Target stores, inc.is a sister company of Dayton Hudson Corporation and started in the year 1962 the same year as two other large retail stores Wal-mart and Kmart. Target has always operated with the motto “ Expect More and Pay Less” target is the third in the big three in U.S. falling behind Wal-Mart and Kmart.a major part of target's success comes from its ability to bundle bargain prices with fashionable name brand merchandise with excellent customer service. Dayton’s department store started looking into Target as a discount chain in the year of 1962 when the company saw a rising in public demand for lower priced merchandise in a family friendly and convenient environment. The name target along with the bulls eye logo were selected for the company's visual impact also to show that target aims at offering …show more content…
By the year of 1966 the company expanded by opening two new stores in Denver, Colorado. Within four years target had 17 stores in four states closing the decade with 40 percent average growth and $100 million in annual sales. In the 1970s a primary focus for target was reinvestment in its employees. Starting in the year of 1989 all employees had been trained through a course called “ Target U” this trained target employees to treat customers like guests, and to generate a fast, friendly, and fun shopping experience for their guests.Targets main goal in the mid 1900s was to seek out opportunities for growth. In the year of 1993 target entered the Chicago market with 18 stores. Another 32 stores were added to the existing markets Midwest, Southeast, and the Southwest. In 1996 the first super target was introduced and opened in Omaha, Nebraska and the second was opened soon after in Lawrence, Kansas. Before developing super target the company had studied the best grocery stores in the country. They integrated the ideas of super target into the already successful target greatland
Target has many competitors in the market, and the level of competition is highly intense. Some of its main rivals are Wal-Mart stores, Home Depot and Costco Wholesale Corp. All of them produce similar products as well as offer almost the same services to their consumers. Naturally, the organization would need a strategy that helps it to stand out and to distinguish it from its competitors, thus, Target 's positioning was based on more than just pricing; it combined quality and style. This was the differentiation strategy that have always been applied since the launch of the organization.
According to www.targetcorp.com, Target is an upscale discount retail chain that sells quality products at attractive prices, and prides itself on clean, spacious, and guest-friendly stores. Target is the second largest "general merchandise" retailer (behind Wal-Mart); selling almost anything one would need to complete the "one stop shop", especially with the addition of the SuperTarget stores. The first Target opened in Roseville, Minnesota in 1962. Since then, 1,330 stores located in forty-seven different states, which includes the 141 SuperTarget stores, have opened nationwide. Target also has twenty-two distribution centers located in nineteen states. In addition to the vast number of store locations, Target also has other businesses that include: Target.com, Target Financial Services, Associated Merchandising Corporation, and Target commercial Interiors. Through all the key businesses, Target employs nearly 300,000 people from diverse backgrounds. The current Chairman and CEO of Target is Bob Ulrich.
1. The Discount Department Store. Target prefers to be called as the latter instead of just department store. Expect more, pay less. With this tagline, the customers expect to purchase more items and pay the least amount possible. Not like other retail industries like its competitor Kmart and Wal-Mart, Target maintains retail value in terms of product offerings. They are known in their designer’s items in clothes, exclusive beauty products, categorized and functional goods, and seasonal offerings. It also sells the greatest number of gift cards among its rival business.
Target Corporation has indicated a significant increase in the number of years it has been operational. The company experienced important changes in growth when it transformed from a regional store to a national retailer.
The Target corporations in plans to grow converted retail stores to retail super stores. In 2004 Target added 65 new merchandise stores and eighteen new Target Superstores all across the United States.
The Target Corporation formerly known as “The Dayton Dry Goods Company” is a major retailing company that was founded in 1902 in Minneapolis, Minnesota by George Draper Dayton. It is ranked the second largest discount retailer in the United States and ranked thirty- sixth on the Fortune 500 as of 2013. The Target Corporation has been serving this nation with the best price possible goods since their expansion from “Dayton” and is continuously winning the hearts of consumers with their dedication and service. A phenomenal merchandising strategy and cross channeling has enabled this upscale discounter to serve their purpose of customer loyalty and fulfill their promise of “Expect more and Pay less”.
Dollar Tree, Inc. describes itself as a business enterprise that is driven by the needs of its customers. The company aims at providing different items of value at the price of US$1 a piece. The running of the business of the Dollar Tree, Inc. variety store is anchored upon some tenets that define its mission. According to Dollar Tree (2016), the enterprise’s mission takes different dimensions. For instance, the company seeks to run its operations making some profits. It also seeks to strengthen its business partners to take advantage of the openings that come their way as well as the achievements and gains that the variety store realizes. Dollar Tree, Inc. also seeks to relate with its business partners, customers, and competitors in a truthful and thoughtful manner. The company further states that its mission is consistent with standards of monitored and cost-effective advancement (Dollar Tree, 2016).
Target has not changed its business model to adapt to the modern-day changes in the retail business. Compared to its rivals, Walmart is planning to open more than 200 small stores as compared to just eight small stores within a year.
The main one is the established and loved brand name that is well liked by customers. Along with this, Target has the perception of being a fun place to shop that comes with an experience. Unlike Wal-Mart, Target has the ability to position themselves as a middle class, hip and more fashionable store to shoppers of this generation (Target Corporation SWOT Analysis, n.d.). Target’s weaknesses include tis business model based on supercenters and other big box stores which make it more difficult for them to reach shoppers who appreciate the smaller convenient stores. Along with this, they have been unable to change their business model to adapting times (Target Corporation SWOT Analysis, n.d.).
Professor David Soberman describes his disappointing experience, “I have gone into Target stores looking for things, and the product line is not where it needs to be. You want certain things, but you can’t find them. You can find them at Wal-Mart. I just took my child down to school at Queen’s, and I was trying to buy things. I got 95 per cent of what I wanted at Wal-Mart. The other five per cent I got at Canadian Tire. I did go into Target, but I couldn’t find what I needed”
They are involved with modern pop culture and many celebrities’ products sold within their stores. We even had the chance to see the amazing live performance with Gwen Stefani, this was the first music video created for live television filmed on Warner’s studios lot specifically for Target (Wahba, 2016). The music video featured a fun energy with lots of product placements within the video itself while including the same color schemes as mentioned earlier (Nudd, 2016 para 3). This brings to life an amazing environment for their consumers. When you are watching anything nowadays a Target commercial will come across the TV screen, reinforcing and continuously building the Target brand.
Target Corporation pioneered value chain activities like focusing on customer experience through superior marketing, ability to attract global talent, sustain in and outbound supply logistics, develop supplies with a high-quality vendor and partners, a great customer service, extend return by 30 more days if purchased through Target brand store cards, and a skilled workforce supports its generic strategy of "Expect more Pay Less" improves competitive position that its rival cannot match. --
According to Schafer (2013), Target Corporation desire is to improve Target Brand and be a better version of Target with an incremental products and services. Target Corporation acquisitions counter any threat from other rival online retailers and allow Target Corporation to cross promote between Target and the new entity strengthening its
Few companies create such controversy as Walmart has done with its approach to maintaining low costs for everyday items. People either love Walmart because of this approach to keeping prices down or hate it due to the effects it has on the economy. There are a lot of arguments surrounding the minimum wage and employee rights at Walmart. There seems to always be a news article about some employee protest about the wages or how they are treated. Walmart is viewed as an enormous firm that does not take care of its employees because of its minimum wage, treatment of its employees, and how it deals with lawsuits.