Target Case Analysis Target

Industry Memo
Target corporation’s products are in constant demand along with the products of their competitors Walmart and Costco. Target has a wide array of items that allows them to have constant demand as their products are mostly inelastic as they sell food and clothing primarily. Walmart’s products are also mostly inelastic as they sell alternatives of the same goods.
Target’s cost structure is mostly fixed as they buy their products at a set wholesale rate from their suppliers. Two areas that affect the quantity of demand is the demographics and the advertisement of the stores. The demographic area makes the store carry different products like name brand and non-name brand because everyone has different preferences. The demand is high

These are the most relevant because the economy affects the prices you charge and finances could limit the amount of products you can sell or bring into the company to sell to the customers. The infrastructure is important because customers need to feel safe to want to buy products from your store and if they dont, they will lose revenue. The trends that are out in society will lead to higher profits in one area so they need to ensure they have more products in this category and still supply what you need to for everything else in the store. Lastly, is the customer base and if you know who you are trying to reach, then you will be successful and have a long lasting company at the end of the

Target Corporation uses multiple pricing by providing a variety of deals including buy one get one one free deals and etc. This usage of price is heavily focused on grocery and electronic items. Target used the pricing technique of price matching policy which targets all consumers to save by matching with top retail giants. Target also targets their consumers by their service components throughout the store. They have a credit card service called the “Target Card” which offer saving and discounts throughout the year. The increase their number of efficient registers to have a faster checkout time. Lastly, Target launched a mobile app that includes updates, latest deals, sales, coupons, and weekly ads. The app also included their saving program called