Marketing Management of Target Corporations

Question: Write a report about the conceptualization and implementation of the different types of the marketing strategies. Answer: Introduction The study is intended to give an overview of an organization in terms of the ability to adapt the marketing environment and sustain the business process. The report states about the conceptualization and implementation of the different types of the marketing strategies such as 4 Ps of marketing, porters Generic strategies, STP analysis (Segmentation, targeting positioning) and implementation for eh branding pentagram model. Several other strategies implemented into the project include Ansoffs matrix, Porters 5 forces, SWOT analysis and PEST analysis. The main objective is to study the existing situation in the organization and know about the scope of improvement of the operations. The organization selected for the purpose of the study is Target Corporation. Hence, the implementations of the aforementioned concepts are relevant to retail sector. The analysis of the different types of the management theories shows that Target Corporations will not only be able to improve the present re tail operations but also prioritize its resources for a more sustainable approach in the decision making process (Kotler et al. 2015). Target Corporations, although known for its prominence in the United States and known as the second best discount retailer after Walmart. Target Corporation in Australia is treated as a mid priced departmental store whose operations are controlled mainly by Wesfarmers. Target Australia Pty Ltd. is known to operate in a total of 183 Target stores and total of 125 Target country stores. The main product of the company includes items ranging from branded clothes, electrical items, cosmetics, toys and homeware items. Some of the own brand products under the private label of the company includes grocery brand of products such as Market Pantry, Archer Farms, Sutton Dodge and simply balanced. Some of the re-launched range of the products includes brands such as up up, for the purpose of including expanded range of the products and offer new selection of the grocery products. In the recent times Target Corporations is known to suffer a loss of $5.4 billion in Canada. This was due to the poo rly planned business expansion strategies outside the U.S. The report shows the various types of the scope of improvement for the purpose of meeting the market expansion strategies of Target Corporations (Reuters. 2016). General Discussion The first strategy implemented to study the present analysis of the market situation has been done based on the 4Ps analysis. The present pricing strategy of Target Corporation is directly relevant to the overall pricing strategy of Wal-Mart and hence it acts as a discount retailer. The company has been also able to keep the prices low in the supply chain division of the company. The product division of the company aims to differentiate the product categories based on the focusing on the high-end fashion products cloths and designer cloth designed by the company. The company is further known to bring innovation in the pricing strategies to keep the prices relatively low for higher quality products. The main objective of the company has always been to improve the private brands and provide better customer satisfaction at a marginally higher price. The promotion strategy adopted by the company is aimed target a young category of people who are looking forward to avail a high quality pr oduct and at the same time paying a smaller amount of premium. The promotional strategy adopted by the company also aims to include the several, which aims at the product differentiation strategy in order to compete with other discount retailers such as the Sainsburys and Wal-Mart in a better way. Then a different type of the promotional, theories adopted by the company also aims to achieve the operational objectives. As the present the promotional punch line itself suggest, Expect more pay less. The placement strategies adopted but the company includes the various types of the distributional strategies adopted by the company, which shows the high volumes of product segregation for the company across various areas of the United States and in Canada. The company is further known to operate in more than 4000 stores only in the United States (Sheth and Sisodia 2015). The next strategy implanted to the scope of the present strategies and the scope for the improvement of the target corporations has been studied based on the implantation of porter's generic strategies. As per the implementation of this strategy, the company is presently placed in the integrated position of the cost Leadership and the differentiation strategy. The manner in which Target Corporation places its brand of the products and the introduction of the new formats in then stores is termed as the city target (Kotler et al. 2016). This strategy is seen to be implemented among the urban dwellers of the countries such as the Chicago, Los Angeles, and San Francisco and in the Seattle region. The company is further known to match the competitors and plan for the incentives strategies from the consumers with introduction of the theories such as Red card rewards (Kotler et al. 2015). In order to bring about the several types of the changes in the present marketing strategies the company can change the integrated marketing strategy to include the cost focus, analysis alignment with the product differentiation strategy. In this way, the company will be able to generate more amounts of revenues and target a differentiated class of the consumers. The various types of the differentiation strategies can be implemented in the association of the different business modules. These business modules include the introduction of the different types of the inclusion of the third party brands (Shaw 2012). This will ensure that a Target corporation is able to introduce the different types of the product. The cost focus strategy adopted by Target Corporations will ensure that the company is able to introduce the several types of concepts to narrow the focus of the customer and decreasing the bargaining power of the suppliers. The customers will further observe that the various for ms of the requirement of the requirement of the retail brands o then product are easily available to the costumers (Shakhshir 2014). The improvement in the present marketing situation for the purpose of bringing sustainability in the marketing operation of the company, the AIDA model needs to be implemented. The AIDA model is associated within the attention, interest, desire and the