The first Target store opened in Minnesota in 1962.
Today Target is the number five retail store in America, there are 1,744 stores across America. Target consumers when surveyed said that they would like to see more items in the grocery food area. Right now there are over 187 Super Targets. Target is continuing to convert many of their stores into Super Targets, which offer a full grocery area. They also operate 25 distribution centers and 4 import warehouses, with 352,200 employees. Over all their logo the Target “bulls-eye” is recognized by 96% of Americans, and 100% of the consumers I surveyed. Target has a great deal of competition, the largest competitor is Wal-Mart. They are also in completion with many companies that are overseas and online, because right now Target store is only available in the States. They continue to stay competitive because they maintain and further develop their brands and designs in order to offer trendy
items. To understand how Targets marketing has been so successful, one must understand who their customer is. The typical Target shopper is a female, (96%), the median age is of a Target is 41 , with a median income of $63K and about 45% have children in their home. Target markets themselves as a department store that has discount prices, but so do other department stores, so what is it that makes Target different. While some products may be slightly more expensive than their competitor Target offers savings in other ways. For example Target offers The Target Red Card and Target Debit card. The Red Card works the same as other store credit cards, but offers 5% savings on all purchases, and also allows you to pick a school district in which you wish Target to make donations to. Target contributes 5% (or 3 million dollars) to the communities they serve. The debit card offers the same benefits, however is so different from other department or discount stores, because it allows the savings to peoples whose credit rating may not allow them to be eligible for a credit card, or those who simply do not wish to use a credit card. By marketing themselves as a caring member of society customers want to support a store that supports their community.
Target currently uses tradition methods of marketing, combined with new tech savvy advertising. For example their weekly circular is distributed to over 50 million homes every week. They are using new tactics like Channel Red, in the Target stores, direct mailing to loyal customers, and clever commercials. Some of their best commercial areas throughout the holiday season. Target was able to work hard to be part of the Rolling Stones 1,000 edition. During the 2006 Winter Olympics they created a red and white train that featured their Bull’s-eye logo to transport people throughout the Alps. They have also launched a nationwide branding effort with the color red by advertising in subway and train stations. Target has also made new applications for smartphones. Cartwheel is an application that anyone can download to their phone, it is similar to a weekly ad where digital coupons can be seen and then used at the store. Consumers also receive rewards for sharing the applications with friends and using it to shop. Target also has an application that can be used to shop online from a smart phone or tablet, Target continues to promote innovative marketing in order to gain more of the market. By using a variety of methods they are getting their name out there and customers in to their store. Target has really set its self apart from other discount retails by the products they offer. The trendy products they offer have more appeal and a better quality than are offered at other discount stores. They have marketed themselves as a fun, hip place to shop with the latest trends and they have done so by partnering with today’s hottest designers like Michael Graves, Isaac Mizzarhai, Liz Lange , Nate Berkus. These designers are offering their products that are usually much more at a department store at a price that many Americans can afford. When survey 85% percent of customers stated that their favorite department to shop in Target is their home department. Nate Berkus, Paul Frank , Simply Shabby Chic are just a few of the designers that are exclusive to Target. Target can continue to work with these and new designers to keep current customers happy and gain new ones. In recent years they have really geared part of their home department to college students and young adults. This is an exceptionally great idea seeing as this age group is always drawn towards the latest trends, but often does not have much disposable income. While consumers have shown they love some designers at target , not all designers fit into “trendy discount store”. Last year Target started to introduce exclusive and typically very expensive designers during the holiday season. They partnered with Neiman Marcus for 24 designer products , which were also available at their store and online. The products were priced from $7.99- $499.00. A Marc Jacobs scarf was priced at 69.99 and an Oscar de la Renta tote bag was priced for $59.99. This however was a fail for Target, the products did not fly off the shelves as expected. In fact they hardly sold at all, the original minimum of product per customer was lifted and prices were slashed by half or more. This marketing technique reminded Target that their consumers may like designer looks but were still there to shop at a discount store. As the holiday season approaches now the Target marketing team has been hard at work. They will start the holiday shopping season by kicking off their Black Friday sales at 8p.m. on Thanksgiving evening. Target’s marketing department is aware that consumers are more digitally connected than ever before. That is why this year they will be using social media to attract customers, with things like weekly Instagram competitions. Target will also be joining forces with the popular site Pintrest, to offer inspiring ideas for holiday entertaining. Target has implemented a “price match program”, where they will match the price of their competitors. Target is now offering a new in store pick up program. This means that people who shop online will be able to pick up their merchandise from their local store on the same day they place the order. This holiday season has potential to be very successful for Target. Target’s marketing team is aware that they have many opportunities for new customers. One of those opportunities is untapped markets. That is why this year Target expanded into Canada. It also seems obvious if that over 90% of their shoppers are females that they can work on reaching male customers. They have begun to do so with a new a new line of clothes geared towards men. Target knew that they could gain more male consumers , but also is a caring company to work for. That is why they made a competition among the fashion designers that design their Massimo Brand. The competition was to give these designers their own line in the men’s department. Two designers won, where they designed a line of men’s clothes inspired by the outdoors, or as described by one of the winning designers as “The outdoors gentleman”. These pieces are being tested in 100 stores and vary from $19.99-$59.99. These so far are proving to be successful pieces and will likely be moved into more stores. Target is continuing to listen to the customer’s wants and needs and working every day to gain new customers. Target has also consider that they have a small automotive and hardware department area, which mostly shopped by men. Growing these departments and perhaps using commercials to advertising on sports channels geared towards man would be a wise start. Another market Target should consider focusing on is a younger shopper. The average age of a Target shopper is 41. They have begun to door so with their college line, but that usually just a focus in the month of July-September when college typically starts and may be purchased by parents. Targets strives to be a hip trendy place to shop so there for they should market themselves towards the younger generations that create these trends. They could start by running advertisements with young celebrities in them. AS they continue to work with new designers, they could focus on younger designers or young celebrities that are looking to start a fashion line. There has been gossip about staring a line with Justin Timberlake which would be a great start. The Target Cooperation operates as a successful retailer. To continue to do so there are several steps that can be made to insure their success. Target should look into rewriting their mission and vision statements to see if any changes needed to be made after the recent years. This will give them a written visual for their success and goals and allow them to see what they have accomplished so far. Target should continue to grow their own private label lines, like the “UP & UP and Circo brands. Target also needs to reach out to new customers to gain a greater piece of the market share, therefor they will market themselves to younger adults, men and promote their own brands. These changes will allow Target to the opportunity to gain a bigger market share and a more diverse market. Target is one of the most successful retailer’s discount stores and with some of these changes they may be able to climb the latter to 4th, 3rd or even the number one most successful discount retailer.
Works Cited
www.target.com . https://corporate.target.com/#?lnk=fnav_t_spc_1_7. About Target. 10/31/13
https://corporate.target.com/about/history/Target-through-the-years. Target Through The Years. 11/01/13
www.retailtouchpoints.com Target Uses Guest Intelleigence. 11/1/12