It is simple to reach the targeted consumers, but various marketers lack the capability to make convincing brands and accessible practices with significant consequences. To comprehend the promise of big-data profits, leaders of marketing have to claim their stake in a progressively loud brand background, track the goals of the business against developing analytics and provide significant benefits to the customers who desire human connection first (Darden Virginia, 2018). This report is being designed to represent the one-year strategic marketing plan for the Target Corporation to initiate its services in Singapore in 2019. The strategic marketing plan will conduct the environmental analysis for the Target Corporation to highlight the factors that can affect the business in Singapore. Besides this, it will discuss the marketing objectives, target market, and marketing mix of Target Corporation. Financial assumptions will also be projected in this report.
Target Corporation is the second leading retailing department store of United States, after Wal-Mart, and is a constituent of S&P 500 Index. George Dayton established the business with headquarter in Minneapolis, Minnesota. The first store of Target Corporation was opened in 1962 in Roseville, Minnesota. Initially, in the year 1902, the company was named as Good fellow Dry Goods but in 1967, it was renamed as Dayton Corporation (Corporate, 2018). In 1969, the company initiated its merger with J.L. Hudsob Company and became Dayton-Hudson Corporation. In the industry the company has gained huge success and started regarded as the cheap-chic player and due to this in 2000, the parent company was renamed as the Target Corporation. The general merchandise stores of the Company provide an edited food variety, comprising dairy, frozen items, dry grocery, and perishables (Reuters, 2018). The digital channels of the company comprise a variety of general merchandise, including a variety of items in its stores, with an assortment, like extra colors and sizes sold only online (Target Brand, 2018).
Porter 5 Force Analysis for Target Corporation
Competitive Rivalry- High
Target Corporation will face huge competition with key direct competitors like Sheng Siong, Dairy Farm’s Cold Storage, and Fair Price; yet in the market, there are numerous smaller retailers. These four key stores possess a dominant share in the market of around 85%. The supermarkets in Singapore have a low level of differentiation in the product. The sector of retail is increasing steadily but slowly. The intensive competition can result in reduced sales and higher operating costs that can be an adverse point for Target Corporation.
The dominant supermarket chains cover around 85% of the overall share of the market in Singapore; therefore, it is an obstacle for the new players to fulfil the excessive requirement of the capital into the severe competition (Connaisance, 2017). A new player needs to attain the economies of scale, which is required to compete based on cost advantage with the top players in the market. Hence, it is not a simple obstacle to cross over.
Convenience store chains like Cheers and 7-eleven are developing in the market. They are vending FMCG (Fast moving consumer goods) such as soft drinks, packaged food, and dairy products that are sold by department stores and supermarkets, thus it is a substitute of the department store.
Target Corporation may face strong competition from the customary retailers of grocery like hypermarkets and supermarkets, and from non-traditional rivals like convenience stores, and restaurants at petrol stations. Consumers have numerous options when it comes to purchasing groceries. Whereas pricing is the key, convenience also performs an important part in the groceries shopping. People also prefer purchasing regular groceries from their neighborhood store of grocery or purchase drinks from the nearby convenience stores, in place of deliberately visiting a department store or supermarket.
Due to the nature of the retailing business, the department store has to purchase products from various suppliers and manufacturers. In the Singapore market, there are various suppliers available that offer products to the supermarkets and department store, which reduces the power of bargaining of the suppliers in the market.
Target Corporation conducts its business operations as a prosperous discount retailer, a financial services entity, and as an online e-commerce store. All these operations of the company succeeded in the market, but the target must create a formal statement of vision and mission for the company. It will not just work as the written goal but it will permit them to look how successfully they have encountered their goals and attained their anticipated vision for the organization. Besides this, it will help in creating brand equity in the market of Singapore.
