Value based service

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Target’s marketing

Target’s products and services satisfy the wants and needs by implementing various measures that are tailored towards delivering value to the customers. One of the strategies used by the company is price. The company y has made an effort to offer differentiated and fashionable merchandise at discounted prices. The company has also capitalized a lot on the convenience and accessibility strategy by remodeling and expanding its stores with some fresh food layout so that the customers are offered with the extended food assortments such as frozen items and the perishables. Accessibility to products and services has further been reinforced by the company’s strong online presence where all the information about the brands and the products can be obtained, with more product options online. Since there are a lot of products online more than the individual stores, the company has been able to strengthen its value. The customers are saved from incurring a lot of money and wasting time by being able to shop at home. As such, the company has managed to give the customers more freedom and time (Kingser & Schmidt, 2012).

The company has positioned itself as an upscale discount chain. Since low prices are an outstanding motive in the industry, the company has been able to position itself very well. It has been able to differentiate itself from the competitors by offering the customers trendy merchandise at more affordable process. Apart from pricing, the positioning of the company is based more on the trend, style and also encompasses quality. This has been the differentiation strategy that the company has consistently applied, thus seeing it through growth into the second largest retailer in the U.S (Kingser & Schmidt, 2012). The outstanding advertising has also enabled the company differentiate itself from the competitors. This is achieved through the store displays and layouts, multichannel marketing and promotions.

Value chain

Considering the economic sources of value in the company’s value chain, the company has been able to experience continuous success even during times of economic hardships courtesy of its continues sales growth. Customers continue to prefer the company as one of the top retailers. As for the social sources, the company has been able to foster an inclusive culture which enables the team members to leverage their high performance standards and unique talents in order to drive innovation. The company is an environmental friendly corporation and five percent of its incomes are diverted to corporate social responsibility initiative (Thomas, 2010). This is also evident in the outbound logistics of the company whereby the company has reduced loads shopped and miles traveled in order to cut down on carbon emissions.

Good performance of the company during times of economic diversity implies that Target is able to meet consumer needs of the customers and has remained resilient in offering affordable products irrespective of the economic times. Embracing an inclusive workforce is an indication that the company appreciates a diverse talent pool, hence encouraging innovation to customer satisfaction. Its environment friendly initiatives show that the company is concerned about the wellbeing of the society (Finne & Sivonen, 2009).

Target’s supply chain has been able to support its value proposition by trying to move towards a supply chain that is more customer centered. There is automated technology that is operating the supply chain at the distribution centers. The stores are high quality, clean and customer friendly. The supply chain is efficient in order to get the products to get the products to the stores as coasty efficiently and quickly as possible.

The company’s focus on customer value is reflected in the supply chain of Target as pertains to the suppliers, products, the service systems, distribution and manufacturing. The focus in these aspects has been cost reduction, quality, and value that are delivered in a time efficient and cost friendly manner (Finne & Sivonen, 2009). Minimization of carbon emissions in the supply chain shows that the company is keen to deliver value not only to the customers, but also to the society at large.

Intangible products

Target Corporation has various intangible benefits. The CSR initiatives by the company are a good example of the activities that are used by the company in order to get these benefits in turn. The company is committed to running leaner operations so as to eliminate wastes, hence reducing carbon footprint. It has also been actively involved in such initiatives as charitable donations and community volunteerism. In return, the company gets benefits such as increased customer satisfaction and loyalty, brand equity, a larger customer base among other benefits. Intangible products are possibly the maintenance services that are offered by the company as part and parcel of the after-sales services.

The concept of intangibles is used by some firms to erect barriers to entry for competitors by raising the level of recognizability by the company. The company dominates a given market segment in such a way that it will be very very f difficult for the other competitors to out-do it, given the strong reputation and recognizability that the company has already established. There is a high level of category exclusivity and audience loyalty thus minimizing the chances of entry by other competitors into the market.

