COMPANY CaseTarget: From "Expect More"to "Pay Less"slowdown, posting quarterly increases in same-store sales of dose to5 percent along with substantial jumps in profits.When you hear the term discount retail, two names that usuallycome to mind: Walmart and Target. The two have been comparedso much that the press rarely covers one without at least mention-ing the other. The reasons for the comparison are fairly obvious.These corporations are two of the largest discount retailers in theUnited States. Category for category, they offer very similar mer-chandise. They tend to build their stores in close proximity to oneanother, even facing each other across major boulevards.But even with such strong similarities, ask consumers if there's adifference between the two, and they won't even hesitate. Walmartis all about low prices; Target is about style and fashion. The "cheapchic" label applied by consumers and the media over the years per-fectly captures the Íong-standing company positioning: "ExpectMore. Pay Less." With its numerous designer product lines, Targethas been so successful with its brand positioning that for a numberlof years it has slowly chipped away at Walmart's massive marketChare. Granted, the difference in the scale for the two companieshas always been huge. Walmart's most recent annual revenues of$408 billion are more than six times those of Target. But for manyyears, Target's business grew at a much faster pace than Walmart's.In fact, as Walmart's same-store sales began to lag in the mid-2000s, the world's largest retailer unabashedly attempted to becomemore like Target. It spruced up its store environment, added morefashionable clothing and housewares, and stocked organic and gour-met products in its grocery aisles. Walmart even experimented withluxury brands. After 19 years of promoting the slogan, "Always LowPrices. Always." Walmart replaced it with the very Target-esquetagline, "Save Money. Live Better." None of those efforts seemed tospeed up Walmart's revenue growth or slow down Target's.But oh what a difference a year or two can make. As the globalrecession began to tighten its grip on the world's retailers in 2008, thedynamics between the two retail giants reversed almost overnight. Asunemployment rose and consumers began pinching their pennies,Walmart's familiar price "rollbacks" resonated with consumers, whileTarget's image of slightly better stuff for slightly higher prices did not.Target's well-cultivated "upscale discount" image was turning awaycustomers who believed that its fashionable products and trendy ad-vertising meant steeper prices. By mid-2008, Target had experiencedthree straight quarters of flat same-store sales growth and a slight dipdin store traffic. At the same time, Walmart was defying the economicSAME SLOGAN, DIFFERENT EMPHASISIn fall 2008, Target acknowledged the slide and announced its in-tentions to do something about it. Target CEO Gregg Steinhafelsuccinctly summarized the company's new strategy: "The cus-tomer is very cash strapped right now. And in some ways, ourgreatest strength has become somewhat of a challenge. So, we'restill trying to define and find the right balance between 'ExpectMore. Pay Less.' The current environment means that the focus issquarely on the 'Pay Less' side of it."In outlining Target's new strategy, company executives made itclear that Walmart was the new focus. Target would make certainthat its prices were in line with Walmart's. Future promotionswould communicate the "pay less" message to consumers, whilealso highlighting the fact that Target is every bit the convenientone-stop shopping destination as its larger rival.The new communications program included massive changesto in-store signage. Instead of in-store images and messages high-lighting trendy fashion, store visitors were greeted with large signsboasting price points and value messages. Similarly, weekly newspaper circulars featured strong value headlines, fewer products,and clearly labeled price points. In fact, Target's ads began lookingvery much like those of Walmart or even Kmart. Further recogniz-ing the consumer trend toward thriftiness, Target increased theemphasis on its own store brands of food and home goods.While making the shift toward "Pay Less," Target was carefulto reassure customers that it would not compromise the "ExpectMore" part of its brand. Target has always been known for havingmore designer partnerships than any other retailer. From theMichael Graves line of housewares to Isaac Mizrahi's clothing line,Target boasts more than a dozen product lines created exclusivelyfor Target by famous designers. Kathryn Tesija, Target's executivevice president of merchandising, assured customers that not onlywould Target continue those relationships but also add severalnew designer partnerships in the apparel and beauty categories.MOUNTING PRESSUREAlthough Steinhafel's "Pay Less" strategy was aggressive, Target'sfinancials were slow to respond. In fact, things initially got worsewith sales at one point dropping by 10 percent from the previousyear. Target's profits suffered even more. It didn't help matters thatWalmart bucked the recessionary retail trend by posting revenueincreases. When confronted with this fact, Steinhafel responded From Target practices, identify the following questions:1. Target is a customer centric retail store in what way Target follows marketing orientation to ensurecustomer experience?2. Identify Target competitive edge and market offering in the tough competition with Walmart clarifying itscompetitive strategy?3. Target is about "Customer delight" identify Target market mix integration to achieve this objectiveIn what way does Target handle its communication strategy?5. What is target pricing strategy?4.

