1. What micro environmental factors have affected target’s performance over the past few years? The biggest affect would be its competitors. Walmart has affected targets performance in the past few years. The fact that they could keep low prices when that was at a high demand made target think that they had to lower their prices which would made their customers think that they didn’t have that high quality that they once had before. 2. What macro environmental factors have affected target’s performance over the past few years?
The biggest affect was recession and inflation, this was not good for target because the lost a lot of money. A person wasn’t looking for quality they had to make every dollar count so they were looking for low prices. The used advertising to get there sells up and use there “pay less” marketing plan to help target become better and to get there customers back. 3. By focusing on the “pay less” part of its slogan, has target pursued the best strategy? Why or why not? There “pay less” strategy is the best strategy.
They told the old customers that they still have high quality product just at lower prices than before. They showed new customers that they could have high quality products without having to pay a high price. 4. What alternative strategy might target have followed in responding to the first signs of declining revenues and profits? 5. Given target’s current situation, what recommendations would you make to steinhafel for is company’s future? By focusing on the “Pay Less” part of its slogan, has Target pursued the best strategy? Why or why not? I believe that Target has been doing things right since the beginning.
They were the first to build them selves on a very diversified and unique strategy and way of business. They set them selves a part and succeeded as their slogan “Expect More. Pay Less. ” took off and had customers in love with their chic in products. As they reached a peek they made one small mistake and that is focusing too much of their advertising on “Expect More” only. When the Recession hit, customers were low on funds and thought that shopping at Target would be too much of a treat, fancy, and/or “More” expensive then what they can afford.
They chose the right strategy to use, but definitely the wrong time to enforce it. They were late on using the other half of the slogan, which nearly ended Target. CEO Gregg Steinhafel had other plans to continue pushing the strategy to an extreme/last resort through newspapers, commercials, and other marketing and advertising. This move in strategy stabilized and saved the company, and maybe even created a better and perfect Business strategy. 4. What alternative strategy might Target have followed in responding to the first signs of declining revenues and profits?
Well they could have just kept the same strategy and motto and just tweaked it. Their motto “Expect More” “Pay Less” could be used with the current strategy to let customers know that they deserve better and/or higher quality clothes, appliances, and other products, which other stores do not provide. Like adding, “You Deserve it” at the end of the current motto will have people thinking and saying “Do I? ” (Most people with a decent salary will always believe they do and spend the money) This might make it possible to tap into a completely new market segment.
With a smooth transition that could provides a low risk situation. A great way to make sure the strategy follows through and succeeds would be to communicate with the company, integrating departments, give satisfying service, and value the customers. 5. Given Target’s current situation, what recommendations would you make to Steinhafel for his company’s future? The “Pay Less” strategy worked so well that I would recommend that the company itself work more intensely on keeping the “Pay Less” strategy while at the same time keep the “Expect More” strategy.
As most customers love to save money no matter what economic stage, I also recommend that give more coupons out in newspapers and/or offer more discounts in store like a store membership card. With the card, the customers apply for and are able to save money and receive offers that non-cardholders are not able to receive. With these benefits, the customers will feel more self-valued, greater worth, and satisfied. This in the end will create loyal customers and bring in new customers.