Target Stores' Differentiation Strategies |
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"What Target did was figure out how to eke out a position on that [retail] landscape that was not about solely playing the cost game, they went a very different direction from Wal-Mart."1 - Nancy Koehn, a Harvard Business School professor and retail historian. "Clearly there is a certain drive to be creative. They see ways of doing business that are based on taste and ideas, not just price. Doing that is even more difficult today than in the past because of all of the pressure to perform on both a long and short-term basis by Wall Street. That Target has been able to proceed the way it has speaks to the company's creativity and vision."2 - Marvin Traub, former chairman and CEO, Bloomingdale's3, commenting on Target. "Branding is one of the things they (Target) do a good job of, and it represents where they want to be in the market"4 - Chris Merritt, principal at Kurt Salmon Associates, commenting on the branding strategies of Target. Target The Upscale Discounter
Target positioned itself as an upscale discount chain. It differentiated itself from its competitors by offering trendy merchandise at affordable prices. Target used attractive marketing promotions to communicate this message to customers. By 2002, the company became the second largest discount retailer in US. The differentiation followed by the company and its effective communication programs helped it to continuously increase its revenue and net income (Refer to Exhibit I).
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1] Schlosser, Julie, "How Target Does It,"www.fortune.com, October 18, 2004.
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