Marketing Plan, Target Corporation

Marketing Plan for Target, Inc.

1. Situation Analysis

Target is a national discount retailer started in 1962 from the Dayton Company. There are currently more than 1,300 stores in 47 states. They employ over 300,000 Target "Team Members" and have now been ranked as one of the top twenty corporate contribution givers in the nation. Target is currently climbing steadily up in the world of discount retailers to not only become on of the most recognized names in discount retailing, but also one of the most visited stores for all of a consumers' retail needs. Currently, they are growing fast into their own niche.

1.1. Internal Environment

1.1.1. Mission Statement Ð'- Target's mission statement is

Because of this focus on giving back to the community, Target's marketing should also focus on what they provide to society.

1.2. External Environment

2. SWOT Analysis

Strengths:

Ð'* Target uses a multitude of designers for their products, creating entire product lines that are from one designer. This set's it apart from other retail chains, in that customers can find items designed by Michael Graves for cleaning, for their bedroom, for their kitchen, and clothing. Or, they can purchase a lesser expensive line of Isaac Mizrahi clothing. Bringing designers like this to the public has been key in Target's image of being the discount retail store that customers can expect more from.

Ð'* Target's locations are usually around other retailers, which could lead to more customers. (Compared to Wal-Mart, which usually stands alone in their locations)

Ð'* Target does it's research of surrounding stores to accurately gauge where their prices should fall, which helps them stay competitive wherever they have locations

Weaknesses:

Ð'* In an attempt to distance themselves from other discount retailers, Target may end up distancing themselves from other consumers as well

Ð'* Often in attempt to maintain their classier image, Target doesn't play up their lower prices as much as they should

Opportunities:

Ð'* Target's customers are loyal, and a very different type of customer than that of Wal-Mart or other discount retail chains. This makes it easier to retain customers.

Ð'* By marketing and selling brands like Mossimo, Target proves that hip clothes are available in discount retailers

Ð'* In reality, Target's prices are rarely more than 2% more than Wal-Mart's

Ð'* Target Greatland Stores have an ability to grab more of the market by selling more groceries, thereby making the stores more convenient to go and increasing traffic

Threats:

Ð'* The perception that Wal-Mart or Kmart are cheaper stores could prevent customers from associating Target with low prices. The Scarborough analysis has confirmed that people have different frames of reference when shopping, one for each store (their study was between Wal-Mart & Target)

Ð'* Target also does not have a reputation as a household store, most people do not go to Target to pick up household necessities, as they often do with Wal-Mart

Ð'* The clothing business is hard to break into, and already some critics have said that Target's clothes are not as well made as places like the Gap. Target will need to avoid problems like this, if they expect continued success in the retail market

3. Marketing Objectives

4. Marketing Strategies

4.1. Target Markets

Target's target markets are lower income consumers (according to our text) who are about 40% of the U.S. market. Even so, I believe that they use a differentiation strategy in targeting their consumers. There are many different discount retailers out there (Wal-Mart, K-Mart, etc) but Target tries to appeal to a few different consumer groups. They have television ads for back to school, to appeal to parents and kids during the fall. They also have ads with catchy pop music, and they flash all of these really "hip" products across the screen. Then, there's also the Target dog, who is accompanied by the phrase, "See Spot Save."