actions, which needs to be taken by the company for the changes in the present marketing standards and techniques. Target corporations need to focus on drawing the attention of the people of all age group and needs to include the different types of the approval of the management needed for the product development. The interest strategy is the most intricate strategy, which the company needs to adopt in the present system of the marketing model. The interest needs to be incorporated through the various types of advertising strategies implemented by the target corporations (Rawal 2013). The present advertising strategies in the devising of business needs to be done based on the selection for the appropriate media and based on the present marketing strategies the company needs to be aware of the different strategies of the marketing in the ecommerce division. The company needs to put an augmented focus on the online promotion for the product should give more amount of focus on the online promo codes of the products and the seasonal discounts provided on the websites of the company. Target Corporations need to further derive the demand of the company by building of buyers desire and need to help them based on providing assistance with the several types of the growing interest amount the different consumers. Then final step of the action needs to be taken based on the several strategies planned for the viability of the project. The action of the company needs to assured on the basis of the planning of the advertising strategies, developing a promotional plan and take the necessary actions for the purpose of devising of the project proposal on the basis of the different types of the strategies implemented for the purpo se of the final approval, of the marketing strategies (Mohammadi and Esmaeili 2013). For the purpose of focusing on the sustainability the company need to be focus on the STP analysis. The STP analysis stands for segmentation, Targeting and positioning of strategies of the company. The segmentation is based on the geographic selection of the new stores which are main located on the Edmonton, Canada, Toronto and Vancouver. The focus should be also made in the areas consisting of the large population. The company should focus more on the segmentation in the Canada due to the presence of the colder climate and the company will be able to deal in more number of the winter clothing. The segmentation should be done in such a way that the company is able to draw then attention in the prime areas ok then stores situated both in the US and Australia, maintained under the Wesfarmers. The company can improve the targeting strategy by the introduction of the concept of the personal selling. The various types of the realistic products marketed by the company can be improved based on door-to-door selling or street selling. The company needs to particularly focus on the effective models, which can be effective to understand the various needs of the customers in form of the upstream selling concept. This can be further used for the purpose of the inter-company sales and driving the profits for the long-term for the purpose of the improved tin the marketing strategies in order to increase the sustainability of the company (Han et al. 2012). The company is already considered as the second largest retailer in the United States. Hence, it needs to position itself in the other countries in such a manner that the customers are able to generate the maximum value from the various types of the availability of the products. The positioning strategy is also based on the implementation of the various strategies related to the various types of the inclusion of marketing activities in Australia. The business setup in the Australia should, further needs to look forward to include the conceptualization of the individual stores as this will promote the culture of the individual products. The marketing management can be further improved for the purpose of the sustainability by the introduction of the branding pentagram model. The various types of the analysis done under this model includes defining of the principles of the branding, maintaining the consistency among the different types of the brand carriers, planning and the control cycle, embedding the brand and the positioning of the brand. Target Corporation needs to understand the different principle of the branding for the purpose of the development of the present scope of growth in the marketing activities. The consistency among the brands of the company needs to be brought by careful, analyses of the competitors such as Wal-Mart, Sainsbury, and Tesco. It needs to compare itself with the different types of the strategies adopted by the competitors. The planning and the control of the company should be done through a careful study of the requirement analysis and to understand the most appropriate strategy adopted for the scope of the marketing growth in the various types of the segment of the company. Target Corporation needs to maintain the marketing cycle through the audit and the analysis, planning of the market alternatives, implementation of the various types, of the strategies and the final step of the planning and the controlling technique should take into account the concept. The embedding of the brand is don e by the identification of the best brand under the private labels of the target corporation. For example, the company can put an augmented focus on the private label brands such as Up Up. The company needs to focus on the positioning of the other popular brands such as Sutton Dodge. Among all the discussed brands, target corporations should make the base of the brands with the bulls eye logo (Cedrick 2014). SWOT Analysis of Target Corporation Strengths Innovative and quality products Competitive pricing among online retailers Superior partnerships with designers Store Appearance Weaknesses Less stores compared to Wal-Mart Increased stock-out rate Decreased visibility in global market Perception of pricing Opportunities Global market expansion Grocery department diversification Involvement in exceptional design partnership Environment friendly initiative Superior private brand advertising Threats Retail sector competition Complex economy Negative consumer word-of-mouth Yearly government taxes and enhancing interest rates Reliance on soft US Market Strengths of Target Corporation indicates that it is among the well-established and renowned brand that is famous among its consumers. In comparison to its retail consumers, the company is considered as a better place to shop and is liked by the target market. Good consumer relationship has built superior