Question

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.

Q is :

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

Q.1. (a) Vision: ‘To be the world’s favourite retailer’

        (b) Mission: ‘Giving the best quality product at a reasonable price to be the most respected brand’

       (c) Business Objective:

• Customer satisfaction
• Quality maintenance
• Market segmentation for our products
• Overall profitability
• Customer centred products, plans, strategies
• Gaining competitive advantage

       (d) Product and type of Services:

• Fast moving consumer goods
• Consumer durables
• House hold items
• Fashion brands
• Services are after sale service to some products like electronics
• Branded items
• Guaranteed products

Q.2. Market plan for Target corporation :

• It is a different market to be analysed before entering in to market.
• It has some demographic and economic barriers
• Competition from local market
• Understand the customer needs to penetrate in to the market with existing and new products.

SWOT Analysis :

Strengths :

• Good brand image
• Strong company
• Market share is also good over all
• Wide variety of products
• Financially viable

    Weaknesses :

• Popularity in United sates only
• Low market share in Canadian market
• Credit card data failure

Opportunities :

• Expanding business to other nations
• Price challenge creates opportunities to open new store in new market
• New market gives a chance to introduce new products and to do new businesses

Threats :

• Too many restrictions and regulations
• Customer preferences would be different
• Business timings would be restrictive
• Labour employment also would be an issue
• Social environment is another important issue

Q.3 Micro Macro environment of the target corporation, Saudi Arabia

Micro environment : In Saudi Arabia, market is not much supportive for business. Customers, employees may require different policies which are different from other countries. Competition from local market is also an important issue.

Macro Environment : Social, demographic and economic factors are the challenges to target company. Here market is a traditional market. Management has a challenge to adopt change with respect to the conditions of environment. There is a large scope of growth if target corporation follows the rules and restrictions. So, target corporation requires a unique strategy.

Q.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?

Saudi Arabia market is a big challenge to target corporation as it is dynamic in nature. As Saudi Arabia market is regulatory market and customer preferences would be little bit different, target corporation needs to draw attention on customer needs, preferences and tastes as well as price , income levels etc.

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

• Understand the local market
• Estimate the needs of customer
• Communication with customer
• Understanding the buying patterns of customer
• Introducing new products exactly matched with the preferences of customer
• Focus on customer behaviour

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

• Collecting market data
• Highlight on main points
• Differentiate customers and products
• Factor analysis
• Product information
• Product differentiation

Q.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?

• Proper segmentation
• Analysing each segment size, growth, factors, competition
• Evaluating buying options, product demand
• Segment structural design for meeting competitive challenges
• Strengthening segment with quality products

Q.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?

• Depending upon demand for products
• Customer centred products and services

New product development process :

• Customer need analysis
• Product design at low cost
• Quality maintenance
• Designing product without wasting material
• Affordable and durable products for customers