Question

MARKTING CASE STUDY

( if you can NOT answer all the questions please don't answer)

Target Corporation is the second-largest discount store retailer in the United States, behind Walmart, and a component of the S&P 500 Index. Founded by George Dayton and headquartered in Minneapolis, Minnesota, the company was originally named Good fellow Dry Goods in June 1902 before being renamed the Dayton's Dry Goods Company in 1903 and later the Dayton Company in 1910. The first Target store opened in Roseville, Minnesota in 1962 while the parent company was renamed the Dayton Corporation in 1967. It became the Dayton-Hudson Corporation after merging with the J.L. Hudson Company in 1969 and held ownership of several department store chains including Dayton's, Hudson's, Marshall Field's, and Mervyn's.

Target established itself as the highest-earning division of the Dayton-Hudson Corporation in the 1970s; it began expanding the store nationwide in the 1980s and introduced new store formats under the Target brand in the 1990s. The company has found success as a cheap-chic player in the industry. The parent company was renamed the Target Corporation in 2000 and divested itself of its last department store chains in 2004. It suffered from a massive and highly publicized security breach of customer credit card data and the failure of its short-lived Canadian subsidiary in the early 2010s but experienced revitalized success with its expansion in urban markets within the United States.

As of 2017, Target operates 1,834 stores throughout the United States. Their retail formats include the discount store Target, the hypermarket Super Target, and "flexible format" stores previously named City Target and Target Express before being consolidated under the Target branding. Target is often recognized for its emphasis on "the needs of its younger, image-conscious shoppers," whereas its rival Walmart more heavily relies on its strategy of "always low prices.

Target Corporation decide to start its discount store in Saudi Arabia. The Target management hired you as Marketing Manager for its Saudi Arabia operation. You have to establish marketing department starting from the Analysis of market, formulate overall marketing goals, objectives, strategies and tactics within the context of an organization's business, mission, and goals designing and planning the entire function.

1- To establish the marketing function of Target Corporation, Saudi Arabia, you have to formulate the followings:

a. Vision

b.Mission

c.Business objective.

d. Product and type of services.              

2- Develop a marketing Plan for Target Corporation, Saudi Arabia. Define the SWOT analysis for Target Corporation, Saudi Arabia.

3- Analyze the Micro and Macro environment of the Target Corporation, Saudi Arabia.

4- How Target Corporation, Saudi Arabia will establish, develop, and enhance mutually beneficial relationships with customers? Discuss all the activities to establish, develop, and maintain customer sales?

5- Identify the various consumer decision processes for the Target Corporation customer?

6- How will you establish the market research for making better decision to establish and enhance the marketing?   

7- How Target Corporation, KSA will evaluate market segments and choose the best ones to serve? How it will create value propositions to meet the requirements of target customers?

8- How Target Corporation, KSA will manage all of their products and services? What are the steps in the best development process for new products?

Answer 1

Target is the second largest discount store retailer in United States behind Wal-Mart

The target is not a new comer into discount store business. It has already got a specific growth on implementing its specific strategies from very long.

So here , things required to be implemented in marketing strategies formulation is

* company should be able to creat its own mark in Saudi by re creating the success formula in u.s

* entire care to be taken that their store satisfies the needs of saudi's where as they vary from that of u.s citizens

* foundation strength should remain same where as building structure changes as per preference - this basic concept hasto be put in mind.

* most of the customers visit store initially just based on its trusted goodwill created in U.S market.

1.

a. Vision

* it indicates the future foresee of company / enterprise.

* what the company will achieve if it is successful ??

Here since target is entering saudi for first time , vision statement can be as follows

" to successfully creat target mark in saudi and to expand discount stores over there by providing fullest price advantage to customers in whole. And also to expand in adjacent countries of saudi to make reach benifits of low pricing to customers in large. "

b. Mission

* a mission is a kind of oath taken / vehicle driven in order to reach a destination.

* it defines where are we and what we are ??

