Target Corp: Competing in Retail Industry to Generate Revenue - Essay Sample

Introduction

Target Corporation is a discount retailer that can generate revenue through the provision of consumer goods that are priced competitively. They compete in the same target market with companies such as Costco Wholesale, Walmart, and Target (A Bullseye View. Behind the scenes at Target). It is in the retail industry, and this means that it obtains good from different manufacturers and contractors. This market has a lot of competition from Amazon due to the convenience and the comparative price model. Target's target customers are often the categories of clients known as esteem consumers based on the hierarchy of needs as illustrated by Maslow (A Bullseye View. Behind the scenes at Target). Individuals in this market often look for prestige, status, self-respect and superiority. Consumers can buy furniture, stylish and trending clothing, and different products at low rates. The company offer consumers a product that allows a better image within a reasonable price.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Target appeals to consumers that enjoy high incomes through its emphasis on low-cost designer fashion and high quality merchandise (Corrigan, Craciun & Powell, 160). Target battle with Costco for these clients, and it competes with Walmart in product pricing. This allows it to position itself among low-income shoppers enabling competition. Future development for Target directly depends on its potential to link with consumers, maintain healthy margins to ensure that shareholders get increased profits and it aims to benefit with certain climates in the economy (Corrigan, Craciun & Powell, 160). It aims to drive sales through the provision of products that motivate consumers to shop. Target aims to do this by opening new stores that lead to growth. New products such as food are in strategy to ensure that the company encourages growth in sales. Increase in competition has also led to reduced margins to ensure that the company remains competitive in the development of prices.

Target is also focusing on online markets to ensure that it drives its growth. The company has been able to grow sales through the optimization and updates of the store formats (Kashmiri, Nicol & Hsu, 209). Target has also remodeled and modernized the designs of the stores to ensure that there are different departments such as Home and Beauty where guests can visualize and test products on how they would fit in their homes (Kashmiri, Nicol & Hsu, 210). In addition to large store, remodelling Target aims to introduce small store formats as these are seen to be a significant growth opportunity. This is focused on being developed near colleges, universities, and metro areas that are high in density. This approach allows Target to gain different kinds of consumers and deliver better curated retail and customer experience (Kashmiri, Nicol & Hsu, 217). This strategy ensures superior efficiency.

Product Decisions

The product decisions made by Target are focused on the products operated by the store, and these products include hard lines such as toys, sporting equipment, software and electronics, decor, home furnishings, beverage and food, accessories and apparel, household beauty (Target). These products contribute to 25% of the total revenue. Target also has exclusive and owned brands such as Up & Up, which holds personal and health goods, Room Essentials, which provides home furnishings, Cat & Jack, which offers children clothing, and Archer's Farm, which provides products, covering a third of the entire revenue (Target). Target aims to prioritize Wellness, Kids, Baby and Style; since these are products that Target is famous for. The company aims to focus on these areas and ensure differentiation and newness (Target). Categories such as grocery are being redeveloped to ensure that shopping experience is more appealing and compelling (Target). Target also aims to provide products that are relevant locally depending on location, climate and demographics.

Pricing Decisions

Target aims to have its prices within two per cent of the chief competitors. They are aiming for a penny higher strategy such that they will increase competitor prices by a single penny (Target). Targets seek to buy products from vendors cheaply and similarly price their products. This may squeeze the margins of the firm, but with consumer attraction, the bottom line will increase through revenue collection. This is aimed to be paired with better shopping experiences, online and in stores (Target). This is through the development of better customer services, innovative technology and better store design. Target also aims to match its prices with online retailers such as Toysrus.com, Bestbuy.com, Walmart.com and Amazon (Target).

Distribution Decisions

Target aims to ensure growth and create value for shareholders through the innovation of retail experiences. It seeks to adapt to the changing industry through the development of omnichannel delivery options (Target). Online business has also been greatly enhanced, and this is through the purchase of Shipt where same-day deliveries were speeded up. This helps it to remain in competition with rivals such as Kroger, Walmart, and Amazon through refocusing digital efforts (Target). Further, the company has also developed Drive Up, a pickup service where customers can preorder from their stores and ensure that employees load these items to their cars (Target).

Promotion Decisions

Target adopts BTL and ATL promotional strategies to ensure that their customer base is increased. There is also a development of ad campaigns in print and electronic media. This includes magazine commercials, television, newspapers, coupons and fliers (Bhasin & Marley). Target has also developed powerful social media existence through different portals such as twitter, youtube, facebook, and instagram. The organization also uses direct mails to clients where they are informed of schemes and deals as part of their policies (Bhasin & Marley). It ensures brand recognition by sponsoring award shows such as Golden Globe, Emmy's, Grammy's, and Oscars. Target has further moved on to sponsor IndyCar and NASCAR teams. Finally, the company takes part in several CSR activities, and it has been able to donate vast amounts of school in different areas (Bhasin & Marley).

References

A Bullseye View. Behind the Scenes at Target. corporate.target.com/press/releases/2015/03/target-shares-roadmap-to-transform-business.

Bhasin, Hitesh, and Marley. Marketing Strategy of Target Corporation - Target Marketing Strategy. 4 Dec. 2018, www.marketing91.com/marketing-strategy-of-target-corporation/.

Corrigan, Hope B., Georgiana Craciun, and Allison M. Powell. "How does Target know so much about its customers? Utilizing customer analytics to make marketing decisions." Marketing Education Review 24.2 (2014): 159-166.

Kashmiri, Saim, Cameron Duncan Nicol, and Liwu Hsu. "Birds of a feather: intra-industry spillover of the Target customer data breach and the shielding role of IT, marketing, and CSR." Journal of the Academy of Marketing Science 45.2 (2017): 208-228.

Target. Pickup & Delivery: Target Corporation. corporate.target.com/about/products-services/pickup-delivery.

Target. Products & Services: Target Corporation. corporate.target.com/about/products-services.

Target. Target Corporation to Remain Competitive on Pricing. 5 Oct. 2006, investors.target.com/news-releases/news-release-details/target-corporation-remain-competitive-pricing/.