Home Plus Case Study Department Store

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Home Plus is a discount big box retailer. They have high end product and low end items with competitive discounts. Their main competitors are Walmart and Target. When I think of Walmart and Target I think of low prices and value products. Walmart has marketed a brand essentially catering to everyday low prices. While Target has products for the middle class consumers, but with a discount. Walmart and Target are both thought as discount stores which carry standard merchandise that are sold at lower prices but in higher volumes.
I would disagree with the proposed change in the marketing strategy. Walmart and Target are not targeting high end consumers and do not have higher-end product lines. Using this strategy will make them loose their competitive …show more content…

I think they have a better chance in success if they didn’t put too much emphasis on the higher-end products. Walmart and Target are not retailers that focus on high end products. They give low prices but with good value to their customers. Some advantages of this proposal would be a stronger positioning in their current target market. Their customers want valued products, but with a reasonable discount. They would have more inventory to give to their consumers and hopefully increase sales in the future. The customers would be buying more merchandise which would result in the need for more inventory and increase in profits in the long run. Another advantage would be the increase in inventory space. Since they are decreasing their luxury end products they would have more room to store their lower-end products. They can order more stock as said before and create a profit. Marketing for the store would also be easier for the store. Since they are not choosing a different market segment they can just continue what they are doing now. However, they can now specialize in it and gather more information to pinpoint their marketing better to

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