Question

COMPANY CaseTarget: From &#34;Expect More&#34;to &#34;Pay Less&#34;slowdown, posting quarterly increases in same-store sales of dose to5 percent along with substantial jumps in profits.When you hear the term discount retail, two names that usuallycome to mind: Walmart and Target. The two have been comparedso much that the press rarely covers one without at least mention-ing the other. The reasons for the comparison are fairly obvious.These corporations are two of the largest discount retailers in theUnited States. Category for category, they offer very similar mer-chandise. They tend to build their stores in close proximity to oneanother, even facing each other across major boulevards.But even with such strong similarities, ask consumers if there's adifference between the two, and they won't even hesitate. Walmartis all about low prices; Target is about style and fashion. The &#34;cheapchic&#34; label applied by consumers and the media over the years per-fectly captures the Íong-standing company positioning: &#34;ExpectMore. Pay Less.&#34; With its numerous designer product lines, Targethas been so successful with its brand positioning that for a numberlof years it has slowly chipped away at Walmart's massive marketChare. Granted, the difference in the scale for the two companieshas always been huge. Walmart's most recent annual revenues of$408 billion are more than six times those of Target. But for manyyears, Target's business grew at a much faster pace than Walmart's.In fact, as Walmart's same-store sales began to lag in the mid-2000s, the world's largest retailer unabashedly attempted to becomemore like Target. It spruced up its store environment, added morefashionable clothing and housewares, and stocked organic and gour-met products in its grocery aisles. Walmart even experimented withluxury brands. After 19 years of promoting the slogan, &#34;Always LowPrices. Always.&#34; Walmart replaced it with the very Target-esquetagline, &#34;Save Money. Live Better.&#34; None of those efforts seemed tospeed up Walmart's revenue growth or slow down Target's.But oh what a difference a year or two can make. As the globalrecession began to tighten its grip on the world's retailers in 2008, thedynamics between the two retail giants reversed almost overnight. Asunemployment rose and consumers began pinching their pennies,Walmart's familiar price &#34;rollbacks&#34; resonated with consumers, whileTarget's image of slightly better stuff for slightly higher prices did not.Target's well-cultivated &#34;upscale discount&#34; image was turning awaycustomers who believed that its fashionable products and trendy ad-vertising meant steeper prices. By mid-2008, Target had experiencedthree straight quarters of flat same-store sales growth and a slight dipdin store traffic. At the same time, Walmart was defying the economicSAME SLOGAN, DIFFERENT EMPHASISIn fall 2008, Target acknowledged the slide and announced its in-tentions to do something about it. Target CEO Gregg Steinhafelsuccinctly summarized the company's new strategy: &#34;The cus-tomer is very cash strapped right now. And in some ways, ourgreatest strength has become somewhat of a challenge. So, we'restill trying to define and find the right balance between 'ExpectMore. Pay Less.' The current environment means that the focus issquarely on the 'Pay Less' side of it.&#34;In outlining Target's new strategy, company executives made itclear that Walmart was the new focus. Target would make certainthat its prices were in line with Walmart's. Future promotionswould communicate the &#34;pay less&#34; message to consumers, whilealso highlighting the fact that Target is every bit the convenientone-stop shopping destination as its larger rival.The new communications program included massive changesto in-store signage. Instead of in-store images and messages high-lighting trendy fashion, store visitors were greeted with large signsboasting price points and value messages. Similarly, weekly newspaper circulars featured strong value headlines, fewer products,and clearly labeled price points. In fact, Target's ads began lookingvery much like those of Walmart or even Kmart. Further recogniz-ing the consumer trend toward thriftiness, Target increased theemphasis on its own store brands of food and home goods.While making the shift toward &#34;Pay Less,&#34; Target was carefulto reassure customers that it would not compromise the &#34;ExpectMore&#34; part of its brand. Target has always been known for havingmore designer partnerships than any other retailer. From theMichael Graves line of housewares to Isaac Mizrahi's clothing line,Target boasts more than a dozen product lines created exclusivelyfor Target by famous designers. Kathryn Tesija, Target's executivevice president of merchandising, assured customers that not onlywould Target continue those relationships but also add severalnew designer partnerships in the apparel and beauty categories.MOUNTING PRESSUREAlthough Steinhafel's &#34;Pay Less&#34; strategy was aggressive, Target'sfinancials were slow to respond. In fact, things initially got worsewith sales at one point dropping by 10 percent from the previousyear. Target's profits suffered even more. It didn't help matters thatWalmart bucked the recessionary retail trend by posting revenueincreases. When confronted with this fact, Steinhafel responded From Target practices, identify the following questions:1. Target is a customer centric retail store in what way Target follows marketing orientation to ensurecustomer experience?2. Identify Target competitive edge and market offering in the tough competition with Walmart clarifying itscompetitive strategy?3. Target is about &#34;Customer delight&#34; identify Target market mix integration to achieve this objectiveIn what way does Target handle its communication strategy?5. What is target pricing strategy?4.

Accepted Answer

1.) Target ensure a good quality product at affordable prices to its customers. Apart from that,…