AllBestEssays.com - All Best Essays, Term Papers and Book Report
Search

Target Company Marketing

Essay by   •  July 18, 2011  •  Case Study  •  533 Words (3 Pages)  •  2,035 Views

Essay Preview: Target Company Marketing

Report this essay
Page 1 of 3

Target Marketing

Much of Target's success is due to its distinctive marketing communications. Gerald Storch, Target's vice chairman explained that the company faced three strategic choices to tackle the increased competition in the retail market: "to specialize, to become the low-cost producer, or to differentiate itself." The first option, I believe, would have limited future growth, and Wal-Mart was already a low-cost producer, so Target chose the third option and decided to differentiate itself by being a mass merchandiser of upscale affordable goods, also know as "Cheap Chic." Their goal in the very beginning was to be an upscale discounter store.

In a study that Target did in May of 2003, on average their customers were younger, better educated, and more affluent. Target has successfully associated its name with a younger, hipper, and more fun image than its competitors. The median Target shopper is 41 years old, the youngest of all major discount retailers that Target competes directly against. This still rings true today. Many people have given Target the nickname "tar-zhay," as though it were an upscale boutique. Because of Targets strategic marketing, they have positioned themselves as a high-style brand despite its low prices. They have been able to achieve this by teaming up with name brands such as Mossimo, Isaac Misrahi, Philip Starch, Michael Graves, Liz Lange, Fiorucci and many more. These partnerships provide a theme for their advertising and created a synergy between the two main strands of its branding: design and advertising. Target also created a fashion-forward Go International line, which hires famous designers to design collections available only for a few months. In doing this they have attracted shoppers that normally would avoid discount retailers. In October 2008, Target announced plans to spend three quarters of their marketing budget trying to erase the misconception that their competitors offer lower prices, add perishables to their inventory, and cut back on discretionary items such as clothing and household items by using lines like "Fresh for less' or "Fabuless." Stores will also feature signage grouping products priced under $5, $10 or $15 and other signs touting value. Target also added circular, radio, direct and online marketing featuring a "get more for less" message.

Target is the number 2 discount chain in the United States behind Wal-Mart. Despite Target's policy that they will match Wal-Mart's prices on like items. Target is still perceived as weaker on both everyday prices and advertising prices, as well as on variety of merchandise. They are making significant strides to combat that perception.

As of January 2010, Target Corporation operates 26 distribution centers across 21 States. With the exception of vendor supplied items such as greeting cards and

...

...

Download as:   txt (3.4 Kb)   pdf (64.1 Kb)   docx (10 Kb)  
Continue for 2 more pages »
Only available on AllBestEssays.com