Swot Analysis for 'Target Corporation'

Company Overview

Very few people have not heard of the corporation of Target, they’re almost in every town across the United States. They are a retail corporation that is know for their hip, fashionable and urban style. Target consists of five main product departments the beauty and household essentials (which includes the pet products), home decor, food and beverage, hardlines (consisting of electronics, sporting goods, toys and software), apparel and accessories ('Target corporation', 2019).

Their demographic is based towards upper-class young adults. The Target demographic consists of adults ranging from 25 to 44 years old ('Target Demographics and Shopper Insights', n.d.). It is frequented more by adults that has children than without and adults that either have some college or an advanced degree ('Target Demographics and Shopper Insights', n.d.).

Swot Analysis

Target has branded itself as a very urban, hip and fashionable store in a country that is becoming more urbanized. This is probably why it appeals so strongly to the millennial generation, a generation with a very urban lifestyle. Millennials also have less of a disposable income which makes it more likely for them to shop at discount stores.

Target is also very talented in the marketing department. Whether its television commercials, social media advertisements or displays in the store. For advertisements, they have fun, hip commercials that stick in customers heads and tend to make customers want to shop there. For displays, Target is a bit known for being a store where a customer will go in for one item and come out with a full shopping cart. This can partially be credited to the set up of the store and how they have items on display that catch one’s eye.

Target has failed to tap into additional services that can be provided at retail stores like how Walmart offers fueling stations, bank services and spa services. These additional services can bring in customers who stopped to complete something at a bank but then sees something in the store and decides to purchase things when they didn’t originally go to the store to buy anything. Or how a customer could be shopping when they see the nail salon and decide to stop in for a manicure. These additional services are a way that you could pull in customers who weren’t originally intending to shop.

Another weakness for Target, is online sales. There are many ways that Target could improve upon their website or application. The fashion department for example could use a lot of tweaks. The photos are not uniform, some have models modeling the clothes, while some are on mannequins, while some are laying flat. This can be extremely frustrating since it makes it more of a guessing game when it comes to sizes. Another thing that could be improved upon is the sorting or naming of the item. If you see a top in stores, it is extremely hard to try to find it online.

There are few cities that you can go to that don’t have a Target located there. In every highly populated city, you can locate a Target. And it seems as if they are just continuing to expand across the United States.

Another opportunity for Target, would be to expand its online presence as online shopping is becoming more popular.

Neighborhood Marketplace stores are becoming increasingly popular, especially around colleges. These stores are a smaller version of the supercenter and are useful when a customer needs to pop-in to grab only a couple needed items without making a full store run. Walmart and Kroger Inc are two supercenters that are opening these types of stores. These smaller stores are known for a more efficient purchase buying since they eliminate a lot of the options of similar items. Which makes it less crowded since customers are quickly in and out.

Another threat for Target would be stores with a strong online presence. For example, Amazon which offers the convenience of shopping at home mixed with their very low prices. Amazon Prime also offers free 2-day shipping on the majority of products, not including third-party sellers or Amazon Pantry (unless you spend a certain amount). Where as Target only offers free 2-day shipping on a select number of products. Amazon also has a wider selection of products than Target.

References

1. Target corporation [Other]. (2019). Retrieved from ProQuest Central website: https://libauth.purdueglobal.edu/login?url=https://search-proquest-com.libauth.purdueglobal.edu/docview/1860750763?accountid=34544
2. Target Demographics and Shopper Insights. (n.d.). Retrieved from http://snapshot.numerator.com/retailer/target