Index Target Corporation Business Model Supply Chain Management Customer Relationship Management Target Corporation Target is a name that almost everyone can recognize, even from a young age. If you've never heard of Target before, here are some of the spaces it's involved in. Food, clothing, home just 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 understand why. NRF (2018). Everything you need, from clothes to hammers, candy to strollers, can be purchased at Target. Just from personal experience, I know people, myself included, who go there to shop several times a week. One day you'll spend it grocery shopping, then a couple days later you'll realize you need a birthday present and some bathroom cleaner. Then in a couple of days you have to go back because you've already run out of bread and dog food. It's very easy to spend three days a week there, even if it's to run quickly and grab a few things. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Business Model Target recently came up with a new business model that includes opening small stores and renovating about 325 existing stores. They want customers to have a new experience. In early 2017, the company launched a major series of multi-year initiatives to remodel stores, improve store operations, expand omnichannel capabilities, increase the number of small-format and campus stores, and introduce dozens of new retail brands. property. Hewes, K. (2019). The new, renovated and redesigned stores, all with new marketing and visual merchandising, represent a great improvement over the “old” Target packages. There's a noticeable difference in when you walk into a store this year versus last year. Many stores have changed the way they display items. The 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 it right now. Many side aisles are now shorter in height and length and not all are parallel. It looks more like a high-end supermarket than a Target. The displays and decor seem aimed directly at the customer and where they are at in their life. I saw people walking their dogs, their kids playing outside, dad grilling on the grill. Normal everyday things. I had never noticed the music before in Target, but now it's much louder to the point where you can't help but sing along. The overall effect is that the store is more attractive, more fun and easier to shop. The Super Target where I live in Minnesota underwent a huge renovation last year. Everything, including the addition of a liquor store, had changed. The layout of the store, the lights, the brands, the customer service and the products offered are just a few of the things I noticed. Target wants to have an upscale feel while still offering low prices on their products. In addition to being a great addition to the liquor store near my house, they also added a Starbucks right in the Target. It's nice to grab a cup of coffee right as you come in to shop, but it's also a great place to meet people and hang out. There is a nice, large seating area so you can have the feel of a coffee shop while still being in a Target. You can sit and enjoy a coffee, meet a friend and then go shopping, all in one trip. The share oftarget market is currently at 2.09%. CSIMarket, (2019). This number seems to be in line with the fact that they are the eighth largest retailer in the United States. This number is expected to change by region. Where I live in Minnesota there are way more Targets than Walmarts. This is not true for the Southern United States where Target doesn't really have a presence. Target currently has 1822 stores compared to Walmart's 6363 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 shopper was. Women are the first thing I noticed because this is the most notable characteristic 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 base shoppers are on average 60-63% female. When I shop at Target, I notice that there are a lot of moms with their kids 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 shoppers are also a bit younger: 58-62% of Target shoppers are between the ages of 18 and 44, as opposed to Walmart, where that age demographic represents about 48% of shoppers; Kohl's, where younger consumers make up about 44% of the customer base; and Kmart, which draws only 34% of its shoppers from millennials/younger Generation Xers. I find this fact interesting because usually in that time of life people are looking to save money and Walmart or Kmart would be the best options if someone wanted to do that. Walmart and Kmart prices are cheaper but I have found that the quality is not always the best. Target also has the fewest consumers age 65 and older, as they make up about 12% of its customer base. Pymnts.com, (2019). I feel this is true. I shop at Target about twice a week and I can say that it is very rare to see anyone over the age of 65. However, I don't think Target is trying to reach older consumers. Younger generations are where they make money, so Target is doing the smart thing by aiming to cater to that age group of people. Their clothes, bright lights, screens and loud 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 a year than their peers who shop at regular stores, with an average annual income of about $65,000. Target also generally leads among more affluent consumers, among those who earn more than $100,000 a year. Target is by far the favorite retailer, with 25% of its shoppers reporting a similar income. Buyers are willing to pay more for a better quality product and if they have more money it is easier to spend it. Consumers making more than $50,000 per year represent more than 60% of Target's consumer base (by comparison, the same demographic is about 45% of Walmart's). pymnts.com, (2019). The bad news is that Target's core demographic is the same as Amazon's in age, gender and income. This means it is more exposed to Amazon than its Walmart counterparts, because if you shop at Walmart you will be less likely to shop online and have things delivered to your home or want to learn how to do so. Pymnts.com, (2019). As previously stated, Target is the eighth largest retailer in the United States. Their revenue in 2018 was $75,000,000. It's about growthby 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 with approximately $300,000,000. Another competitor is Amazon. They have the same consumer base and sell the same products. They are just slightly above target having grossed $89,000,000 last year. I think that says something about Target. Anyone can shop on Amazon, you shop online anywhere, anytime. You must physically go to the store within Target's opening hours. It's nice to see that stores haven't yet been taken over by the online world. Supply Chain Management In 2018, Target changed the way it managed its supply chain. In the past, Target replenished shelves by sending cases of items by truck to stores. For example, if a store placed an order for shampoo, they would receive a package of shampoo. Of course, not all the shampoo in a case will fit on a shelf, which means extra cases of items waiting to be shelved in back rooms. The new system, however, replenishes the store's supply on an individual basis. Employees can pick up orders for multiple stores at the same time without leaving their workstation, making the packing plant much more efficient. Essentially, a bag for a single store will be carried across the different workstations, allowing pickers to place items for that store into the bag. When full, it's a "mixture" of items, however, it matches the store's exact order for what they need to restock. Aflink, (2019). I think this would be helpful for employees when stocking shelves because they only need to stock what is needed when. This will free up time for employees to cashier or interact with customers, which is something I've noticed a lot more over the past year. This will keep the back room clean and also reduce product waste. The only downside I see is that if someone buys everything on the shelf, other customers will have to wait for shipping for that product to get back into stock. Target is modernizing its operations and physical models right now, so this isn't an exact science yet. Customer Relationship Management Along with revamping its supply chain management model, Target also changed its customer relationship management model. There are some things they want to be different from right when you walk through the doors of Target. Top-to-bottom overhauls, with new design/style elements and product introductions (based on what customers said they liked about the new Target stores). Two entrances, one promoting exclusive and seasonal items, the second for Online Order Pickup and quick purchases, such as grocery shopping. More attractive product presentations, including updated mannequins and accessories in apparel, home and beauty. Easier in-store shopping flow, with aisle changes designed to encourage customers to browse clothing, accessories and other products. Updated and more engaging food department, with “grab and go” food and drink options, with fresher products, more choices and greater convenience. Target's online order pickup located at the front of the store for faster, more efficient checkout. Wine and beer shops inside the store. Lowenstein, M. (2017). I noticed all of these things at the two Target stores in my town. The employees also seem to be different, more friendly and helpful. The two things I have trouble with are the new “flow” and the clothing department. I still don't understand the new flow and.