Section 1: A Brief History of TARGET

May 1, 1962: The Dayton Company opens a discount retail chain called Target
Goals for the new retail chain: Original logo designed
Fashion for less: Offer the best of the fashion world at a reasonable price by Stewart K.
Quality at a discount: Quality store design and quality merchandise at discount prices Widdess. The bullseye
Customer satisfaction: Shopping should be enjoyable for the whole family. Store was chosen, because
layouts should have spacious aisles, attractive displays, fast checkouts, and large Target hits the mark
parking lots. when offering
1967: Target goes from a regional chain to a national chain. discount retail,
goods, and services.
1979: Target stores achieve $1 billion in annual sales.
1989: Target opens 30 new stores in Kentucky, Tennessee, Georgia, North
Carolina, South Carolina and Florida. It becomes a coast-to-coast retailer.
1994: Target Stores unveils new brand promise Expect More. Pay Less. which
reaffirms the chains commitment to offering high value for consumers. Debuted in 1999,
Bullseye the dog was
1999: Target moves onto the world wide web with Target.com. Bullseye the dog a runaway marketing
it debuted as a brand mascot.
success. He has
2007: Target donates more than $3 million per week to local communities to starred in
support education, arts, social services, and volunteerism. advertisements and
red carpet events.
2012: Target and fashion designer Neiman Marcus team up for a clothing line.
2015: The CVS Health Pharmacy comes to Target stores.
(Target through the years, 2017)
 Section 2
TARGET : The Strategic Plan
Location, Facilities, and Retail Image
Locations
- 1,800 stores in 49 US states
(Hawaii and Alaska not pictured)
- Global locations in India
Facilities
- Racetrack layout has one main
aisle circling the store with
additional aisles running through
the center and the perimeters.
-A simple layout and uncluttered
aisles make it easier to find what
you need.
Retail Image
-Recognizable bullseye logo and
dog
-Color palette: red, black, grey,
white
-Emphasis on fashion, design, and
quality
(Then & Now: Target's Store Design, 2017)
Customer Base and Target Market

Customer Base Target Market

Female: Targets base shoppers are 6063 percent Spread more into Hispanic community with Spanish
female. language advertising
Younger: 5862 percent of Targets shoppers are Urban shoppers: CityTarget and TargetExpress
between the age of 18 and 44. stores that are small-format for an urban setting
Higher income: Individuals 25-34 who shop at Target Invest in digital capabilities to reach out to more
make $12,000 more a year more than those shopping
online shoppers
at other stores, with an average annual income around
$65,000.
White and Hispanic: Target shoppers are 60% white, as
of 2016 ~20% are Latino/Hispanic and climbing.

(Average Target Shopper, 2016)

Competition

-Emphasis on great
fashion at low cost
(similar)
-International leader in retail sales - Just around the corner: stores are -Not a combination
-Combination store: retail and
groceries (similar)
stationed conveniently close to homes
for easy access store
-Walmarts focus is unbeatable low
costs but Targets focus is value for the
price
-Small layout makes for quick shopping
and a friendly atmosphere -Has more
-Warehouse store: Items are stored -Greeters and helpful staff space for clothes
with little focus on in-store aesthetics
like lighting or displays -Clean, brightly lit stores and accessories
Merchandising Plan

Target is a combination store that sells apparel, home accessories, appliances, and groceries

Ava & Viv plus size line and Skylanders Target exclusive toy and Target.com and
Victoria Beckham line Adele 25 Target deluxe album The Target shopping app

Designer partnerships Other exclusives Multichannel

Target has an emphasis on fashion Target also offers exclusive Besides brick-and-mortar stores,
and they offer exclusive designer products like deluxe music albums customers can shop at Target.com
partnerships at stores like Victoria and toys. and the Target app (iOS and
Beckham, Missoni, and Mossimo. Android compatible).

(Designer partnerships, 2017)

Pricing Strategy $$$

The first president of Target, Douglas Dayton, said:

We will offer high-quality merchandise at
low margins, because we are cutting
expenses. We would much rather do this
than trumpet dramatic price cuts on cheap
merchandise (Rowley, 2004).
In other words, Target puts value over
bottom-dollar products.
Taking risks: In 2017, Target plans to become more
competitive against Walmart and Amazon.com by
slashing prices on its goods and accepting a smaller
profit margin (Gustafson, 2017).
Target is investing in stores, the supply chain, and
digital technology to streamline and reduce expenses
(Gustafson, 2017).
Marketing Strategy

Upscale discounting: Associating

style and quality with discounted
prices or "cheap-chic"
Devoting more money and energy
toward digital and the Internet
where shoppers are increasingly
spending their time
Personalized content on
Facebook and Pinterest
Offer a hassle-free experience:
keeping stores and website
stocked through the help of
digital technology

