Target is an American corporation that is made up of a chain store spread across the USA. The retail chain headquarter is based.The chain deals in all kinds of retail products which include clothing, electronics, furniture, shoes, household items, beauty, etc and delivery services. The products and services are available in store or online.Given the high number of retail stores in the US, having a competitive edge is necessary to thrive in the cut-throat market.Target’s Target Market the need to remain competitive gives rise to differentiated products and services which target a particular market such as young people, middle class etc.
Target marketing strategy is based on demographic, products segmentation and positioning (stores locations). Target has taken advantage of the shift in customer demographics which began to change from the early 2000s.The emergence of the digital retail age and preference for ‘one stop shop’ experience has been a game-changer. This market trend has given rise to millennials and urban consumers who have more disposable income than their rural peers.Target identified this market gap by offering more goods and services in upmarket locations. We shall look into Target’s demographic group and product segmentation in detail.
Who is the Target’s target?
- Females– Target draws women, specifically young women, as compared to their competitors. The average female shoppers at target range between 60-63 percent while its counterparts have between 50-55 percent of female consumers.
- Age– Majority of Target shoppers (58-62 percent) are younger as compared to its rivals with an age range of 18 and 44 on average. In comparison, Walmart, in the same age bracket has approximately 48 percent of buyers. Conversely, Target has approximately 12 percent of its shoppers aged 65 or older.
- Income– Consumers at Target’s have more household income as compared to Walmart shoppers. On average, Target consumers, in the age bracket of 25-34 years, make approximately $12,000 more annually than their peers shopping at other stores. Their income is about $65,000 in a year.
- Race- The majority of Target consumers are white which is over 60 percent. This can be as a result of income disparities among different races in the US.
Why Does Target Target This Demographic Group?
The millennial’s demand for stylish and economical products has risen in the US. Target has responded to this demand by offering stylish products at low prices.
How does Target attract this demographic group?
- Promotion policy– The brand is known for its frequent promotional deals and discounts which have aroused massive interest in its products from existing and potential buyers. Target sends emails to its customers about these deals which enhances customer experience.
- Brand awareness campaigns– Target undertakes massive commercial advertisements in print media, electronic and social media. It has massive presence on social sites such as YouTube, Twitter, etc.
- Sponsorships, Donations & Partnerships – As part of their corporate social responsibility, Target has donated actively to schools across the US. They have also sponsored awards and sports events such as Golden Globe, NASCAR etc. This increases their brand recognition.
What is the value proposition of Target?
The customer acquires service excellence through online shopping and delivery, enjoys lower prices & discounts thus saving on money, online shopping & fast delivery offers convenience and saves time and the variety of products on sale offers the customer ‘one-stop shop’ opportunity as well as freedom of choice.
So, what has all this done for Target?
Target’s Target Market,This strategy has brought with it massive success for Target Corporation. The net income touched US$4.368 billion in 2021, the number of stores has grown to 1,900+ stores countrywide and 29 percent growth in digital sales.
The second category is product differentiation. Target comes up with various categories of items, deals, campaigns and pick-up & delivery options.
The first option is segmentation of items as follows: Women, Men, Young Adult, Celebrate History, Health & Wellness etc. The full list of the items offered under category option can be accessed online via this linK
The second option on offer are the deals. Under the deals the following are available: Target Circle offers, RedCard Exclusive, Top deals, Weekly Ad and Clearance sales.
The third option is the campaigns. Here we have use of catchy-phrases such as Targetsyle, new arrivals and Target Finds.
The last option is the pickup & delivery where you can order a pickup, same day delivery and drive up.
conclusion
we can clearly identify the importance of market segmentation/product differentiation to meet the needs and demands of your target market. Target’s Target Market,Target corporation has mastered the art of demographic segmentation by targeting the millennials and upmarket families who prefer doing most of their shopping online or large retail stores. This has given them a competitive advantage over their peers in the retail industry which has then resulted in increased profitability.