For successful operations of the business activities in the Singapore market, Target must expand its private label brands. One in five goods bought in a retail establishment is called private label products. Today, Target possesses an outstanding status in the market and it will be sensible to endure enhancing and expanding business at different locations and markets. For example, they are offering more consumables products in their stores; therefore they must expand their items of food under their private label. This will definitely reduce the involvement of external vendors such as suppliers of the Singapore market. The company can offer coupons for people to try their goods.
Marketing Communications- In order to market the services in the Singapore market, Target Corporation can make use of television, radio, hoardings, print media, etc.
Marketing channel- Target Corporation can make use of Wholesalers, and suppliers to supply goods from the manufacturing units to the department store in Singapore.
Target Market is the directed customers to whom a business wants to sell its offerings in the market. Target marketing comprises breaking the whole market into different segments and designing marketing strategies or every segment in order to grow the market share (The Economic Times, 2018).
Target Market 1: 93% of the shoppers of Target are women, it will make sense to market their offerings in the population of the male. Men also like to shop and they definitely desire to save some money.
For example, presently Target has a small sporting, automotive, and hardware goods departments. They must air advertisements, targeted at men, representing all these departments.
Target Market 2- The normal age of the shoppers of the Target Corporation is 41 years. As Target Corporation is a stylish, trendy place to shop, they should market themselves among younger age groups.
For example, Company can run the advertisement in which it can cast a young celebrity in order to attract the younger generations.
Target Market 3: Target Corporation can target the segment of lower income in the Singapore market. Considering that the level of income is reducing, it will be a wise decision for Target Corporation to market their offerings with the philosophy “Expect more-pay less.”
Products
Target Corporation offers a variety of products in its department stores like baby equipment, electronics, luggage, fashion accessories for children, men and women, fitness equipment, toys, outdoor sports equipment, home accessories, gift cards, seasonal and holiday items. Beside this, it also deals in pet supplies, entertainment products, automotive accessories, consumables (food items), beauty and health aids, jewelry, office and school supplies, etc.
Target Corporation also deals in some following services like pharmacy, super target recipes, portrait studios, optical, target photo, target baby registry, health clinics, food avenue restaurants, etc. (Target, 2011)
The product mix of Target Corporation involves its private label brands such as Choxie, Embark, Archer Farms, ProSpirit, Target Limited Edition, Xhilaration, Circo, Room Essentials, Kool Toyz, Trutech, Market pantry, Gilligan & O’Malley. They also merchandise licensed brands comprising C9 by Champion, Cherokee, Fieldcrest, Mossimo, ChefMate, Nick and Nora, Smith and Hawken, Waverly and Woolrich, Eddie Bauer, Genuine Kids by Osh Kosh, and Simply Shabby Chic. Target Corporation merchandises its offering through its own distribution channel or by third parties.
All the stores of Target Corporation take care of the general amenities for its customers. The company offers its services through an online platform and stores. It is regularly enhancing its services through different partnerships, expansion, and innovative ideas.
The customers in Singapore enjoy living a high standard of life and are very keen on purchasing foreign products. Singaporeans are not just conscious about the brand but are also cautious and loyal towards exploring substitutes. They prefer purchasing new products but remain loyal to the familiar brand. They like to try new products only after getting confident about its quality and services. The customers in Singapore consider the quality, service, and price of the product while taking the decisions of purchasing (Santander, 2018).
Considering the preferences of the customers of Singapore, Target Corporation can sell its products because they are of good quality along with effective customer service. Moreover, it also involves branded products that are preferred by the people of Singapore.
Target Corporation charges a significant amount and offer-differentiated products that have yet not been matched by any of the retailers in the whole industry. It offers products at discounted prices. The business deals in the Target Visa card, which permits consumers to purchase on credit. The policy of Packaging pricing of Target Corporation offers a range of deals such as buy 2 get one free, and buy one get one, etc. In the market, it competes with Wal-Mart stores and Amazon.com. Due to tough competition, Target Corporation arrives in the market with a brilliant strategy of pricing. The company is continuously putting its efforts to match its prices of the products with the giant players in online retailing. It provides a discount for every online purchase. Beside this, it also offers a discount on the shipping charges during the holiday season.
