Target Stores

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

Store 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

Target stores are introduced, capturing

customers’ loyalty by offering popular
national brands at discounted prices. The
main aisle allows easy navigation;
efficient, clean displays make discount
shopping easier and more pleasant than
ever before.
 1970 – 1979
• Already taking the lead in retail thinking, the
newly established Target stores are organized
according to consistent blueprints called “plan-o-
grams,” ensuring that each of the 300 locations
are clean, easy-to-shop and intuitively arranged.
• The stores contain photo processing, pharmacies
and Food Avenue® restaurants, so guests can
accomplish more in one shopping trip while
enjoying the well-lit, appealing atmosphere and
the friendly assistance of red-shirted team
members. Electronic cash registers are used for
the first time, and the Sunday circular begins to
hit a few key markets.
 1980-1989
• Inside the stores, Target adds electronic
scanning checkout, simplifying distribution,
speeding guests’ exits and guaranteeing
accurate pricing. At home, the weekly Target
advertising circular becomes second only to the
Sunday comics as America’s most-read
newspaper insert, delivering customers
information on the newest and best-priced items
waiting in stores. Target also offers a holiday
exclusive that becomes the must-have gift of the
season.
 1990 - 1999

Target stores expand in new directions with

the introduction of the larger-sized Target
Greatland® concept stores and the Target
Guest Card® (now the REDcardSM). In 1995,
SuperTarget®, which adds groceries to the
product mix, gives consumers more reasons to
make Target a regular destination.. At the end
of the decade, GiftCards are introduced, while
Target expands to the Internet with Target.com
as its online presence.
The exterior of a typical Target Greatland in New Jersey. Unlike

smaller Target stores, It feature double entrances.

 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..
The exterior of new Target store in Miami, Fl
 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.
Target Stores at Minnesota.
 Success & Reach
• 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.
Target Shoe Store
 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.
Target Stores Headquarters
 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

• From the very beginning, Dayton's

strategy was to position Target as an
upscale discount chain at which the prices
would be just above the lowest prices. To
achieve this upscale image, it offered
trendy and stylish goods in an
environment that was bright and attractive,
unlike other discount stores of the time.
 Differentiation
• Target Corporation competes directly against
other discount retailers, mainly Wal-Mart and
Kmart.

• Since its founding in 1962, it has intended to

differentiate its stores from its competitors by
offering what it believes is more upscale, trend-
forward merchandise at low cost, as opposed to
the traditional concept of focusing on low-priced
goods.
 Revolutionizing Retail

• From department store roots to the award-

winning online presence, Target works to
deliver a great retail experience. They
strive to exceed their guests’
expectations, adding this and trying that
to provide the perfect blend of style,
substance and oh-so-satisfying shopping.
 Design for All

Our Commitment to Design

Great design is the essence of the Target

brand. Target partners with world-class
designers to offer amazing products at
affordable prices. Since day one, our
company founders recognized that the
appeal of smart, stylish, well-designed
products and stores would set Target
apart.
 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.
 Questions for Discussions

• “Target positioned itself as an upscale

discount Chain. Target Differentiated itself
from its competitors by offering trendy
Merchandise at affordable prices” Explain
in detail how differentiation strategy
helped Target to become one of the
leading retailers in the US.
 Differentiation Strategy

To be able to offer the most up to date

Styles & trends to the customers Target
focused on merchandising. Target realized
the importance of not just having the
goods in Store but they also worked on
conveying the image to the customer
through its store layouts & displays &
through Marketing & Communications.
Their Tag Line Expect More Pay less in
all their Branding Strategies created a
strong effect in consumers mind & helped
in Differentiating from competitors.
 Differential Approach
Most Retailers use Shop within a shop concept but
Target used a different Approach. They decided
to bring in more Brands & labels and created
focus areas for them. What Target does is
purchase long, deep & narrow.

Target established a QUICK RESPONSE TASK FORCE

& identified trends and purchasing patterns so
that they can quickly develop &implement Micro
Marketing Programs which shows that Target is a
customer-centric organization.
Target Managers were always attune
with what customers wanted &
anticipate trends & demand. They
looked at the world as our Shopping
Basket & finding ways to bring that
Basket to the average customers.
 Question for Discussion
“Target began forging partnerships with
recognized designers & design houses to bring
affordable designers goods to its customers”.

