Target Corporation is the second-largest discount store retailer in the United S
ID: 325791 • Letter: T
Question
Target Corporation is the second-largest discount store retailer in the United States, behind Walmart, and a component of the S&P 500 Index. Founded by George Dayton and headquartered in Minneapolis, Minnesota, the company was originally named Good fellow Dry Goods in June 1902 before being renamed the Dayton's Dry Goods Company in 1903 and later the Dayton Company in 1910. The first Target store opened in Roseville, Minnesota in 1962 while the parent company was renamed the Dayton Corporation in 1967. It became the Dayton-Hudson Corporation after merging with the J.L. Hudson Company in 1969 and held ownership of several department store chains including Dayton's, Hudson's, Marshall Field's, and Mervyn's.
Target established itself as the highest-earning division of the Dayton-Hudson Corporation in the 1970s; it began expanding the store nationwide in the 1980s and introduced new store formats under the Target brand in the 1990s. The company has found success as a cheap-chic player in the industry. The parent company was renamed the Target Corporation in 2000 and divested itself of its last department store chains in 2004. It suffered from a massive and highly publicized security breach of customer credit card data and the failure of its short-lived Canadian subsidiary in the early 2010s but experienced revitalized success with its expansion in urban markets within the United States.
As of 2017, Target operates 1,834 stores throughout the United States. Their retail formats include the discount store Target, the hypermarket Super Target, and "flexible format" stores previously named City Target and Target Express before being consolidated under the Target branding. Target is often recognized for its emphasis on "the needs of its younger, image-conscious shoppers," whereas its rival Walmart more heavily relies on its strategy of "always low prices.
Target Corporation decide to start its discount store in Saudi Arabia. The Target management hired you as Marketing Manager for its Saudi Arabia operation. You have to establish marketing department starting from the Analysis of market, formulate overall marketing goals, objectives, strategies and tactics within the context of an organization's business, mission, and goals designing and planning the entire function.
1- To establish the marketing function of Target Corporation, Saudi Arabia, you have to formulate the followings:
a. Vision
b.Mission
c.Business objective.
d. Product and type of services.
2- Develop a marketing Plan for Target Corporation, Saudi Arabia. Define the SWOT analysis for Target Corporation, Saudi Arabia.
3- Analyze the Micro and Macro environment of the Target Corporation, Saudi Arabia.
4- How Target Corporation, Saudi Arabia will establish, develop, and enhance mutually beneficial relationships with customers? Discuss all the activities to establish, develop, and maintain customer sales?
5- Identify the various consumer decision processes for the Target Corporation customer?
6- How will you establish the market research for making better decision to establish and enhance the marketing?
7- How Target Corporation, KSA will evaluate market segments and choose the best ones to serve? How it will create value propositions to meet the requirements of target customers?
8- How Target Corporation, KSA will manage all of their products and services? What are the steps in the best development process for new products?
Explanation / Answer
Target Corporation is the second best retailer right after Wal-Mart for the US. Target deals in clothing and Apparels, shoes, jewellery, fabric, linen, sports goods etc
1) vision for Target in Saudi Arabia must be : Catering to the needs of Saudi's younger and image conscious buyers
Mission of Target in Saudi : To grab maximum market share of the younger population of Saudi Arabia ( age 18-35)
Business Objective : To breakeven in 1 year
Product and Types of Services : Clothing and Apparels, jewellery, footwear, consumer durables , electric appliances, skincare range. Services such as salon and spa Services, Tailoring services will sit well with young image conscious shoppers of Saudi Arabia
2. SWOT ANALYSIS FOR TARGET
STRENGTHS:
Brand Equity
Discounted Products
First mover advantage
WEAKNESS : New entrant to Saudi Market , not enough knowledge about the Saudi market, Saudi Arabia will have more men shoppers than women shoppers due to the religious restrictions. Also not all kinds of clothes can be sold to the women or men, Saudi is highly governed by religion and culture.
THREATS : Threat from Religious Communities , Threat of new competetion entering the market, Competion from Local Retailers
Opportunities : First big entrant in the Saudi Market, the per capita income of Saudi is higher than many other countries. The buying power of customers is commendable.
3.Micro Environment for Target constitute the retail business realm of Saudi where Target is the first big entrant. Thus they will clearly have the fist mover advantage over others. The only completion might come from the local small and medium sized retailers.
Macro Environment for Target : The macro environment of Target constitute the whole of Saudi , it's people, the religion they follow and it's impact on their lifestyle . The climate, the food Etc . The per capita income of Saudi Arabia is towards the higher thus assuring Taget of increased buying power of its customers.
4. The process as that Target should follow to enhance mutually beneficial relationships with customers are as follows :
Nevert hurt the religious sentiment of the nation by any bad social media move or any interaction with customer
Be patient with customer problems if any
Provide the best Saudi has ever seeb
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