* the initial mission statement can be remained for this purpose. May it be like

" our mission is to make target your preferred shopping destinatio in all channels by delivering outstanding value , continuous innovation and exceptional guest experiences by consistently fulfilling our expect more. Pay less. Brand promise "

What ever may be the country , the final destination of any co remains same. So mission statement is best to set the same cause all experienced employees are already habituated and experienced regd foot steps of achieving target missions.

c. Objectives

* to provide all the products at low prices as promised.

* to reach customer expectations by maintaing standard of goods sold.

* healthy cautions taken into mind , follow respective storage facilities considering saudi's climate.

* implementation of already promised objectives in saudi units also viz

? solar pannel roofs in stores and distribution centres

? reduce excess water use by 10% per sq.feet in all stores.

? giving importance to sale of naturally flavoured food items mainly in case of children

d. Product and type of services

* all the necessary products which were previously supplied by target discount store units like food , furniture , housewares , electronics etc... but to opt those products that is as per saudi citizens tastes and needs

Eg : compulsory inclusions of dry fruit sweets in foods

Burka and hijab in clothing

Shimmer materialed bedding sets

Shimmer sandals / velvet sandals / royal prince style shoes in footwear etc

Where as coming to services ,

* facility of app and home deliveries

* transport charges at minimum price than other competitors

* to employ local employees in discount stores

* to provide wishlist box option to customers where the box can be filled with natives must needed products and verification of it on timelybasis and place the arrangements for including those products such are in higher demands.

* timings of stores as per local facilitative timings as per natives.

2. Marketing plan :

* find out saudi natives life style and prefrences of products used data from any renouned data management company.

* initial market study from observing leading competitors of the market

* statistical data of points that increased market space for competitors and how to improve and inculcate them into our unit

* making use of social media to let know the intro of target into saudi.

* make any specific programme of interviewing old customers of target in U.S to let know piblic regd quality products being served here

* advertisements in social networking sites to attract attention of youngsters

SWOT analysis

* strengths :

? the co can bring best worlwide interested u.s products into this store with just transportation cost

? it can make use of its food serving units and install the same into these units because it has already got knowledge of storing facilities which make them last optimum

? it is like a professor teaching subject to students to target. Cause it has already got knowledge on how to install discount unit and maintain the same.

Weakness :

? new to saudi. So doesnt exactly know how to gain trust of saudi customers

? a very low mismanagement also gives great stigma on co goodwill even in u.s

? due to years of habits accustomed by saudi's risk exists if they can opt new stores or not

Oppurtunities :

? target has got many other business units of same nature / diffetent. So optimum utilisation of resources is habituated. Which results in maximum extraction of profits

? many experienced employees can be employed to monitor administrate and develop the units

* Threats

? competitor market

Competitors existing in market can use expensive market strategies to squueze market capture by target corp.

? cartels

All the existing competitors may unite themselves inorder to protect their existence and control target from not expanding its regal in saudi arabia.

4.

target corp forms following kind of strategies to provide benificial relationship with customers.

? win win strategy

A strategy where benifits of seller as well as customer are considered. Viz

Selling goods at low price benifits customers where as

Expanding the units with this formula benifits target corp

? distribution centres maintainance

A moderate investment made on distribution units set up initially such that distribution unit is in optimal distance to both unit A and B which makes all products available all time.

3. Micro environment

* anayse customer tastes by opting them with making availability of both locally available and perculiarly visible products

* maintain all kind of latest trends running worldwide as well as local side.

* inculcate various variety but limited quantity to creat increase in demand.

* appoint local employees even in distribution centres to be able to understand the demand of products and necessity of their distribution as per respective seasons.

* take any local celebrity support for advertising and ambassadating our units.

Macro environment

* make discount offers considering size of families found in local side of saudi

Eg : 1 boy jeans and 1 girl suit as a buy 1 get 1 combo offer

* incorporate seasonal wear into the unit

Eg : wool hijab options during cold months

* considering percapita income of saudi , introduce monthly budget combos which covers most essential products upto 60% this increases even sale in all essential goods.

* consider tax benifit laws of the place and try to adopt the same in our units and stores

Eg : writing store name in local language gives tax exemption to any industry / mall in chennai , india.