Question

If Target’s online stores conflict with the physical stores too much, what recommendations would you offer to Target Management for reducing this channel conflict?

Please answer in paragraph form.

Answer 1

Channel conflict can turn out to be a chellenge as well as an opportunity depending upon how a person sees it. It is often seen that many stores like Zara or Titan have had conflict befween the online direct to customer and offline physical store retail challenge. Thus, a solution has to be provided to solve the problem. The recommendations I would like to give for the Target's sales and reduced conflicts are:

1. Offering different products: The first solution that can be done to reduce the chances of conflicts is to offere differentiated products. Target can try offering unique products like different styles of jackets and personalised clothing items on their online stores different from that of their retail stores which could create values on both of the channels and reduce the chances of conflicts.

2. Bundles: Another solution that can be done to achieve a lesser degree of conflict is to offer variety of bundles of products all together. As the Target is getting into D2C channel which is directly to customer, the organisation can benefit itself with reduced cost and providing bundles of two three products in a bundle offered together at a higher price which is not available at the retail store. This would only benefit the organisation aa it is a unique feature not available anywhere else and the chances of conflicts between the retails and online stores would decrease because products are different.

3. Discounts and Gifts: At last, the retail stores can use the offer of discounts like 30% off and various gifts and add on features or coupons that can be used only at the retail stores of Target. Again, this won't intervene between the channels of online stores and the physical stores and thus, the probability of the conflict decreases between the two chosen channels of Target.