Case Study Of Target's Success

Target Corporation is a chain of retail stores commonly known by its famous logo of a red bull’s eye. It mainly targets the middle class people and prides itself for providing a range of quality products at affordable prices as opposed to providing cheap products, which are of poor quality. In this paper, I am going to look at the history of Target Corporation from its formation to the present day. I will also address the expansion of Target into Canada and the challenges that it has faced there. The challenges include rapid expansion (which has led to difficulty in controlling its operations), empty shelves, lack of variety, intense competition from other stores such as Wal- Mart and Canadian tire as well as the issue of price

The aim of this paper is to highlight the strategic position of the company with an overview of its internal and external environment. The study of its strategy, design and other forces, one can easily gauge why and how target has managed to become the retail giant it is today.

Target Corporation has recognized itself as one of the top retailers in the United States market on the basis of excellent service quality, customer experiences, operational excellence, strong financial position, and a wide array of product offerings. Through its high degree of service orientation at physical outlets and adoption of fair business practices, Target Corporation has become the most distinctive retailer in the eyes of its potential customers. Being one of the top-notch retailers in the United States, Target Corporation has to carefully strategize on its business operations and marketing tactics so as to keep itself in the row of competitive brands of the industry.

The Target Corporation is a general merchandise retailer that opened up in in 1962 under the parent company of Dayton Corporation. This parent company was renamed the Target Corporation in 2000 and are based out of Minneapolis. There are over 1,800 Target stores throughout the United States which includes Targets and Super Targets. In 2005 Target began expansion in India and in 2011 to Canada however this expansion into Canada did not fare well and all Target Canada stores were closed by 2015. According to Forbes in 2005 they we ranked amongst the highest cash-giving companies in America with 2.1% given and they donate about 5% of its pre-tax operating profit. In 2010 Target was ranked number 22 by Fortune magazine’s World's Most Admired Companies.

Target’s mission statement: “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less brand promise.” (target.com)

Target is one of the largest retailers in the United States. Target wants to be able to give guests better quality products for a cheaper price. They also want to be the one stop shop. Target relies on their team members to keep

Target Corporation is known worldwide as a large retail chain that brings in millions of dollars each fiscal year. The ability to remain competitive in a saturated industry could prove difficult to some retailers, but Target remains one of the leaders in the retail market. With success comes risk. Target Corporation competes against online retailers as well as “big box” stores to remain competitive.

One of the issues Target could face if it continues to only focus on private label store brands and do not promote national brands is losing a percentage of its customers. Although Target’s innovative amount of store brands on its aisles has proven successfully for the retailer and consumers have shown a positive reception to the products, there are still a number of customers who are accustomed to

Target Corporation has various strengths that enable it to maintain its market share despite the competition in the market industry. First, Target Corporation is the second

Because of the success of Target stores, the company was renamed Target Corporation in August 2000. Target Corporation has three main divisions: Target Stores, Mervyn's, and Marshall Field's. Target Stores, the second largest discount retailer, offers products geared to attract a more affluent discount shopper. The Target customer is much younger than other discount BIG BOX stores with an average age of just 40, mostly female, have children and are college graduates. The distinction in customer base is important due to the emphasis on quality at lower prices. Target separates itself from its competitors by offering more up-to-date and stylish products, better quality, while still keeping prices lower. The attractiveness of the store presentations and the employee attentiveness also gives Target an edge against other BIG BOX discount retailers.

“We fulfill the needs and fuel the potential of our guests…making Target your preferred shopping destination…by delivering outstanding value, continuous innovation, exceptional experiences…Expect More. Pay Less @ brand promise.” (CorporateTarget) In addition to fulfilling the needs of its guests and providing outstanding value of services, the company is also committed to proving services and relationship to its community, internal and external organization. Target’s objective focuses on its leaders, employees and to fulfill its consumer’s needs by offering excellent value of its brand. To gain competitive advantage and differential advantage, a Target’s corporate created a strategic unit marketing to provide multiple services to its consumers. Additionally, Target also offers its product brand to differentiate from its competitive market. Target retail store sells multiple products to provide its customer a single solution for its shopping destination. “Many organizations manage their differing…by providing customers a single-branded solution across multiple markets.” (Ferrell, Hartline, 2014) Target Corporation created a corporate strategy to have the opportunity and competitive advantage such as valuable products for fewer prices for a successful marketing

If the author could make any recommendations for Target to use in the future, it is to implement what they have already done. If Target can continue to flourish and still try new ventures, then that is what they should do. As long as they try new ventures with past experiences in mind, the company should be successful no matter what. Target has a great reputation in the business community and amongst its loyal customers because of how they choose to operate. It only makes sense for them to continue to operate based on their customer’s needs, their community’s needs and their shareholder’s needs.

Target Corporation (NYSE:TGT) is the leading large-format general merchandise and discount retailer in the U.S., challenging Wal-Mart in electronics, toys and apparel while also seeking to differentiate with higher-end fashions and products for an upscale audience. As of the close of their latest fiscal year (FY2011), Target operated approximately 1,760 stores encompassing 233,000 square feet in 49 states and the District of Columbia. The company is divided into the retail and credit card divisions and moves the majority of its products through a highly integrated network of 37 different distribution centers, which include four food distribution centers. Target is one of the most well-entrenched large format retailers in the U.S., has the ability to manage their pricing strategies at a level of accuracy and precision that is comparable to Wal-Mart (Henderson, 2001). Unlike Wal-Mart, Target concentrates on a value-based message that concentrates on quality and price differentiation to sustain their gross margins while Wal-Mart concentrates on supply chain efficiency and a continual reduction of supplier and transaction costs (Krishnamurthi, 2001).

Target achieved its differentiation in the marketplace by positioning its products and store experience as higher quality than its main discount competitors Wal-Mart, with lower prices than department stores. Target’s main focus is QUALITY product and at a LOW PRICE. It all began with the idea of, “fashionable, smart design…delivered at a competitive discount prices.” Target strives to deliver to customers a unique shopping experience. Target grabs customer’s attention by their big red bulls eye and customers keep going to target. But at the same time Target need to make sure that their shelves are stocked, they gave good customer service,

Target products are appealing to the consumers because they look expensive but the products are very affordable. It is important for an organization to specify the products and services based on what the customers’ needs and wants are. This would help Target gain a competitive advantage over other retailers. The majority of Target’s customers are women and teenagers. So, the stores have bright and appealing items that would make the customers purchase the materials. Target offer clothing and even power tools catered to women.