Sales promotion tools are widely used throughout retail businesses. Anytime you go into a grocery store, there are sales promotion tools at work. Millions of dollars have been spent on these promotion tools and research on how they impact customer behavior. Sales promotion tools are “promotional activities companies do in addition to advertising, public relations, and personal selling in order to sell a product (Tanner & Raymond p. 237)”. These tools are used to encourage customers to spend more money, remain loyal to the brand and try new product offerings. These activities include coupons, point-of-purchase displays and loyalty programs. For the purpose of this paper, I will use the retail chain, Target, as my example. Target uses a variety of sales promotion tools in conjunction with one another. These promotion tools combine the psychology of customer behavior and the most up to date technology. Target has a very specific clientele. In her 2015 article for The Washington Post, Sarah Halzack describes Target as “well-designed stores and cheap, chic styles made it appeal both to low-income consumers who might have shopped at Wal-Mart and to upscale shoppers who simply loved the thrill of a deal”. These customers are extremely loyal to the Target brand and actively engage in the sale promotion tools. …show more content…
The Target customer value sales and coupons “provide an immediate price reduction off an item (Tanner & Raymond p. 244)”. Target uses a smartphone application called “Cart Wheel” to generate in store coupons. As customer shop, they can scan product barcodes with the app store coupons to be scanned at checkout. Cart Wheel provides customers with instant savings. The app also tracks patterns in customer spending and triggers more paper coupons to be printed at check out to be used on the next store visit. These coupons encourage brand loyalty and customers to return to the
According to Kantar Retail, most of Target’s shoppers are younger on average than its rivals, and more educated. That means it has to consistently offer something different and appealing; it emphasizes more on the latest-trend apparel, eye-catching home décor and exclusive designer merchandise than its competitors. This results in a willingness to pay a bit more for items by customers who are willing to pay a bit more. Moreover, this successful
Target has 1,799 stores, and its annual revenue was more than $71 billion in 2014. Considering that Target operates only in the United States, the company’s total income does not seem too low. Like Walmart, Target is open to all customers without membership, and its products are similar to Walmart’s products. For example, both companies sell household essentials, pharmaceuticals, personal care items, cleaning and paper products, apparel, accessories, sporting goods, electronics, and food items, along with furniture and other products. Instead of offering membership discounts, Target offers REDcard debit and credit cards, which provide consumers with a 5% discount on purchases. Since Target utilizes e-commerce for sales of its goods, delivering products worldwide can be highly beneficial for the company’s
By carefully examining purchasing habits of twenty-five products, Target is able to determine the likelihood that a woman is pregnant and when her baby is due. This gives them the first opportunity to market to the expectant mother instead of waiting on birth information that is available through public records like companies used to have to do. They can then carefully time coupons and offers around key dates that items might be needed.
Like their competition, Target has made many changes over the years when it comes to their products and services. In order to meet the ever changing environment and ever changing customer needs Target has not only increased the...
b) Provide customers with a shopping experience with store inspired service and a dime inspired value with one-stop shopping that includes perishable and food assortment. Leverage technology to extend offers beyond store using mobile and target website experience as well social media to connect with the customer for a dialog and provide deals, shopping experience made simple, which is accessible anytime and
Kohl’s is best known for their promotion strategies. The company uses nearly every promotional tactic simultaneously. Direct mail coupons, electronic coupons, rewards programs, incentive programs are all part of Kohl’s everyday promotions. Additionally, they advertise with fliers in newspapers as well as online. A mobile application is also available for
With “bright lights, wide aisles, [and] branded signage”, customers can easily find exactly what the need and more. The racetrack layout was introduced in 1975 to Target, making it easier for the customer to loop around the store and go to each department. Because of the wide aisles set up, merchandise is displayed on all four sides to put as much merchandise out as possible. Regardless of the location of the retail stores, all locations are consistent with presenting clean and uncluttered displays with their “map”; a planogram that Target has created. Target’s famous Bullseye logo was created in 1968 and can be recognized by about 96% of people today (Target Corporate*). The Bullseye can be spotted throughout the store to “differentiate aisles, departments, and deals”, as well as on their red shopping carts and exterior of the stores at all the locations. Target keeps a consistent image with their Bullseye, red carts, and Target sign* with the exterior where any customer would recognize the store no matter which location they visit. The locations of this discounted retailer is typically located near neighborhood shopping centers that also contain similar retailers near by (Levy & Weitz, 2008, pg195). ***Add transition
Target is currently the second largest retailer in America. Their website, Target.com, is ranked as one of the most visited. Target’s revenue from online sales in 2012 was approximately $1.93 billion dollars. It is also important to note that Target has its own app. This allows to “Target wherever you are”. They can shop through their app, find the latest weekly deals, locate the nearest Target store and even check rating and reviews about products. This app also allows the customer to have access to more coupons that they can simply redeem at the register by showing their phone.
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”.
Today, Target is the second largest general merchandise in America with many competitors but limited competition. As one may look at it, Target isn’t really a discount store but rather a superstore where a customer could get everything they need at one single location. Target isn’t an ideal store where one would want to go if they are looking for low cost product but due to their remarkable instore experience allows a consumer to spend more money than they wanted too and persuade them to come back and shop again. Target was able to grow has a second largest merchandise in America because mangers are investing in employees that are there for customers whenever they are needed.
As compared to its rivals, Target has presented its brand as a middle-class brand which assists in attracting customers that find other stores like Walmart unpleasant
Target is known to offer higher quality and more innovative products. Adding garden centers and food highly increased Target’s sales and rivalry. This store chain signs exclusive partnerships with designers like Jason, Wu, Zac Posen, Isaac Mizrahi and the most recent Lilly Pulitzer. It is every customer’s preference to be well dressed without overpaying. Sustaining low prices to remain competitive in the industry is Target’s priority. By sells its products directly to customers it is able to keep the cost at or below competitors. Target’s Red Card, Target Visa, Target Card and price matching of online retailers provide additional discounts for customers. Reinvestment into community puts Target in the front pages. This company spends “4 million dollars” programs (“4 Million Every Week”) every week in civic giving. Consumers look to support retailers who are actively involved in the community through sales of homegrown products and sponsorship of local events or
...aviors. Also, coupon ads or coupon booklet (like Costco’s) to mail monthly to members are something to considered. This is not only to advertise for different Target’s products but also to increase shopping activities because everyone does like promotions. Continuing to expand its private label offerings is also a great way to cut cost and earn more profits. As mentioned above, Target should also expand its operations globally and diversify its brand to become a more dynamic retailer. Moreover, growing and expanding online market to compete with Amazon or Ebay’s shopping experience could help Target in cutting cost of storing inventories as well as providing more convenience way to shop.
Ninety percent of Canadians are enrolled in at least one loyalty program. Market research has shown that loyalty programs are growing to be very popular in today’s market. A loyalty program is a program offered by a company to customers, who make frequent purchases. Loyalty programs are of benefit to both the consumers and the business. The consumers benefit by receiving coupons, special access to sales and new products whereas the company benefits by gaining an abundance of knowledge about the consumers, through their purchasing habits. Loyalty programs have proven to be very successful for several companies such as Target, Starbucks, and Shoppers Drug Mart. The senior management in sales and marketing believe that initiating a loyalty program