Distribution Assignment (1)

Aspects of Targets Strategy Dr. Ayman Shawky

Prepared By: Abdelrahman Mohamed Ahemd Noureldin
14th December 2011

Introduction:
Target Stores is the leading division of Target Corporation. Target Corporation, Is an American retailing company headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the United States, behind Wall-mart. The company is ranked at number 33 on the Fortune 500 as of 2010 and is a component of the Standard & Poor's 500 index. The company was founded in 1902 as the Dayton Dry Goods Company, though its first Target store was opened in 1962 in nearby Roseville, Minnesota. Target grew and eventually became the largest division of Dayton Hudson Corporation, culminating in the company being renamed as Target Corporation in August 2000. On January 13, 2011, Target announced its expansion into Canada. Target will operate 100 to 150 stores in Canada by 2013, through its purchase of leaseholds from the Canadian chain Zellers.

Targets Strategy:
Target enhance its customers loyalty through offering trendy, high quality merchandise at discount prices, Targets slogan is Expect More-Pay Less. Target Corporation operates Target.com, an online, electronic retail store, as well as Super Target, which offers a full line grocery store in addition to the Target retail operation.

Aspects of Targets Strategy

Growth objectives Targets strategy enables firms to enhance its long-term financial performance, it is also considered the fuel for consistent growth and profitable market share gains. You can continue to deliver average annual growth in earnings per share of 15 % or more over time and generate substantial value for your shareholders.

Appeal to a prime market Target succeeded in attracting a segment (well educated and middle income) the income of this segment is about 20% higher than Wall-Mart typical shopper. It is quite popular among female shoppers, parents with children under 18, and 25- to 54-year-olds.

Distinctive image Target Stores succeed in positioning itself: Pay Less + Expect More. It is considered one of the big three in discounting. It has not only linoleum floors, shopping carts, and a simple store layout. But Target is also perceived as an upscale discounter. It carries products from such designers as Mossimo (apparel), Isaac Mizrahi (apparel and home products), Michael Graves (home products), Liz Lange (maternity clothes), and Amy Coe (babys nursery). Focus The chain never loses sight of its discount store niche: Our strategic direction at Target is clear: to continue to delight our guests with differentiated merchandising and exceptional value while we continue to invest in our technology and leverage our resources throughout our organization to enhance our performance. Customer service Strong customer service for its retail category, the firm prides itself on offering excellent customer service for a discount store. For example, at the end of many aisles, there is a red service phone so shoppers can check a price or ask a question. Multiple points of contact Target reaches its customers through extensive advertising, stores in 47 states, a toll-free telephone service center (open 7 days a week, 17 hours per day), and a Web site.

Employee relations These are some of the awards recently won by Target: Top 30 Companies for Executive Women by the National Association for Female Executives, Best for Latinas in Latina Style magazines 50 Best Companies for Latinas, Top Work Place for Women in Working Mother magazines 100 Best Companies for Working Women, 100 Best Corporate Citizens by Business Ethics magazine (for diversity efforts), and Top in Training in Training magazines Training Top 100 list. Innovation The firm has long embraced the concepts of innovation and newness, recognizing the importance of creating unique ways to delight our guests every time they visit our stores. Commitment to technology Target is devoted to new technologies. Consider the Target Visa card: It has a built-in computer chip, called a smart chip. Today, you can use your Target Visa with an in-home smart card reader to access exclusive offers. And soon, youll see exciting new smart chip features popping up! The chip makes the Target Visa smart. Community involvement Target believes in giving back. One of its popular programs is School Fundraising: You can support your school just by shopping with your Target Visa or Target Guest Card. Target will donate an amount equal to one percent of your qualifying purchases at Target Stores or target.com to the eligible K12 school of your choice. Monitoring performance Two years ago, Target sold off two divisions: Both Marshall Fields and Mervyns were saddled with declining sales and most experts believed Target would be better off getting rid of both and flying solo. Today, Target is on its own with a lighter load and more free cash after selling the two chains for a total of $4.9 billion.