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TEAM THREE

WALMART
AND
TARGET
COMPARE OF COMMUNICATION STYLES

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FINAL REPORT
PROFESSOR BRADLEY

TEAM THREE
Traci Knight, Robin Wyvill, Taya Orozco, Russell Tatum
WALMART AND TARGET
COMPARE COMMUNICATION STYLES
June 23, 2016

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TABLE OF CONTENTS

INTRODUCTION

Background
History
Relevant statistics
Major accomplishments
BODY

Perceived audiences
Websites look, feel, images, ease of navigation
Annual reports look, feel, tone
Press releases tone, timeliness
Advertisements look, feel, images
Public relations/community citizenship activities

CONCLUSION

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BIBLIOGRAPHY

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Group 3 Gantt

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LIST OF ILLUSTRATIONS

Kantar Retail Customer (Average) Graph:


Walmart Age

pg. 6

Target --

pg. 6

Age

Walmart Income & Gender

pg. 7

Target -

Income & Gender

pg. 7

Walmart Generation & Race/Ethnicity

pg. 8

Target -

pg. 8

Generation & Race/Ethnicity

Websites:
Walmart - Website Screenshot

pg. 9

Target -

pg. 10

Website Screenshot

Annual Report:
Walmart Four Year Graph

pg. 11

Target -

pg. 12

Four Year Graph

Advertisements:
Walmart Smiley

pg. 14

Target Happy Kid

pg. 14

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Introduction

This formal analytical report compares the communication styles of Target Corporation and WalMart Stores, Inc.
Founded by George Draper Dayton in 1902, Target was originally named Goodfellow Dry Goods
before being renamed the Dayton's Dry Goods Company in 1903 and later the Dayton Company
in 1910. The first Target opened on May 1, 1962, as guests in the Twin Cities area wake to the
news of Target's first grand opening. This "new idea in discount stores," Target differentiates
itself from other retail stores by combining many of the best department store features
fashion, quality and service with the low prices of a discounter. The company has been
expanding ever since (Target). According to Targets website, Dayton died in Minneapolis,
Minnesota, in 1938, at the age of 80.
Today, the Target Corporation, incorporated on February 11, 1902, offers everyday essentials and
merchandise to its customers. The Company sells a range of general merchandise and food
through its store and digital channels. Target has approximately 1,790 stores in 26 states in the
United States (Reuters). According to Targets website, they employ 341,000 team members
worldwide.
Sam Walton opened the first Walmart in 1962, at the age of 44 in Rogers, Arkansas.
Walton was born in 1918 in Kingfisher, Oklahoma. In 1942, at the age of 24, he joined the
military and married Helen Robson in 1943. When his military service ended in 1945, Sam and
Helen moved to Iowa and then to Newport, Arkansas. During this time, Sam gained early retail
experience, eventually operating his own variety store. In 1950, the Waltons left Newport for
Bentonville, where Sam opened Waltons 5&10 on the downtown square. They chose
Bentonville because Helen wanted small-town living, and Sam could take advantage of the
different hunting seasons that living at the corner of four states had to offer. According to
Walmarts website, Walton died in Little Rock, Arkansas, in 1992, at the age of 74.
Today, Wal-Mart Stores, Inc., incorporated on October 31, 1969, is engaged in the operation of
retail, wholesale and other units in various formats around the world. The Company offers an
assortment of merchandise and services at everyday low prices. Walmart operates through three
segments: Walmart U.S., Walmart International and Sam's Club. The Walmart U.S. segment
operates retail stores in approximately 50 states in the United States, Washington D.C. and
Puerto Rico, with three primary store formats, as well as digital retail. The Walmart International
segment consists of operations in over 27 countries outside of the United States. The Sam's Club
consists of membership-only warehouse clubs and operates in approximately 48 states in the
United States and in Puerto Rico, as well as digital retail (Reuters). According to Walmarts

