Target Case Study

Kevin Novelo

Marketing Dynamics for Fashion

Professor Haagen

February 3, 2015

Company Case 3

What microenvironmental factors have affected Target’s performance over the past few years?

Target’s competitor, Walmart, had a different strategy of providing products to the people at a very low price. Walmart’s sells stratgey really came through for them in the economic crisis of 2008, Unfortunately not so well with Target. Customers were being responsible with their money and with a change view on shopping, from fashionable to budgeted purchase. Target was know for their style and didnt change which hurt them. Activist Willam Ackman lost 85% of the $2billion invested in Target and accused them of being ineffectual and inexperienced and sought to take control of five of the board’s seats. Target also made two changes which were great, the mini grocery stores and the new brand name. It saved customers time and money.

What macroenvironmental factors have affected Target’s performance during that period?

The economic factor really affected Target’s game. The economical condition was rough with the economy going through a recession, inflation, and unemployment. This meant people were going to be prudent in saving and responsible in buying, which caused Target to form its “pay less” strategy.

By focusing on the “Pay Less” part of its slogan, has Target pursued the best strategy? Why or why not?

Target to be a competitor of Walmart.. They must be doing something right. They have set themselves apart from discount retail succeeding with thier slogan “Expect More. Pay Less.” They had customers in loved and at their peek they made the mistake on stressing too much on the expect more side. The recession hit them hard because they became a threat to the peoples wallets. Target definatley had the right “Pay Less” strategy but didnt apply it when it was crucial.

What alternative strategy might Target have followed in responding to the first signs of declining...