In Singapore, online shopping has increased because of considerable population, which is tech-savvy and most of the time look for different offers, and deals. Target Corporation will definitely get boom and success in the Singapore market if it will give more importance to its online dealings and customers.
This is a very significant portion of the marketing process of Target Corporation. The key goal of the company is to be a one-stop-shop for consumers. Target allocates the huge majority of stock distributed to the stores by the distribution network. It offers common merchandise by its Target stores, Website, and Target.co. (Bhasin, 2018)
Catchy phrase of Target Corporation ‘Expect more, pay less’ majorly concentrate on offering products with high quality and at low prices. The company has various strategies for promotion, which comprise special offers, coupons, flyers, and commercials. The business also depends on television and newspapers commercials. Circulars of Target are supplied every week to around 50 million households. It also posts weekly ads on the Internet. Target Corporation has an online presence on YouTube, Twitter, Instagram, Facebook, and many other social platforms. The company also believe in mailing and greeting their loyal guest about new offers or on special occasions. The business has executed various strategies of promotion such as it has initiated the “Black Friday” strategy of promotion. Besides this, it has also publicized a “10 Days of Deals” promotion, in which it provided discounts on kitchenware, electronics, toys, etc. (MBA Skool, 2018)
The International Monetary Fund (IMF) ranked GDP of Singapore as the fourth highest in the whole world. Credit Suisse recently presented a report in which it ranked Singapore people as Asia’s richest population. However, there is also some level of inequality in the wages. In spite of enjoying high incomes, customers have been unwilling to spend money because of the soft market of job and a sluggish economy. This reflects that Target Corporation can invest in the Singapore market as most of the population has good purchasing power and enjoy offers and discounts offered by different businesses.
|
Marketing Budget Plan (2019) |
|
|
|
|
Category |
Estimated |
Estimated |
Estimated |
|
Research |
|||
|
Research firm fees |
2 |
$2,400.00 |
$4,800.00 |
|
Web research |
1 |
$1,500.00 |
$1,500.00 |
|
Independent research |
3 |
$600.00 |
$1,800.00 |
|
Research Costs Total |
$8,100.00 |
||
|
Communications |
|||
|
Promotional brochures |
5,000 |
$0.15 |
$750.00 |
|
Television |
4 |
$1,500.00 |
$6,000.00 |
|
Radio |
8 |
$350.00 |
$2,800.00 |
|
Web |
3 |
$1,000.00 |
$3,000.00 |
|
Communications Costs Total |
$12,550.00 |
||
|
Networking |
|||
|
Memberships |
4 |
$300.00 |
$800.00 |
|
Affiliations |
1 |
$500.00 |
$500.00 |
|
Subscriptions |
3 |
$350.00 |
$1,050.00 |
|
Networking Costs Total |
$2,350.00 |
||
|
Event |
|||
|
Number of attendees |
50 |
||
|
Meal (breakfast, lunch, or dinner) |
|||
|
Food |
$28.00 |
$1,400.00 |
|
|
Tax (10%) |
$2.80 |
$140.00 |
|
|
Food and beverage gratuity (20%) |
$6.16 |
$308.00 |
|
|
Meal Costs Subtotal |
$1,848.00 |
||
|
Additional Costs |
|||
|
Invitation |
$1,560.00 |
$1,560.00 |
|
|
Company staff T&E |
$500.00 |
$500.00 |
|
|
Customer testimonial T&E |
$300.00 |
$300.00 |
|
|
Additional Costs Subtotal |
$2,360.00 |
||
|
Event Costs Total |
$4,208.00 |
||
|
Event Price per Person |
$84.16 |
||
|
Promotions |
|||
|
Product giveaways |
60 |
$8.00 |
$480.00 |
|
Product discounts |
450 |
$2.50 |
$1,125.00 |
|
Special offers |
150 |
$2.00 |
$300.00 |
|
Promotions Costs Total |
$1,905.00 |
||
|
Advertising |
|||
|
Brochures (development and production) |
4,500 |
$0.15 |
$675.00 |
|
Mailings |
2,500 |
$0.04 |
$100.00 |
|
Television |
2 |
$710.00 |
$1,420.00 |
|
Radio |
5 |
$450.00 |
$2,250.00 |
|
Newspapers |
4 |
$250.00 |
$1,000.00 |
|
Billboards |
3 |
$600.00 |
$1,800.00 |
|
Advertising Costs Total |
$7,245.00 |
||
|
Public Relations |
|||
|
Charity events |
3 |
$250.00 |
$750.00 |
|
Advertising |
3 |
$400.00 |
$1,200.00 |
|
Employee promotions |
6 |
$300.00 |
