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Expect More. Pay Less.
• 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
• 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
• 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 stores
that are about 95,000 to 135,000 square feet
(12,000 m²) and carry hardlines (quot;regularquot;
products and goods), softlines (clothing), and a
limited amount of groceries, mostly non-
• 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
• 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.
• 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
• 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. In 1996, the Lullaby Club® baby gift registry (now Target baby™) launches, allowing
new parents to register for nursery supplies and essentials. At the end of the decade, GiftCards are
introduced, while Target expands to the Internet with Target.com as its online presence.
• 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. To kick off the 2006 2-Day Sale, Target challenges David Blaine—the world’s
greatest endurance artist and magician— to attempt an escape from shackles while dangling four
stories above Times Square . In 2008, Scott Dixon of Target Chip Genesis Racing wins the
• 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.
• 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 Corporation (Target) had 1,330
retail stores in 47 states of the United
• 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
• Target positioned itself as an upscale discount
chain. It differentiated itself from its competitors
by offering trendy merchandise at affordable
• 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
• » 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
» The role of merchandizing in the success of a retail
• 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.
• 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”.
• 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.
• 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.
• 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-
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
Questions for Discussions
• 1 Ques “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.
• 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
• 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
• Target Managers were always attune with
what customers wanted & anticipate
trends & demand. They looked ta the
world as our Shopping Basket & finding
ways to bring that Basket to the average
• 2 ques “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
• 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
• 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
• Rosen Zweig : encompassed variety of products which helped in
increasing the Merchandise & pulling customers to store.
• Ming Tsai: Exclusive Kitchenware & cooking ingredients
• 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.
• 3 Ques 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?
• 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
• quot;Branding is one of the things they
(Target) do a good job of, and it
represents where they want to be in the
By Chris Merritt, principal at Kurt
Salmon Associates, commenting on
the branding strategies of Target.
• 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
• 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
average customers per visit.
• 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
• 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
• The Major Contributors to target Success are :
• Target recognized that value was a function of quality, trend &price
¬ just Price.
• Target recognized the importance of an attractive shopping
environment & not just offering goods at lowest price
• Effective Communication& Marketing Strategies.
• Creative Advertising Campaigns & Promotions.
• “Design for All ” Concept in Merchandising.
• Branding Efforts to convey positioning & Image.
• Customer Centric Philosophy : Constantly in tune with what the
customers wanted and anticipate trends and demands & Offering
trendy & stylish products.
• Updated Retailing Technology