Target’s marketing strategy is based on its demographic group and product segmentation. The company has taken advantage of the shift in customer demographics, which began to change in the early 2000s. The emergence of the digital retail age and preference for ‘one stop shop’ experience has given rise to millennials and urban consumers who have more disposable income than their rural peers. Target identified this market gap by offering more goods and services in upmarket locations.
Who is the Target’s target?
Target draws women specifically young women as compared to their competitors. The average female shoppers at target range between 60-63 percent while its counterparts have between 50-55 percent of female consumers. Age– Majority of Target shoppers (58-62 percent) are younger as compared to its rivals with an age range of 18 and 44 on average. In comparison, Walmart, in the same age bracket has approximately 48 percent of buyers. Conversely, Target has approximately 12 percent of its shoppers aged 65 or older. Income– Consumers at Target’s have more household income as compared to Walmart shoppers. On average, Target consumers, in the age bracket of 25-34 years, make approximately $12,000 more annually than their peers shopping at other stores. Their income is about $65,000 in a year. Race- The majority of Target consumers are white which is over 60 percent. This can be a result of income disparities among different races in the US.
Why Does Target Target This Demographic Group?
Target has responded to the demand for stylish and economical products by offering affordable products.
How does Target attract this demographic group?
Target’s promotion policy is to send out emails to its customers about their latest deals and discounts which enhances customer experience. Brand awareness campaigns are conducted in print media, electronic and social media. Sponsorships, donations and partnerships are also made with schools across the US in order to increase brand recognition.
What is the value proposition of Target?
Customers who shop online and use fast delivery services enjoy many benefits. They can save money, since prices are often lower than in stores. They also have more convenience, as they can shop from the comfort of their own homes. And finally, the variety of products on sale offers customers a one-stop shopping opportunity. ..
So, what has all this done for Target?
Target Corporation’s strategy of targeting its market has been successful, with net income reaching $4.368 billion in 2021 and the number of stores growing to 1,900+. Digital sales also grew 29 percent. ..
The second category is product differentiation. Target comes up with various categories of items, deals, campaigns and pick-up & delivery options.
The second option is to have a more general theme for the conference, such as “Leadership” or “Success.” The full list of conference themes can be accessed online via this link. ..
The second option on offer are the deals. Under the deals, the following are available: Target Circle offers, RedCard Exclusive, Top deals, Weekly Ad and Clearance sales.
The third option for finding deals is through the campaigns. These campaigns use catchy phrases such as Targetsyle, new arrivals, and Target Finds. ..
The last option is the pickup & delivery where you can order a pickup, same day delivery and drive up.
conclusion
We can clearly identify the importance of market segmentation/product differentiation to meet the needs and demands of your target market. Target’s Target Market,Target corporation has mastered the art of demographic segmentation by targeting millennials and upmarket families who prefer doing most of their shopping online or large retail stores. This has given them a competitive advantage over their peers in the retail industry which has then resulted in increased profitability.
