Professional Documents
Culture Documents
Target Stores
Expect More. Pay Less.
Introduction
• One of the most recognized corporate symbols
in the United States is that of the Target
corporation, who have 1,351 stores in 47 of the
50 states.
• The first Target store opened in Roseville,
Minnesota, in 1962. Its trendy merchandise at
affordable prices launched a new era in discount
retailing. This “T-1” store was easy to shop,
attractive and always clean. It served as the
prototype for every Target store opened since
then, and it changed how consumers think about
discount shopping.
• The first Target Store was opened by the Dayton
Company in 1962, in Roseville, a suburb of the
twin cities Minneapolis-St. Paul, Minnesota.
• Target is a chain of discount department stores
that are about 95,000 to 135,000 square feet
(12,000 m²) and carry hardlines ("regular"
products and goods), softlines (clothing), and a
limited amount of groceries, mostly non-
perishable.
Introduction
• 1960 - 1969
• 2000 - PRESENT
•
• In 2001, downtown Minneapolis, home to Target Headquarters, finally gets a Target store of its
own: A two-story location on Nicollet Mall. Manhattan gets a special holiday treat as Target docks
a floating holiday gift shop at Chelsea Piers in 2002. Target.com establishes itself as one of the
most-visited retail websites in the world. In July 2005, Target turns New York’s Rockefeller
Center into a vertical catwalk for a fashion show featuring collections from designers Mossimo,
Liz Lange and Isaac Mizrahi. To kick off the 2006 2-Day Sale, Target challenges David Blaine—
the world’s greatest endurance artist and magician— to attempt an escape from shackles while
dangling four stories above Times Square . In 2008, Scott Dixon of Target Chip Genesis Racing
wins the Indianapolis 500.
Mission:
• To make Target the preferred shopping
destination for our guests by delivering
outstanding value, continuous innovation
and an exceptional guest experience, and
consistently fulfilling our Expect More. Pay
Less.® brand promise.
• Today, Target operates more than 1,600
stores in 47 states, including more than
200 SuperTarget® stores that include an
upscale grocery shopping experience. In
addition to the photo processing centers,
pharmacies and Food Avenue®
restaurants found in almost every Target,
SuperTarget stores include in-store
bakery, deli, meat and produce sections.
Positioning
• Target Corporation (Target) had 1,330
retail stores in 47 states of the United
States.
• Target's positioning was based on more
than just pricing; it encompassed quality,
style, and trend. This was the
differentiation strategy that was
consistently applied since the launch of
the chain.
• Target positioned itself as an upscale discount
chain. It differentiated itself from its competitors
by offering trendy merchandise at affordable
prices.
• Target used attractive marketing promotions to
communicate this message to customers. By
2002, the company became the second largest
discount retailer in US.
• The differentiation followed by the company and
its effective communication programs helped it
to continuously increase its revenue and net
income.
Issues Involved
• » How a new entrant can differentiate itself from existing
players in the discount retailing industry.
» The role of branding in successful positioning in the
discount retailing industry.
» How pricing is not the only way to compete
successfully in the discount retailing industry.
» How a company can continue to differentiate itself as it
grows and maintain its unique image in the eyes of the
customers.
» The role of merchandizing in the success of a retail
store.
Target Strategy
• To be able to offer the most up to date
styles and trends to the customers Target
focused on merchandising. Recognizing
that just having the goods in the stores
was not enough, Target also worked on
conveying this image to the customer
through its store layouts and displays, and
through marketing and promotions.
Merchandising
• Target's positioning as an upscale discount
chain was reflected in its merchandising strategy
as well. Target managers felt that they needed
to be constantly in tune with what the customers
wanted and anticipate trends and demands.
• Warren Feldberg, Target's Executive vice
president of merchandising, tried “looking at the
world as our shopping basket and finding ways
to bring that basket to the average customer”.
Differentiation Strategies
Thank you…..