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“ We fulfill and fuel the potential of our guests. That means
making Target your preferred shopping destination in all
channels by delivering outstanding value, continuous
innovation and exceptional experiences consistently fulfilling
our Expect More, Pay Less. brand promise.”
Target Service Offers
⊚Target RedCard, gives 5% off purchases,
free shipping online, 30 extra days to return
⊚Price Match Guarantee
⊚Everyday priced designer clothing
1st and 2nd Issue
⊚ Target shopping experience is not as fun as it is in its
⊚ Though target has the youngest consumers amongst their
competitors, it has yet to attract millennials.
3rd Issue: Canadian Failed Expansion
⊚In March of 2013, Target expanded into Canada
1st Mistake: Bought store leases of Canadian discount store Zellers
2nd Mistake: Open 133 in a short period of time, caused inventory havoc, early
stock outs, and bare shelves
3rd Mistake: Aggressive pricing by Wal-Mart
⊚In April 2015, all of Target’s stores were closed in Canada
“Anything you could have gotten wrong in the playbook, they got wrong," said
Antony Karabus, CEO of retail consultant firm HRC Advisory.
⊚Profit would not begin until 2021
⊚Suffered a 5.4 billion pre-tax loss
⊚Closed all 133 stores
⊚17,600 employees lost their job
Plan of Action # 1
⊚Addressing Issue #1
⊚Target should engage more with customers by establishing an incubator
based in ecommerce, social media, and creating a valuable customer
⊚ Easily accessible by the consumer which can lead to higher sales
⊚ Customers can create their own experience
⊚ Start-up can be costly
Plan of Action #2
⊚Addressing issue #3
⊚Target should expand globally at a smaller scale
⊚ Diversify their revenue stream
⊚ Create a good local and global image of supporting communities
⊚ Research and Development can be costly, but necessary
⊚ Economic and political risk
⊚We feel that Plan of Action #2 should be taken.
⊚The biggest issue for Target is its failed expansion.
⊚Global expansion is more profitable
⊚Improving customer experience is a factor that can be implemented at
⊚Establishing and growing the Target brand is essential to longevity
Kerin, R. A., Hartley, S. W., & Rudelius, W. (n.d.). Marketing (8th ed.).