$1,800.00 |
|
Sponsorships |
3 |
$200.00 |
$600.00 |
|
Public Relations Costs Total |
$4,350.00 |
||
|
ESTIMATED MARKETING GRAND TOTAL |
$40,708.00 |
Penetration Strategy- In this strategy the price of the products is set preciously low to quickly attain the market share. It is done at the time when a business is established in the new market. It is known that the price of the products will be increased once the advertisement time gets finished and the objectives of the market share are achieved (Kotler and Keller, 2016). Target Corporation can make use of this pricing strategy in Singapore because the market is very competitive and it will tough to gain the market share, hence, this strategy will support in attracting customers.
Target Corporation can make use of public relation strategy in order to promote its offerings in the Singapore market. Public relation is the practice of spreading information among people or an organization and the public (Bernays, 2013). Under this strategy, Target Corporation can cast any famous celebrity who is famous and have a good public image, in order to promote the offerings of the company.
Marketing Channel Control Strategies
Selecting Channel Members- For the effective management of the channel, Target Corporation need to select talented members in the channel because consumers consider channel as the main company. Manufacturers must choose what features will differentiate the superior mediators and profit record, cooperativeness, financial strength, and service status of a potential member of the channel.
Motivation and Training of Channel Members- It is a key responsibility of the business to inspect its mediators in the similar way it examines its consumers. The company has to identify the needs of the intermediaries and create such type of offerings so that superior value can be offered to them. In order to get superior performance form the intermediaries, the company needs to offer training and programs of capability building (Civil Service, 2018).
Direct Distribution- This strategy is used when a business either directly delivers the goods to the consumer or when the length of the channel is less the sends the product to end customer or when the channel length is very less (Dent and White, 2018). A company vending on an e-commerce portal or vending by a modern retail is also called as direct distribution. Target Corporation can select direct distribution strategy for its private label brands and e-commerce business to deliver its products to the end user.
Indirect Distribution- This strategy is used when goods reach to the consumer by various channels in between. For instance- The product dispatches from the place of the manufacturer to C&F, passes to the distributor, then to the market retailer and in the end to the consumer (Bhasin, 2018). Thus, it is used for the long chain. Target Corporation can make use of this channel as it deals in a different type of products that are delivered by different suppliers.
Advertisement and Sales promotion can be used by Target Corporation in order to promote its offerings and cover a large population of Singapore.
An advertisement is a form of visual or audio marketing communication that makes use of non-personal message to promote the service or product in the market (Watkins, 2012).
Sales Promotion strategy make use of both non-media and media marketing communications for a determined, limited time to grow the demand of consumer, encourage market demand or enhance product accessibility (Cummins and Mullin, 2010).
All of the planned strategies will be implemented at the beginning of the next financial years. The department of promotion, marketing, and advertisement will exclusively manage all the activities with the exception of the statement of vision and mission.
April 28, 2019- The administration department, as well as directors, will work to introduce new vision and mission statements.
30 April 2019- All the department of marketing will conduct a meeting in order to discuss the potential marketing plan and goals to attain the new strategies of marketing.
