Target Case Study

Target’s mission statement: “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less brand promise.” (target.com)

Headquartered in Minneapolis Minnesota, Target Corporation is one of the largest chains of retail stores in United States and Canada (Stone, 1995). Founded in 1902, the chain now has more than 360,000 employees worldwide. The company operates nearly 1925 stores out of which 1795 stores are in the US and 130 stores are in Canada (NASDAQ, 2014). The business prides itself in a diverse portfolio of merchandise that their outlets houses, ranging from dry groceries to electronics, furniture, apparel and much more. Its distribution networks make use of third party vendors, direct shipping as well as distribution centers. It also operates a successful e-store target.com which offers customers a virtual one-stop shop for their needs.

Target Corporation is a retail chain specializing in household goods, clothing, food, and accessories at discounted prices. The retail chain’s history started back in 1902 as Goodfellows and in 1910 as The Dayton Company. Initially, the chain specialized in “furnishings, fabrics and decorations for business and other public institutions” (“Target Corporation,” 2016, p. 5). Eventually, Target went public in 1967 and on to acquire Mervyn’s in the 1970s where they became the seventh largest retailer in the United States. Target operates in the United States, where it is headquartered in Minneapolis, Minnesota and as of January 31, 2015 Target employs over 300,000 people. “The company recorded revenues of $72,618 million in the financial year ended January 2015, the operating profit of the company was $4,535 million, [and] the net profit was $2,449 million” (“Target

Target sells a wide variety of general merchandise and food through the store and with the use modern technology. Target’s

I choose to talk about the Target Corporation, because it is a franchise where consumers constantly shop at for their grocery, home décor, and bathroom essentials. The Target brand is in the general merchandise retailing industry and was first established in 1962. Target’s mission statement states: “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less. ® brand promise” (Target Corp., n.d.). The company’s mission statement implies that Target is a store where consumers can get products for a reasonable price. Target is performing well despite of their security breach problem a couple of years ago. It does not follow Pfeffer’s principles to the key, but it is a high performing organization. Their goal is to provide affordable prices at their different full-service department stores. Target has 1,556 stores and is the fourth largest retailer in America. It ranks as the second discount retailer in America only Wal-Mart Stores, Inc. stands in their way (Target Corp., n.d.). In 2011 Target acquired the Zellers retail chain, at a cost of $1.8 billion dollars to its international expansion (Target Corp., n.d.).

Although Target, as a whole, is one of the most successful department stores in the industry with total revenues of 72.7 billion United States dollars as of January 1, 2015 (“Target Corporation Company…”). However, even with revenues as significant

Target Corporation is an upscale discount retailer offering high quality, trendy merchandize at affordable prices in the clean, spacious, and friendly stores. Incorporated in 1902, the company is engaged in providing daily essentials through online and mobile services in the United States. The company’s digital and traditional stores offer edited assortment of food, together with dry grocery, perishables, frozen items, and dairy products. Meanwhile, its Supers Target store provides a chain of foodstuffs equitable to traditional supermarkets. Target metropolitan format stores, TargetExpress, and CityTarget compromise concise products in overall as well as food

Target Canada’s weaknesses are a huge issue for the corporation. Developing markets across Canada means to satisfy all the Canadian customers as the retailer do in America. The huge weaknesses from Target Canada are their future profitability, they’re a competitive market, the costs of their items, and the stockout or the empty shelves in all their markets. Target Canada’s future profitability might not be as successful as other huge diversified markets in Canada. As for right now, there are already major problems in Target that the Canadian consumers complain about, and therefore, if the complaints and the bad publicity continue to run through Target, there would be a less attraction to the image of Target, and thus, less consumers

After 90 years of growth, target has over three hundred stores across Australia with stores conveniently located in both metropolitan and regional areas (Wesfarmers, 2016). Target offers its customers a diverse range of products including Branded clothing, cosmetics, toys, homewares, electrical, fitness and consumer electronics. Few premium brands, mostly mid-range seasonal fashion lines (Target Australia, 2017). Target’s core marketing strategy is targeting fashion conscious shoppers by collaborating with designers like Jean Paul Gaultier and Stella McCartney (Catie Low, 2016) with a focus on quality and customer in-store shopping experience, and entering high volume brands, exiting unprofitable sales and toy sales.

Through its private label, Target also has created exclusive partnerships with designers all the world who provide high-class designs with a budget friendly price tag that’s priced slightly higher than the basic low-priced goods, but still within an affordable range. Since many of the designer-type products are manufactured through its private label, Target can achieve low COGS % relative to its sales. To further this, Target created a fun, hip brand and reputation, which is achieved through its advertising, dialed-in store appearance and displays, in addition to its designer-like products. Target also was the first to offer customers a Target Credit Card, as well as price matching with online

Aimee Rong Mr. Wisotsky March 4, 2015 Why consumers like Target more than Walmart Walmart is famous for its cheap prices, convenient all-in-one superstores but notorious for its unethical employment policies, devastating impact on local communities and disastrous environmental impact. When asked whether one would rather shop at Walmart or Target, a rival competitor, many consumers confidently replied, “Target”, rather than Walmart. In the public scene, Walmart is seen as a negative force in a community while Target is seen as a positive and supporting force in the community. Given the difference in public opinion of the two rival companies, it is surprising that behind the cultural stigma, Walmart and Target both share a similar set

Target has a strong brand built on the quality of their merchandise. Unlike Wal-Mart whose retail store is built around discounted prices. According to 10 Things You Didn’t Know about Target (2015) Each of Target’s regional distribution centers serves anywhere from 50 to 80 Target stores, can span 1.3 to 1.6 million square feet in size and consist of enough concrete to run a two-lane highway for 25 miles (p.1). The Target Corporation is a resourceful industry; they have many subsidiaries namely Target Commercial interiors, Target.

In order to run and maintain an effective business, it’s critical to efficiently utilize internal assets to both maximize production and achieve customer satisfaction while working to limit potential weaknesses that could essentially impact the firm’s ability to profit. Due to the rapid growth of consumer acceptance, a key strength within Target has been the sale of more than 30 exclusive private-label brands such as the highly successful kids’ lines Cat & Jack and Pillowfort that work to challenge the value of traditional name brand products while providing the customer with additional shopping opportunities resulting in $26 billion in sales during 2017 (PYMNTS, 2018). Target has implemented an efficient store layout in order to maximize on

​The US Retail segment includes Target’s online business, its general merchandise stores, and SuperTargets (Reuters, 2013). Target.com is designed to allow guests to purchase products directly from online and/or to assist them in locating the product in a store near them. To aid in differentiating themselves, Target uses the web platform to sell not only its general merchandise, but also to introduce six brands sold exclusively through this medium (Target Brands, Inc., 2013c). The online presence aids in the vision of the company by offering multiple channels through which a customer can interact with Target. The brick and mortar stores of the US Retail segment offer general merchandise and groceries through the discount chain. Target and SuperTargets differ in that SuperTargets offer a

Target has had a lot of ups and downs they have faced in their career of a century they have left behind them. You can be well aware you want to get any similar brand that is serving like Target as a global partner to different groups you manage. You will need to make a proper impression as a virtue that needs to get satisfied as a partner and a person serving to bolster growth you want.