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company facts webpage, the company employs 2.3 million associates around the world. About
75% of our store management teams started as hourly associates, and they earn between $50,000
and $170,000 a year. Walmart is investing $2.7 billion over two years in higher wages, education
and training.
Major accomplishments
Wal-Mart (Pre-2006)
1. 1993 For the first time in its companys history, Wal-Mart celebrates its first $1 billion sales
week. (Wal-Mart, 2016) This is a huge sales milestone for any company. Many companies all
over the world dont make $1 billion for a span of several years (if ever), and Wal-Mart (as a
whole) was able to accomplish this feat in one week. While it was the first time for them, the
trend would continue, as Wal-Marts sales just kept climbing.
2. 2002 Wal-Mart tops the Fortune 500 ranking of America's largest companies for the first
time. (Wal-Mart, 2016) The Fortune 500 basically makes up about two thirds of the total US
GDP. Just being a part of it is a great accomplishment. Topping the list is every CEOs dream.
Wal-Mart (Post-2006)
1. 2009 - Walmart announces its first year of exceeding $400 billion in annual sales. (Wal-Mart,
2016) Again, this is only the first year. This trend has continued, and Wal-Mart could very well
have a $500 billion year by 2020.
2. 2012 - Walmart celebrates its fiftieth anniversary. 50 years of helping people save money so
they can live better. (Wal-Mart, 2016) Half a century of being an active company is not
something many companies get to see. I know of a wildly successful computer repair shop that
only lasted 21 years.
Target (Pre-2006)
1. 1983 The Dayton-Hudson Foundation is awarded the Presidents Committee on the Arts and
Humanities Medal of Honor by President Ronald Reagan. (Target, 2016) Not many companies
can say that theyve received an award from a sitting United States President.
2. 1997 Even fewer companies can say theyve received more than one award from a sitting
President. In 1997, President Bill Clinton awards Targets Good Neighbor volunteer program the
Presidents Service Award. The highest national honor given for corporate volunteer efforts.
(Target, 2016)
Target (Post-2006)
1. 2007 Target celebrates a milestone of giving over $3 million per week to local communities.
(Target, 2016) Thats a great way to give back to the community. $3 million dollars a week. Most
people, and their immediate families, dont make that in their lives.
2. 2012 50 years of doing business is amazing. Over 100 years in business is simply
astounding. In 2012, Target Celebrates 50 years since opening its first store, and 110 years since

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the creation of the company that eventually became Target. The Dayton Dry Goods Company.
(Target, 2016)

BODY:
Audience
Wal-Mart Stores, Inc. and Target Corporation both are discounters, but they cater to different
customers. According to a 2012 CBS Money Watch article Wal-Mart and Target: A tale of two
discount chains, Walmart, which says its customers' average household income ranges from
$30,000 to $60,000, hammers its low-price message and focuses on stocking basics like tee shirts
and underwear along with household goods. Target Corporation on the other hand, whose
customers have a median household income of $64,000 a year and are said to be more educated,
is known for carrying discounted designer clothes and home decor under the same roof as
detergent and dishwashing liquid.
A statement on Walmarts website brands their audience and customers as We serve all of
America. Our customers are not defined by demographics but by their desire for value, and they
depend on us to deliver value every day. They want to save money on lifes essentials as well as
the things that make life special. Whats most important to them is convenience, low prices and
quality products. Their mission is to Save people money so they can live better.
While Targets website states We fulfill the needs and fuel the potential of our guests. That
means making Target Corporation your preferred shopping destination in all channels by
delivering outstanding value, continuous innovation and exceptional experiencesconsistently
fulfilling our Expect More. Pay Less. brand promise.
The overall Walmart shopper are those with lower incomes and those who want to dig deep into
saves during these hard economic times. As Chick-fil-As are like the Nordstrom of fast food
chains Target, while considered a discount store, is viewed on a high scale to its counters
Walmart and Kmart.

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According to Business Insider, Meet The Average Wal-Mart Shopper: According to the data, the
average Wal-Mart shopper is a white, 50-year-old female with an annual household income of
$53,125

By comparison, Target's shoppers are five years younger, on average, and they make
approximately $12,000 more annually.

The income of shoppers at discount retailers Family Dollar and Dollar General are much lower,
averaging below $46,000 for both chains.
In addition, Target has a slightly larger percentage of shoppers who are female than the other
chains.

