1. History of Target Corporation:
* Dayton Company opened first Target store in 1962, in Roseville, Minnesota. * Target name had been intentionally chosen to differentiate the new discount retailers from the Dayton’s more upscale stores. * First Super Target store was opened in Omaha, Nebraska in 1995. * Target.com website was launched in 1999.
* By 2000, parent company Dayton Hudson, officially changed its name to Target Corporation. 2. There were several retailers like Sears, JCPenny etc. serving many of products similar to Target’s Product line but all of them were having different strategy and customer base. So, it was very difficult to identify true competitors. But many investment analysts focused Wal-Mart and Costco as important competitors for Target. 3. Wal-Mart offered same store format and several merchandising assortment while Costco overlapped in customer base with Target. 4. In order to attract shoppers, retailers were focusing on Segmentation of customer population using different strategies. 5. Wal-Mart was using “Everyday low price” Pricing strategy whereas Costco was offering discounted pricing in exchange of membership fee (its following Membership fee format). 6. Target was following strategy of appealing style-conscious consumers while pricing competitively with Wal-Mart on items common to both stores. 7. Target referred to its customers as guests and consistently strived to support the slogan “Expect more, Pat less”. 8. Intensity of competition among the retailers was so high causing very tight profit margins that retailers had started selling their own brand that could be marketed to more affluent customers in search of a unique shopping experience. 9. Sales Growth for Retail companies stemmed from two main sources: a) Creation of new stores b) Organic growth (process of business expansion due to increasing overall customer base or new sales) through existing stores. 10. Target had been...
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