target is the US largest retailer store.this case present that how target got success in very low time and how its compete its best rival WALMART,what strategies it adopted to got success and made lots of revenues.
3. Group members
no.1
Minal
muzammal
Malik umair Sumaira
mahmood munsif
Asma
shafiq
4.
5. Wall mart time line
1960___ 1962 1972 _ 1980s 21st century_______
Birth of discount retailing
Sam Walton
Research on discount retailing
Wal-Mart begins
put 95% money
In “Roger Ark.”
Wal-Mart goes public
15 Wall-Mar stores
267 stores in 11 states
Wal-Mart comes of age
warehouse store in 1983
complete grocery store
36 department of general merchandise
1402 wall mart stores
123 Sam's club location
one of the most successful retailers in the world
today 9884 stores
location in 28 countries
Employs 2.1 millions
Serving more than 176 million customers per year
6.
7. • All about “low prices”
• “Cheap chic” name by customers
• WALL MART >target
• Began to lag in 2000
• Experience with luxury brands
• “Always low price always”
• “Save money live better”
• Familiar price “rollbacks”
• In 2008, defying economic slowdown
• Increase in sales ------5%
9. Target time line
1960__ 1962_ 1972 1980 21th century __
Founding of Target
in 1962
Dayton's
Dayton dry good company Turnaround
family store chain
1975 company's top revenue producer
world largest discount store 151 units and $2.05 billion in sales
Nationwide expansion
912 units in 44 states
, sales reaching $26.0 billion
E- commerce
Target Corporation
1000 stores in 47 states
decline in 2008
closing 262 garden centers
10.
11. • All about “style & fashion”
• Chipped away from
massive shares
• Target grew much better
than wall mart
• Unabashedly attempted to
become more like target
• Slight dip in store traffic in
mid , 2008
13. CEO address to investor:
• Consumer held perception that target’s
not as strong as of it biggest rival.
• Investor should be patient, its value
message would take time to resonate
with consumer.
• Wal-Mart had a decades-long lead
building, cost structure , competitive
advantage.
14. • Ackman, founder, Pershing Square
Capital Management
• Ackman's investment $2billion in
2007.
• Target's third largest shareholder
• company's own share price is down
41% from its July 2007 high
• while rival Wal-Mart is up 3%.
15. William letter
• "The deficit of experience on Target's board has
contributed to the company's
underperformance,“
• claims that the company's directors lack
expertise in retailing, credit cards, and real estate
16. • Steinhafal refused to give up on
his strategy.
• He intensified target “pay less” &
“expect more”
• Focused on advertisements.
20. 1) Converting department stores into mini-
grocery store carrying 90% of food categories.
21. 2) Provide new package for its main
store brand.
3) Introduce new brand up & up
which was replace with target
bull’s-eye.
22. • Wal-Mart advertises that all their products &
mention that are made in America, and they even
use an American flag in their advertising. But if you
check it out, that's not true.
• In fact, they buy $15 billion dollars worth of goods
from China every year.
23. Target‘s return policy:
• Target customers with receipts can make
an unlimited number of returns or
exchanges within 90 days.
• Products can’t be used, and must be in
their original packaging
24. Return gift card
• customers to make just two non-receipt
returns of up to $35 each, over 12 months.
• If you decide to exchange the returned item
for something that costs less, Target will
give you a gift card for the difference. But
you’ll have to use it in the same
department.
25. • Steinhafel
characterized the
current economic
environment as
“somewhat unstable”
and “fragile.”
• He predicted: “There's
going to be good
months; there's going
to be bad months.”
• first quarter ended
May 2, earnings rose
28.5% to $671 million,
• sales increased 5%
26. • its higher profits private label
lines – up & up,
• Archer Farms and Market Pantry
• which now account for more
than 20 percent of all food
products sold, up from 18
percent in 2007,
• increased gross margins
from 30.8 percent a year
ago to 31.3 percent
• another sign of
improvement and effective
expense controls
27. • company has "unique top-line
drivers that aren't dependent
on a macro recovery
• " such as Fresh, the roll out of
fresh groceries at many of
Target’s 1,743 stores.
• Total assets was $43,705.
