Target is Making Gains
Target is a Minneapolis-based retail chain in the United States that has over 1,700 stores with plans to open some in Canada starting in 2013 (Wohl). Target has tried to compete with Wal-mart, the largest retailer, with their “cheap chic” clothing and household items. In order to keep up with the times and grow their customer base, Target is utilizing social media, college campuses and making connections with a popular Italian designer along with adding a grocery department to their stores. Target reported a $555 million profit from their third quarter, which is up $20 million from this time last year (Talley). They are having a slow start to the Christmas ...view middle of the document...
Reaching the college student this way is a great form of marketing. They are building loyalty with their customers in hopes that those students will one day be business people and families who will continue to shop at Target.
Target is also trying to compete with the largest retailer Wal-mart by introducing a grocery department to their stores. They do not want to become a supercenter and offer everything from a bakery to a meat department. However, they do want to be convenient and offer pre-packaged items for the consumer who may need a few items and who will also make some additional purchases (Brush). In addition, they are giving customers who use Target’s credit, debit or Visa cards 5% off their purchases (Talley). This is a great idea and convenience for the shopper who only needs a few items. Target has been successful and is not trying to replicate what Wal-mart does. Target has always been limited in other areas such as items to fix a toilet or power tools. Target specialized in “cheap chic” and they stay true to the items that they offer. “Target has posted sales gains of late while Wal-mart’s sales have slumped for nine of the past ten quarters” (Brush).
In keeping with their “cheap chic” tradition, Target has made a partnership with Italian designer, Missoni. They came up with a line of men’s, women’s and children’s clothing, home accessories, footwear and even luggage (Vega). These items are made affordable and still attractive by using the same bold, graphic prints on cheaper fabrics. Target participated in a fashion night in New York with a pop-up store near the location which sold out of Missoni merchandise in one night (Vega). Missoni is a small family run company who used their own family to star in the videos and ads for the Target campaign. They created a special online video
that the customer could watch and click on items that would highlight. A pop-up window appeared when the mouse hovered and provided more details and added it directly to the shopping cart at Target.com. A “shoppable” video was considered a new way to understand the Missoni look (Vega). When the Missoni line went live on Target’s website, it...