Analysis of Target Retail Company - Research Paper Example

Case Study- Target Retail Company Historical of Target Retail Company and its primary product Target Retail Company has a long history of growth and a successful business practice. This company is an upscale discounter that has shaped itself as the best provider of high quality merchandise that keeps up with the current trend. In doing so, it has established itself as a store that offers attractive prices in a very spacious, neat and client-friendly environment that is sustainable. Its history spans from 1902 when Dayton Dry Goods Company was created. George D. Dayton became a Partner of Goodfellow’s Dry Goods Company in Minneapolis but a year later he took sole ownership of this store and was made the first president of the new Dayton Dry Goods Company. This company was driven by the personal principles practiced by Dayton, whereby he believed in reaching higher grounds of stewardship and this made his store become known for dependable merchandise, generous spirit and fair business practices (Target Brands, Inc., 2011). In 1911, Dayton Dry Goods Company was named The Dayton Company so as to incorporate its assortment of goods and services that it had started offering and soon it is commonly known as the Dayton Store. In the year 1916, this company becomes part of the co-founders of Retail Research Association, which is a leading retailers’ cooperative which later expanded and was named the Associated Merchandising Corporation in 1918. In the same year, George Dayton creates a foundation, The Dayton Foundation endowed with $1 million with the aim of promoting human welfare across the world. This was later renamed the Dayton-Hudson Foundation in the year 1969 and later became the Target Foundation in 2000. Following stalling of shipments in 1920 due to a freight handlers strike, Dayton decided to use airplanes to ship goods throughout the country, an idea that was well received by the public following the effects of the crisis on the consumer market. A radio station was created by Dayton in 1922 with a massive influence on Minneapolis. The son of Dayton, George N Dayton, takes over presidency of Dayton Company in 1938 following his father’s death. This company came up with the idea of giving 5% of its pretax profits to the community as a corporate social responsibility strategy in 1946. A new generation of leadership is borne following the death of George N. Dayton, where the grandson Donald C. Dayton, takes over the running of the company in 1950, and this was followed by all the Dayton’s grandsons taking over leadership positions within the company. A commercial interiors department was opened in the company, in 1953, to provide furnishings, fabrics and other decorations for public institutions and businesses in a tailor-made fashion. The department was then called the Target Commercial Interiors, which provides a working environment that is very productive to organizations across the country. Dayton’s First Branch Location is opened in 1954 due to its expansion outside downtown. It then expands to the suburbs in 1956 where South Dale Mall is opened as a fully enclosed shopping Centre of its kind. Three more shopping malls are opened in 20 years that followed. This company then enters the discount retailing business and later a new discount chain store is formed in 1961. In 1962, The Target Stores is redefined by choosing the bull’s-eye logo with the mission of offering retail goods, services, better prices, value to customers, and high commitment to the community, and an overall experience. Target is thus born on May 1st 1962 in Roseville. Dayton’s holidays are brought into existence in 1963. New and first stores are opened in Denver outside Minnesota in 1966. A national scale of growth is realized in 1967 when this store transforms from a regional department store to a national retailer where it goes public. Various volunteer programs are organized between 1970 and 1975. The company then starts advertising in the newspapers. Transition from family ownership to new management is done in 1977 where ownership is separated from management and in 1983; Daytons retire from the board of directors ending family control. New stores are opened between 1985 and 1995. This is done through opening new branches and acquiring already existing businesses across the country (Sander & Slatter, 2009). In 1995, Target starts offering credit through credit cards called Target Guest Cards which is later followed by the Target Visa Credit Card in 2001 and later expands to include the Target Check Card in 2007. The company then opens a first superstore called SuperTarget Store that deals with fresh produce, meat, dairy products, and a grocery among others in Omaha in the year 1995. A comprehensive gift-registry service is launched by Target from coast-to-coast. This came with the launching of Club Wedd at Target that incorporated latest technological registration, self-service approach that was very convenient, and offering of exclusive merchandise that was provided at discounted prices. Archer Farms was also introduced at the same time. The company took part in the restoration efforts of the national treasure by donating $1 million in 1996 and in the year 1997, Target did welcome Snowden and in the same year, it sold Target gift cards. A home away from home hospital is constructed with the help of Target following St. Jude Children’s Research Hospital’s public plea and later opens its doors to patients of all caliber in 1999. Its volunteer program of recognizing a good neighbor received a President’s Service Award, a highest honor of its kind, from the then president Bill J. Clinton (Target Brands, Inc., 2011). Following the purchase of Associated Merchandising Corporation and opening up of the New Beauty Genre in 1988 and 1999 respectively, target went online with its target.com website, in which guests are allowed to shop from a broad assortment of fashionable and affordable goods from their homes. Dayton Hudson Corporation was named Target Corporation in 2000 so as to reflect its core business activities. By the year 2001, Target Corporation had established branches in 47 States and opens its 1000 store depicting the 1000 reasons that its customers have to celebrate having immensely benefited from its style and value provision. A private label for Target Stores dubbed Market Pantry Debut is introduced. Pop up stores idea is born in 2002 where the company pops up in much unexpected places (Rowley, 2004). The Red Hot Shop is introduced by Target on target.com in the year 2003 and in 2004, the AMC is renamed Target Sourcing Services. The one stop shopping destination concept is well carried out by Target and the company becomes the ultimate preferred provider of this service. A tagline of ‘Eat Well. Pay Less.’ is introduced in the SuperTarget. In the same year, Target sells two of its retail stores, Marshall Field’s and Mervyn’s. It organizes summer in the Hamptons in 2005. In the same year, Target exceeded its annual sales target of $50 billion. Other new developments that have been seen in Target retail store are the pharmacy called ClearRx which changes the way people do take medication; Target and Blue whereby people share technology, security expertise and many other resources with criminal justice and law enforcement agencies; launch of the Vertical Fashion Show in New York; going organic by the SuperTarget through the USDA certification of organic produce retailer; an icon of consumer culture is redesigned by taking on the shopping cart; innovative design of GO International; travelling target style is also introduced with special trains branded with bulls-eye; target check card is introduced in 2007; the Targets food distribution center is opened in 2008 in Lake City. Target opened its first outside US store in Anchorage and Wasilla, Alaska, and later on in Hawaii in 2009. The company has continued to expand and grow immensely over the last few years (Target Brands, Inc., 2011). Mission/Vision statement The mission for this company is to make Target the most preferred shopping destination for its guests through provision of outstanding value, continuous innovation and delivering a guest experience that is exceptional by fulfilling its Expect More. Pay Less brand promise, consistently. This is guided by its commitments to achieving great value, the community, diversity and the environment in which it operates (Target, 2011). Leadership structure of Target Retail Company Figure 1: A section of Targets Leadership Structure (see dotted line) Source: (Klfick, 2011) References Klfick (2011), Target Corporation. Minneapolis, MN, US NAICS: 452 General Merchandise Stores. Retrieved on 10th October 2011, from http://www.cogmap.com/chart/target-corporation Rowley Laura (2004), On Target: How the Worlds Hottest Retailer Hit a Bulls-Eye, John Wiley & Sons Sander Peter & Slatter John (2009), The 100 Best Stocks You Can Buy 2010, Adams Media Target (2011) Our Brand Promise. Retrieved on 10th October 2011, from http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031699 Target Brands, Inc. (2011), Explore Target’s history with our interactive timeline. Retrieved on 10th October 2011, from http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031697 Read More