Marketing Mix Of Target and 7Ps (Updated 2024)

The Marketing mix of Target analyses the 7Ps of Target, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Target. Target Corporation is a departmental outlet company associated with businesses in the lifestyle and retail industry. It’s a publicly traded company of American origin. Target was founded in 1902 by its founder, George Dayton. Initially, the company was named Dayton’s Dry Goods Company, but in 2000, it was renamed Target Corporation. It faces enormous competition from several retail companies and outlets, some of which are as follows.

• Macy’s
• Aeon
• Walmart Stores Inc
• com

About Target

• Type: Discount retailer
• Industry: Retail
• Founded: 1902
• Founders: George Dayton
• Headquarters: Minneapolis, Minnesota, United States
• Area served: United States
• Current CEO: Brian Cornell
• Number of employees: 349,000
• Major products: General merchandise, including apparel, home goods, electronics, and groceries

Target Product Strategy

Target Corporation deals in the everyday essentials market segment, the most significant and dominant demand in sales across the consumer, business, and market segments.

The new Product Mix of Target in 2024 is as follows (Source).

1. Wellness Products: Target has launched over 1,000 new wellness products across multiple categories, such as skin care, nonalcoholic beverages, fitness, and supplements. This initiative reflects a trend towards curated wellness routines, offering an in-store mix-and-match experience. The wellness products are designed to be affordable and accessible, with prices starting at $1.99.
2. Diverse Product Assortment: Target offers various products, including food and beverages, apparel and accessories for men, women, and kids, baby products, household essentials, home decor, furniture, patio and garden items, kitchen and dining essentials, toys, and electronics.
3. Exclusive Brands and Collaborations: About one-third of the products sold at Target are exclusive to the store through private labels or owned brands. Target frequently collaborates with designers and brands for limited-edition collections, such as the Hearth and Hand with Magnolia collection by Chip & Joanna Gaines.
4. Customer Experience and Convenience: Target strives to make shopping experiences convenient and fast, in-store or online. The focus is hand-selecting items to delight customers and curating collections based on specific needs and preferences.
5. Store Customization: Each Target store’s assortment is customized to its neighborhood and local guests, ensuring a tailored shopping experience that resonates with the community.
6. Sustainability and Ethical Practices: Target is also mindful of sustainability and ethical practices, including ensuring product safety and quality assurance, responsible supply chains, and offering products that meet Target Clean standards.

Target Pricing Strategy

At the end of fiscal year 2015, Target’s estimated revenues were 73.785 billion dollars, and its net income was 3.363 billion dollars. Target Corporation is the second-largest discount store company in the world in the retail industry in the United States market. It targets the middle and upper-middle-class section of society looking for consumer goods at a reasonable cost and bargain price as its potential customer.

The following key elements can characterize the target’s pricing strategy:

1. Affordability Focus: Target is committed to delivering ‘affordable joy’ to its customers. This strategy involves launching or expanding over ten owned brands, offering thousands of new, differentiated products at competitive prices. Target’s pricing model is designed to appeal to a broad spectrum of shoppers, particularly those who are value-conscious.
2. Tiered Pricing Structure: The retailer has introduced a tiered pricing structure with more items starting at accessible price points such as $3, $5, $10, and $15. This approach aims to cater to a wide range of customer budgets while maintaining the perception of value and quality.
3. Clear and Compelling Promotions: Target emphasizes clear and compelling promotions to attract customers. This strategy is part of their broader effort to provide transparency in pricing and offer deals that resonate with their customer base.
4. Leveraging Loyalty Programs: The Enhancing Target Circle loyalty program is a strategic move to deepen customer engagement and offer additional value through rewards and personalized offers. This approach helps retain customers and fosters long-term loyalty.
5. Investment in Owned Brands and Store Experience: A significant part of Target’s pricing strategy involves investing in its unique range of owned brands and enhancing the store experience. By offering exclusive products and a pleasant shopping environment, Target differentiates itself from competitors, providing additional value to customers beyond just competitive pricing.

