Well Established Presence In The US

Social media giant compared to Wall-Mart -Merchandise Differentiation and perception- Target differentiates itself, primarily from Wall-Mart, through their ability to provide affordable, yet stylish products. (Could perceive itself as a high-end grocery distributor as well) – Price Position- “Expect More. Pay Less”-achieves a price advantage over the discount giants such as Wall-Mart due to primarily their coupon offerings. In the recent years, Target has also stepped up its value message in its stores as well as its marketing media. This shift of focus on pricing and value enhances the company’s competitiveness.

It enables the company to tap a larger market with an increasing number of customers opting for lower priced merchandise. -Redcap/Loyalty programs. Through this program, customers can receive a 5% discount on nearly all purchases every day at Target stores or on target. Com. This program offers the benefit of free shipping on all purchases made at target. Com along with 5% rewards. The Redcap program encourages customers to shop at Target repeatedly and generates an average sales increase of more than 50% in households who use it. -Favorable real estate locations.

Provides convenience for our app. Weaknesses: -Online presence lacking. App could improve this. Not as prevalent (locations) as Wall-Mart. Could be detrimental to the success of our app. -Data breach could lose customer loyalty and providing an online app that directly converts to your credit cards and Redcap, trust is an issue here Could affect people’s shopping habits, perception of the store, and word-of-mouth poor reviews of the store. Opportunities: -Transitioning fresh concept from Supermarket to all stores. Includes pre-packaged fresh produce, fresh packaged meat, and bakery items.

The app can accelerate this transition hat so far is a success for Target. Fresh concept offers some of the fresh food items sold at Super Target in its smaller stores and several pre-packaged fresh produce such as bananas, berries, baby carrots and bagged lettuce; an assortment of fresh packaged meat such as ground beef, chicken and pork; and pre-packaged baked goods such as dinner rolls and pies. This format enables Target stores to offer high frequency perishables such as fruits and vegetables, a selection of fresh meat and bakery items, and an expanded assortment of dry, dairy and frozen foods to its customers.

Additionally, the many uses targeted marketing strategies like direct mail, newspaper ads and billboards to drive guest traffic to stores with the expanded food offering. -The sale of perishable items and consumers buying at their retail stores are both on the rise according to Industry Reports. Healthy food perception contributes to this. As well as increasing working population with less time to cook. These trends suggest a large potential market. Expanded grocery section is estimated to draw customers and provide a recession-proof model for the company.

Additionally, the food and grocery segment will Increase the raffia into the stores converting into higher sales. -Increasing foot traffic with the attraction of a fully developed grocery sector. Generating leads to flow throughout the store and purchase other items. -Diversification of grocery department. Also, taking advantage of the rise of e-commerce. The mobile website whom/. Ran. Target. Com serve as in-store assistants by making shopping more convenient and determine a product’s availability, aisle location, and refill prescriptions from their phones while shopping at the Target store. Threats: -Low Price leaders (Wall-Mart!

Amazon). Wall-Mart may cut costs on identical products due to their strong positioning they’ve established over the years in the grocery sector. Wall-Mart has traditionally concentrated on generating revenue through the sale of groceries. Target has consistently increased the proportion of groceries in its merchandise mix. Revenue from food and pet supplies at Target has increased from 17% in PAYOFF to 21% in PAYOFF. Been able to sell its products at higher markups due to the differentiation it enjoyed. However, increased overlap will limit Target’s ability to sell at higher mark ups. -Huge threat of copycats/substitutes for this app.