Marketing strategy of Target Corporation: Based located in Minneapolis, Target Corporation was established through George Dayton under the name Goodfellow Dry Goods in June 1902, before being changed to Dayton’s Dry Goods Company in 1903 and later Dayton Company in 1910. The first store of the company was opened in Roseville, Minnesota in the year 1962, under its parent corporation Dayton Corporation.
After its merger together with J.L. Hudson Company in 1969 target was able to establish itself as the top earner that was part of Dayton-Hudson Corporation in the 1970s. Target established new store designs in the late 1990s throughout the nation. The parent company was later changed to the Target Corporation at the time of 2000. The company has enjoyed huge growth in the urban markets in the United States.
Did You Know About Target Corporation?
Company : Target Corporation
CEO: Brian Cornell
Founder: George Dayton
Year founded: 1902
Headquarters: Minneapolis, Minnesota, U.S.
Annual Revenue: US$93.561 billion
Profit | Net income: US$4.368 billion
Products & Services: food assortment, including perishables, dry grocery, dairy and frozen items.
Target Corporation Fun Fact: The name “Target” originated from Dayton’s publicity director, Stewart K. Widdess, and was intended to prevent consumers from associating the new discount store chain with the department store. Douglas Dayton served as the first president of Target.
Marketing Strategy of Target Corporation – Segmentation, Targeting, Positioning
With its broad selection of clothing (Male and female) as well as pet products and electronics such as home and household accessories, shoes, and pharmacy it has managed to achieve an older median age of 41 compared to its competitors. The median income for households is $58,000. Around 80 percent of Target consumers are males that are not earning a salary with 43% of them being household wives who have children.
Target distinguishes the quality of its products through its image of affordable, stylish, and stylish clothes. The primary customers that target are upper-middle-class families as well as young singles who like shopping at retail stores.
The tagline of the brand reads “Payless, Expect More” which sets it apart from the rest of the market because it is positioned as a premium brand that provides elegant products for a reasonable price and its advertisements appear to reflect the customers not paying the highest price for high-end, well-designed products.
Target Corporation Mission Statement
“We fulfill the needs and fuel the potential of our guests. That means making Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation, and exceptional experiences—consistently fulfilling our Expect More. Pay Less.® brand promise.”
Target Corporation Vision Statement
“Guided commitments to great value, the community, diversity, and the environment.”
Target Corporation Tagline
“Expect More, Pay Less”
Marketing Strategy of Target Corporation – Competitive Advantage
Purchase courses, pick up in-store
The brick-and-mortar stores in various locations across the country have employed the shipping service to customers when they book courses that give the brand the advantage in delivering at the speed of customers. Business Marketing Strategy has also achieved the success of being a bargain-priced competitor in the market.
Bricks In The Wall
Target recently extended its “Drive Up” service across Alabama, Mississippi, Georgia, Texas, Louisiana, Oklahoma, and South Carolina which facilitates the pickup service for customers who have used their app. within two hours after booking the order will be available to customers. Customers can avail of the service and they can get in their cars, and an associate from the store will deliver the orders to their cars. At present, 270 stores have launched this service which gives them an advantage over their rivals.
The major competition to the brand is other retailers like
Marketing Strategy of Target Corporation – BCG Matrix
With grocery retailing getting more mature and an over-saturated marketplace across the US it seems to be in the dog category for the company.
Clothing however has been at the top of the brand’s success throughout the decades. However, Target is among the top three toy stores on the US market, and also holds an impressive percentage of the market within the department stores so both are considered to be the cash cow of the brand.
Marketing Strategy of Target Corporation – Distribution Strategy
With more than 1,829 stores at the time of April 2018, Target has a strong retail network, which the company is attempting to leverage by offering Drive-Up services for its customers, which are already available in 270 of its stores.
The recent announcement made by the company to strengthen its distribution and fulfillment services is a clear signal that the company is seeking to stay ahead of competitors.
In December of 2017 Target was serious about their delivery operations by announcing purchasing Ship which is a courses delivery firm, with a value of $550million. In addition, Target promises to deliver goods to customers within hours after buying its courses and that will aid the company in staying ahead of the pack in the highly competitive food delivery industry.
Marketing Strategy of Target Corporation – Brand equity
Target Corporation was listed in 39 places in the 2017 Fortune 500 list of the most powerful United States corporation by total revenue.
Fortune magazine went on to rank the company 38. 38 on its ranking of World’s Most Admired Companies.
The company was also listed at 31 1st spot in the ranking of 100 most sustainable companies by Barron’s.
With a score of 100 on the Human Rights Campaign on the 2018 Corporate Equality Index, Target Corporate was listed as a number. 24 of Diversity Inc’s Top 50 Companies for Diversity rankings.
Marketing Strategy of Target Corporation – Market Analysis
- Target recently announced a significant increase in the number of shoppers visiting and online sales. The brand has had the largest increase in comparable sales over the past 13 years due to the integration of stores and the e-commerce business. This will eventually give an edge to competitors like Amazon.
- The shares of the company have reached a record since the launch of the integrated services.
- The total revenue of the company with an increase of 6.9 percent in August reached a record at $17.8 billion.
- Target Corporation currently stands in the middle of a $7 billion multi-year plan to remodel stores and integrate the store and courses business. The plan is to help the Drive Up service, which is expected to reach two-thirds of US households by the end of the next year. It is likely to enhance the position of the company in the market.
Marketing Strategy of Target Corporation – Customer Analysis
Customers of Target Corporation fall in the category of “Esteem” based on Maslow’s Need Hierarchy. These people seek out the highest level of self-esteem, superiority, status, and quality. Customers of the brand can purchase trendy furniture, clothes, and other items they like for a lower price. The brand sells products consumers think have more prestige or image, however, at a more affordable cost.
Marketing Strategy of Target Corporation – Promotional Strategy
Adopting the ATL and BTL promotions approach to grow the number of customers it serves, its brand has launched ads that are available in print and electronic media using coupons, flyers, newspaper advertisements on television, and magazines. Target has also a significant presence on social media through sites such as YouTube, Facebook, Instagram, and Twitter. It also sends out regular emails to its customers, informing customers about special offers and promotions in its promotional policy.
To boost its brand Recognition It has been a sponsor of awards shows like Oscars, Grammys, Emmys, and Golden Globe. In addition to their marketing strategy to promote sports events, the segment brand has also partnered with sponsors that include NASCAR as well as IndyCar teams. Not to mention the company is also involved in CSR initiatives in The US and has contributed massive amounts of money to schools throughout the US.
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