Introduction
Target was established in 1962 in Minnesota U.S. as a retail departmental store chain in the format of a big-box store. Target has a corporate vision to help people to explore the joy of daily life with the motto of “Expect more, pay less”. Whereas Amazon is an American technology MNC (Multinational company), that was founded in 1994 and works digitally. Amazon centers on a mantra to become the most customer-centric company on earth, the safest place to work, and the best employer. Target does match prices with Amazon both in-store and online within 14 days after purchasing, identical items if the customer proves lower rates at Amazon. Let us know does target price match amazon and business model and competitive advantages in this article.
Target is an esteemed retailer with more than 1900 stores in the USA. Alternatively, Amazon is known as one of the leading digital retailers that sells everything one can imagine the possibility. Both Target and Amazon sell similar product classifications including beauty and personal care products, apparel, home textiles, baby items, kitchen items, electronics, groceries, toys, sports items, footwear, jewelry, and much more. Both Target and Amazon have pricing strategies based on their business model and target market. But Target gives some amount of payment back if the customer got the same item at a better price at Amazon after verifying the original invoice or payment slip.
Pricing strategy and target market
Price is a term used for an amount or quantity given by the buyer to the seller in exchange for a product or service purchased. Pricing strategy is derived from the business model and marketing strategy of any business organization. Different organizations use different pricing strategies as per their target market, but the best pricing strategy can be determined by assessing the pricing position, capability, and segmentation altogether. Amazon is famous for its dynamic pricing or repricing strategy, as Amazon prices do not remain the same and change with demand and supply, market trends, and competitors’ prices. Also, Target has shifted its pricing strategy towards lower prices to compete with e-commerce competitors and to gain a higher rate for online purchasers in this digital era.
Both Target and Amazon have almost the same target market group from the age group of 18 to 45 could be male and female both, students, employees, and professionals, mostly married and well-educated with middle to upper range income. The only difference is that Amazon targets customers with smart devices or home computers because of its business digital existence.
Business model and competitive advantages
Target’s business model is designed to promote better customer experience along with employee satisfaction with the progress. However, Amazon’s retail business model supports retailers to sell their items to Amazon, and Amazon resells and delivers those items online to consumers at their doorstep.
Competitive advantages help companies to develop brand loyalty and fulfill target market needs efficiently. Target’s most proven competitive advantage is its capability to make and retain a loyal customer base with other competitive advantages like marketing campaigns, nationwide presence, busy store locations, strong brand image, competitive prices, and a variety of brands. Meanwhile, Amazon has a first-mover advantage in the new e-commerce market, with good quality products, quick services, verities of products, and competitive prices.
Target’s price match policy
Target is a reliable retailer and well-known for its money-saving campaigns on a variety of products. Target gives a price match policy as a marketing tactic to maintain buyer loyalty by offering a spur for spending at Target. Target has a scheme that allows customers to demand the cheapest prices on items. As per the price match policy at Target, if any customer discovers bought item at a lesser price at Amazon or any other retailer in-store or online then Target will match that lesser price. Target does match prices with Amazon within 14 days after shopping, if customers found lower prices at Amazon for similar products. But the price match claimed item must be identical in the model number, brand, size, quality, color, weight, and quantity.
There are terms and conditions for which Target does not offer a price match policy
- Damaged or used items
- Open box or open packages
- Storewide promotions
- Unbranded products
- Deals on coupon codes
- Credit card offers
- Contract mobile phone
- Product services
- Clinic and pharmacy offers
- Third-party retailers
- Black Friday sales
- Cyber deals
- Cartwheel offers
- Registry coupons
- Target gift card offers
Conclusion
Target has many competitive traits that are strong enough for the competitors to attain. However, Amazon has a mission to serve the online customer by focusing on convenience, prices, and selection. Amazon provides good quality items at considerably low prices in comparison with other online retailers. As Target offers a price match offer with Amazon products that attract customers by offering the best value for money. In a nutshell, Target’s price match scheme as a promotional tactic takes over all other retailers’ pricing strategies.
Frequently asked questions
1.What is Target?
Target is a retailer, established in 1962 by Dayton Company and headquartered in Minneapolis, Minnesota U.S.
2.What is Amazon?
Amazon is an American MNC that works digitally, introduced in 1994 in Washington, the U.S by Jeff Bezos.
3.Does Target’s price match Amazon’s?
Target has a price match policy on products within 14 days after purchasing that are sold at Amazon at the same time of buying.