1. Week 8 Assignment
versus

2. 4P - Target
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Pricing
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Product
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Target’s overall pricing strategy is the same as Wal-Mart's. A big box store
which tries to keep its prices as low as possible.
Target has tried to stay out of Wal-Mart's niche of low prices by the best
supply chain and pressuring vendors for low prices due to their size.
They have tried to build themselves into a slightly higher brand with a better
store experience and prices slightly higher than Wal-Mart.
Targets has tried to differentiate on product by bringing in High end fashion
designers to design clothes specially for Target.
They stores are cleaner and instead of aiming only on price at the expense of
quality like Wal-Mart they have tried to provide higher quality products for the
middle class at the lowest possible prices.
Innovation in trying to improve products by having people try it out in labs is
another way they differentiate from Wal-Mart.
In summary, Target has tried to make a brand which provides better quality
products at marginally higher prices.
Promotion
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Target’s target customer is a younger, more affluent, middle class family that is
looking for a good quality product and is willing to pay a small premium for it.
They are looking for a better shopping experience in a higher quality store.
Over the last few years Target has spent a lot of money making the Target logo
and brand name more recognizable.
TV and print media ads, sponsorship of events and philanthropic activities are
all a part of the effort.

3. 4P - Target
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Promotion
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Even the catch phrase of “Expect more Pay less” promotes the
brand’s focus on higher quality products.
Placement
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Target has not become as ubiquitous as Wal-Mart and has stayed
away from many rural areas in USA as opposed to Wal-Mart
prevalence in all part of the US.
Due to a smaller footprint Target, despite having a similar strategy
to Wal-Mart has managed to avoid the bad press and community
anger that is directed towards Wal-Mart.
Target stores have also been designed as more modern with many
having glass facades giving the customer an experience of a more
exclusive shopping place.

4. 4P - Wal-Mart
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Pricing
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Product
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Wal-Mart is the quintessential discount retailer. Their entire
business model is based on low prices.
They manage this by having a large footprint and access to a
massive customer base.
They use this as leverage to get the lowest possible prices from
the vendors by purchasing volume.
Wal-Mart has much lower focus on product quality since they
need to keep their prices the lowest in order to keep their
customer base.
Wal-Mart wants to focus on the lower section on society, older
people and people who only want the lowest price.
They keep prices low by sheer volumes of sales.
Promotion
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Wal-Mart's tag line “Save Money, Live better” is an indication of
their business strategy of being the place where the cheapest
goods can be found.
Wal-Mart also spends a lot of money on making sure brand
recognition is high with TV and other media ads.

5. 4P - Wal-Mart
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Placement
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Wal-Mart low price strategy works only due to its high volumes and
being able to reach every nook and corner. With over 4000 Wal-Mart
stores around the US they are the best placed to do this.
Wal-Mart does not try to be a high end store, most stores are
designed the same way and the customer is enticed with lower prices.
Due to being so big Wal-Mart has faced the ire of many communities
in the USA.

6. Who will win in a recession?
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Over the years both the retailers have been growing at a quick pace although Target same store sales have
outpaced Wal-Mart.
In a recessionary environment I believe Target will come out on top due to the following reasons
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Target will be able to get customers who would other wise be shopping at Gap, Sketchers and other examples of single item stores which are
more expensive.
Target’s price although higher than Wal-Mart are only marginally so, therefore the customer used to a certain quality of product will be more
comfortable buying at Target than Wal-Mart.
Wal-Mart big customer base is old people out of the workforce, long term unemployed etc. lack of jobs and recessions do not affect them as
much as people in the work force.
Most people who are laid off or want to save money in a poor job market will switch to Target due to a brand name associated with better
quality.