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Target
Target, a well-known discount chain, has a strategy of differentiation that has made the company the number two discount retailer.1 What makes Target different than its competitors? Is differentiation the only area of Target’s concentration?
INTRODUCTION/HISTORY
Target Corporation is a general merchandise retailer comprised of three operating segments: Target Stores, Mervyn’s and Marshall Field’s; plus the Target Financial Services division. The Target Store is an upscale discount chain and contributed 82% of the Corporation’s total revenues in 2001. ... In 1962, Dayton’s opened its first discount store in Roseville, Minnesota (naming the store Target to distinguish the discount store from its higher-end department stores). ... 4,5
Target Stores became the Corporation’s top moneymaker in 1977 according to Hoover’s a data tracking research firm, or 1979 according to Target’s website. ... In 1990, the Target Greatland store was opened (Target Greatland stores are 70% larger than the traditional Target Store). ... 4,5
TARGET, THE CASH COW
Target Stores, the growth portion of the Corporation, uses cash made at it’s Mervyn’s and Marshall Fields in conjunction with the Corporation “Power of One” philosophy that leverages profits from both Mervyn’s and Marshall Field’s and uses cash for Target Stores growth and expansion. ... While neither unit generates substantial earnings, they both have low operating costs which feeds the Target Stores growth and expansion. ... It is a large cash generator and is used to fund the Target Stores.”6
TARGET STORES
Target Stores represent more than three-quarters of revenue and growth of the Corporation.7 Target Stores use a strategy of differentiation by providing a more upscale discount buying opportunity. ... That along with Target Stores presentation, service, lighting and signage, provides a friendlier shopping experience for customers.
TARGET STORES DIFFERENTIATION
Target Stores own several brands and have formed partnerships with designers to give guests “exclusive product designs and sophisticated style at exceptional value. Within the discount industry, this approach is unique to Target Stores, and it helps to reinforce our distinct brand character and fuel our continued growth.”8 This further differentiates Target from the other discounters plus reinforces the Target brand.
Brand names associated with Target Stores have become a large part of the store’s differentiation. Target pushes quality and professionalism, both with employees and with the brands it offers and partners with. ... It also adds to the “Expect More” commitment Target Stores promises its guests.9
April Towle, Helena’s Store Team Lead (store manager), has been with Target Stores for 18 years. She indicated that approximately five to eight years ago, Target Stores undertook a study on brand image. ... ” The company wanted the response to be “Target. ... ” Target wanted to be the first place the consumer thought of for shopping AND it wanted the consumer to associate the bull’s-eye logo with Target.10
That logo recognition push can currently be seen in Target Store television advertising. Target Store ads are distinctive, lively, and fun; they are very unique. ... Or the commercial might only show people doing many different and fun things and it is not until the very end of the commercial that the audience see the bull’s-eye logo; however, most people I know can easily recognize a Target commercial even if they haven’t seen it before.
Approximate Word count = 2707
Approximate Pages = 10.8
(250 words per page double spaced)
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