Target Case Study

Case Study place Adriana Gonzalez Principles of Marketing program line of the Problem(s) In this particular case, in that respect is one major dilemma and all in all other problems seemed to have risen from this one. For the past(a) few years there has been a recession globally. In the year 2008, the recession was at its aggrandisement and all industries suffer tremendously. For many years calculate grew at a much faster pace than Wal-Mart, besides the saving made a radical turn affecting everyone. hindquarters rapidly started to experience down in the mouth gross revenue as the time pass.As a result, the most important shareholder, William Ackman, demanded a rapid and effective schema to bring places gross sales up once again (Armstrong & Kotler, 2012). Summary of the Facts * maneuver is known for its products in style and fashion. * Numerous designer product lines. * Customers view Target as a retail store with higher prices * Targets customers went for the commence prices at its competitors retail store * Wal-Mart changed is mission asseveration to Save money. expire better. it mimics Targets mission literary argument (Armstrong & Kotler, 2012). While Targets work out of higher quality products remained, Wal-Mart use rollbacks to attract customers. * Target started to woo customers with value messages and big signs promoting sale products (Armstrong & Kotler, 2012). Targets mission statement has been, Expect More. Pay Less. After the recession the union cerebrate on the Pay Less part of their slogan. At the middle of the year 2008, Target had experienced three quarters of same-store sales growth (Armstrong & Kotler, 2012). Customers did not resolve as rapidly as the companionship hoped.They seemed to be more interest in low prices than quality. Wal-Mart took over Targets customers during the recession. Analysis The CEO, Gregg Steinhafel, came up with a strategy to help the business. Using the same mission statement, they focused o n the Pay Less part of it. On the other hand, Wal-Marts new(a) mission statement seemed to fit perfectly with customers during this difficult economy crisis. Targets competitor closed its quarterly sale-store sales with an extend of five percent during 2008, while Target had no increases (Armstrong & Kotler, 2012).After months of urging the new strategy the community finally got results. New advert help the company move forward in the industry. Target launched a new discoloration named up & up, which was a thirty percent lower than comparable pit names. The company also decided to introduce fresh foods that were not as expensive as its competitors. Targets stock went up cardinal percent since 2010, when they introduced fresh foods (Young, 2012). Now customers could to all their hauntping at Target without hesitating to make another stop at the grocery store.For the past five years Target and Wal-Mart have been the strongest competitors in the retail industry. Target suffered the first couple of years, but has climbed up to its competitors level. The company was in critical condition when the most important shareholder, William Ackman, demanded effective results. Ackman stated, It should be a business that does well, even in tough economic multiplication (Armstrong & Kotler, 2012). After Ackmans statement the CEO, Steinhafel, sharpened its strategy by advertising new television commercials with catchy music.Promoting new ads and adding a Target trademark helped Target to raise its sales to five percent with profits of 54 percent increase (Armstrong & Kotler, 2012). Meanwhile, Wal-Mart focused on low price strategy to save people money. Target on the other hand commits to a higher marketing expenditure and considers its customers guests (Wal-Mart and Target, 2011). After all, many customers continue to shop at Target because of its higher quality products. Recommendations Target is not the entirely business that was harmed due to the recession. On the contrary, it was one of the businesses that survived those tough years.There were losses in the company, not just financially, it also lost many customers. There were apparently changes that needed to be made quickly and intelligently. The CEO, Steinhafel, made a novel decision when it came to emphasizing differently the current slogan. Customers might have had a different perspective of the store and its products. They may not recognize Target as a high quality and fashionable retail store, but as a retail store that lost its faith in its mission statement. Expect More, is the most important part of the mission statement because customers expect more when they shop at Target.Targets customers still had that image of better quality but now at lower prices. When it comes to forward motion and advertising, the company could have done more on this portion. As the company started to advertise more television commercials and weekly newspaper circulars, the customers soon responded to them. Customers wish the idea of ads showing ordinary people consuming Targets products (Armstrong & Kotler, 2012). After eighteen long months of pushing forward the strategy Target finally got results. Customers would have responded positively if these promotions were at their reach months earlier.The companys number one priority needs to be our customers demands, wants, and needs. Targets strategies need to focus around our customers in order to maintain sales and profits. The shortages of concentration on promotion lead to a longer crisis for Target. By researching our customers wants and needs the company can accomplish greater profits. The company cannot define aside the importance of marketing process and marketing mix. Managers have to strike everyone in the organization to help built customer relationships. Targets success lies on strong customer-focused and heavily committed to marketing.References Armstrong, G. , & Kotler, P. (2012). Principles of Marketing (pp. 94-95). hurrying Saddle River, New Jersey Prentice Hall. Wal-Mart and Target Strategic Differences. (2011). Retrieved February 19, 2013, from http//www. ftsmodules. com/ commonplace/texts/valuationtutor/VTehn3/tonic8/tonic8htm. Young, A. (2012 August, 23). Target Vs. Wal-Mart Target Wins on Pricing, Barely, And Probably Not for Long. Retrieved February 19, 2013, from http//ibtimes. com/target_vs_wal-mart_target_wins_prining_barely_and_probably_not_long_htm.