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The chart below shows the breakdown of each chain's shoppers by generation. Dollar General
has the highest percentage of shoppers who are Baby Boomers, while Target has the highest
percentage of Millennials

Here's the breakdown for race and ethnicity of shoppers at every chain.

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Websites
Who doesnt love to shop from the comfort of their home? Both Target Corporation and Walmart
invite shoppers into their stores via way of online shopping with a one-size-fits-all strategy.
Target Corporation and Wal-Mart Stores, Inc. websites as well as their brick and mortar stores
are easy to identify by way of their logo and color scheme. Like the famous golden arches of
McDonalds, Target can be spotted down the road ahead by its scheme red target logo and
Walmarts golden starburst or asterisk logo by way of deep blue roll backs.

Both companies websites are user-friendly and the menu categories are laid out along the top of
the page, which helps guide consumers to what they want to find and what you want them to
find. Since menus are typically found along the top or the left hand side of a page, with the logo
at the top left both companies websites share an almost identical layout. Overall, the look, feel,
product images, and easy of website navigation provides consumers of all ages and generations
hassle-free shopping.
Walmart

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Target

HISTORY
Wal-Mart
The first Wal-Mart store was opened on July 2, 1962, in Rogers, Arkansas. By 1967, there were
24 stores across the state of Arkansas, and in 1968, the first store outside of Arkansas was opened
in Missouri. Sam Walton, inspired by his success as a dime store owner, decided to pursue a
greater opportunity. He wanted to build a business that offered low prices as well as great
service. Mr. Walton wanted more than to turn a profit; he wanted to make a difference in the lives
of his customers. In 1970, Wal-Mart went public and was able to grow even more rapidly. The
associates at Wal-Mart were given the opportunity to become partners, so they worked harder to
make the company greater. The success of the stores grew beyond anyones imagination. By
1977 the company made its first corporate acquisition and in 78 launched its pharmacy, auto
service center and jewelry divisions. Sams Club, a membership-based discount warehouse
subsidiary of Wal-Mart was opened in April of 1983. Sam Walton stepped down as CEO in 1988
and Wal-Mart was still the most profitable retailer in the United States.
Target
Due to a church fire in 1893, George Dayton purchased some land adjacent to the original church
and constructed a building. This is where Dayton Dry Goods Company was housed. Initially, the
store operated under strict Presbyterian guidelines, and they would not sale alcohol nor advertise
in any newspapers that allowed liquor ads. They also did not operate on Sundays. Most of the
profits made Dayton made were given to charity, so he founded the Dayton Foundation. In 1938
Dayton died and left the $14 million business to his son Nelson. Once Nelson died in 1950 his

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son took over and began to run the company with a more secular approach, selling alcohol and
operating on Sundays was just the beginning. The first Target store was opened on May 1, 1962
in Roseville, Minnesota. It was four years later (1966) that the store expanded outside of
Minnesota. Many of the top executives were not very experienced in retail. This cost the
company a lot of money, selling Target was a thought being tossed around. Under new
management merchandise was marked down and only one new unit was opened in 1973. By
1976 Target opened four new units and reached $600 million in sales. In 1978 Target became the
7th largest general merchandise retailer in the United States. The first Super Target was opened
in 1995 and the Target Guest Card, the retail industrys first store card, was launched.
ANNUAL REPORT
Walmart
Walmart continues to grow each year. The low cost, quality made products are the defining
explanation for the great increase in sales each year states President and CEO, Greg Foran.
Walmart had a solid year in fiscal 2015 as each operating segment improved its performance as
the year progressed.
Retail is changing and were investing to serve customers more effectively, which we believe
will benefit shareholders over time. We know that customers expect value, a broad assortment,
and various options in how and where they shop. They also want an enjoyable shopping
experience, both in stores and online. Our fiscal 2016 investments in associate wages and
training, as well as our stepped-up investments in global e-commerce, will strengthen our ability
to deliver a great experience for customers. These important investments will make us even more
relevant in the future. (USA World trade, 2015)

Target

Fiscal 2015 included the following notable items

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GAAP earnings per share were $5.31, including $0.07 related to discontinued operations.

