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Target Stores

Target StoresExpect More. Pay Less.


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Introductio n

One of the most recog nized corporate symbolsin the U nited States is that of the Targetcorporatio n, who have 1 ,35 1 stores i n 47 of the50 states.The first Target store ope ned i n Roseville , Minn esota , in 1962. Its tre ndy mercha ndise ataffordable prices lau nched a new era i n discou ntretaili ng. This T-1 store was easy to shop ,

attractive a nd always clea n. It served as theprototype for every Target store ope ned si ncethe n, a nd it cha nged how co nsumers thi nk aboutdiscou nt shoppi ng.


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The first Target Store was ope ned by the Dayto n Compa ny in 1962 , in Roseville , a suburb of thetwin cities Mi nn eapolis-St. Paul , Minn esota.Target is a chai n of discou nt departme nt storesthat are about 9 5,000 to 1 35,000 square feet(12 ,000 m) a nd carry hardli nes ("regular"products a nd goods) , softli nes (clothi ng) , a nd alimited amou nt of groceries , mostly non-perishable.


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Introductio n

1960 - 1969

Target stores are i ntroduced , capturi ngcustomers loyalty by offeri ng popular natio nal bra nds at discou nted prices. Themai n aisle allows easy navigatio n;

efficie nt, clea n displays ma ke discou ntshoppi ng easier a nd more pleasa nt tha n ever before.


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Target Stores


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1970 - 1979

Already ta king the lead i n retail thi nk ing, the newly

established Target stores are orga nized accordi ng toco nsiste nt bluepri nts called pla n-o-grams , e nsuri ng thateach of the 300 locatio ns are clea n, easy-to-shop a ndintuitively arra nged. The stores co ntain photoprocessi ng, pharmacies a nd Food Ave nue restaura nts , so guests ca n accomplish more i n one shoppi ng tripwhile e njoying the well-lit , appeali ng atmosphere a nd thefriendly assista nce of red-shirted team members.Electro nic cash registers are used for the first time , a ndthe Su nday circular begi ns to hit a few key mar kets.


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198 0-89

Inside the stores , Target adds electro nicsca nn ing chec kout , simplifyi ng distributio n, speedi ng guests exits a nd guara nteei ng

accurate prici ng. At home , the wee kly Targetadvertisi ng circular becomes seco nd o nly to theSu nday comics as Americas most-readnewspaper i nsert , deliveri ng customersinformatio n on the newest a nd best-priced itemswaiti ng in stores. Target also offers a holidayexclusive that becomes the must-have gift of theseaso n


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1990 - 1999

Target stores expa nd in new directio ns with the i ntroductio n of the larger-sized Target Greatla ndco ncept stores a nd the Target Guest Card ( now the REDcardSM). In 199 5, SuperTarget , which adds groceries to the product mix , gives co nsumers more reaso ns to ma ke Target a regular desti natio n. In 1996 , the Lullaby Club baby gift registry ( now Target baby ) lau nches , allowi ngnew pare nts to register for nursery supplies a nd esse ntials. At the e nd of the decade , GiftCardsare i ntroduced , while Target expa nds to the Inter net with Target.com as its o nline prese nce.

2000 - PRESENT

In200 1, dow ntow n Minn eapolis , home to Target Headquarters , finally gets a Target store of itsown: A two-story locatio n on Nicollet Mall. Ma nhatta n gets a special holiday treat as Target doc ksa floati ng holiday gift shop at Chelsea Piers i n 200 2. Target.com establishes itself as o ne of themost-visited retail websites i n the world. In July 2 005, Target tur ns New Yor ks Roc kefeller Ce nter into a vertical catwal k for a fashio n show featuri ng collectio ns from desig ners Mossimo , Liz La nge

a nd Isaac Mizrahi. To kick off the 2 00 6 2-Day Sale , Target challe nges David Blai ne the worldsgreatest e ndura nce artist a nd magicia n to attempt a n escape from shac kles while da ngling four stories above Times Square . In 200 8, Scott Dixo n of Target Chip Ge nesis Raci ng wins theIndia napolis 500 .


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Mission:

To ma ke Target the preferred shoppi ngdesti natio n for our guests by deliveri ngoutsta nding value , co ntinuous i nn ovatio n a nd a n exceptio nal guest experie nce , a ndco nsiste ntly fulfilling our Expect More. PayLess. bra nd promise.


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Today , Target operates more tha n 1,600 stores i n 47 states , includi ng more tha n 200 SuperTarget stores that i nclude a n upscale grocery shoppi ng experie nce. In additio n to the photo processi ng ce nters , pharmacies a nd Food Ave nuerestaura nts fou nd in almost every Target , SuperTarget stores i nclude i n-storeba kery , deli , meat a nd produce sectio ns.


