Target's Brand Strategy
The actions that Target is taking to promote its non-target brands focus on partnering with premium brands and trendy designers to tap into the existing customer base of these brands. On the other hand, Target promotes its owned-brands by understanding the needs of its customers and then launching new private label brands that resonate with the demands of its target audience.
Non-Target's Private Label Brands
- Target primarily promotes its non-target brands by forming partnerships with premium brands and trendy designers.
- The partnerships that Target explores complements its brand positioning with customers who "love the brands adapting them for its personal stores, making Target more confident in closely aligning its name with its partnered brands"
- Target partners with brands that are already known and trusted, thus enabling the chain store to acquire new customers by simply tapping into the existing customer base of the partner brands.
- The partnerships with premium and luxury brands as well as trendy designers help the brand to target customers who demand more in terms of high-quality products and incredible shopping experiences. This is reflected in Target's slogan, “Expect More. Pay Less.”
- Its partnerships with trendy fashion and interior designers including Nate Berkus and Victoria Beckham, among others help the brand to target wealthier clientele.
- The brand relies heavily on experiential retail and merchandising to push for sales as well as through offline and online marketing and advertising channels.
- In 2018, Target told its investors that it planned to spend $7 billion in redesigning its stores in order to improve in-store experiences as it planned to extend its exclusive brands.
- Additionally, the brand has been enhancing its online business intending to generate more online sales. For instance, it has expanded its drive-thru that allows shoppers to shop online while in the drive-thru and have their shopping delivered to them in their cars.
- To ensure sustainability, Target has been opening more branches in major cities including New York as well as smaller stores near campuses.
Target's Private Label Brands
- Target's strategy for its owned-brands involves understanding the consumer trends and then tailoring the trends to its broad audience.
- The brand's secret sauce is "borrowing the best elements of department stores and applying them to a discount big box". The goal of the brand is to have unique products that have a strong identity with shoppers which helps to increase stores' visits growth and ultimately sales.
- Target achieves this objective by launching its private label brands that resonate with the needs and demands of its target audience while retiring old brands that have no consumer appeal. For instance, in August 2019, the brand launched Good & Gather, a new grocery private label brand.
- The aim of the introduction of the new grocery brand was to meet the demands of consumers who have always resulted in purchasing groceries from other retail stores such as Walmart since Target is perceived to mainly deal with other product lines such as apparel and home ware.
- Besides, the move was largely influenced by consumers' shifting preference for private label brands as opposed to manufacturer brands
- Target pushes for sales of its owned-brands primarily through improving its in-store experiences. However, for the newly launched Good & Gather, Target plans to promote the brand through online marketing. This is attributed to the fact that the sale in online grocers by private brands continues to surge.
- To ensure the sustainability of its owned-brands, Target results to retire brands that do not resonate with the needs of its customers. For instance, after the launch of Good Gather, Target plans on phasing out two food brands including Archer Farms and Simply Balanced.
To determine the actions taken by Target to promote its brands including non-Target private label brands and Target owned private label brands, we analyzed the different brands of Target to determine how the chain store promotes the brands. We focused on newly launched private label brands by the chain store and analyzed different actions that we being undertaken to promote the brands to increase sales and ensure sustainability.