Target knew the only way they were going to win back their customers and start

Target knew the only way they were going to win back

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shopping destination that its larger rival is.” Target knew the only way they were going to win back their customers and start seeing growth was by changing their marketing strategy to mimic Walmart’s. To explain, Walmart’s customers knew that Walmart always strived to carry the best prices, and to customers, Target would carry stylish brands at slightly higher prices. To try to win back their customers, Target had to stop pursuing a high class brand image and start watching what the competition was doing. Another way Target proves it is a competitor centered company is in the changes in made once the recession hit. To be more like Walmart, Target started putting “large signs boasting price points and value message,” just like the infamous Walmart’s “rollback” pricing. Furthermore, Target renovated their stores to carry mini-grocery stores, just like Walmart. This shows Target is competitor-centered because it was trying to align itself with Walmart customers, showing Walmart’s customers they can get the same benefits at Target. Another strategy Target implemented was creating their own brand that was offered at cheaper prices. Walmart, who offers Great Value, a Walmart specific brand that offers lower prices compared to brand names such as Coke, Pampers, is a brand Walmart created that you can only get at their locations. Following this trend, Target created their own brand, “up & up”, which offered hundreds of products with cheaper price points. 6. More for less is one of five winning value propositions, which are the full mix of benefits on which a brand is differentiated and positioned. After the economic downturn Target had to change its position to better appeal to consumers. In keeping with its existing tag line, “Expect more. Pay less,” Target needed to put greater emphasis on the pay less side, appealing to the now
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more frugal consumers who were interested in making their dollar go farther. Target set out to make known that customers didn’t have to spend more to shop at their stores, launching commercials that contrasted their higher style with lower priced items. Proven in the quote, “In another segment of the ad headlined ‘The new salon trip,’ a glamorous woman with flowing red hair appeared to be in an upscale salon. The camera angle then shifted to show her in her own modest bathroom, revealing a small bottle sitting on the sink with the caption, ‘Hair colour, $8.49.” This quote helps prove Target’s new found emphasis on the ‘Pay Less” side of their tagline. More for more was closer to the value proposition for Target before the economic downturn. Although Target is not as high end as the Four Seasons or Rolex, they did have a certain prestige to them that made them more appealing than Walmart. Proven in the quote, “Target is a nice place to go. Walmart may have good prices, but I would rather tell my friends that I came back from shopping at Target.” This quote helps prove Target used to be a more for more, as their prestige customers paid that little extra to say they shopped at Target instead of Walmart.
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  • Spring '15
  • Marketing, Brand, Grocery store

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