brand loyalty. Target Corporation has been able to present itself as middle-class brand and has been capable to attract shoppers through offering fashionable and appealing products (Santos and Laczniak 2015). Weaknesses of Target Corporation indicates that the company remains unsuccessful in tapping specific areas of retail encompassing filling stations and financial services and is not that diversified in comparison to its competitors. It gets vulnerable to economic downturns and altering shopping patterns for retailers. Business model of the company has failed to adapt based on changing market situation and its efforts in e-commerce segments lags behind fierce competitor like Amazon.com (Pealoza et al. 2013). Threats of Target Corporation signifies that its major competitors such as Amazon and Wal-Mart offers extremely low prices and increases shopping convenience. The company is forced to match prices set by its competitors along with developing its e-commerce, as its competitors are far better in reputation with e-commerce consumers. Decreased buying powers of the consumers due to falling income in US have decreased its profitable purchases (Santos and Laczniak 2015). Opportunities of Target Corporation includes enhancing its reputation as a fashion retailer as it has good appeal to online consumers. The company can attract huge consumer segment by developing go-to site for fashion bargains (Wood and Reynolds 2012). Thee company can attract millennial consumers those fall under less disposable income group and are more urban oriented as it has expertise in retailing in renowned urban areas. PEST Analysis of Target Corporation PEST analysis serves as a business tool that evaluates distinct group of external factors, which can affect business and marketing strategies of Target Corporation. Political factor evaluation signifies that the political relationship between US and China has a direct relation on Target Corporations business as most of the companys goods are supplied sourced from China. Issues arising in the political relationship between these countries can affect the companys business operations and if the relationship is smooth, the supply chain can operate effectively at a high level. Issues that might disrupt goods sourcing encompass political and financial instability, trade barriers, costs, tariffs and transport capability (Kim et al. 2012). Economical factor analysis signifies that as a publically traded company the countrys economy plays a vital role in business operations of Target Corporation. Consumers desire for best deals and for continuing to differentiate it from competitors, the company should evaluate recent economic conditions for setting product prices. Economic conditions affect companys earnings along with its consumers that affect their spending habits (Marshall 2014). When the economic conditions are prosperous, the impacts remain positive but when they degrade, it can impose negative impacts on the companys business. Technological factor analysis that is affecting the retail industry indicates that in the current business environment it is necessary to stay aligned with the current technology for remaining competitive. Maintaining information security and possessing the capability to implement technology for attaining a competitive advantage serves as a key to economic success in the current business environment (Bojei et al. 2013). Such force can have a positive impact through allocation of sufficient resources for having the required technology to offer a superior quality consumer and business experience. Conversely, uncertainty of the fact that the systems are subject to interruption and damage from power outages, telecommunication failures, security breaches and malicious attacks can result in negative impact. Social factor evaluation signifies increasing cheap labor availability from immigrants might affect the workers of Target Corporations domestic nation as pay for these workers are relatively lower. For this reason, the company would prefer employing these workers other than locals. With the increasing population of retiree, Target Corporation is facing hard time in recruiting more employees that is decreasing the replacement for retired employees (Pealoza et al. 2013). Porters Five Forces Analysis of Target Corporation Porters five forces analysis will help in identifying and evaluating five competitive forces that shapes the retail industry in which Target Corporation has its business operation and will help in analyzing the industrys strengths and weaknesses and accordingly develop appropriate marketing strategy (Fitzpatrick et al. 2015). Competitive rivalry in the retail industry is high as there are several major competitors like Wal-Mart, Amazon, Costco and Macys. Wall-mart is offering wide variety of goods with low prices and its several locations offers highest convenience level to consumers. To establish itself among the market leaders, the company must develop exceptional value proposition through price, marketing efforts and loyalty programs (Pealoza et al. 2013). Bargaining power of buyers is high due to increased physical and virtual presence of several retailers that makes it easy for shoppers to switch between stores. There are no switching costs, which facilitate consumers to choose places from where they can purchase products depending on prices and convenience (Wood and Reynolds 2012). Target loyalty program along with monitoring buyer trends and spending patterns can help to cater the consumer needs and decrease the chances of switching of buyers. Threat of substitute products is medium, as technological advancements have altered the retail sector in a way that it is not confined to offer quality store experience across distinct channels. Developing appealing website, physical stores and mobile website are vital to address the needs of changing industry and make its consumers enjoy brand experience (Hussain et al. 2013). Bargaining power of suppliers is low in the industry as Target Corporation has strong relationship with its vendors that are effective in creating deals that is of advantage for both the parties and the consumers within their stores. Having both private label and general products available with the other retailers facilitates the company to decide and negotiate the products to keep in stock (Fitzpatrick et al. 2015). Threat of new entrants is low in retail industry. Along with the increased level of competition prevailing in the retail industry, the threat of new entrants faced by Target Corporation remains quite low. This threat is low because several barriers exists like having a well-built reputation, huge