Target Stores' Differentiation Strategies |
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ExcerptsDifferentiation StrategiesFrom the very beginning, Dayton's strategy was to position Target as an upscale discount chain at which the prices would be just above the lowest prices. To achieve this upscale image, it offered trendy and stylish goods in an environment that was bright and attractive, unlike other discount stores of the time.
MerchandisingTarget's positioning as an upscale discount chain was reflected in its merchandising strategy as well. Target managers felt that they needed to be constantly in tune with what the customers wanted and anticipate trends and demands. Warren Feldberg, Target's executive vice president of merchandising, tried "looking at the world as our shopping basket and finding ways to bring that basket to the average customer".
"There's no question we want to continue to take advantage of our own brands. We built some very successful brands that are well identified by our own customers. We also know that we, in the company strategy, believe in brands, so we will obviously balance those two approaches as we go forward", said Feldberg regarding Target's view of private labels versus national brands... ExhibitsExhibit I: Financial Summary of Target Corporation
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