Adjusted earnings per share from continuing operations were $4.69.

Comparable sales grew 2.1 percent. Digital channel sales growth of more than 30 percent
contributed 0.8 percentage points to 2015 comparable sales growth.

We sold our pharmacy and clinic businesses to CVS, recognizing a pretax gain of $620
million.

We paid dividends of $1,362 million in 2015, an increase of 13.0 percent above 2014.

We returned cash through share repurchase for the first time since second quarter 2013,
with purchases of $3,441 million of common stock at an average price of $77.07 per share

This information reported as true by John J. Mulligan, Executive Vice President and Chief
Operating Officer. (Annual Reports/target, 2015)

PRESS RELEASES
Walmart

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Wal-Mart Stores, Inc. (NYSE: WMT)'s Wal-Mart Pay is a way for customers to pay via
smartphones in Wal-Mart stores. The payment capabilities are now available in the state of
Michigan and in the District of Columbia, according to a series of press releases. (Walmart
Newsroom. 2016)
Above is a very recent press release from Walmart Corporation. The timing of this
announcement is a little late on the scene as all other major Big Box stores have had an
Android, IPhone payment system in place for several months. Overall though in review of many
press releases the timing seems to be for the most part relevant, and the tone of all press releases
I reviewed is current and upbeat and objective.
Target - June 15, 2015
CVS Health and Target to offer best-in-class pharmacy and medical clinic services to Target
guests and plan to develop Target stores that include CVS/pharmacy
Transaction will expand CVS Healths retail presence in new markets and enhance Targets
wellness offerings. (Corporate Target. 2016)
The above news release from Target Corporation is about the merge and buy out from CVS for
pharmacy rights in Target. The timing is strategic in that Walmart is the leader in pharmacy sales
at the moment on a large scale and CVS is top in sales on the smaller scale. Target will now host
the CVS pharmacy giving it the rise of the large scale numbers. The tone is objective as well as
excited. Target stands to gain considerably in this deal.
ADVERISEMENTS: Look. Feel and images
Walmart
Walmarts latest ads featuring Smiley show him popping in with a great price as everyday
dilemmas are solved in a pinch. What does Smiley mean for customers? Quite simply, when
Smiley is on the screen, our customers know that he is helping them get great prices. (Walmart
Brand. 2016) The Smiley and icon of Walmart ad campaign makes people feel happy. The image
is a bright, big, happy face. The colors as well as the image builds self-confidence and increases
the shopping people will do.

Target
The target
the

ads are focusing on


rebuilding of the chain

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after troubled previous years. They use bright red colors as well as a target symbol in the
advertising. The images both produce a champion or winner feeling to the customer. (media
corporate. 2014) They have most recently incorporated a smiling happy kid.
The caption being Its a New Day. The child image at table with financial paper is relaying that
a younger generation is concerned with money and saving.

Public

Relations/Community Citizenship Activities


Target and Wal-Mart have two very different stances on their public relations strategies. WalMart tends to get more negative press for poor treatment of employees, while Target pays better
and doesnt have to be forever on the defense. Target brags about their legacy of giving. They
have a team to work on their relationships with both traditional as well as social media, to help
them advance their reputation. Since the 40s they have worked to have a brighter future for their
team members, communities and the world in which we live. Donating each year, 5 percent of
their profit to communities. The Target Company integrates sustainability from the building of
the stores to the product that they sell. Fostering an inclusive and diverse work environment the
company hopes to make shoppers feel included. Wal-Mart on the other hand spends its money on
advertising. They work with the best public relations firms to help create a better image of the
company as it relates to sustainability.

