For the most creative people in Texas.
Case Study: Target
Two months ago:
I’m sitting on the floor, leaning onto an oversized coffee table, making the longest grocery list of my life. David Grindstaff, the roommate, is in the kitchen with the refrigerator door wide open, rummaging through cabinets. “Milk, bread, chips, Dr. Pepper,” he said aloud.
We’re both getting ready for the dreaded Wal-Mart trip.
If you saw our mismatched furniture, each competing to fit in our 12 x 8 living room, the empty Racetrac cups, and the pieces of paper and notes scattered about, you’d understand why Wal-Mart is our store of choice.
That’s right. We’re college students.
“Ugh, I’m not in the mood to deal with Wal-Mart today,” I announced. “What if we tried Kroger or Target?” “Nuh uh, they’re way too expensive,” David said.
Later that night we left Wal-Mart with a 183 dollar ticket.
Two weeks ago:
“Hey, listen to this!” I shouted to David. “Prices at Target average out to within 1% to 3% of those of Wal-Mart.” “What?” David asked. “Yeah, it’s in an article out of Fortune magazine.” “Well, that doesn’t make any sense,” he said.
Anyone who read this fact would be just as shocked as me and the roommate. In fact, here is what others have to say about Target:
“I love Target! I don’t go there much though…they’re too expensive.” – Jennifer Moore
“You don’t need to be going to Target for stuff like that, girl (referring to commodities such as Shampoo and Conditioner). Go to Wal-Mart.” – Thresa Sepulvado
So what’s the problem here?
Consumers are under the impression that Target is just too expensive.
But why?
There could be several reasons:
“Some of these stores are so clean that you just assume you’re paying more,” said Deborah Weinswig, Citigroup managing director.
With so many creative designers Target has brought in, the brand has managed to build an excellent image. This image, however, screams “money.”
Helping Target’s image are its television commercials. They are really quite nice. But are they too nice?
In one commercial titled “Happy Together,” two students are dancing in their dorm room to the song, Calabria, by music artist, Enur. They’re decorating their room with Target’s snazzy décor of comforters, curtains, and rugs. The tagline reads “Be happy together, design together, save together,” but that doesn’t do much convincing. To make that perfect dorm room would require some serious cash, one would automatically think.
Although Target beats Wal-Mart image-wise, that seems to be its downfall.
The majority believes that Target is better than Wal-Mart, but that doesn’t mean Target needs to compare itself to Wal-Mart. When one thinks of Target’s #1 competitor, Wal-Mart springs to mind. But what if that changed? What if one thought of Kroger or Albertsons instead? “Target consistently underprices supermarkets on groceries by about 10% to 15%.” Consumers aren’t aware of this, though. They are only aware of the image Target has put out.
Let me repeat that shocking fact I stated in the beginning. “Prices at Target average out to within 1% to 3% of those of Wal-Mart.” Had David and I gone to Target two months ago, our bill would have been $188.49.
When shoppers were polled on their perception of Target, 87% of them thought its prices were 20% higher than most grocery stores.
Imagine how it would be if they only knew the truth.
“From now on, we’re going to Target,” says David.
Resources
Reingold, Jennifer. “How Target Does It.” Fortune 31 Mar. 2008: 76-86
“Target Dorm Commercial.” YouTube. 11 Nov. 2008
.
I’m sitting on the floor, leaning onto an oversized coffee table, making the longest grocery list of my life. David Grindstaff, the roommate, is in the kitchen with the refrigerator door wide open, rummaging through cabinets. “Milk, bread, chips, Dr. Pepper,” he said aloud.
We’re both getting ready for the dreaded Wal-Mart trip.
If you saw our mismatched furniture, each competing to fit in our 12 x 8 living room, the empty Racetrac cups, and the pieces of paper and notes scattered about, you’d understand why Wal-Mart is our store of choice.
That’s right. We’re college students.
“Ugh, I’m not in the mood to deal with Wal-Mart today,” I announced. “What if we tried Kroger or Target?” “Nuh uh, they’re way too expensive,” David said.
Later that night we left Wal-Mart with a 183 dollar ticket.
Two weeks ago:
“Hey, listen to this!” I shouted to David. “Prices at Target average out to within 1% to 3% of those of Wal-Mart.” “What?” David asked. “Yeah, it’s in an article out of Fortune magazine.” “Well, that doesn’t make any sense,” he said.
Anyone who read this fact would be just as shocked as me and the roommate. In fact, here is what others have to say about Target:
“I love Target! I don’t go there much though…they’re too expensive.” – Jennifer Moore
“You don’t need to be going to Target for stuff like that, girl (referring to commodities such as Shampoo and Conditioner). Go to Wal-Mart.” – Thresa Sepulvado
So what’s the problem here?
Consumers are under the impression that Target is just too expensive.
But why?
There could be several reasons:
“Some of these stores are so clean that you just assume you’re paying more,” said Deborah Weinswig, Citigroup managing director.
With so many creative designers Target has brought in, the brand has managed to build an excellent image. This image, however, screams “money.”
Helping Target’s image are its television commercials. They are really quite nice. But are they too nice?
In one commercial titled “Happy Together,” two students are dancing in their dorm room to the song, Calabria, by music artist, Enur. They’re decorating their room with Target’s snazzy décor of comforters, curtains, and rugs. The tagline reads “Be happy together, design together, save together,” but that doesn’t do much convincing. To make that perfect dorm room would require some serious cash, one would automatically think.
Although Target beats Wal-Mart image-wise, that seems to be its downfall.
The majority believes that Target is better than Wal-Mart, but that doesn’t mean Target needs to compare itself to Wal-Mart. When one thinks of Target’s #1 competitor, Wal-Mart springs to mind. But what if that changed? What if one thought of Kroger or Albertsons instead? “Target consistently underprices supermarkets on groceries by about 10% to 15%.” Consumers aren’t aware of this, though. They are only aware of the image Target has put out.
Let me repeat that shocking fact I stated in the beginning. “Prices at Target average out to within 1% to 3% of those of Wal-Mart.” Had David and I gone to Target two months ago, our bill would have been $188.49.
When shoppers were polled on their perception of Target, 87% of them thought its prices were 20% higher than most grocery stores.
Imagine how it would be if they only knew the truth.
“From now on, we’re going to Target,” says David.
Resources
Reingold, Jennifer. “How Target Does It.” Fortune 31 Mar. 2008: 76-86
“Target Dorm Commercial.” YouTube. 11 Nov. 2008
.
Add a Comment
About
© 2009 Created by Robert Penn on Ning. Create Your Own Social Network
You need to be a member of North Texas Advertising to add comments!
Join this social network