28 May 2019- Vision and mission statements will be summarized
June 3, 2019- The Department of marketing will represent their strong idea and it will be implemented to attain the goals of marketing.
July 2, 2019 – The management of the company will finalize the marketing plan and process will be started to promote the offerings.
Conclusion
Marketing plan supports the business in developing services and products that fulfill the needs of the target audience. Effective marketing supports the consumers in understanding why the service or product is better or different from the rivalry. The above report has presented the strategic marketing plan for Target Corporation to expand business in the Singapore market. From the above analysis, it can be said that the people in Singapore have good purchasing power and can invest their money in purchasing products from Target Corporation. Besides this, they like to try new things with different offers and discount. It can be a positive sign for the company as it offers various discounts on its offering such as buy 2 get one free. Moreover, the company should majorly focus on its online website to offer products to the people of Singapore. In the end, a marketing budget has been presented for the company.
References
Bernays, E.L. (2013) Public Relations 2nd ed. U.S: University of Oklahoma Press.
Bhasin, H. (2018) Marketing Mix Of Target – Target Marketing Mix [online]. Available from https://www.marketing91.com/marketing-mix-target/ [accessed 6 August 2018]
Bhasin, H. (2018) What are the various distribution strategies for a company? [online]. Available from https://www.marketing91.com/distribution-strategies/ [accessed 6 August 2018]
Civil Service (2018) Designing and Managing Marketing Channels [online]. Available from https://www.civilserviceindia.com/subject/Management/notes/designing-and-managing-marketing-channels.html [accessed 6 August 2018]
Connaisance (2017) Porter’s Five Forces Analysis of Sheng Siong Supermarket [online]. Available from com/2017/01/porters-five-forces-analysis-of-sheng.html”>https://connaisanceforyou.blogspot.com/2017/01/porters-five-forces-analysis-of-sheng.html [accessed 6 August 2018]
Corporate (2018) corporate fact sheet [online]. Available from https://corporate.target.com/press/corporate [accessed 6 August 2018]
Cummins, J., and Mullin, R. (2010) Sales Promotion: How to Create, Implement and Integrate Campaigns that Really Work 5th ed. U.K: Kogan Page Publishers.
Darden Virginia (2018) Strategic Marketing Management [online]. Available from https://www.darden.virginia.edu/executive-education/short-courses/strategic-marketing-management/ [accessed 6 August 2018]
Dent, J., and White, M. (2018) Sales and Marketing Channels: How to Build and Manage Distribution Strategy 3rd ed. U.S: Kogan Page Publishers.
Kotler, P., and Keller, K.L. (2016) Marketing Management 15 ed. England: Pearson Education Limited.
MBA Skool (2018) Target Marketing Mix [online]. Available from https://www.mbaskool.com/marketing-mix/services/16770-target.html [accessed 6 August 2018]
Reuters (2018) Target Corp [online]. Available from https://www.reuters.com/finance/stocks/companyProfile/TGT [accessed 6 August 2018]
Santander, B. (2018). Singapore: Reaching The Consumer [online]. Available from https://en.portal.santandertrade.com/analyse-markets/singapore/reaching-the-consumers?&actualiser_id_banque=oui&id_banque=0&memoriser_choix=memoriser [accessed 6 August 2018]
Target (2011) International Marketing [online]. Available from https://sites.google.com/a/email.vccs.edu/target-corporation-international-business-portfolio/assignments/international-marketing [accessed 6 August 2018]
Target Brand (2018) about [online]. Available from https://corporate.target.com/about/ [accessed 6 August 2018]
The Economic Times (2018) Definition of ‘Target Market’ [online]. Available from https://economictimes.indiatimes.com/definition/target-market [accessed 6 August 2018]
Watkins, J. (2012) The 100 Greatest Advertisements 1852-1958: Who Wrote Them and What They Did 4th ed. U.S: Courier Corporation.
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