Target Stores' Differentiation Strategies


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : BSTR164 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Growth Strategy | Differentiation
Case Length : 15 Pages
Period : 1962 - 2005
Organization : Target Stores
Pub Date : 2005
Teaching Note : Available
Countries : USA
Industry : Retail

Abstract:

The first Target Store was opened in 1962 by the Dayton Company. Though there were other discount chains in the US at that point of time, many of them do not exist today. Target was able to adapt itself to the changing environment and by 2002, it was the second largest discount retailer in the US. The case examines the entry of Target into the discount retailing sector and its growth path.

It looks at how Target differentiated itself from other discount retailers. The case also elaborates on the merchandising, advertising, and branding efforts of Target, which helped to create a unique image for it in the minds of the customers and to maintain a steady increase in revenues through the years.

Issues:

» How a new entrant can differentiate itself from existing players in the discount retailing industry.

» The role of branding in successful positioning in the discount retailing industry.

» How pricing is not the only way to compete successfully in the discount retailing industry.

» How a company can continue to differentiate itself as it grows and maintain its unique image in the eyes of the customers.

» The role of merchandizing in the success of a retail store.

Contents:

  Page No.
Target the Upscale Discounter 1
Background Note 2
Differentiation Strategies 4
Exhibits 12

Keywords:

Target Corporation, Wal-Mart, Differentiation strategy, Discount stores, Merchandising, Upscale discount chain, Positioning, Advertising, Promotions, e-Trade, Target.com, Retail industry, Branding, Marketing campaigns, Dayton Hudson Corporation

Target the Upscale Discounter - Next Page>>

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