• Profit increased 54%.
• Spending per visitor increased.
• Wal-Mart sales was slowing at
that time showing sign of
decline.
28. • All strategy will continue with few adjustment.
• Target has increased same-store sales in the past
year, including 1.6 percent growth in the third
quarter.
• Doug Scavenger said:
“It’s fairly clear that Target’s customers are doing
better than Wal-Mart’s because Wal-Mart has
more of those lower- income customer.
Neil curie recommends buying Target’s shares.
29.
30. comparison
Wall mart VS Target
• Services: Staffer is equal in • Services: Target’s staff is much more
professionalism to some Wal-Mart professional by leaps and bounds
managers.
• Price: little higher and sometimes
• Prices: lower than wall-ma
MUCH higher
for example : Archer Farms
• More speed:.
• More Speed: slow in their actions than
target 1.They actually move
2. They are generally friendlier than
Wal-Mart.
3. THEY OPEN MORE LANES when it
get's busy
Employees: 3 times more employees
Employees: has less Employees and
then a Target., but Wal-Mart does not
oddly enough everything works out
offer a real health plan
faster and better
31. • Wall mart is the US best discount retail store by times.
• Wal-Mart's revenue is 6times more than target.
• when recession times start people try and expect to pay less
and get lots of items
• need of an ordinary person is capture by target
• they try to adapt such strategy by which people pay less and
expect more.
• target roses its slogan of EXPECT MORE AND PAY LESS.
• target CEO is so determined in his policy that he didn’t listen
to his any investor and stay strict to his policy.
• time comes when the dream of CEO has came true and
target becomes the worlds best discount retail store of USA.
34. One of the largest and successful retailers in the US is Target
There have been many micro environmental factors that have affected its performance over the past
few years.
The microenvironment factors close to the company that affect its ability to serve its customers such
as the company , suppliers, marketing intermediaries, customers, competitors and publics .
Target wanted to show itself as a discount retailer store but also it shows designers wears. Target is
known due to its style and fashionalable items which is slightly higher in price as compared to other
stores.
Many Target stores are build right across the street or in the same vicinity and many
consumers compare the two and usually assume Wal-Mart is the cheapest and better
to buy.
The marketing concept states that, to be successful, a company must provide greater customer value
and satisfaction than its competitors do .
Media also affect its performance because it carry the news, feature and editorial
opinion
37. There are lots of changes which affects the target performance and there
changes are difficult to oppose. These changes are
Demographic affects in such a way that as time passes the fashion and
scenarios are changed .
Economic Presently there is inflation, “too many people chases too few good”
so its also a factor which affect performance
Natural Factor There are also some natural factors which effects a lot if GOD forbid earthquake or
any other incident occur than might be possible the performance of company is affected.
Political. If there is political instability than also company’s revenue may affect.
Technological As technology got progress retail stores try to dramatize the market place so that
customers got the reason to visit target.
Cultural It also affect the market because people use to make shop, to be a part of or up-to-date
of the culture or fashion.
38. By focusing on the “pay less” part of its
slogan, has target pursued the best
strategy? Why or why not
39. Target pursued the best strategy by focusing on PAY LESS.
Because every competitor offers as less as they can but target adapt
a new strategy and try to attract people by offer many thing in low
price. they made two operational changes
in which they mange a box with lots of thing and offer at low price
about 30 % less to usual market.
They even launch a new product with a name of UP AND UP and MINI
GROCERY STORE
40. Why alternative strategy might target have
followed in responding to the first signs of
declining revenues and profits
41. Target only focus on to facilities its
customer by offer more in low price
instead of only focusing on paying less.
That alternative strategy is adapted to
attract customers.
EXPECT MORE AND PAY LESS
42. Given target’s current situation, what
recommendations would you make to
Steinhafel for his company future
43. the present situation of target is very good
In 2003 to 2007
Profit.
Wal-Mart 10.3%
Target 16%
In 2007
Wal-Mart 6%
Target 20%
Target have to work more keenly on payless but target still be retaining the EXPECT
MORE part of its image .most customers who visited target are the age of 42 they
usually use coupons so to attract more customers they offer more discounts ..
