Abstract

The first Target Store was opened in 1962 by the Dayton Company. Though there were other discount chains in the US at that point of time, many of them do not exist today. Target was able to adapt itself to the changing environment and by 2002, it was the second largest discount retailer in the US. The case examines the entry of Target into the discount retailing sector and its growth path. It looks at how Target differentiated itself from other discount retailers. The case also elaborates on the merchandising, advertising, and branding efforts of Target, which helped to create a unique image for it in the minds of the customers and to maintain a steady increase in revenues through the years.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• How a new entrant can differentiate itself from existing players in the discount retailing industry
• How pricing is not the only way to compete successfully in the discount retailing industry
• How a company can continue to differentiate itself as it grows and maintain its unique image in the eyes of the customers
• The role of merchandizing in the success of a retail store.

Keywords

Target Corporation, Wal-Mart, Differentiation strategy, Discount stores, Merchandising, Upscale discount chain, Positioning, Advertising, Promotions, e-Trade, Target.com, Retail industry, Branding, Marketing campaigns, Dayton Hudson Corporation