Retail establishments must have a firm understanding of their industries, their marketplaces, and the forces that impact their success or failure. Ad
Overview:Retail establishments must have a firm understanding of their industries, their marketplaces, and the forces that impact their success or failure. Additionally, they must establish solid retail strategies for current conditions and for future growth and stability. The final project for this course will enable you to examine these factors through a detailed analysis of a retailer of your choice.
Preparation:Before you begin preparations for this milestone, consider reviewing the Final Project Guidelines and Rubric, which provides an overview of the instructions, expectations, and grading criteria for the project as a whole. This document is available for review in the Assignment Guidelines and Rubrics section of the course. Please utilize your textbook, course resources, the Shapiro Library Summon database, and reputable sites on the internet as sources of information.
Prompt:The third phase of the retail analysis process is the competitive analysis phase. As you have learned in this course, competitive analysis is a strategic management method for assessing the strengths and weaknesses of current and potential competitors as a proactive means to reduce threats and to identify opportunities.
Using any of the resources available to you, including information gained from your research in Milestones One and Two, discuss the strategies of a key competitor to your retailer and compare those strategies to those of your retailer.Note that your retailer’s competitor may not necessarily be the market leader in the industry.Discuss important differences and similarities in strategy. What does the competitor’s future look like?
Requirements of Submission:Your submission should be two to three pages in lengthand should use double spacing, 12-point Times New Romanfont, and one- inch margins. The paper should conform to APA style. Use proper in-text citations, and list your references at the end of the paper. College-level writing is expected. Submissions should be free of grammatical and spelling errors.
Attached are Milestone One and Two to help guide in completing Milestone Three
MKT 222 Milestone One
Southern New Hampshire University
May 15th, 2022
Moné Jones
History and Background of a Retail Company
Target is one of the famous multimillion corporations in the world of business. The company was started in 1902 by George Draper Dayton. The company was known for selling dry goods in a store when it started. In 1911, the target was then called Dayton Goods Company which later turned into the Dayton department store. By 1916, Dayton had transitioned into a retail research association. Since then, the company has undergone tremendous growth and expansion, increasing its revenue generation and profits. By 1940, Dayton had started giving back to the community because of increased profits. In 1954, Dayton started expanding and extending into other regions such as Rochester and Minn and suburban areas such as Brookdale, Rosedale and Ridgedale in Minnesota. The company has expanded and extended into the global market by venturing into other businesses, including offering credit cards, opening super target stores, and providing premium foods. Target has incorporated online shopping and Target mobile on cell phone apps in the last two decades.
The mission at Target Corporation is "to put the need of people, communities and the planet at the heart of how we work today, to help build a better tomorrow." Target is a large corporation famously known for the provision of various products, including groceries, clothing, electronics, toys, beauty items and household goods. Target Corporation uses a unique pricing strategy whereby the company's leadership looks into what the competitors are providing and makes prices to ensure that the company reaps maximum profits while providing consumers with lower rates (Alshakhoori et al., 2016). These rates are vital in allowing a great profit margin for the company and offering consumers a dollar section. Due to these tremendous operations, Target Corporation realizes higher returns on its investments. For instance, by 2019, the company's trading shares were at $110.49.
Target Corporation faces stiff competition from leading competitors such as Walmart, leading in its overall market share within the retail industry. The economical demands have pushed many people to look for cheaper alternatives; therefore, even though Walmart is known for its lower prices, people still choose Target because of its shopping experience that is consumer-friendly as compared to that of Walmart.
Technologically, Target has incorporated self-checkout and related services on their devices. These devices have incorporated the Target app that allows people to check out whenever cashiers are full. The online platform offers the consumers an alternative to shop online and get the commodities delivered at their preferable store or your doorstep. With the current status of Americans, this shopping experience has provided efficiency and time safety among many ever-busy Americans.
Target Corporation targets a consumer base of individuals between 18 and 44 years. Most of these populations are shoppers who generate close to $100,000 annually. A vast majority of this population is predominantly whites. Target is strategic in its advertisement and promotional methods. It has adopted the ATL and BTL strategies of promotion to increase the company's customer base (Alshakhoori et al., 2016). The brand has also launched various ad campaigns in various media channels through fliers, coupons, newspapers and magazine commercials. With a strong social media presence, Target Corporation uses YouTube, Facebook, Instagram, and Twitter to advertise and promote its products and services.
References
Alshakhoori, N., Alkenaizi, A., & George, S. (2016). Business Strategies of Discount Retailers: A Comparative Study of Target Corporation and Costco Wholesale Corporation. International Journal of Research in Management, Economics and Commerce, 6(3), 27-40.
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MKT 222 SWOT Target
Southern New Hampshire University
May 22, 2022
Moné Jones
Strengths
· Financial strategy
· Overly satisfied shopping experience
· Loyal customers of all age and income categories
· Exclusive store brand/private brand
· Discounted products of all varieties
· Strong marketing strategies
Weaknesses
· Competitors such as Walmart and Amazon
· Security data breech
· Limited products compared to competitors
· Transition from smaller target to super target.
Opportunities
· Make more strategic partnerships
· Expansion into new markets such as international
Threats
· Change in customer trends
· Ambitious competition
· Decreasing purchasing power among consumers
Target is a multibillion dollar company that appears to maintain its growth. Since target has been born they have thrived on their campaigns that demonstrate to the consumers how devoted target is not only to itself but to the community even world. This strategy draws in many more consumers to then be loyal to the brand. Target has retained any and all information based on customer feedback, because of that “The company has also achieved this strength by offering affordable premium products, a hassle-free customer experience, and loyalty programs. Target has found strength in its ardent customers, ranking customer loyalty at 86%.”(QuerySprout. (2022, January 31). Although target has competitors like Walmart and Amazon, “Target claims that its products are of superior quality, but most prices are 15% higher than its competitors.”(QuerySprout. (2022, January 31). Which their customers will pay for a great shopping experience and better quality products versus an awful experience and cheap products.
Target has done a successful job with keeping up with their top competitor Amazon. Amazon offers 1-2 shipping for their primes members, which is a monthly/annually subscription. Target now offers 2 day shipping as long as the purchase is over thirty-five dollars. Amazon is Targets top threat, in order to keep competing with Amazon they also provide target drive up as long as the items are in stock. Since Covid “Target increased minimum wage to $15” (Target history timeline. Target Corporate. (n.d) which was “more than 20% higher than the U.S industry average.” (Target history timeline. Target Corporate. (n.d). Also, “Throughout the coronavirus pandemic, Target focused first on taking care of team members and their families, providing coronavirus benefits, increased wages, recognition bonuses, special shopping hours and many additional services. Target played a critical role in providing its guests across the country with essential goods as they managed the impact of the coronavirus, and expanded its extensive fulfillment service options, allowing for contactless delivery through same day delivery using Shipt, Order Pickup and Drive Up services.” (Target history timeline. Target Corporate. (n.d). No matter the strengths and opportunities, targets main focus is on their weaknesses and threats so they can be the top company and only company that crosses the consumers mind.
References
Target history timeline. Target Corporate. (n.d.). Retrieved May 24, 2022, from https://corporate.target.com/about/purpose-history/History-Timeline?era=3
Target SWOT analysis 2022 (strengths, threats + more). QuerySprout. (2022, January 31). Retrieved May 24, 2022, from https://querysprout.com/target-swot-analysis/
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