Question

What is Target corporation's target market. What is a segmentation breakdown of their customers. How does target position their products in their industry.

Answer 1

Target is a major retail store. This means they keep various different types of products and the range of products vary widely. Naturally, this results in a wide scope of target market. Target Corporation does not focus on specific target market but rather on a wide range. This expands across different age groups, households, demographics, geographies and more.

A segmentation breakdown of Target’s customers may be complicated. However, if we look at it from a broader angle we can identify that the company’s key segmentation is focused on geography. One Target store is nearly same as the other. This means there is hardly any difference in their offerings from store to store. Considering that Target stores keep various products such as food, grocery, tools, electronics and more, their demographic and psychographic segmentation is quite universal. The only segmentation that they can apply is geographic. In high density population areas, they will tend to do better and that is why we often see Target in the bigger cities.

Target’s mission statement is expect more and pay less. This qualifies as a cost leadership approach. That is however is understood considering that their product offering has little to none differentiation. This means that when it comes to positioning in the industry, Target is positioned as an affordable and budget brand for purchasing regular and day-to-day things.