Target Place Strategy

Target’s place strategy focuses on a variety of initiatives to enhance customer experience, increase accessibility and revenue, and reduce costs to promote business success, revenue, and sustainability:

1. Expanding and Remodeling Physical Stores: Target plans to open about 20 new stores of varying sizes, including mid-size locations in suburban areas and small-format stores in urban centers. The expansion is aimed at reaching new neighborhoods and customer segments. Additionally, Target is remodeling around 175 existing stores, incorporating modern design elements and updated facilities to enhance the in-store shopping experience.
2. Enhancing Digital and In-Store Experiences: Target is investing in its digital platforms to improve the online shopping experience. This includes technology upgrades for a more personalized and efficient online experience. Target is introducing new brand partnerships and in-store experiences, like Ulta Beauty at Target, to offer guests a more engaging shopping environment.
3. Advancing Fulfillment Capabilities: Target continues to enhance its fulfillment services, including same-day services like Drive Up and Order Pickup. The retailer is also rolling out Drive Up Returns, allowing customers to return items from their cars, making the process more convenient and efficient.
4. Focus on Owned Brands and Value: Target is launching or expanding more than ten owned brands, bringing new products to focus on offering value to shoppers, with more items at affordable prices and clear promotions.
5. Sustainable and Community-Focused Initiatives: Many new stores will feature sustainable design elements and reflect the local community. Target is also investing in its existing stores to include sustainable features and services that resonate with local customers.

Target Promotion Strategy

Target has adopted ATL and BTL promotional strategies and policies to increase its customer base. It launched advertising campaigns in electronic and other retail outlets and print media through coupons, flyers, newspapers, magazines, and television commercials. It has a broader ad social media presence for target marketing via portals like Instagram, YouTube, Facebook, and Twitter. Target sends direct mail to its regular customers. It offers numerous deals and schemes as part of its promotional strategies and policy, for instance, buy two items and get one free, buy one and get one free, discounts during holiday sales seasons, free shipping during online shopping, periodic discounts, and discounts on every purchase made via online shopping.

Target Corporation has undertaken a marketing strategy with numerous sponsorship deals to enhance its brand, position, and reputation of national brands. It supports award shows like Oscars, Grammys, Golden Globes, and Emmys. It sponsors the Minneapolis Aquatennial and Times Square Ball Drop.  Ta et has entered into sponsorship deals with NASCAR and IndyCar racing teams. It has naming rights to Target Field and Target Centre in Minneapolis. Target Corporation participates in CSR activities and has donated a considerable amount to schools across the United States. The promotional strategy of target corporation TGT includes sales, public relations, advertising, and personal selling. I

Some Recent Video ads and Print ads for Target are:

Target People Strategy

The “People” aspect of the Service Marketing Mix for a company like Target is crucial for delivering outstanding customer service and maintaining a solid brand reputation. This marketing mix and strategy focuses on the employees, customer service, communication, and the overall customer experience. Here are some points that outline the “People” aspect of Target’s Service Marketing Mix:

1. Employee Training and Development: Target invests in comprehensive training programs for its employees to ensure they possess the necessary skills and knowledge to provide excellent customer service. This includes product knowledge, customer interaction protocols, and problem-solving skills.
2. Customer-Centric Staff: Target emphasizes the importance of a customer-centric approach among its staff. Employees are encouraged to prioritize customer needs and provide personalized service to enhance the shopping experience.
3. Diversity and Inclusion: Target is committed to creating a diverse and inclusive workforce. The company believes that a team with diverse backgrounds and perspectives can better serve its diverse customer base, leading to a more inclusive shopping experience.
4. Employee Satisfaction and Retention Strategies: Recognizing that satisfied employees lead to satisfied customers, Target focuses on employee satisfaction and retention through competitive salaries, benefits, and a positive work environment. Happy employees are more likely to provide positive customer interactions.
5. Brand Ambassadors: Target views its employees as workers and brand ambassadors representing the company’s values and ethos. Employees are encouraged to embody the brand’s commitment to quality, value, and service in every customer interaction.
6. Feedback Mechanisms: Target has feedback mechanisms for customers to share their experiences, which are used to train and improve staff performance. This ongoing feedback loop helps Target continually enhance its customer service quality.
7. Community Involvement: Employees are often involved in community events and initiatives sponsored by Target, which helps to build a positive brand image and foster a sense of community involvement among the staff.
8. Technology and People: Target integrates technology in its operations not to replace the human element but to enhance it. Mobile apps and self-checkout systems are designed to streamline the shopping process while employees remain available to provide assistance and personal interaction.
9. Safety and Health Protocols: Especially relevant recently, Target prioritizes the health and safety of its employees and customers. This includes rigorous cleaning protocols, employee health screenings, store layouts, and operations adjustments to ensure a safe shopping environment.
10. Reward and Recognition Programs: Target has reward and recognition programs to acknowledge and celebrate its employees’ achievements and hard work. Recognizing employees’ contributions fosters a motivated workforce and enhances the overall service quality.

