Using Target chain stores. In this assignment, expand on the marketing channels

Question

Using Target chain stores. In this assignment, expand on the marketing channels you would use to support this organization, and how each contributes to the distribution of the product or service. Incorporate in your answer what Gavina Coffee is doing with their marketing channels by comparing your selected organization to theirs. Then – Regarding intermediaries, explain why value delivery network might be a better term to use than supply chain. The final product will be a paper that is 2 pages double-spaced. I need a full answer please. I did a SWOT Analysis of Target for a previous assignment. I have to expand on the marketing channels of Target. I will insert the previous assignment now.

Target is a chain of retail stores that are based in the U.S. and is the second largest retailer in the U.S. behind Walmart. It is a publicly traded company, and it is associated with lifestyle and retail industry. Its mission statement is “To be the preferred shopping destination for our guests and the workplace of choice for our team members. (https://corporate.target.com/about/purpose-beliefs). Target welcomes all their customers, referring to them as guests and tries to make its guests feel comfortable. They are known to respect the diverse needs of their guests by listening and responding to comments and suggestions. (https://corporate.target.com/corporate-responsibility/diversity-inclusion) They appreciate all of their team members (employees) by listening to their concerns and find the best way possible to solve any issues that have occurred. Marketing Mix Product: Target deals with everyday essentials that have regular and dominant demand in the consumer market in-store and online. It encourages a one-stop shop offering diverse products which are stylish yet affordable. It has partnered with various designers and dealers to differentiate itself and merchandise from competitors like Walmart at low prices to provide it with a competitive advantage. They have an excellent reputation with their brands, so it would be wise to use this opportunity to engage in more exclusive design partnerships. One of Target’s weaknesses would be its dependence on suppliers from foreign countries. This causes business risks as any change in the economic or political could affect the supplies and revenue as well. In 2013 Target experienced a leak of important data which contained confidential information of credit and debit cardholders. Since this occurred, Target’s customer service scores dropped dramatically, but over the years regained its popularity by reinventing their brand, designs, and partnerships, so the consumer does not get a dull product selection. There are also pharmacies located in most of the stores that add to the broadness of the product line. Some stores have also partnered with Starbucks and now have Starbucks coffee cafes in stores. Price: According to the website Marketing91, Target adjusts its prices by positioning according to the trends in the market. It has targeted middle and upper-class section of society looking for goods at a bargain price as its potential customer. Although prices are more affordable its high out of stock items forces consumers to shop elsewhere. Gerald Storch, the former CEO of Target says, “It’s true that Target has focused on maintaining a lean inventory and that is sometimes a good thing, but out-of-stocks are not”. But they are committed to fulfilling the needs of its customers and investors. (Storch, 2013) “Target comes from an apparel background.” Storch said, “Target is very focused on keeping inventory lean because too much inventory in apparel will kill you.” I can personally relate to this quote, as a fellow Target shopper, there have been many times where I want to purchase a garment only to realize my size was out of stock. Even though their inventory was thin, their profits increased because customers like I would choose other items to purchase. If Target increased their inventory, it would be forced to discount their products even lower which in turn could cause their Economic Value Add fall. With its various credit cards such as their very own Target Red card, when used 5% is saved on the total purchased. Initiatives like this attract customer loyalty and provide business security. Despite their strengths, one of their weaknesses would be the lack of having their distribution center. Target must buy their groceries from a second distributor, which could significantly affect prices. Using this flaw and turning it into an opportunity to purchase directly from the source would increase sales and subjectively lower prices. Place: One of Target’s goals is to be a one-stop shop for their customers. They have stores across the U.S. that provide for a diverse group of people. (Target Corporation, 2004a) Which is why Target focuses on diversity in their products and employees. Their retail stores are in 47 states as well as having headquarters in India, and an online store. It has over 16,000 team members in its distribution centers spread across 37 locations in 22 states. It has 1 Target.com Distribution Center that which items are transported by truck from the warehouses to the stores. It closed over 130 stores in Canada to focus and spend more on expansion in U.S. Promotion: Target mainly uses newspaper circulars and television commercials for promotions. Each week Target circulars are delivered to 50 million households (TargetMarketingPlan), and their weekly ad is posted online for viewing. They are known nationwide as the top retail charitable organization and partners with various organizations and community events which in turn helps their promotional strategy. (https://corporate.target.com/corporate-responsibility/community-events) Their slogan “Expect More, Pay Less,” supports the idea of affordable, quality products followed by outstanding service and clean, inviting stores. These factors contribute to their successful advertising of the company. Despite the fact Target has yet to grow internationally, they have successfully developed in the U.S. They have done a great job of meeting consumer’s needs, want, and demands concentrating on providing their guests with discounted services and excellent services by team members.

Explanation / Answer

As marketing is required to be more specific and proven strategies are quite necessary to fix the correct way of doing marketing so proper marketing channels are also important to place the market products in front of the customers. To showcase the product specialty first thing is to do market research to understand the consumer behavior and to do a detailed analysis of the products which is going to come on the market. Customer’s points of view are obvious to know whether they are showing positive attitude or not. From them, suggestions are likely to be taken for any particular changes are required to make in the quality or fashion.

It needs to be focused more on the product composition and the area of marketing is also required to be known for grabbing the customers. The reason is that if it is known that the most concentrated areas of marketing channels then it will be easier to maintain the strong relationship with the customers and to bring the profit in the business so that it can touch the highest point of success.

Delivery network and supply chain have the mutual relationship among them as because the supply chains are necessary to follow the path of the seamless delivery network. The delivery network gets stronger when a company gets the scope to manufacture the products after that timely delivery of the product can be possible. As the delivery has the importance to make a good relationship with the clients in the same way without supply chain it is not possible to do this act.  

The SWOT analysis for expanding the market channels is highly important. The consumer mostly concentrated areas are required to be known that in which platform they are highly concentrating like social media, television or magazines. Then the organization should do a SWOT analysis so that strength, weakness, threats, and opportunities are easy can be identified by the organization. Strength and opportunities are always welcomed in the organization like to maintain a new way of approach for the organization to make necessary implementation techniques so to make the business process more successful. On the other hand weakness and threats are somehow understood from the available market research information and by internal audit sections. This factor resembles the idea to think in an innovative way and to maintain a long-term role with the consumers and achieve the highest point business profit.

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