This was one of the significant operational changes made which showed customers

This was one of the significant operational changes

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that this would be convenient for existing customers to shop for everything at Target. This was one of the significant operational changes made which showed customers that Target had low prices, and that it was listening to its customers. The other operational change Target made was that it introduced a new brand name “Up & Up” products which promised 30 percent ower prices and comparable name brand products. This shows that Target broadened its inventory by satisfying existing markets with newer lower prices products. 4. Michael Porter’s four basic competitive positioning strategies are Overall cost leadership, Differentiation, Focus and Middle of the roaders. The first three are winning strategies and the last one is a losing strategy. Target’s original positioning of “better stuff for slightly higher prices” was before the global recession, where Target had a name and image associated with the higher class. This also meant that consumers would go to Target to feel classier as compared to Walmart. Hence, out of the
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four competitive positioning strategies, Target had positioned itself with differentiation by creating a highly differentiated product line. “Target is about style and fashion” and its longstanding company position was “Expect More. Pay Less”, which reiterates the fact that Target had positioned itself as a classier brand as compared to its larger more accomplished rivals Walmart. “Target has always been known for having more design partnerships than any other retailers”, which shows that Target had differentiated itself based upon its product lines. This goes in line with what Target had wanted to achieve to support its image of “better stuff for slightly higher prices.” Due to all these reasons Target was growing faster than Walmart its biggest competitor. Therefore, Target established a competitive positioning strategy of Differentiation before the recession had hit. 5. A competitor-centered company is one whose actions are based upon its competitors’ actions and reactions. It spends most of its time focusing on a competitors’ markets shares and strategies to successfully counter them. This allows the company to analyse its competitors in depth but at the same time makes them reactive, not allowing much room for it to develop its own customer relationships. A customer-centered company is one that focuses on customer developments in designing its marketing strategies and delivering superior value to its target customers. It is in a better state to recognize new opportunities and set long run strategies. This allows it t use its resources efficiently and deliver superior value to its target customers.
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Looking at the case study it is very clear that Target is competitor-centered company. The first clear indication of this is seen when the global recession takes a grip on the retailers. Target was had created a clear brand image in the market and was very successful at it, but the recession made the customers cash strapped and Targets image of “Expect More. Pay Less” did not resonate well with its customers. Walmart in contrast, still did extremely well as its image of “Always low prices. Always” met the customers needs at the time. Hence, as mentioned in the
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