Key Partners
Customers
Customers
Target has worked to change their customers’ view of the store. They believed that the high-end appearance of the stores meant that the prices were higher than most supermarkets, when they actually haveprices comparable to Wal*Mart. Strategies include advertising, coupons, and the price adjustment policy, which allows customers to go back to the store for a refund if the price was lowered within a week of the sale.
Customers who apply for the REDcard, or Target VISA, enjoy additional money off each time they shop either a Target retail store or the online store. They also get the satisfaction of knowing that they help their local school with each purchase; Target will donate 1% of their purchases to an eligible K-12 school.
Target has worked to change their customers’ view of the store. They believed that the high-end appearance of the stores meant that the prices were higher than most supermarkets, when they actually haveprices comparable to Wal*Mart. Strategies include advertising, coupons, and the price adjustment policy, which allows customers to go back to the store for a refund if the price was lowered within a week of the sale.
Customers who apply for the REDcard, or Target VISA, enjoy additional money off each time they shop either a Target retail store or the online store. They also get the satisfaction of knowing that they help their local school with each purchase; Target will donate 1% of their purchases to an eligible K-12 school.
Suppliers
Because Target buys in bulk and can store excess products in their 34 warehouses across the country, they are able to offer prices that compete with Wal*Mart and other mass merchandise stores. Unlike their competition, however, Target does not have a reputation for strong-arming the companies that produce their merchandise. They do not manufacture any of the products they sell, and therefore must rely on their ability to maintain a relationship with each aspect of their supply chain.
Outside Contractors
Target is involved in every step of the design process for their exclusive products. Their researchers either work with in-house teams for their private brands or well-known for the exclusive brands. Additionally, they offer in-store amenities through leasing or licensing agreements. Each store offers one or more of the following:
- Target Optical
- Pizza Hut
- Portrait Studio
- Starbucks
Media
Target maintains a thriving relationship with the media. Their television commercials are diverse, but recognizable, and they put out a weekly newspapers insert with the latest deals. Additionally, they now offer a free APP, which includes not only a store locator, but an aisle locations and registries.
One of Target's greatest strengths is their ability to generate "goodwill" publicity. They are known for donating to their local communities and supporting green, Eco-friendly practices. On Aug 3rd, 2011, Forbes Magazine ran a story about Target hiring EcoSet, a company that specializes in producing green commercials.
One of Target's greatest strengths is their ability to generate "goodwill" publicity. They are known for donating to their local communities and supporting green, Eco-friendly practices. On Aug 3rd, 2011, Forbes Magazine ran a story about Target hiring EcoSet, a company that specializes in producing green commercials.
