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Keep Your Company On Target: Top 3 Lessons Learned from the Target Corporation
Posted on May 31, 2007 by Kathryn Regina.
The Target Corporation has a loyal customer base whose enthusiasm has become somewhat of a cultural phenomenon. From the pet name Tarzhay (a “French” pronunciation of Target) to the scores of shoppers professing their love for the red bull’s-eye, Target is a force to be reckoned with in the discount retail industry.
In her book On Target: How the World’s Hottest Retailer Hit a Bull’s-eye, author Laura Rowley expounds on Target’s business and marketing strategies. And although the book is retail-centric (and at times a bit promotional), I think it offers some valuable insight into what makes a business—any business—successful. The following are my top three lessons learned from the Target Corporation.
Lesson One: Take the best of both worlds
Die-hard Target shoppers will adamantly dispute the idea that Target is “just another discount store” like Walmart or Kmart. How has Target so effectively differentiated itself from its competitors? They did it by taking the best elements of a high-end department store--a clean well-lit sales floor, stylish products and friendly customer service--and tailoring those elements to fit a discount store.
“’Before I was a professor, I worked at a housewares distribution company which sold to Target,’ said Michael Levy, a professor of retailing at Babson College in Massachusetts and co-editor of the Journal of Retailing. ‘They always paid a lot of attention to detail. Their stores always looked a lot better than the discount store competition. Even though the shelves were stacked a little higher and the displays were not as slick as department stores, they looked more like department stores in those days than the sort of dark, dingy look of a discount store (On Target, p11).’”
Consider your chief competitors, and companies that provide high-end services in your industry. What are the most attractive elements of their offers, and how can you integrate those elements into your business in a realistic, manageable way? Take the best of both worlds and you’ll make your customers feel like they’ve hit the jackpot.
Lesson Two: Design is king
From the basics of product selection to larger decisions about its marketing campaigns, Target takes design very seriously.
Tupperware chairman and CEO Rick Goings: “I think they are looking for brands that really draw people into Target stores. If you compare them to some other retailers, they have a fairly narrow product line that they show in any category in Target, but it’s usually brands or product categories where there’s a panache to it, or a design element (On Target, p23).”
Following the iMac model of “show, don’t tell” Target ads and commercials are visually compelling, with very little text. The bulls-eye logo is so strongly branded that the Target name is usually not even included in advertisements.
“This is the ultimate emotional connection,” says Mark Gobe, founder of the branding and design firm Desgrippes Gobe Group, “when your message is so powerful and so unique that visual expressions can stand alone (On Target, p58).”
Lesson Three: Partner with people who are experts in their fields
The “do-it-yourself” method seems like a frugal choice for home owners, but it isn’t always the best financial decision for a business. So when Target decided to join the e-commerce market, it turned over its Web operations to Amazon.com.
“’I think [the Amazon deal] gives them an edge,’ said Cynthia Cohen of Strategic Mindshare. ‘You can create your own infrastructure for e-commerce, hire people, teach them—but that is expensive and time-consuming, versus going to somebody whose core competency is e-commerce. Amazon already has this knowledge—so [Target is] buying the knowledge—their dollars versus their time frame, their risk. This isn’t entirely risk-free, but Target is reducing risk by using knowledge from a company whose core competency is e-commerce (On Target, p76).’”
Whether you’re trying to break into e-commerce or start a custom publication, partnering with an expert can increase efficiency, reduce risk and optimize results while sparing your company the cost of internal time and resources.
p>tags: award winning design | blog publish | blogs | brand enhancement build credibility |building customer community |building customer intuition |business credibility |business marketing |business relationships |corporate blogging |customer intuition |e-marketing |grow relationships |marketing communication |marketing solutions |nurturing relationships |online marketing |publish |branding
May 31, 2007 in award winning blog, award winning design, blog publish, Blogs, Brand enhancement, build credibility, Building Customer Community, Building Customer Intuition, business credibility, Business Marketing, Business relationships, Corporate Blogging, Customer Intuition, customer retention, E-Marketing, Email Marketing, email marketing solution, grow relationships, Marketing Communication, marketing solutions, nurturing relationships, online marketing, publish, Strategic Internet Marketing | Permalink
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Comments
Great point(s). No one seems to scope out the competition before the get started. It's too easy to find a nitch if you just do the ground work.
Thanks for the post, looking forward to new posts.
Cheers,
Josh
Posted by: Josh Sommers | May 29, 2009 4:28:51 AM
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