Target Corporation is the United States third largest retail store with over 1500 brick and mortar shops. The business was started in 1902 by name Dayton Dry Goods Company but changed to Target Corporation in 1962 when it opened its first store in Minnesota ( Abdurakhmonov, 2019) . Target Corporation’s current chief executive officer and chairman is Brian Cornell, who has headed the organization since his election in February 2021. The company’s mission statement is “To make Target the preferred shopping destination for our guests by delivering value, continuous innovation, and exceptional guest experience by consistently fulfilling our Expect More. Pay Less. Brand Promise.” ( Target Corporation, 2020) Further, Target Corporation’s vision statement is “Guided commitment to great value, the community, diversity, and environment.” ( Target Corporation, 2020) . The extensive analysis of Target Corporation’s sales processes shows its costs, marketing strategies, product management, and human capital management.
The sales process at Target Corporation begins with the procurement of goods for sale in its retail stores. Target combines a mix of national and company brands to attract clients and increase its sales revenue. As of 2020, Target Corporation had more than 40 exclusive brands of differentiated products, such as food and beverage, electronics, furniture, household items, and apparels. Examples of renowned Target Corporation brand names include Hand Made Modern, Fieldcrest, and Genuine Kids. Target Corporation outsources the production of its exclusive brands, which accords the ample organization time to centralize its attention on internal sales processes, such as marketing and customer service. Target Corporation designs its brand products and demands high-quality output from outsourced manufacturers, ensuring a high turnover of stock. Further, Target Corporation also sources products for sale from local suppliers in the United States, considering it only retails within its borders.
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After products have been sourced, they are transported to warehouses, where they are stored until needed in retail stores. Target Corporation attracts a high customer base for its store sold products, based on its presence in all states in the United States and continued growth. Strategies to increase product sales include frequent discounts and lowered prices for debit and credit cardholders of the Red card owned by the company ( Abdurakhmonov, 2019) . Additionally, all Target Corporation stores are spacious, and clients are accorded exceptional service while shopping and at check-out cashpoints. Furthermore, the company offers free shipping for products ordered online and on the same day as client request. Finally, Target Corporation ensures it sells high-quality products at competitive market prices to increase its sales.
Target Corporation’s sales employees earn $13 per hour, a lucrative compensation almost unavailable in most retail stores within the United States. Further, the company employs competitive staff whose job involvement, engagement, and commitment mirror its internal culture ( Abdurakhmonov, 2019) . Target Corporation also has a digital Human Resources Management (HRM) system, which helps it to ensure employee satisfaction rates are high. For instance, if a staff member in a store has a grievance that requires immediate attention, they may escalate their issue by contacting the human resources department using the company’s HRM. Target Corporation also awards its employees annual leaves, paid off days, and maternity leave days for pregnant workers. Finally, Target Corporation employs staffs from diverse backgrounds and treats them equally. The company is aware that if it has an exemplary employee management system, the effort will increase sales revenue because workers will provide excellent output at sales points.
Other aspects that help Target Corporation increase its sales include intensive digital and traditional marketing, loyal clients, and a positive brand image. The company advertises its products on online platforms, such as Facebook, Twitter, YouTube, Instagram, and Linked In. Additionally, Target Corporation runs ads on United States television channels, newspapers, and magazines. Further, the organization has loyal clients who enjoy its Red card’s 5% discounted price for all goods purchased from stores or through its app ( Abdurakhmonov, 2019) . Moreover, Target Corporation has a positive brand image and avoids scandals that would reduce its client loyalty levels. However, the company experiences demand shifts for seasonal products and during economic downturns, such as the slump caused by COVID-19. However, overall, Target Corporation’s sales volume has continued to increase over the years, propelled by loyal clients, highly differentiated brand products, and a positive brand image. Besides, Target Corporation has ventured into the online market space and allows clients to place in-app orders delivered on the same day.
The cost of sales at Target Corporation is relatively high because of outsourcing production of exclusive brands, compensation costs for sales employees and store operations costs associated with its sales department. Currently, Target Corporation gives manufacturers brand quality and specifications for production, which is relatively costly. Furthermore, the company pays its sales staffs attractive salaries and bonuses, which is expensive in the long run. Moreover, sales costs are incurred during sourcing for products ordered through in-app requests from warehouses and transporting them to client destinations. Target Corporation pays for the deliveries as a strategy to increase sales, which is a costly venture. However, overall, Target Corporation attracts excellent sales annually, propelled by its excellent product management strategies and well-trained human capital.
References
Abdurakhmonov, A. (2019). Five Forces Analysis of Target Corporation. Supply Chain analysis of global companies , 1-5. https://www.researchgate.net/publication/333245579_Five_Forces_Analysis_of_Target_Corporation
Target Corporation. (2020, June 11). Target mission statement 2020 | Target mission & vision analysis . Mission Statement Academy. https://mission-statement.com/target/
