September 26, 2014
Consumer Behavior Final Project
Target Corporation is a retail store based out of America, its headquarters are in Minneapolis, Minnesota. Target’s goal began with creating an upscale alternative to Wal Mart, while remaining a discount store. They have since become the fourth largest retailer and second largest discount retailer in the United States, Wal Mart being the first. Target’s first retail store was opened in 1962, in Minnesota. The company has continually grown to its present day size, operating 1,916 stores in the US. In 2013 Target began operating in Canada, and has since opened 127 stores throughout. Target offers clean, spacious and guest-friendly stores. Their motto is “Expect More, Pay Less,” indicating you will find good quality, at low prices. They have a variety of their own in store brands. Target has made “cheap-chic” accessible to everyone, in the form of furniture, fashion and household items, offering designer products at affordable prices.
Target reaches younger customers with higher incomes than its competitors. Target aims for high-end buyers, in part because the middle class is shrinking. In general they reach moderate to better income families with active lifestyles and a multitude of hobbies. A Target customer’s median age is 40, and median household income is $64,000. Eighty percent of Target customers are female and thirty-three percent have children at home. 50% of consumers are employed in professional or managerial positions. Around fifty-seven percent of Target customers have completed college. Generally Target’s consumers are interested in buying higher end, quality products. Their primary market is females ages 35-45, therefore this demographic should be the focus of their marketing efforts. Secondary customers could be the spouses of these females who use the products their wives shop for but are not the primary customers making the purchasing decisions. Tertiary consumers could be children in families, using the product but not yet making direct purchasing decisions. These children may become primary consumers later in life, if they associate the brand with positive experiences. Target offers a customer loyalty program which helps generate and keep customers. This program helps identify customer purchasing trends which enables marketers to create effective, targeted promotions, decreasing advertising costs.
The key behind Target’s success is their positioning as a high-end brand despite their low prices, which attracts a group of consumers who normally would not seek discount retailers. Target provides knowledgable, friendly staff that is happy to answer questions and assist customers. A report by Time Trades showed that 85 percent of consumers purchase more when helped by a knowledgeable sales person. Target successfully associates it’s brand with a younger, edgier, hipper and more fun image that it’s discount retail competitors. Most consumers that shop at Target don’t see it as a discount store, but as a superstore where you can buy everything you need conveniently in one place. Target spends 2.3 percent of their revenue on advertising, in comparison Wal-Mart only spends 0.3 percent. Target has been smart with their marketing efforts, especially by partnering with many high-end design oriented suppliers over the years. Target uses bright and eye-catching advertisements with creative presentations. Target puts a lot of work into their displays and understands the power of them, capturing more sales as a result. An example of this is the bins Target strategically places near the front entrance with items under five dollars. This catches consumers’ attention when they first enter the store and right before they head to the checkout.
Most consumers identify with Target’s symbol, a bulls-eye and their store color, red without even seeing or hearing the Target name. Target continues to improve their mobile app,...
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