Target Corporation Corporate Strategy by qcj15152

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									 Catherine Davis
    Anna Goetz
Corinne Gundersen
  Lauren Werner
History
   1903-Dayton Dept. Store opened in Minneapolis
   1954-J.L. Hudson opened Northland center
   Two Companies merged in 1971 to become Dayton
    Hudson Corp. (DHC)
   Over the years, DHC created Target stores and
    acquired Mervyn‟s and Marshall Field‟s
   2000-DHC changed its name to Target Corporation
    and crafted this logo
   Target Corporation is America‟s second largest
    general merchandise retailer
Corporate Identity System
   Logo: Red Bull's-eye with Target
    Corporation written above it



   Slogans:
       Target- “Expect more…Pay less”
       Mervyn‟s- “Big brands…small prices”
Target Corporation

   Nationwide Stores:
   Target-1,167
   Mervyn‟s-265
   Marshall Field‟s-64
   Target Corporation has 280,000
    employees in 47 states
Target Corporation Cont.
   Upscale and Moderate price stores to
    Full-Scale department stores
   2001 Revenues:
       Target-82%
       Mervyn‟s-10%
       Marshall Field‟s-7%
Principle Products and
Services
   Clothes for men, women and children
       Featuring Mossimo, Swell by Cynthia
        Rowley and Ilene Rosenzweig, Liz Lange,
        Michael Graves and Cherokee
   Toiletries, Electronics, Toys, Sporting
    Goods, Housewares
Finance

   Market Capital-$23,871,500,000
   Last Year Revenue-$27,757,000,000
   14,000 Shareholders
   908.7 million outstanding shares
Finance Cont
   Five-Year summary
       Year   Sales             Net Income
        2001   $39,888,000,000   $1,368,000,000
        2000   $36,903,000,000   $1,264,000,000
        1999   $33,702,000,000   $1,144,000,000
        1998   $30,662,000,000     $935,000,000
        1997   $27,487,000,000     $751,000,000
Strengths
   Brand Image
      -Target-”Expect More…Pay Less”

      -Mervyn‟s-”Big Brands at Small Prices”

   New Wave of Advertising
   High level of quality and satisfaction
      Fairly new company and stores

      Stores have access to more than 100,000 different

       items from more than 10,000 different vendors
Strengths Cont.
   Customer Service
       Create friendly, helpful minded employees to
        make shopping at Target Corp. stores a pleasant
        experience
       The Customer Service Center is open 7a.m.-8p.m.
        CST seven days a week
       80% of all calls are answered within 20 seconds
       100% of emails are responded to within 8 hours
Strengths Cont.
   Community Service
       In 2001 Target Corp. gave over 2.5% ($86
        million) of their income to charities
       Ranked #1 on Forbes Magazine list of America‟s
        Top Philanthropic Companies
       1946-Tradition of giving back to the community
        began-$400 million has been given back
       No Child Left Behind program
Weaknesses
   Behind Wal-Mart in quarterly earnings
   No greeter to welcome patrons
   Misconception that low price is evident of low
    quality
   Lack of recognition of Mervyn‟s and Marshall
    Field‟s
Competitors
   Bed Bath&Beyond       Linens „n Things
   Best Buy              Nordstrom
   CVS                   Saks Inc.
   Costco Wholesale      Sears
   Dillard‟s             Spiegel
   Dollar General        The Gap
   Federated             Kroger
   Foot Locker           Neiman Marcus
   J.C. Penney           Toys “R” Us
   Kmart                 Wal-Mart
Threats
   Perception of product
    quality
   Key competitors
       Federated
       Kmart
       Wal-Mart
Improving Reputation
   Building guest loyalty and
    enhancing profitability
   Use of the Internet
   Community involvement
   Continuous growth and
    expansion through
    construction of new stores
Recommendation Plan
   Publics
       Middle-class families and 18-34 year olds
   Objectives
       Increase awareness of quality of goods
       Increase corporation unity among three
        stores
       Increase nationwide awareness of Marshall
        Field‟s and Mervyn‟s stores
Recommendation Plan Cont.
   Strategy-Increase unity among stores
       Tactics
            “Expect More…Pay Less”
            Place Target Corporation logo on all ads for Target,
             Marshall Field‟s and Mervyn‟s
   Strategy-Promote quality of goods
       Tactics
            Continue to bring in emerging designers
            Highlight designers and first-hand accounts in
             advertisements
Recommendation Plan Cont.
   Strategy-Increase
    awareness of all
    Target Corporation
    stores
       Tactics
            “A Store, A State”

								
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