Improving the Shopping Experience at Target - Term Paper Example

Improving the Shopping Experience at Target Introduction According to Kotler industry players are in hypercompetitive market where rivalry among competitors is intense and buyer leverage is extremely high. This current situation present challenge to retailers. At the pace of increasing competition, retailers should strive to capture and retain their market shares by making an enormous effort of satisfying their clientele. Nowadays, we see the great importance companies place on being customer focus and market driven. The recognition that customer value drives profitability forces retailers to improve their products and services to meet clients' expectation. The major goal of retailers is to enhance the shopping experiences of customers by improving their distribution channels. This paper will look at the overall shopping experience of customers at Target Corporation and suggest specific steps on how these experiences can be enhanced. In order to do this, this paper would want first to identify the distribution channels that Target uses. The following paragraph aims to acquaint readers with the different "places" used by Target to market its products. Place is one of the four essential components of a marketing mix. Place generally refers to the distribution channel of business organizations. It is irrefutable that "place" had evolved over time due to different external factors in the business environment. From small shops, retailers now sell products through malls, hypermarkets, supermarkets, and department store. The popularity and the commercialization of the internet marked the proliferation of dotcoms. Online presence now allows retailers to sell and market products to customers with a mouse click. Thus, in considering the overall shopping experience of a customer in Target, both of these channels should be considered. 2. Target: Company Profile Target traces its root in 1902 when Michael Dayton opened a retail store called Godfellows in Downtown Minneapolis. From its humble beginning, the company is now the sixth largest retailer in the United States, lagging behind major players Wal-Mart, The Home Depot, Kroggers Sears Holding Corporation, and Costco. The company is also recognized as 27th on the list of Fortune 500 (Target Corporation 1). Target is typically viewed by customers as "having everything under one roof" as their products ranges from household goods, cosmetics, electronics, garments, books, grocery items. In order to enhance buying experience, Target retail shops usually brings together video rental store, pharmacy, portrait studio, one-hour processing lab, optical store, tire and oil change shop, and fast food outlets like Starbucks Coffee, Pizza Hut and Taco Bell. Unlike its competitors, the company recognizes itself not just a discount store but a discount department store by its more upscale store format and younger target market (Target Corporation 5). 3. Areas of Improvement Generally, customers who report excellent shopping experience at Target greatly appreciates the value brought about by lower prices, wide selection, and the convenience of finding everything under one roof. In terms of online shopping, Target is often complimented because of its website which is user-friendly and very easy to navigate. It should also be noted that Target delivers ordered products promptly, often sooner than its customer expects. However, as with other business organizations the shopping experience both on the Target's physical distribution channel and cybershop. 3.1 Customer Service One of the most common complaints of customers when shopping on Target's discount department stores and online stores is poor customer service. Customers report that the company's employees are less approachable, unaccommodating, and are sometimes rude. Others complain about the lack of employees to assist them in their purchases. In online stores, customers criticize the lack of knowledge of some of the customer representatives. This poor customer service largely contributes to the negative overall rating given by clients to the Target shopping experience. It should be noted that Target is not only providing tangible goods to its customers. The retailer is also extending intangible service. Thus, the company should not only focus on the provision of low-priced, chic, and trendy products but improve customer satisfaction by enhancing its customer service. It is recommended that Target makes the entire shopping experience-from the time the customer enters the premises of the company until he/she goes out-meaningful and satisfying. At the entrance of its stores, Target should assign personnel to greet customers and welcome them into the company's premises. It should also hire adequate employees in order to assure that all customers' questions and queries are addressed in the shortest possible time. It should also be made sure that each of the assigned sales personnel is knowledgeable about the products they are overseeing. Also, the company should shorten the length of queues for payment by hiring more cashiers and ensuring their efficiency. All in all, the company should extend a culture of courtesy, efficiency, and friendship to all its customers. In order to do all the recommendations shown above, the company should meet with all its employees in its physical distribution center as well as online store and stress their important part in the success and goal attainment of Target. These changes in policies and operations should be clearly communicated to each employee. Target should see to it that one dissatisfied customer is not only worth a $100 single but thousands of lifetime purchases. 