Target Summary Analysis
Executive Summary
Target Corporation is the second largest retailer in the U.S. with over 1700 Target and Super Target stores. Targets around the country offer everything from household essentials to computer software to groceries, and sell many of their products under private label brands. In addition to their retail segment, the company also offers credit and debit cards to its frequent shoppers.
In our report, we analyze company's past and present performance through a thorough study of Target's brand, their accounting disclosures and overall financial performance. Based on our findings, we suggest that the company:
Continues to expand its private label offerings
Considers relocating the grocery section to the rear of the PFresh stores
Explores expanding its operations to Canada
Marketing Analysis
The Target Brand
In 2002 the Minneapolis-based Target Corporation became the United States second largest discount retailer behind Wal-Mart. According to “Simply Better” from the Harvard Business School Press, Target‟s success can be attributed to two key factors: the right kind of differentiation and distinctive marketing communications. Target positioned itself as a mass merchant selling affordable yet stylish goodsi
(Appendix 1).
Today Target has transformed its signature bulls-eye logo into a lifestyle symbol. The bulls-eye is recognized by 96% of American consumers and considered a brand icon in a class with Nike's swoosh and
McDonald's arches. ii This was accomplished through a strong commitment to advertising to build an iconic brand. Target has reportedly spent 2% of its revenue in advertising compared to 0.4% spent by Wal-Mart or
5% spent by Macy‟s in 2009. iii Additionally, Target shows its commitment to building a chic brand by offering exclusive lines in partnership with well-recognized designers. Target is no stranger to providing top 4 designer labels without the ready-to-wear prices. Past and current
Target Corporation is the second largest retailer in the U.S. with over 1700 Target and Super Target stores. Targets around the country offer everything from household essentials to computer software to groceries, and sell many of their products under private label brands. In addition to their retail segment, the company also offers credit and debit cards to its frequent shoppers.
In our report, we analyze company's past and present performance through a thorough study of Target's brand, their accounting disclosures and overall financial performance. Based on our findings, we suggest that the company:
Continues to expand its private label offerings
Considers relocating the grocery section to the rear of the PFresh stores
Explores expanding its operations to Canada
Marketing Analysis
The Target Brand
In 2002 the Minneapolis-based Target Corporation became the United States second largest discount retailer behind Wal-Mart. According to “Simply Better” from the Harvard Business School Press, Target‟s success can be attributed to two key factors: the right kind of differentiation and distinctive marketing communications. Target positioned itself as a mass merchant selling affordable yet stylish goodsi
(Appendix 1).
Today Target has transformed its signature bulls-eye logo into a lifestyle symbol. The bulls-eye is recognized by 96% of American consumers and considered a brand icon in a class with Nike's swoosh and
McDonald's arches. ii This was accomplished through a strong commitment to advertising to build an iconic brand. Target has reportedly spent 2% of its revenue in advertising compared to 0.4% spent by Wal-Mart or
5% spent by Macy‟s in 2009. iii Additionally, Target shows its commitment to building a chic brand by offering exclusive lines in partnership with well-recognized designers. Target is no stranger to providing top 4 designer labels without the ready-to-wear prices. Past and current