The concept of intangibles increases profits for the firms in the long run. The business maximizes the sales revenues courtesy of a huge customer base. The market is guaranteed because of customer loyalty. The intangible benefits promote the business in many ways, and profitability could be realized in the long run.


The approach of “Expect more pay Less” by Target is more likely to maximize profits for the company. The approach implies that the customers will be able to find great quality as well as design at an incredible price. Although maintaining such an initiative could be costly for the business, chances are high that it will enjoy high profits resulting from huge purchases from the very many customers. The approach favors the ideals of many consumers who wants to get very high quality at very little amount. The approach will create a lot of excitement among both average and high income consumers, thus leading to more sales, hence higher profitability (Epstein, Manzoni  & Dávila, 2010).

The premise is perfectly aligned with the low of demand. The economics of demand suggests that the lower the price, the higher the quantity of products demanded and vice versa. The premise is persuading the customers to expect a lot, at very low prices, and therefore the demand for the products will definitely be higher. On the other hand, the premise contradicts the low of supply which states that the lower the prices, the lower the quantity of products those suppliers are willing to sell (Epstein, Manzoni  & Dávila, 2010). It is possible that if customers are only willing to pay less, then Target may be unable or not willing to sell anymore. From this point of view, the premise is at odds with the economics of supply.


Performance measures

The first performance measure is the people’s productivity. This will be used to measure the number of work hours that are taken in order to produce every unit of output. It is important because it will be used to distinguish between wasteful and valuable production in an organization. This has an economic value because it is important to align production with customer demand. One process measure is here is considering the productivity figures to determine whether they skewed by the overproduction of units for which there are no customer demand. The supplies will also be expected to be in line with the demand and therefore inventory should be controlled in order to avoid oversupply (Kamath & Saurav, 2016). Another measure will be the delivery schedule achievement.  This will take into consideration the delivery of goods that the customers have ordered, to schedule which they have been promised. The process measures here will entail considering the lead time, and the time to which the goods are availed to the consumers. As such, the supply chain efficiency in this case is very critical in ensuring that the inventory available in good time so that the customers are not inconvenienced. Another performance measure will be waste ration reduction. This has an environmental value. One process measure here is considering the waste management reports that will be have to be submitted by the managers on a weekly basis. Aspects such as off-site waste recycling will have to be taken into consideration. Another performance measure will be customer satisfaction and customer complains. The process measure for will include the number of complains that are launched by customers at a given time interval. Complains will also be traced back and related to the ones which have been documented against the suppliers in order to determine the real source of complains.

The best way to develop these values in workplace is by training them the importance of these values through short term seminars. Economic, social, and environmental values should be clearly communicated to all the workers, and all the workers should have a manual on the same. These values should then be promoted and rewarded accordingly. People will have to be rewarded publicly for exhibiting behaviors that promote these values. Employees will also have to be hired based on these values. For each of these values, a list of questions will be desired to assess the potential fit of each candidates based on these questions. The moral code of the company will be put at the forefront of every individual’s mind, and made prominent in the work place. A part from having the values on the company website and employee handbooks, these values will be communicated from the top on a regular basis.












Workshop on Performance Measurement and Management Control, Epstein, M. J., Manzoni, J. F., & Dávila, A. (2010). Performance measurement and management control: Innovative concepts and practices. Bingley, UK: Emerald.

Thomas, A. R. (2010). Supply chain security: International practices and innovations in moving goods safely and efficiently. Santa Barbara, Calif: Praeger.

Kamath, N., & Saurav, S. (2016). Handbook of research on strategic supply chain management in the retail industry. Hershey, PA, USA: Business Science Reference.

Finne, S., & Sivonen, H. (2009). The retail value chain: How to gain competitive advantage through Efficient Consumer Response (ECR) strategies. London: Kogan Page.

Kingser, T., & Schmidt, P. (2012). Business in the Bulls-Eye? Target Corp. and the Limits of Campaign Finance Disclosure. Election Law Journal, 11(1), 21-35.

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