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Positio ning

Target Corporatio n (Target) had 1 ,330 retail stores i n 47 states of the U nitedStates.Target's positio ning was based o n moretha n just prici ng; it e ncompassed quality , style , a nd tre nd. This was the

differe ntiatio n strategy that wasco nsiste ntly applied si nce the lau nch of the chai n.


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Target positio ned itself as a n upscale discou ntchai n. It differe ntiated itself from its competitorsby offeri ng tre ndy mercha ndise at affordableprices.Target used attractive mar keting promotio ns tocommu nicate this message to customers. By200 2, the compa ny became the seco nd largestdiscou nt retailer i n US.

The differe ntiatio n followed by the compa ny a ndits effective commu nicatio n programs helped itto co ntinuously i ncrease its reve nue a nd netincome.


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Issues Involved How a new e ntra nt ca n differe ntiate itself from existi ng

players i n the discou nt retaili ng industry.

The role of bra nding in successful positio ning i n thediscou nt retaili ng industry.

How prici ng is not the o nly way to competesuccessfully i n the discou nt retaili ng i ndustry.

How a compa ny ca n co ntinue to differe ntiate itself as it

grows a nd mai ntain its u nique image i n the eyes of thecustomers.

The role of mercha ndizing i n the success of a retailstore.


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Target Strategy

To be able to offer the most up to datestyles a nd tre nds to the customers Targetfocused o n mercha ndisi ng. Recog nizingthat just havi ng the goods i n the storeswas not e nough , Target also wor ked o n co nveyi ng this image to the customer

through its store layouts a nd displays , a ndthrough mar keti ng a nd promotio ns.


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Mercha ndisi ng

Target's positio ning as a n upscale discou ntchai n was reflected i n its mercha ndisi ng strategyas well. Target ma nagers felt that they neededto be co nsta ntly in tune with what the customerswa nted a nd a nticipate tre nds a nd dema nds.

Warre n Feldberg , Target's Executive vicepreside nt of mercha ndisi ng, tried loo king at theworld as our shoppi ng bas ket a nd finding waysto bri ng that bas ket to the average customer.


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D ifferentiation Strategies

From the very begi nn ing, Dayto n'sstrategy was to positio n Target as a n upscale discou nt chai n at which the priceswould be just above the lowest prices. Toachieve this upscale image , it offeredtre ndy a nd stylish goods i n a n

e nvironme nt that was bright a nd attractive , unlike other discou nt stores of the time.


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Target Corporatio n competes directlyagai nst other discou nt retailers , mai nlyWal-Mart a nd Kmart . Si nce its fou nding in 1962 , it has i nte nded to differe ntiate itsstores from its competitors by offeri ngwhat it believes is more upscale , tre nd-

forward mercha ndise at low cost , asopposed to the traditio nal co ncept of focusi ng o n low-priced goods.


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Revolutio nizing Retail

From departme nt store roots to the award-winn ing o nline prese nce , Target wor ks todeliver a great retail experie nce. Theystrive to exceed their guests expectatio ns , addi ng this a nd tryi ng that to provide theperfect ble nd of style , substa nce a nd oh-

so-satisfyi ng shoppi ng.


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Desig n for All

Ou r Commitment to D esign

Great desig n is the esse nce of the Target bra nd.Target part ners with world-class desig ners tooffer amazi ng products at affordable prices.Since day o ne , our compa ny fou ndersrecog nized that the appeal of smart , stylish , well-desig ned products a nd stores would set Targetapart.


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Q uestio ns for Discussio ns

1 Q ues Target positio ned itself as a n upscale discou nt Chai n. TargetDiffere ntiated itself from its competitors byofferi ng tre ndy Mercha ndise at affordableprices Explai n in detail how differe ntiatio n strategy helped Target to become o ne of

the leadi ng retailers i n the US.


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To be able to offer the most up to date Styles &tre nds to the customers Target focused o n mercha ndisi ng. Target realized the importa nceof not just havi ng the goods i n Store but theyalso wor ked o n co nveyi ng the image to thecustomer through its store layouts & displays &through Mar keting & Commu nicatio ns. Their TagLine Expect More Pay less i n all their Bra nding

Strategies created a stro ng effect i n co nsumersmind & helped i n Differe ntiating fromcompetitors.


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Most Retailers use Shop withi n a shop co nceptbut Target used a differe nt Approach. Theydecided to bri ng in more Bra nds & labels a nd

created focus areas for them. What Target doesis purchase lo ng, deep & narrow.Target established a QUI CK RESP O NSE TASKFO RCE & ide ntified tre nds a nd purchasi ngpatter ns so that they ca n quic kly develop&impleme nt Micro Mar keting Programs whichshows that Target is a customer-ce ntricorga nizatio n.


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Target Ma nagers were always attu ne withwhat customers wa nted & a nticipatetre nds & dema nd. They loo ked ta theworld as our Shoppi ng Bas ket & findingways to bri ng that Bas ket to the averagecustomers.


