Target’s new CEO is “focusing on creating more urban stores to reach specific demographics”. Target has typically catered to a higher socio-economic demographic. According to Ries & Ries (2004) Target is “branching off from the mass merchandiser category to become an ‘upscale’ mass merchandiser. Their “wide aisles, neat displays and designer merchandise help to differentiate the Target brand from the Wal-Mart brand. ‘Cheap chic’ is the theme.” When I visit my local Wal-Mart, I am confronted with camouflage jackets on clearance and Styrofoam coolers on end aisles. It doesn’t feel very upscale. My town is relatively rural and has a population of about 13,000. About 30 minutes south is a town of 43,000 and has a strong professional population. Of course, it has a Target. Target is now pursuing the Hispanic dollar; I will be interested to see how the Hispanic population receives and responds to Target’s brand message. Belch & Belch (2015) report that Hispanics have a “higher than average poverty level, are more likely to be bilingual, and are more likely to live in urban areas”. I wonder how Target will capture this audience.
Belch, G.E, & Belch, M.A. (2015). Advertising and promotion: An integrated marketing communications perspective (10th ed., p. 41). New York, New York: McGraw-Hill Education.
Ries A & Ries L. (2004). The Origin of brands: Discover the natural laws of product innovation and business survival. New York, NY: Harper Business.