sales. It also acquired the Los Angeles-based Pickwick Book Shops and merged it into B. Dalton Bookseller.
In 1969, it acquired the Boston-based Lechmere electronics and appliances chain that operated in New England and the Philadelphia-based jewelry chain J.E. Caldwell.[7] It expanded Target Stores into Texas and Oklahoma with six new units and its first distribution center in Fridley, Minnesota.[11] The Dayton Company also merged with the Detroit-based J.L. Hudson Company that year, to become the Dayton-Hudson Corporation, the 14th largest retailer in the United States, consisting of Target and five major department store chains: Dayton's, Diamond's of Phoenix, Arizona, Hudson's, John A. Brown of Oklahoma City, Oklahoma, and Lipmans. The company offered Dayton-Hudson stock on the New York Stock Exchange. The Dayton Foundation changed its name to the Dayton Hudson Foundation, and Dayton-Hudson maintained its 5% donation of its taxable income to the foundation.[7]
In 1970, Target Stores added seven new units, including two units in Wisconsin, and the 24-unit chain reached $200 million in sales.[10]

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