2. Products/Merchandise
The target store included various types of merchandise, such as electronics, music and video (DVDs and CDs), beauty products, clothing and shoes and automotive parts.
Additionally, the target stores also included a food department, mainly with non-perishable items. There are two main factors differentiating the target store from the Wal-Mart store previously analyzed, in terms of products. First of all, the Wal-Mart store did not have a food department, residing only on non-food items. On the other hand, the quality and especially the image of the products offered in the target store may be considered superior to that of Wal-Mart's. One of the relevant examples in this sense is the fact that the target store is relying consistently on brand strategy, signing important designers like Liz Lange, for example. With a solid discount component aimed at lower income categories, the store had the capacity to attract consumers from higher income segments as well.
3. Pricing
The store could be included in the low/medium price-medium/high quality segment. The reasons for this are closely associated with those previously discussed. As such, while offering discount products to its consumers, the store aims to be a little more and turn itself into a department store, with the ability to provide high quality merchandise when necessary. This can be especially noticed in terms of shoes and clothing, but also in terms of jewelry.
4. Promotion/Presentation
The accent laid on the store's image is noticeable in terms of product presentation and general store organization. The aisles are wider than at the Wal-Mart store, with a general better product presentation. The image of nearness to class that the store has been aiming to promote is relevantly pointed out by the fact that many refer to it with a French accent. Image is thus important to promote a positioning of the store elsewhere than strictly in the discount store segment.
5. Service
Basically, there is no differentiation in terms of service between...
The availability and capacity to provide useful information when asked, as well as proper training, was a fact for the Target employees as well.
Overall Evaluation and Conclusion
First of all, it is important to note that the two stores share part of the targeted segment of consumers, individuals with average income levels. On the other hand, Target stores have widened their perspective and included a certain diversification by operating with well-known designers and being involved in brand and image promotion. This may prove a significant advantage for Target stores in the future, as it can base its operations on a wider, more solid segment of consumers, capable of providing not only higher revenues, but better responses in cases of economic recessions.
Nevertheless, there have been signs that Wal-Mart has been adopting some of the methods used by Target. It is less likely that these will bring consistent changes to the actual operating capacities at Wal-Mart. Wal-Mart has been a company that has aimed nothing more than being a discount store for the last 40 years and it is difficult to change that now. Distinct and increased involvement with China and cheap Chinese labor come to show that Wal-Mart will stick to its winning policy in the short run.
We are thus dealing here with a challenge between low priced policies (Wal-Mart) and low priced with a twist (Target). While Wal-Mart has the advantage of having a consolidated set of consumers, Target will benefit in the future from its ability to build upon a larger base of consumers.
Bibliography
1. Wikipedia - the free encyclopedia at http://en.wikipedia.org/wiki/Wal-Martand http://en.wikipedia.org/wiki/Target
2. The Wal-Mart website at http://www.walmart.com/
3. The Target website at http://www.targetcorp.com/targetcorp_group/investor-relations/investor-relations.jhtml?url=http%3A//www.corporate-ir.net/ireye/ir_site.zhtml%3Fticker%3DTGT%26script%3D410%26item_id%3D751558
http://en.wikipedia.org/wiki/Store_brand