(Pasquarelli, 2017)
Personnel

Employees are called team members

Supervisors are called team leaders
One Team, One Strategy, One Voice a unified group of
employees
Customers are called guests
Typical jobs at a Target store include: cashier, customer
service, food service, human resources, electronics team
member, apparel team member, beauty team member,
sales floor team member, store facility technician, cart
attendant, and team leaders (managers)
Target does not support employee discrimination based
on race, color, sex, pregnancy status, gender identity,
marital status, political opinions, religion, age, disability,
sexual orientation, social origin, national origin or any
other characteristics unrelated to an individuals ability to
perform the work required

(Team members, 2017)

 Policies
Hiring Practices:
All facilities have a human resources department and candidates must be approved by human resources.
Age documentation is reviewed, and high-risk candidates are removed.
Discipline:
Target does not employ mental or physical punishment and will not work with vendors or factories that use physical or mental
punishment.
Discrimination:
Target does not support employee judgement based on qualities unrelated to their work such as race, color, sex, pregnancy status,
gender identity, marital status, political opinions, religion, age, disability, sexual orientation, social origin, national origin or any other
characteristics
Working Hours and Time Off:
There is a 60-hour maximum work week, including overtime, in all facilities.
Workers receive a minimum of one full rest day after six consecutive work days.
If a facility does not meet local laws and corporate requirements, Target will deactivate the facility for a minimum of one year.
Payment of Wages:
Time card and payroll records are reviewed to ensure workers were paid legal wages for all the hours they worked
Wages, benefits and deductions are clearly explained to employees
Workers have access to all of their own records to verify their hours and wages
Workers know who to speak to if they have an issue.
Health and Safety Review:
A in-depth review is conducted on all facilities health and safety practices: fire safety, worker safety, clean facilities, the availability
of personal protective equipment, chemical safety, and proper employee training.
(Labor & human rights policies, 2017)
Challenges and Outlook

Challenges:
In mid-December 2013, Target data system was hacked and customer information was stolen. Target had to tighten its
security with a $100 million chip-and-PIN-enabled technology system.
(Target through the years, 2017)
In January 2015, Target discontinued operating 133 retail stores in Canada which put out a negative impression of the
company and cost Target $2 billion. Doug Stephens, president of Retail Prophet Consultants in Toronto, said, "They
diminished peoples image of what Target was. They should have done fewer stores, but better stores.

Outlook: (Wahba, 2016)

Shares of the retailer plunged to 2-1/2-year lows in heavy trading
Target expects same-store sales to decline by low-single digits in fiscal 2017
Target is responding to this sales slump by making adjustments:
Push for lower prices to compete with Wal-Mart and Amazon
Aggressive promotions with new brands and investments in technology
Smaller format stores
Better grocery selection

(Bose & Naidu, 2017)

 Sources

Average Target Shopper & Customer Demographics. (2016, November 03). Retrieved June 15, 2017, from
http://www.pymnts.com/news/retail/2016/average-target-shopper-customer-demographics/
Bose, N., & Naidu, R. (2017, February 28). Target shares dive on earnings outlook, price cut plans. Retrieved June 15, 2017, from
http://www.reuters.com/article/us-target-results-idUSKBN16719S
Designer partnerships. (n.d.). Retrieved June 15, 2017, from https://corporate.target.com/article/tag/2086/designer-partnerships
Gustafson, K. (2017, February 28). This means (price) war! Target to take prices down to bring back shoppers. Retrieved June 15, 2017,
from http://www.cnbc.com/2017/02/28/target-declares-a-price-war-as-it-tries-to-turn-around-sales.html
Labor & human rights policies. (n.d.). Retrieved June 15, 2017, from https://corporate.target.com/corporate-responsibility/responsible-
sourcing/social-compliance/labor-and-human-rights
Pasquarelli., A. (2017, May 19). Inside Target's New Marketing Playbook. Retrieved June 15, 2017, from http://adage.com/article/cmo-
strategy/inside-target-s-marketing-playbook/309076/
Rowley, L. (2004). On Target: How the Worlds Hottest Retailer Hit a Bulls-Eye. John Wiley & Sons.
Target through the years. (n.d.). Retrieved June 15, 2017, from https://corporate.target.com/about/history/Target-through-the-years
Team members. (n.d.). Retrieved June 15, 2017, from https://corporate.target.com/corporate-responsibility/team-members
Then & Now: Target's Store Design Philosophy. (n.d.). Retrieved June 15, 2017, from
https://corporate.target.com/article/2013/07/target-store-design-philosophy-then-and-now
Wahba, P. (2015, January 16). Dumpy locations, empty shelves and poor pricing compared to Wal-Mart doomed Target's efforts in Canada.
Retrieved June 15, 2017, from http://fortune.com/2015/01/15/target-canada-fail/