Target Responding to the Recession Ranjay Gulati Rajiv Lal Catherine Ross
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Target is the world’s largest retailer and I was a senior executive at the time. Our company experienced a tremendous success during the ‘90s. But, things took a downturn after the dotcom crash in 2001. I was then the President, Global Product and Marketing and my job was to help Target improve its products and marketing strategies in the face of a challenging economic situation. Let me share with you how Target responded to the recession. Our company was forced to take many risks and make
VRIO Analysis
“Target’s success since its launch in 1996 was in part due to its innovative ‘targeting strategy’ that relied on extensive data analysis and consumer insights to help it forecast consumer demand and improve its supply chain operations. This strategy has helped the company to achieve a significant competitive advantage in today’s competitive retail environment. In the late 1990s, Target implemented its ‘targeting strategy’ by analyzing detailed data on consumer spending patterns and purchase behavior. this content By 2001, Target’s
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1. The recession of 2008 led to a significant decline in consumer spending and led Target Corporation to announce a major financial restructuring plan. The aim was to save money by cutting labor costs, increasing prices and reducing inventory. The plan was initiated on the same day the market crashed, on October 3, 2008. The company’s strategy consisted of a two-pronged approach. First, it reduced labor costs. Second, it increased prices. The result was an almost
BCG Matrix Analysis
The first year of Target’s CEO’s tenure came in the midst of the 2008 recession. Target had been forced to cut its dividend, reduce its store count, and stop some private label purchases because of the negative retail industry trends. These challenges had been a huge shock to the market and to executives. This was a massive change in the shopping experience, and Target’s board knew it would have to be prepared to meet it head-on. This was where the challenge lies. Target was no stranger
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In today’s economy, it seems there is no place to escape the recession. In retail, Target seems to be one company that’s thriving. In an effort to stay ahead of the competition, Target has responded to the recession by making cost-saving changes across its entire business, from the supply chain to store layout. These changes are aimed at cutting costs by at least 12 percent and driving sales in its most important categories. Target is one of the few retailers that remains strong. The recession has
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First, I’ll highlight the reasons for the success of the Target marketing program. Firstly, it is a well-researched strategy that has been tested repeatedly. Secondly, the program is focused on customer-centricity and is based on the premise that customers want to be happy with a brand experience, no matter where they buy their product. Thirdly, the program has built a significant customer base with a loyal customer segment that has not wavered despite the economic crisis. Target’s marketing success is a result of their customer-centric approach that
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