Value Proposition: What is the Target’s main business? What value does Target deliver to their customer?
Target Corp (TGT) is a general merchandise and food retailer. Targets offerings include food, apparel, home decor, electronics, household and beauty items to consumers in one location, established to create ease for consumers and to become a one stop shop for everything a consumer could need. Target’s mission is to bring joy back to shopping, making it fun, easy and putting joy at the center of every business decision they make (Target, 2021).
Profitability
Founded in 1902, Target currently operates 1,914 store locations and 46 distribution centers throughout all fifty states in the United States (Target, 2021). As well, as numerous additional offices all through the United States and through out the rest of the world (Target, 2021). Over the last 4 years Target Corp has an overall profit margin of 6.29% and has continuously seen increased total revenue, their 2020 income statement showing the year ending with 93 billion in total revenue, up from 2019’s 78 billion (Yahoo Finance, 2021). Target’s long history and cult like following has propelled their success, increasing their profits year after year.
Below is a current SWOT Analysis of Target Corp obtained from Marketline:
SWOT Strengths: What are the company’s main strengths to be leveraged to create a new product or service?
These strengths for establishing a new service to increase Target Corp’s profitability are all beneficial to the launching of this new service. Being able to purchase products through multiple channels for ease of shopping, as well as their largely established distribution networks will be large pieces of the puzzle. Their financial performance throughout the last few years, as well as through the COVID-19 pandemic give them credibility, as well as visibility to consumers.
Service Singularity: What is unique about the new service?
Due to Target’s increasing popularity often times consumers find themselves having to utlitize a series of ways to obtain the products they need from one of Targets many stores. Often when completing a “Target Run” through their drive up/pickup option consumers are met with uncertainty of product availability. This often leads to making multiple purchases, at multiple locations, whether they be in store or online. Providing a new service that links stores and distribution centers in a more harmonious manner contributes to their mission to provide joy and ease to consumers lives and shopping experiences. This service would allow for consumers to place their drive-up/pick up orders through the website or mobile app from multiple locations and then pick them up in one centralized locations. This service would be referred to as a “Rapid Run at a Target Hotspot”.
New service projections: How can the new service improve profitability?
This new service would improve profitability by allowing Target to truly be a one and done kind of location. Often times when consumers are placing pick-up/drive-up orders it is due to their need. These are typically products consumers need in that moment, and are left looking for other places to obtain them. This also runs the risk of Target missing out entirely of sales, as consumers may decide to go somewhere else entirely that has what they need in stock. The Covid Pandemic has cause many supply issues, leaving some stores without more than others. However, for example, in an area with multiple target locations utilizing the store stock in the area, as well as near by distribution centers consumers are more likely to be able to get all the products they need in one trip utilizing the hotspot services. These hotspot locations would act as a hub for products in the surrounding area to come together and truly create ease for consumers.
References
Marketline. (2021). Target Corporation SWOT Analysis, 1–8. Retrieved from https://search-ebscohost-com.ezproxy.snhu.edu/login.aspx?direct=true&db=bsu&AN=151288020&site=ehost-live&scope=site.
Target. (2021). Target.Com. Retrieved September 2, 2021, from https://corporate.target.com/about/purpose-history
Target. (2021). Target.Com. Retrieved September 2, 2021, from https://corporate.target.com/about/locations
Yahoo Finance. (2021). Yahoo.Com. https://finance.yahoo.com/quote/TGT/profile?p=TGT
Millennial Marketer 