3.2 Stocking Policy Clients have complained of the unique stocking policy being implemented Target. It should be noted that Target does not stock toys overnight but as they come in. Thus, action figures are randomly stocked during the entire day. Customers are put off because employees are not allowed to look for more stocks when they run out of it. Target also limits the per customer purchase of collectible items which brings dissatisfaction to buyers (Smart Shopping 1-2). Consistent with the quest of installing excellent service in the organization, Target should also modify this stocking policy. Stocks should be made available to customers to purchase an item. Limiting the availability of an item to a customer will consequently limit the revenue and profitability gains as well as negatively affect buyer's perception on Target. The retailer should always put the customer first. This means that they should always be given their wants and needs whenever they need it. 4. New Strategy The overall shopping experience in Target could be enhanced by implementing new strategies. This report will recommend three pronged strategy to be pursued. 4.1 Frequent Shopper Card It is recommended that a frequent shopper card be used introduced in the Target department store in order to cultivate customer loyalty. In contrast to its current Red Card, Target should launch another card which focuses solely on the purchases made on the retailer and should include products and services from video rental, digital studio, and others. The company can use this card in order to reward customers according to the purchases that they make within a year. Target can give customers 10% rebate at the end of the year. This way, customers won't be put off as there is no required quota on purchases in order for them to be rewarded. This action will not only benefit the customers but Target as well. As the purchases of customers are recorded, the company becomes knowledgeable of the type of goods that the customer purchase and can use for targeted marketing. With this information, the company can tailor a unique marketing tool like email and promotions for each customer. 4.2 Personalized Greetings and Promotion Customers are irrefutable fond of personalize service. Target can use this as a marketing tool in order to retain their customers. It is recommended that Target embark on a program which enables them to thank their customers and show its concern to them. Part of this program is personalized mail campaign which will send out greeting cards to customers on special occasions like Christmas, Valentine's Day, Mother's Day, Father's Day, and other important celebrations. This will show its customer their importance. Discount coupons can also be distributed together with the cards. However, this should not be done in order to make them buy a specific product. The tone should be to really appreciate their continued patronage. 4.3 Added Amenities In order to promote convenience in the shopping experience, Target should look at the different dilemmas of its shoppers. Since the company is focused in catering to relatively younger clientele, they are more likely to have needs which older customers don't. This report recommends adding the following services. 4.3.1 Day Care Moms shopping at any department store are usually bothered when her baby throws tantrums while shopping. It is also inconvenient for them to bring their kids along while searching items in a wide store. Recognizing this need, Target should devote small rooms for the kids to stay while mothers are shopping. It will also be nice if they can provide toys, coloring books, and others which will entertain kids. 4.3.2 Free Drinks Customers often get bored while queuing for payment or waiting for a cab. Target can extend more value by offering drinks to customers. During winter, customers may also appreciate a cup of coffee to keep them warm. 4.3.3 Internet Caf It is irrefutable that the internet technology has become an influential factor in the lifestyle of this generation. As the retailer's target market is the more educated and affluent customers, an internet caf where customers can check their mails will also enhance the shopping experience. Conclusion It is irrefutable that Target has done much in order to attract and retain customers. Its position in the retailing industry is a proof of this. However, the company should continuously try to improve its services in order to convey an excellent shopping experience to its clientele. The above recommendations should be considered by the company. Customers always determine the success or failure of a business organization. Thus, keeping them satisfied is a must. Works Cited Kotler, Philip. According to Kotler. 2005. AMACOM Books: New York "Smart Shopping." About.com. n.d. 4 August 2006 "Target Corporation." Wikipedia: The Free Encyclopedia. 4 August 2006. 4 August 2006 Read More