Target Corporation Term Paper

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

One of Target’s strengths is that it’s one of the largest retail outlets. Target is a one stop shop for its consumers. Target

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).

Company Profile Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target Corporation operates general merchandise and food discount stores in the United States. It operates as two reportable segments: Retail and Credit Card. The company offers household essentials, including electronics, music, and toys; apparel and accessories; home furnishings as well as seasonal merchandise. It also sells its merchandise under private-label brands, such as Archer Farms, etc. Target Corporation operates in-store amenities, such as Target Caféand Target Clinic as well. Its marketing strategy includes selling its products on its online shopping site Target.com and its network of

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 the guests happy so they always come back again and again. Target Corp. is the nation 's #2 discount chain (behindWal-Mart). The fashion-forward discounter operates about 1,765 Target and SuperTarget stores in 49 states, as well as an online business at Target.com. Target and its larger grocery-carrying incarnation, SuperTarget, have carved out a niche by

Target Corporation offers its customers a vast variety of products, well also providing a service. The corporation owns or has exclusive rights to many different brands ranging from groceries to clothing. For example, some brands that can only be found at Target are Archer Farms which provides food merchandise, Merona which supplies clothing and Room Essentials which provides home goods (Target, 2015, para.2). The shopping experience that Target provides can be defined as a service. The stores shopping experience is a service, since it cannot be patented, interaction with the customer occurs, it is heterogeneous, along with perishable and time dependent and contains the package of features (Chase & Jacobs, 2013, p.9). Target is a popular consumer destination because it provides both a service and goods making it ideal for one

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.

After the recession, Target’s value proposition shifted to simply offer affordable options in a wide array of product areas. However, now with better economic conditions and without the ability to offer lower prices than its affordable retail competitors, such as Walmart, and in order to stay relevant and refresh the company, Target needs to reposition itself as the high-quality concept and style-oriented retail store it was once known for.

Target has succeeded in establishing their brand as one that offers high quality products at low, affordable prices. In an effort to appeal to their target market, Target has developed and introduced to the marketplace many of their own private label brands. These brands have proven very successful for the company and have given them a sustainable competitive advantage within the industry. Among these private label brands, Market Pantry, Archer Farms, and Room Essentials have developed the strongest awareness amongst consumers. Target has multiple private brands within the same product

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.

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.

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

In order to run and maintain an effective business, it’s critical to efficiently utilize internal assets to both maximize production and achieve customer satisfaction while working to limit potential weaknesses that could essentially impact the firm’s ability to profit. Due to the rapid growth of consumer acceptance, a key strength within Target has been the sale of more than 30 exclusive private-label brands such as the highly successful kids’ lines Cat & Jack and Pillowfort that work to challenge the value of traditional name brand products while providing the customer with additional shopping opportunities resulting in $26 billion in sales during 2017 (PYMNTS, 2018). Target has implemented an efficient store layout in order to maximize on

Target has done well over the years due to its successful integrated marketing communications. Today, Target is the second-largest discount retailer in the United States, with $65.4 billion in sales and rank number 28 on the fortune 500 list. The main focus to build an up-market cachet of its brand without losing its relevance for price conscious consumers, Target positioned itself as a high-fashion brand retailers. Target aims to fulfil its brand promise of delivering trendy styles and quality merchandise at affordable low price by sending Merchandisers to travel over the world to look for next hot items. Target adopted Europe popular concept of ‘fast fashion’, which keep the product selection fresh result in more frequent shopper visits. To further enhance the shopper experience, Target uses a variety of tactics to communicate its ‘ cheap chic’ positioning, beginning with its slogan, ‘Expect more, Pay less’. Target also pays attention to how they place the shelves, lighting, fixtures and even creating wider aisles to avoid visual clutter.

Target is an upscale discounter that provides high-quality, trendy merchandise at attractive prices in clean, spacious and guest-friendly stores. In addition, Target operates an online business, Target.com. It all started in 1902, when George Dayton joined in partnership with Goodfellow’s Dry Goods Company, the fourth biggest department store that is located in Minneapolis, MN. Dayton, wanting to be more involved in the company bought out Goodfellow’s to become sole owner and President of Dayton Dry Goods Company (Target Corporation, 2014). Travel on down through the years as Daytons continues to grow, until 1962. That was the year an icon was born, its name is “Target.”