Synopsis of Target and Reasons for its Success

ynopsis of Target and Reasons for its Success

Synopsis of the Company

Target Corporation is the fourth largest retailing company in the US. Different from other retailing companies that appeal customers by low prices, Target focuses on the discount of high-end products and the superior quality. Target was founded in 1902 by the name of Dayton Dry Goods Company in Minneapolis and changed its name to Target Corporation in 2000. In 1962, its first shopping mall was set up in Roseville and earned immediate attentions with its special market positioning. Its founder, John Geisse, targeted women from middle and upper social class as the main group of customers. This decision was made after his years’ observations on the industry and customers’ need for fashion and high-end products. Except for the solid management system and excellent services, Target also paid attention to the return to the society. Currently, it donates 2 million dollars to the community each week and works with many non-profiting organizations to improve its service quality ("Target" 2016). Also, to closely relate fashion to its brand, Target works with many designers from all walks, like Mossimo Giannulli, Liz Lange, and Joy Gryson. Moreover, Target works with other big brands like Apple, Philip, and Sony, to provide its unique fashionable products with fair affordable prices. To further make it different from those low prices targeted retailing companies, Target makes its shopping environment elegant and fashionable. Also, all products are neatly organized for the convenience of customers. The main customer group for Target is those young people who are eager to express their individuality and characters. Products in Target have a wide range, from food and clothes to electronics and household goods. The company develops at a fast and steady speed. It keeps merging other retailing stores and broadening its scale. In 2011, Target expanded its business across the border and entered the market in Canada. However, with the insufficient plan and ineffective managements, Target failed customers’ expectations in Canada and was forced to leave the Canadian market recently. Meanwhile, the global financial crisis lowered customers’ purchase power and forced Target to adjust its product categories and marketing strategies. It is a challenge for Target now to insist on the concept of high-quality fashionable products with affordable discounts.

Factors for Success

Target’s success lies in its innovation, the unique market positioning, and its considerate service. Target tries every method to emphasizing its contrast with other retailing companies so that customers could understand its superiority and uniqueness after personal experiences. From the very beginning, Target has always concentrated on breaking traditions and carrying out its innovative concept, which keeps drawing customers’ attentions with surprises. Target creates many “Firsts” in the retailing industry and makes a great influence. Target was the first retailing company to use airplanes in the transit of its goods. In the 1920s, Target brought up an innovative inventory management system, using airplanes to transport goods across the country in case of empty shelves (Watson 2015). This brave action earned great popularity among customers by fulfilling customers’ long-term imaginations of using airplanes to transport goods across the country. Also, Target was the first company to establish a discount chain store in the retailing industry in 1961. It was a risky move at that time, combining the high quality with the reasonable discount, but Target made a pioneering try and earned a big success.

Moreover, Target’s special market positioning earns special interests from customers and meets the requirement for a certain group of potential customers. After a detailed research and analysis of the retailing market and customers’ psychological needs, Target found market opportunities in women with a certain educational background from middle and upper classes (Watson 2015). These women pursued high-end fashion but also concerned about prices. Thus, in order to solve their struggles between quality and price, Target brought up the concept of retailing stores with high-quality standards and reasonable discounts. With the slogan “Expect more, spend less,” Target kept the quality standard as those large traditional shopping malls, and at the same time, maintained a price lower than those traditional malls. The discount was set reasonable, taking enough margin profits into consideration. Also, Target tried to sell its unique products to separate it from other retailing malls. Target closely fulfilled customers’ psychological need of enjoying special treatments. Target provided special products that could not be purchased elsewhere, as well as special services that try every method for customers’ convenience and satisfaction. Combined the high-end shopping environment, affordable prices, and trustworthy quality, Target offered a VIP experience for every customer.

In addition, the considerate service improves customers’ satisfaction and loyalty to its products. Since founded, Target has paid special attention to building its reputation in the retailing industry. It calls for fair business practices and the generous reward back to the society. Target takes solid stewardship and dependable merchandise to guarantee not only the quality of its products but also the quality of its service. Target’s discount store is bright, roomy, and well organized. There is no marketing slogans and background music to disturb customers. The whole store is full of directions that could help customers find their targeted products as soon as possible. To save the settling time, employees in Target will scan customers’ chosen products in advance with their wireless scanner. There are also price scanners everywhere in the store. In this way, customers do not need to waste time waiting in a line, and they will be well aware of the price and the bill. Besides, in 1989, Target introduced the training plan of Disney and set up its training school to improve the service level of its employees. All employees should put customers’ interests and requirements at the first place and offered the best shopping experience for customers. In Target, customers enjoyed not only the fairly reasonable price but also the high-quality service. The high-quality service improved customers’ satisfaction and consolidated customers’ concept of high-end products in Target.