Assess the symbolic relationship that existed

between Target & its design partners?
 Symbiotic Relationship
It was a part of reinforcing its upscale image &
provide quality & affordable designer goods so as
to attract more customers base to its Store.

The forged partnerships based on symbiotic

relationships as it will benefit Target as well as
Designers. Target is getting designer clothes in
their Store at affordable prices & in turn
Designers got a new platform to showcase their
products.
 Forged Partnerships
Target collaborated with :
Michael Graves : Home Goods Collection

• Massimo : Men’s & Women Sportswear

He got Royalties with substantial guaranteed minimum
payments for licensing his trademark to Target.

• Designer Mizrahi: Women apparel, footwear etc.

His lines for Target was considered fashionable yet affordable helped in
increasing footfall. It helped Mizrahi as well in launching his new line of
couture clothing.

• Rosen Zweig : encompassed variety of products which helped in

increasing the Merchandise & pulling customers to store.

• Ming Tsai: Exclusive Kitchenware & cooking ingredients

 Alliances

By collaborating with these designers Target pulled

a lot of customer traffic and gave its customers a
lot of variety to choose from with large
Merchandise.

Collaborating with Target gave an opportunity to

designers to promote & sell their products in a
reputed store & paved way for future growth &
success.
 Question for Discussion
One of the key elements in the success of
Target has been its ability to effectively
communicate the Company’s unique
Positioning by coming out with attractive
Marketing Promotions.

Analyze how the Company conveyed the

uniqueness to its Customers?
 Successful Branding

TARGET logo was recognized by 96% of

Americans which is tremendous success in
itself.

Target itself had become a Brand because of

its successful Merchandising Strategies,
Marketing & Advertising.
 Making our mark with our logo.
The Bulls eye logo, in the shape of an
archer's target, symbolizes great vision,
perfect execution and intuition. Our team
members make the perfect draw on the
bow, adjust our aim, and hit the target of
our business goals.
 Communicating through Branding

• "Branding is one of the things they

(Target) do a good job of, and it
represents where they want to be in the
market“
By Chris Merritt, principal at Kurt
Salmon Associates, commenting on
the branding strategies of Target.
 Image Management
• Target developed an image and displayed
products that matched its customers
lifestyles and created enhanced
merchandise displays. It offered a mix of
private labels and national brands in
creative and innovative layouts and
displays.
 Interiors of Target Store
•
 Advertising & Marketing Communications

With its advertising & inshore presentations target

consistently conveyed the message that its collections
are clean, fresh & in Style. It also stressed that goods
are priced right & convenient to buy.

These messages were conveyed through Circulars, TV

Ads, Points Of Sale, Signage & Merchandise Displays.

They added more value by time spent by the customer in

buying. Effective communication helped in increasing
average customers per visit.
 Positioning through Advertising

From publishing a unique & differentiated Ad Circular every

Sunday which was able to project an image of Style &
sophistication to the customers to artful displays aisles &
creating stylish trendy Image for everyday items Target
positioned itself as being stylish, affordable & trendy &
won many Awards for its advertising & Marketing
Communications.
Advertising & Branding
 Sales Promotions

The Promotions initiatives with AOl,Amazon.com &

Collegestudent.com & offering customer friendly
online shopping with personalized & unique
shopping experience was a major hit among
Target Customers.

The idea of providing Target Smart Visa cards to its

customers, Running the Stores in a Boat &
opening Special Summers Stores (Bulls eye Inn)
surprised & delighted the customers & helped in
strengthening the Brand & deepen relationship
with Customers.
The Major Contributors to target Success are :

3. Target recognized that value was a function of

quality, trend & price &not just Price.
4. Target recognized the importance of an attractive
shopping environment & not just offering goods
at lowest price
5. Effective Communication& Marketing Strategies.
6. Creative Advertising Campaigns & Promotions.
7. “Design for All ” Concept in Merchandising.
8. Branding Efforts to convey positioning & Image.
9. Customer Centric Philosophy : Constantly in tune
with what the customers wanted and anticipate
trends and demands & Offering trendy & stylish
products.
10.Updated Retailing Technology
Questions & Discussions

Thank you…..