Target Process Strategy

The “Process” component of marketing the Service Marketing Mix refers to the marketing strategy for the procedures, mechanisms, and flow of activities consumed by services. This is crucial for ensuring customer satisfaction and efficiency in service delivery. Here’s how Target approaches the “Process” aspect of marketing its Service Marketing Mix:

1. Streamlined Checkout Process: Target has streamlined its checkout process to reduce wait times and improve the customer experience. This includes self-checkout stations, mobile payment options, and efficient staff training to handle peak times effectively.
2. Online Shopping and Order Fulfillment: Target offers a seamless online shopping experience through its website and mobile app, including easy navigation, search functionality, and a streamlined checkout process. The company also excels in order fulfillment with options for delivery, in-store pickup, and curbside pickup, catering to customer convenience.
3. Inventory Management: Target uses sophisticated inventory management systems to ensure product availability and minimize stockouts. This involves real-time tracking and analytics to adjust inventory levels based on demand forecasts and shopping trends.
4. Customer Service and Support: Target has a straightforward process for customer service and support, including in-store assistance, online chat support, and a comprehensive FAQ section on its website. The company trains its staff to handle inquiries and issues promptly and effectively.
5. Returns and Exchanges: Target’s process for returns and exchanges is designed to be customer-friendly, allowing returns through multiple channels (in-store, online, and via mail) and offering straightforward policies to ensure customer satisfaction.
6. Technology Integration: Technology integration into service processes is a hallmark of Target’s approach. This includes mobile apps for shopping and payments, digital kiosks for in-store navigation and product information, and RFID technology for inventory management.
7. Supply Chain Efficiency: Target’s efficient supply chain processes ensure that products are available when and where customers need them. This includes centralized distribution centers, optimized logistics operations, and partnerships with suppliers to ensure timely restocking.
8. Safety and Health Measures: In response to health concerns, Target has implemented rigorous cleaning, sanitization, and safety protocols throughout its stores and the online order fulfillment process, ensuring a safe environment for customers and employees.
9. Customer Feedback Loops: Target uses customer feedback to refine its processes continuously. This includes soliciting input through surveys, monitoring social media, and analyzing customer service interactions to identify areas for improvement.
10. Sustainability Initiatives: Target incorporates sustainability into its operational processes, including waste reduction, recycling programs, and sustainable sourcing practices. These efforts support environmental goals and resonate with customers’ values.

Target Physical Evidence Strategy

The “Physical Evidence” component of the marketing mix of the Service Marketing Mix concept refers to the environment in which the service is delivered, including the physical and tangible aspects that customers interact with. This element of the marketing mix is crucial for retail stores like Target, as it significantly influences customer perceptions and experiences of retail outlets. Here are key points regarding the Physical Evidence of Target’s Service Marketing Mix:

1. Store Design and Layout: Target stores are designed to be bright, clean, and well-organized, creating a welcoming and pleasant shopping environment. The layout is strategically planned to facilitate easy navigation, with clear signage and categorization of products.
2. Branding Elements: The consistent use of Target’s distinctive red and white color scheme, along with its iconic bullseye logo, throughout the stores and in marketing materials reinforces brand identity and creates a strong visual impact.
3. Digital and Physical Integration: Target effectively integrates digital elements within its physical stores, such as digital price tags, QR codes for additional product information, and interactive kiosks, enhancing the shopping experience and providing convenience to customers.
4. Cleanliness and Maintenance: High cleanliness and regular maintenance standards ensure that Target stores remain appealing and comfortable for customers, reflecting the company’s commitment to quality and service excellence.
5. Product Presentation: Products are attractively displayed and easily accessible, with attention to visual merchandising techniques that highlight new arrivals, promotions, and seasonal items, encouraging browsing and purchases.
6. Customer Service Desks: Marked customer service desks are staffed with friendly and knowledgeable employees, providing a tangible point of contact for inquiries, returns, and assistance, thus enhancing customer support and satisfaction.
7. Online Presence: Target’s website and mobile app are digital extensions of its physical stores, offering a user-friendly interface, comprehensive product information, and the same visual branding, contributing to a cohesive brand experience.
8. In-Store Atmosphere: Background music, lighting, and temperature are carefully managed in Target stores to create a comfortable shopping atmosphere that encourages customers to spend more time browsing.
9. Signage and Wayfinding: Effective signage and wayfinding systems are in place to guide customers through different store sections, making it easy to find specific products or departments.
10. Packaging and Branding: Target’s exclusive brands and collaborations with designers feature distinct packaging that stands out on the shelves, enhancing the physical evidence of quality and exclusivity.
11. Safety Measures: Visible health and safety measures, such as sanitization stations, social distancing markers, and plexiglass barriers at checkout, provide physical evidence of Target’s commitment to customer and employee safety.
12. Sustainability Initiatives: Physical evidence of sustainability initiatives, such as recycling bins, energy-efficient lighting, and signage about eco-friendly products, aligns with Target’s commitment to environmental responsibility and resonates with eco-conscious consumers.

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