Question 5 20 marks Define both competitor centred and customer centred Is

Question 5 20 marks define both competitor centred

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backfired during recession when consumers preferred low end and inexpensive products. Question 5 (20 marks) Define both competitor-centred and customer-centred. Is Target a competitor-centred and/or a customer-centred company? Explain your response using facts from the case. Competitor centred is a company that is more focused on keeping up with the competitor, following their strengths and weaknesses, and seeking out threats. They may end up matching their competitors rather than seeking out new innovative ways. Ultimately, they may lose out on creating value for their customers. Customer centred is a company that is more focused on customer’s needs. They are in a better position to identify new opportunities, although they may fail to identify threats by competitors. They are more likely to create customer value. Target is both a competitor centred and a customer centred company. Hence it is market centred. Before the recession, Target was all about style and fashion, offering designer brands at low prices. By positioning its products in this manner, it was satisfying customer’s needs of wanting designer labels at lower prices. Even during the recession, Target aimed to satisfy customers by giving customers low prices. It promoted more of its own brand, recognizing customer’s changing needs from designer brands to thriftiness. At the same time it reassured customers that it would not compromise on the “Expect More” part of its slogan. And so it continued to provide designer brands. It even introduced a grocery section, in order to meet more of customers needs. All of these make Target a customer centred company. MKTG396v7 Assignment 1 January 17, 2014
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However, things took a turn as recession hit, forcing Target to pay close attention to its competitor, Walmart, making it competitor centered. When Target worked on a new strategy, company executives made Walmart their focus. Target made its prices in line with Walmart’s. The focus was shifted from style and fashion to low prices and even the ads started looking more like Walmart’s ads. Furthermore, when Target’s CEO was confronted with sales dropping, he stressed that Target’s value proposition was not as strong as Walmart’s, in the eyes of consumers, adding that Walmart had a competitive advantage such that it had a lead in building its image. This shows how closely Target was following its competitor’s strengths and weaknesses. The company was even criticized by Wall Street analysts who claimed that customers might lose
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