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Based On Household Income: Target Customer

Target's customer base has a median household income of $64,000 and is typically young, educated, sophisticated and fashionable. Approximately 76% of Target's customers are female, with 43% having children at home. Target differentiates itself by providing stylish, on-trend merchandise at attractive prices in clean, spacious stores. Its supply chain strategy focuses on faster fulfillment through smaller format stores, drive-up pickup, greater supply chain visibility through new technology, and robotics solutions to replenish inventory across hundreds of stores.

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64 views3 pages

Based On Household Income: Target Customer

Target's customer base has a median household income of $64,000 and is typically young, educated, sophisticated and fashionable. Approximately 76% of Target's customers are female, with 43% having children at home. Target differentiates itself by providing stylish, on-trend merchandise at attractive prices in clean, spacious stores. Its supply chain strategy focuses on faster fulfillment through smaller format stores, drive-up pickup, greater supply chain visibility through new technology, and robotics solutions to replenish inventory across hundreds of stores.

Uploaded by

RUCHI CHOUDHARY
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Customer Groups

Based on Household Income Target WalMart


Median household income of Target’s customer is
Target Young, educated, Middle-aged cost
$64000. Customer sophisticated, conscious customers
Typically appeals to customers who enjoy higher fashionable
incomes
Value Cheap, chic and Value of Money
Proposition fashionable

Target Group-Female Product 40%- Home and 45% Consumables


apparel items
20% Consumables
Approximately 76% Target’s customers are
female with around 43% children at home. Price Price on higher side Low Pricing
Product differentiation via image of economical 1-2% more than Walmart
stylish and elegant clothing.
Place Urban locations targeted Started off in outskirts
Located within malls as Spread throughout
well gradually

Corporate Image Promotion Advertising, Sponsorships, Major focus on


Racing, Museums etc. advertising
Upscale discount retailer
High-quality, on-trend merchandise at attractive
prices People Highly motivated Contract Labour,
Clean, spacious, guest friendly stores Workforce, on payroll Labour Relations
80% of its customers have attended college
Target Supply Chain Strategy 2018

Pick and Pack Strategy


Each store receives a tote from distribution center
Order fulfilment to granular level
Automated Process, less time in fulfillment

BOPS Format
Fulfilment from distribution center to curb shipping costs
Option to pick-up from store

Small Stores Format


Cater to the needs of local clientele
Reduce costs by lowering floor space and storage

Faster Delivery in Online Channel


Deliveries are fulfilled from closest stores
Lower out-of-stocks, Immediate increase in number
of orders

Supply Chain Visibility


Investment in new technology for real-time tracking efforts
Automated shipment process to reduce errors
Target Supply Chain Strategy 2020

Pick up and drive up fulfilment


More ease and convenience via Drive Up facilities, which saw a
boost of 500% in sales and growth
Enhanced industry-leading same-day services

Environment friendly Supply Chain Operations


Removal of harmful chemicals from its entire value chain, operations
and products.
Increasing transparency through product sourcing details etc.

Small Format expansion


Drive Up to dozens of small-format stores across the country that
have parking lots
Easier for guests to shop along with opening nearly three dozen new
small format stores.
Remodel Program
Target has planned to remodel 1000 stores by the end of 2020 for
multi-channel shipping.

Robotics Solutions
Target has started scaling robotics solutions across the country to
replenish inventory to hundreds of stores during the 2020
Precise sorting on an aisle-by-aisle basis to help store team
members fill shelves easier

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