proportion of capital, loyal consumer segment, increased suppliers and product ranges (Wood and Reynolds 2012). Ansoff Matrix Analysis of Target Corporation Ansoff matrix also known as product/market expansion grid is considered to provide marketers to offer a quick and simple way to think about growth risks. The risks linked with each aspect of the matrix are evaluated and accordingly a contingency plan is prepared to address the associated business risks. Analysis of this matrix for Target Corporation will help in analyzing business risks and develop product and market growth strategy. Considering the market penetration aspect, it is gathered that the company understands the value proposition of its target customers ensuring appropriate labeling, rapid check out and facilities of car parking. Moreover, the company is successful in attracting increasing number of consumers by offering lowest prices by leveraging economies of scale through enhancement of operational efficiencies. The company is attempting to increase its market share for its existing products through improved marketing efforts. Marketing initiative of Target Corporation includes providing free shipping, target rewards credit card offers with 5% off on each purchase (Hussain et al. 2013). The company has attracted a great consumer segment through offering free holiday soundtrack giveaway. Evaluation of Target Corporations market development aspect, it is gathered that the company has recognized geographical markets in China for new applications of the present products and for the reason that the new consumer segment can be targeted. The Company has opened numerous new super target and target stores that include entry in India and Manhattan (Fitzpatrick et al. 2015). Product development aspect of Target Corporation revealed that the company is attempting to generate consumer financial products by offering limited banking services like banking services like cash checking, credit cards and bill payments. The company ensured to improve services or goods in order to increase sales by adding to its market branded food products and renowned designers exclusive discount collections such as Steven Burrows. To increase popularity of its products in comparison to its products, Target Corporation requires adding fresh produce to its several stores that will encourage its one-stop shopping (Hussain et al. 2013). Diversification aspect of Target Corporation revealed that the company employs private brand labels. Moreover, the company has ensured addition of new and unrelated products or services. Target Corporation has diversified into target commercial interiors in over nine locations and four office stores in over three states with strong online presence (Hussain et al. 2013). Marketing Strategy Recommendations Target Corporation is recommended to increase market expansion into South America where there are increasing middle class consumer segment and the American companies are perceived to have superior quality products. Such strategy will help in improving its sales and international presence. Moreover, the company should focus on innovation, design for generating a competitive advantage by value-creating diversification and maintain quality difference in comparison to its major competitors such as Wal-Mart and Amazon. Continuously finding ways for improving consumers shopping experience is recommended for Target Corporations. This can be done by offing free food samples, implementing price scanners all over its stores and installing store mannequins in order to display recent fashion trends. Moreover, Target Corporation can implement improved re-stocking system for preventing inventory stock-outs. The company is recommended to establish pint-of-sale stocking system and eliminating the chances of human error. Through implementation of these strategies, the company will be able to maintain stocking system extremely fast and in a cost efficient manner. Target Corporation is recommended to develop employee incentive plans that would decrease employee turnover maintain valuable human capital. This can be done by recognizing improvements for employee hiring and training standards. Additionally, engaging in vertical integration strategy by continuously providing private-label brands such as Archer Farms by focusing on cost and quality can support its growth strategy. Implementation of transactional strategy might help in revaluating Target Corporations international expansion strategy within Canadian markets. The company is recommended to enter the market with limited stores and introducing them to new consumers. For this expansion to be successful, market entry of the company should be done by choosing convenient locations for customers and facilitate its brand to become highly visible to them. Conclusion The objective of the paper was to evaluate the marketing management of Target Corporation and recommend suitable marketing strategies. From the evaluation, it was gathered that the company remains unsuccessful in tapping specific areas of retail encompassing filling stations and financial services and is not that diversified in comparison to its competitors. With the increasing population of retiree, Target Corporation is facing issues in recruiting more employees that is decreasing the replacement for retired employees. The 4Ps analysis indicated that the main objective of the company has always been to enhance the private brands and offer better customer satisfaction at a higher price. The company recognized the necessity to match prices set by its competitors along with developing its e-commerce, as its competitors are better in reputation with e-commerce consumers. Decreased buying powers of the consumers because of falling income in the nation have decreased its profitable purchases. Considering the issues, recommendations was provided that includes various types of the distributional strategies to be implemented by the company, which signifies the high volumes of product segregation for the company across several areas of the United States and in Canada. The company is recommended to launch point-of-sale stocking system and eradicate the chances of human error that would improve its service quality. Reference List Bojei, J., Julian, C.C., Wel, C.A.B.C. and Ahmed, Z.U., 2013. The empirical link between relationship marketing tools and consumer retention in retail marketing.Journal of Consumer Behaviour,12(3), pp. 171-181. Cedrick, B.Z.E., 2014. Why a Middle Income Country is Experiencing a Booming Auto Industrial Development: Evidence from China and its Meaning for the Developing World. 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