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2 ques Target bega n forgi ng part nershipswith recog nized desig ners & desig n houses to bri ng affordable desig nersgoods to its customers. Assess thesymbolic relatio nship that existed betwee n Target & its desig n part ners


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It was a part of rei nforcing its upscale image &provide quality & affordable desig ner goods soas to attract more customers base to its Store

The forged part nerships based o n symbioticrelatio nships as it will be nefit Target as well asDesig ners. Target is getti ng desig ner clothes i n their Store at affordable prices & i n tur n Desig ners got a new platform to showcase their products.


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Target collaborated with :Michael Graves : Home Goods Collectio nMassimo : Me ns & Wome n Sportswear He got Royalties with substa ntial guara nteed mi nimum payme nts for lice nsing his trademar k to Target.Desig ner Mizrahi : Wome n apparel , footwear etc.His lines for Target was co nsidered fashio nable yet affordablehelped i n increasi ng footfall.

It helped Mizrahi as well i n lau nchi ng his new li ne of couture

clothi ng.Rose n Zweig : e ncompassed variety of products which helped i n increasi ng the Mercha ndise & pulli ng customers to store.Ming Tsai : Exclusive Kitche nware & coo king ingredie nts


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By collaborati ng with these desig nersTarget pulled a lot of customer traffic a ndgave its customers a lot of variety tochoose from with large Mercha ndise.Collaborati ng with Target gave a n opportu nity to desig ners to promote & selltheir products i n a reputed store & pavedway for future growth & success.


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3 Q ues On e of the key eleme nts i n thesuccess of Target has bee n its ability toeffectively commu nicate the Compa nysunique Positio ning by comi ng out withattractive Mar keti ng Promotio ns. Analyzehow the Compa ny co nveyed the

unique ness to its Customers?


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T ARGET logo was recog nized by 96% of America ns which is treme ndous successin itself. Target itself had become a Bra ndbecause of its successful Mercha ndisi ngStrategies , Mar keti ng & Advertisi ng.


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Making o u r mark with o u r logo.The Bulls eye logo , in the shape of a n

archer's target , symbolizes great visio n, perfect executio n a nd intuitio n. Our teammembers ma ke the perfect draw o n thebow , ad just our aim , a nd hit the target of our busi ness goals.


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Commu nicati ng through Bra nding

"Branding is one of the things they (Target) do a good job of, and it represents where they want to be in themarket

By Chris Merritt, principal at K u rtSalmon Associates, commenting on thebranding strategies of Target.


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Target developed a n image a nd displayedproducts that matched its customerslifestyles a nd created e nha ncedmercha ndise displays. It offered a mix of private labels a nd natio nal bra nds i n creative a nd inn ovative layouts a nd

displays.


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With its advertisi ng & inshore prese ntatio nstarget co nsiste ntly co nveyed the message thatits collectio ns are clea n, fresh & i n Style. It also

stressed that goods are priced right &co nve nient to buy. These messages wereco nveyed through Circulars , TV Ads , Poi nts Of Sale , Sig nage & Mercha ndise Displays. They

added more value by time spe nt by the customer in buyi ng. Effective commu nicatio n helped i n average customers per visit.


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From publishi ng a u nique & differe ntiated Ad Circular every Su nday which was ableto pro ject a n image of Style &sophisticatio n to the customers to artfuldisplays aisles & creati ng stylish tre ndyImage for everyday items Targetpositio ned itself as bei ng stylish , affordable & tre ndy & wo n ma ny Awardsfor its advertisi ng & Mar keti ngCommu nicatio ns.


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The Promotio ns i nitiatives with AOl,Amazo n.com& Collegestude nt.com & offeri ng customer friendly o nline shoppi ng with perso nalized &

unique shoppi ng experie nce was a ma jor hitamo ng Target Customers.The idea of providi ng Target Smart Visa cards toits customers , Ru nn ing the Stores i n a Boat &ope ning Special Summers Stores (Bulls eye Inn )surprised & delighted the customers & helped i n stre ngthe ning the Bra nd & deepe n relatio nshipwith Customers.


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The Ma jor Co ntributors to target Success are :Target recog nized that value was a fu nctio n of quality , tre nd &price&not just Price.Target recog nized the importa nce of a n attractive shoppi nge nvironme nt & not just offeri ng goods at lowest price

Effective Commu nicatio n& Mar keti ng Strategies.Creative Advertisi ng Campaig ns & Promotio ns.Desig n for All Co ncept i n Mercha ndisi ng.Bra nding Efforts to co nvey positio ning & Image.Customer Ce ntric Philosophy : Co nsta ntly in tune with what thecustomers wa nted a nd a nticipate tre nds a nd dema nds & Offeringtre ndy & stylish products.Updated Retaili ng Tech nology


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Q uestio ns & Discussio ns

Tha nk you..

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