From Expect More to Pay Less
1. What microenviromental factors have affected Target’s performance over past few years?
Target is about style and fashion. The "cheap chic" label applied by consumers and media over the years perfectly captures the long-standing company positioning: "Expect More. Pay Less." With its numerous designer product lines, Target has been so successful with its brand positioning that for a number of years it has slowly chipped away at Walmart's massive market share.
2. What macroenviromental factors have affected Target’s performance during that period?
AS the global recession began to tighten its grip on the world's retailers in 2008, the dynamics between the two retail giants reversed almost overnight. Target's well-cultivated "upscale discount" image was turning away customers who believed that its fashionable products and trendy advertising meant steeper prices. By mid-2008, Target had experienced three straight quarters of flat same-store sales growth and a slight dip in store traffic.
3. By focusing on the “Pay Less” part of its slogan, has Target pursued the best strategy? Why or why not?
No. Target's financials were slow to respond. Things initially got worse with sales at one point dropping by 10 percent from the previous year. Target's profit suffered even more.
4. What alternative strategy might Target have followed in responding to the first signs of declining revenues and profits?
Add coffee house, it began converting a corner of it department stores into mini-grocery stores carrying a narrow selection of 90 percent of the food categories found in full-size grocery stores including fresh produce. Secondly, Target suprised many analysts by unveiling a new package for its main store brand.
5. Given Target’s current situation, what recommendations would you make to Steinhafel for his company future?
Need to make their business reform outside of the company, and do more connections between the company and the
Target is about style and fashion. The "cheap chic" label applied by consumers and media over the years perfectly captures the long-standing company positioning: "Expect More. Pay Less." With its numerous designer product lines, Target has been so successful with its brand positioning that for a number of years it has slowly chipped away at Walmart's massive market share.
2. What macroenviromental factors have affected Target’s performance during that period?
AS the global recession began to tighten its grip on the world's retailers in 2008, the dynamics between the two retail giants reversed almost overnight. Target's well-cultivated "upscale discount" image was turning away customers who believed that its fashionable products and trendy advertising meant steeper prices. By mid-2008, Target had experienced three straight quarters of flat same-store sales growth and a slight dip in store traffic.
3. By focusing on the “Pay Less” part of its slogan, has Target pursued the best strategy? Why or why not?
No. Target's financials were slow to respond. Things initially got worse with sales at one point dropping by 10 percent from the previous year. Target's profit suffered even more.
4. What alternative strategy might Target have followed in responding to the first signs of declining revenues and profits?
Add coffee house, it began converting a corner of it department stores into mini-grocery stores carrying a narrow selection of 90 percent of the food categories found in full-size grocery stores including fresh produce. Secondly, Target suprised many analysts by unveiling a new package for its main store brand.
5. Given Target’s current situation, what recommendations would you make to Steinhafel for his company future?
Need to make their business reform outside of the company, and do more connections between the company and the