Table of ContentsTarget CorporationBusiness ModelSupply Chain ManagementCustomer Relationship ManagementTarget CorporationTarget is a name that almost everyone can recognize, even from the youngest age. If you've never heard of Target before, here are some of the spaces they're involved in. Groceries, clothing, cleaning to name a few. Target is the eighth largest retailer in the United States and has a huge impact on the general merchandise retailer market and I can see why. NRF (2018). Everything you would need, from clothes to hammers to candy to strollers, can be purchased at Target. Just from personal experience, I know people, including myself, who go there to shop several times a week. One day will be spent shopping, then a few days later you realize you need a birthday present and bathroom cleaner. Then, in a few days you have to go back because you are already out of bread and dog food. Very easy to spend three days a week there, even if it's just to run around and pick up a few things. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayBusiness modelTarget recently developed a new business model including opening small store concepts and reorganizing approximately 325 existing stores. They want customers to have a new experience. In early 2017, the company launched a series of major, multi-year initiatives aimed at renovating stores, improving operations, expanding omnichannel capabilities, increasing the number of small-format and campus stores, and introducing dozens of new brands owned. Hewes, K. (2019). The new renovated and remodeled stores, all with new marketing and visual merchandising, are a big improvement over the "old" Target packages. There's a noticeable difference between when you walk into a store this year and last year. Several stores have changed the way they present their items. Items are lower so you have to look down, higher so you have to look up to make them appear brighter or right at eye level to immediately grab your attention and make you think you have to buy them now . Many aisles are now shorter in height and length and not all are parallel. It feels more like an upscale supermarket than a Target. The displays and decor seem to speak directly to the customer and where they are in their life. I saw people walking their dogs, their kids playing outside, Dad grilling on the grill. Normal everyday things. I never noticed the music before in Target, but now the music is much louder to the point where you can't help but sing along. The total effect is that the store is more attractive, more fun, and easier to shop for. The Super Target where I live in Minnesota underwent a huge overhaul last year. Everything, including the addition of a liquor store, had changed. The flow of the store, the lights, the brands, the customer service and the products offered are just some of the things I noticed. Target wants to have a high-end feel while offering low prices on its products. Besides the liquor store being a great addition to the Target near me, they also added a Starbucks right into the Target. It's nice to takea cup of coffee just when you walk in to do some shopping, but it's also a nice space to meet people and hang out. There is a nice, large seating area so you can feel like you're in a coffee shop while still being in a Target. You can sit and enjoy your coffee, meet a friend and then go shopping all in one trip. The target market share is currently 2.09%. CSIMarket, (2019). This figure seems to fit with the fact that they are the eighth largest retailer in the United States. This number is subject to change depending on the region. Where I live in Minnesota, there are many more Targets than Walmarts. This is not the case in the southern United States, where Target does not really have a presence. Target currently has 1,822 stores compared to Walmart's 6,363 stores. You can see why Walmart is by far the number one retailer over anything else. I was surprised when I looked and found out who the average target buyer was. Women are the first thing I noticed, as it is the most notable trait among Target shoppers. Compared to its competitors, Target attracts women, especially younger ones. While Walmart, Kohl's, and Kmart all have a majority of female shoppers (>50%), Target's core shoppers average 60-63% female. When I shop at Target, I notice that a lot of moms and their kids are shopping. In my family, I know Target like the back of my hand, so it's easier for me to be the one who does all the shopping there. Target's shoppers are also a bit younger: 58 to 62 percent of Target's shoppers are between the ages of 18 and 44, unlike Walmart, where that age demographic makes up about 48 percent of shoppers; Kohl's, where younger consumers make up about 44 percent of the customer base; and Kmart, which only attracts 34% of its shoppers from millennials/young Generation X. I find this interesting because generally in this period of life people are looking to save money and Walmart or Kmart would be the best options if anyone was looking to do this. Walmart and Kmart prices are cheaper but I have found that the quality is not always the best. Target also has the smallest number of consumers aged 65 or older, making up about 12% of its customer base. Pymnts.com, (2019). I think it's true. I shop at Target about twice a week and I can say that it is very rare to see anyone over 65. I don't think Target is trying to reach older consumers. Younger generations are where they make their money, so Target is being smart in aiming to appeal to this age group of people. Their clothing, bright lights, displays and louder music do just that. Another thing to note about target buyers is income. On average, 25- to 34-year-olds who shop at Target earn about $12,000 more per year than their counterparts who shop at regular stores, with an average annual income of about $65,000. Target also generally leads among wealthier consumers, among those earning more than $100,000 a year, Target is by far the preferred retailer, with 25% of its shoppers reporting that much income. Buyers are willing to pay more for a higher quality product, and if they have more money, it's easier to spend. Consumers who earn more than $50,000 per year make up more than 60% of Target's consumer base (by comparison, this same demographic makes up about 45% of Walmart's.) pymnts.com, (2019). The bad news is that Target's core demographic is the same asthat of Amazon in terms of age, gender and income. This means it has more exposure to Amazon than its Walmart counterparts because if you shop at Walmart you are less likely to shop online and have things delivered to your home or want to learn how do it. Pymnts.com, (2019). As previously reported, Target is the eighth largest retailer in the United States. Their income in 2018 was $75,000,000. This is a growth of 3.6% compared to the previous year. Target Brands, Inc., (2019). Target still has a long way to go if it wants to catch up to its biggest competitor Walmart. Walmart is the largest retailer at around $300,000,000. Another competitor is Amazon. They have the same customer base and sell all the same products. They're just slightly above Target, bringing in $89,000,000 last year. I think that says something about Target. Anyone can shop on Amazon, you buy online from anywhere and at any time. You must physically visit the store during Target business hours. It's good to see that stores are not yet taken over by the online world. Supply Chain Management In 2018, Target changed the way it managed the supply chain. In the past, Target restocked shelf inventory by sending cases of items on trucks to stores. For example, if a store placed an order for shampoo, they would receive a case of shampoo. Naturally, not all the shampoo in a case will fit on a shelf, which means extra cases of items waiting to be put away in back rooms. The new system, however, restocks stores on an individual basis. Employees can prepare orders for multiple stores at once without leaving their workstation, making the packaging facility much more efficient. Essentially, a bin for an individual store will be transported through the various workstations, allowing pickers to place items from that store into the bin. When full, it is a "mixed bag" of items, however, it matches the store's exact order for what they need to restock. Aflink, (2019). I think it would be good for the employees to stock the shelves, as they only need to stock what is needed and when. This will give employees time to checkout or interact with customers, something I've noticed a lot more of last year. This will keep the back room clean and also reduce product wastage. The only downside I see to this is that if someone buys something off the shelf, other customers will have to wait for shipping to get that product back in stock. Target is currently modernizing its operations and physical models, so it's not yet an exact science. Customer Relationship Management Along with revamping the supply chain management model, Target also changed its customer relationship management model. There are certain things they want to be different from as soon as you walk through the doors of Target. Top-to-bottom redesigns, with new design/style elements and product displays (based on what customers said they liked about the new Target stores). Two entries, one promoting exclusive and seasonal items, the second for online order pickup and quick purchases, such as groceries. More engaging merchandise displays, including updated mannequins and accessories in clothing, home and beauty. Easier in-store shopping flow, with aisle changes.