Target Corporation is the eighth largest American retail corporation with stores in all 50 U.S. states and the District of Columbia. The CEO of the corporation is Brian Cornell, who is in charge of Target’s 1900 U.S. stores, various properties, and more than 350,000 workers (Target, 2021). The company is successfully growing and continuing to be one of the leaders in the market. This essay provides a description of Target Corporation, an analysis of its marketing strategies, and financial performance.
To begin with, Target starts its history in 1962 as the discount division of the Dayton’s Company of Minneapolis in Minnesota. It makes its $1 billion in sales in 1979 and demonstrated rapid growth (Greenwald, 2018). Since the 1990s, new stores under the name Target entered the market and got successful due to their cheap-chic nature. The corporation was the first company to offer retirement benefits and developed the world’s first fully enclosed shopping mall. Apart from the stores, the company also has 30 subsidiary companies like Target Capital Corporation, Red Tail LLC, Shipt (Target, 2019). Moreover, the corporation is frequently ranked as one of the most philanthropic companies in the country and the world, providing financial aid and funding social programs.
The primary mission of the company is to bring the joy of everyday life to people. Target aims to make each shopping experience fun, easy, and exciting. It cares about how people shop and what they feel during their visit to every Target store. The core values of Target are “great shopping, celebrating diversity and inclusion, community engagement, and ethics at work” (Target, 2021). The mission and values of the company encourage its workers to be well-prepared and motivated, setting direction for the development of the corporation.
When it comes to corporate ethics and social responsibility, Target’s commitment areas consist of education, team members, environment, etc. The company has a social compliance program where a customer can be sure that products they buy are produced ethically and in accordance with local laws and standards. It also has audit processes that monitor the operational functions of its vendors to hold them accountable. By having such processes, vendors make high-quality products and develop loyalty to the corporation. Target’s work ethics involves respect, honesty, and concern for each other through interactions. Employees must know and follow the policies and procedures of the business entity. They also should not ask questions when there are any doubts about what is right.
Target focuses on sustainability along with the health of its supply chain workers and the compensation of employees. It believes that by reducing the environmental impact of packaging, the company contributes to the green environment. As such, Target aims to make 100% of its brand packaging reusable and recyclable (Target, 2021). Moreover, the corporation concerns about improving the well-being of supply chain workers by providing them donations and screenings. These actions ensure the future of the company and the world, making it a better place to live. Target considers the needs of people, communities, and the planet as its top priority and does what it can to maximize the benefits of their work.
In addition to social programs, the business entity ensures the inclusion and diversity of its workforce. The company tries to recruit and retain more people of color and different ethnicity. Starting from 2019, the company increased color people’s representation of exempt roles by 15% and women of color in similar positions by 23% (Target, 2021). Therefore, the company supports diversity and tries to eliminate inequality in the workforce.
Speaking about the marketing concepts of the corporation, it has a comprehensive approach to every operating unit. Target highlights that their ability to meet their labor need while controlling the costs is dependent on external factors, such as unemployment rates, changing demographics, health care, etc. (US Securities and Exchange Commission, 2011). The company also focuses on the economic conditions of the context while conducting business because the requirements may change the expectations and plans of the company. For example, economic conditions may include evolving consumer demand, transforming consumer credit markets, increasing competition or customer preferences, etc. (US Securities and Exchange Commission, 2011). Therefore, it is crucial to consider the economic conditions for Target.
Another crucial aspect in company marketing is the concept of trends. Target uses consumers’ needs and sense of joy to increases sales, so launching Target Run which was the most effective campaign of the corporation (Talbot, 2020). By having Target Run, the company also emphasizes inclusivity, as the road makes people with different backgrounds unite, facilitating the business. Effective use of what people need in the context of the modern world provides benefits for the corporation.
In addition to this, Target Corporation demonstrates various marketing strategies. The company knows its audience very well and differentiates its products following its target customers. Significant customers of Target are upmarket families and young singles (Bhasin, 2018). Moreover, the corporation has a solid social media presence in portals like Facebook, Instagram, Twitter, etc., providing support for their consumers and know them better. It also ensures e-commerce businesses compete with companies like Amazon (Bhasin, 2018). Marketing strategies of Target Corporation play for the development of the company and do it very successfully.
After a discussion of the marketing strategies of Target, there is a need to address the financial performance of the company. According to the SWOT analysis, the company’s strengths are its brand popularity, brand loyalty, profitable segments of the retail market consisting of fashion and household furnishing (Pestle Analysis Contributor, 2015). In contrast, the weaknesses are the failure to change the company’s business model, aggressive competition in online retail, and lack of some lucrative retail areas like financial services.
Target has several opportunities to overcome its weaknesses, such as being a fashion retailer, urbanization, and decreasing middle-class incomes in the United States. Moreover, new sales channels like same-day online delivery increase the company’s opportunities. However, there are threats to the corporation related to the economic conditions of the country and competitors. For example, the declining incomes of the Americans suggest their less buying power or the threat that Amazon company is a well-developed online retailer with a strong reputation that was established before Target (Pestle Analysis Contributor, 2015). Despite such threats, the corporation has a functioning business model that will enhance its position in the market.
Overall, Target Corporation is one of the largest discount store operators in the United States that is in the market since 1962. The company aims to make every shopping experience of its clients full of joy and fun. It concerns the environment and well-being of people, so funding various social programs and promoting green business. Target follows the trends and tries to be more involved in e-commerce, providing more online delivery projects. The most significant opportunity of the company is an enhancement of online business, while the considerable threat of it is Amazon company, an online retail giant.
References
Bhasin, H. (2018). Marketing strategy of Target Corporation. Marketing 91. Web.
Greenwald, M. (2018). Best Life Online. 30 Surprising Things You Never Knew About Target. Web.
Pestle Analysis Contributor. (2015). SWOT Analysis of Target Corporation. Pestle Analysis. Web.
Talbot, P. (2020). Inside Target’s Marketing Strategy. Forbes. Web.
Target. (2019). Future at Heart. 2019 Target Corporate Responsibility Report. Web.
Target. (2021). A Bullseye View; All About Target. Target. Web.
US Securities and Exchange Commission. (2011). US Securities and Exchange Commission. Target Corporation. Web.