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Conclusion
Communication is a fundamental part of every business, whether communicating with customers
or employees. When it comes to employees, Wal-Marts message might get somewhat lost to a
portion of their employees, as the company wants to keep salaries a little lower than average.
Wal-Mart seems to catch a great deal of grief in the media about this, with some (possibly
biased) reports stating that Wal-Mart could raise wages without having to raise prices. (Politics
USA, 2013) One still has to realize that a lot of these jobs are for unskilled labor (no education or
experience needed, first job for a teen, etc..).
Target on the other hand pays their employees a little better, but has their own issues in the
media. Most notable their recent stance that allows transgender customers and employees to use
the restroom of their Gender Identity. Target stands firm in their commitment to their
transgender customers, but the word is spreading to boycott the store over this policy. (USA
Today, 2016) Targets customer relations team certainly seems to have their hands full with this
one as they try to communicate their message of unity to a large portion of shoppers that dont
agree with their stance. Time will tell if any boycotts will have a negative impact on their bottom
line over time.
On the customer only side of things, and focusing more on targeting their key demographics,
these two retail giants do a great job of understanding their key customer base and
communicating a message that resonates well with them. Both of them have unique websites, as
shown earlier in this report, but since they are both discount retailers they do a very good job of
making their websites look inviting with popular products while at the same time getting the
message across that the items advertised are both quality name brand and affordable.
Wal-Mart and Target do certainly compete with each other as large discount retail chains, but its
clear that the two companies have different strategies for marketing their brand. Wal-Mart seems
to want to alert customers to their low prices, with the intention of conveying affordability for
people who may not have much money to work with. Target appears to want to convey a similar
message, but really wants to drive home the more upscale nature of their products. They both
also have a great deal of time invested in the market and dont show any real signs of slowing
down right now. Wal-Mart currently tops the Fortune 500 list with revenues of over $482 billion,
(Fortune 500, 2016) while Target sits at number 38 with over $73 billion. (Fortune 500, 2016)
After decades of continuous sales milestone accomplishments, helping their local communities,
and numerous Presidential awards between these two giants, its obvious that their unique
strategies are working for them.

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BIBLIOGRAPHY

References:
Target Corporate Newsroom. A Bullseye view/news & features, Retrieved June 23, 2016, from
https://corporate.target.com/article/2015/06/cvs-health-announcement
Blog. Walmart.com On/News. Retrieved June 22, 2016, from http://news.walmart.com/
Target Purpose, Beliefs & Stories Behind Them | Target Corporate. (n.d.). Retrieved June 22,
2016, from https://corporate.target.com/about/purpose-beliefs
Walmart U.S. World Trade Organization Annual Report 2015.nRetrieved June 24, 2016, from
http://www.walmart.com/ip/44100166
Walmart.com - Walmart Brand Center. (n.d.). Retrieved June 22, 2016, from
https://www.walmartbrandcenter.com/our-brand.aspx
Media Corporate/Target/smiley. June 24, 2016. Retrieved from http://media.corporateir.net/media_files/irol/65/65828/reports/TGT_AR08.pdf
AnnualReports.com/Target Corporation. Retrieved June 23, 2016,
fromhttp://annualreports.com/Company/775
Walmart and Target: A tale of two discount chains. (2012, November 18). Retrieved June 22,
2016, from http://www.cbsnews.com/news/walmart-and-target-a-tale-of-two-discount-chains/
Fortune 500. (2016, 06 20). Retrieved from www.Fortune.com:
http://beta.fortune.com/fortune500
Politics USA. (2013, 11 19). Retrieved from www.politicsusa.com:
http://www.politicususa.com/2013/11/19/walmarts-greed-exposed-pay-employees-25000yearraising-prices.html
USA Today. (2016, 04 25). Retrieved from www.usatoday.com:
http://www.usatoday.com/story/money/2016/04/25/conservative-christian-group-boycottingtarget-transgender-bathroom-policy/83491396/
Peterson, H. (2014, September 18). Meet The Average Wal-Mart Shopper. Retrieved June 22,
2016, from http://www.businessinsider.com/meet-the-average-wal-mart-shopper-2014-9
Wal-mart Stores, Inc. Company Profile | Reuters.com (n.d.). Retrieved June 22, 2016, from
http://www.reuters.com/finance/stocks/companyProfile?symbol=WMT.N
Target. (2016, 06 20). Target.com. Retrieved from www.target.com:
https://corporate.target.com/about/history

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Wal-Mart. (2016, 06 20). Wal-Mart.com. Retrieved from www.walmart.com:


http://corporate.walmart.com/our-story/our-history

putting in the extra effort. Instructor Bradley

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