Target's Point-Of-Purchase Case Study

906 Words4 Pages

within a matter of a few seconds with the widespread use of new smartphone technologies. New technology has caused issues in some cases as the U.S often has more regulations and higher required employee compensation. Which can lead to businesses in other countries receiving more business online from U.S consumers for their lower price on goods. With coffee being a global commodity, Target must be proactive with price harmonization in the national and global market place. Without this concept being employed Target will fail to create a high turnover rate within their coffee category, leading to a non profitable category and lingering perishable inventory. If Target finds that there are many sellers and producers in the market place beating their …show more content…

If implemented successfully, Target would make it easier on themselves in terms of marketing and understanding why consumers buy certain items. Implementing this strategy will also increase sales, increase customer satisfaction, and add value to external/internal stakeholders. By using the Point-of-Purchase effectively a retailer will be able to increase sales on their product. In the instance of Target, coffee sales will increase because the quantity sold will increase. A Point-of-Purchase videotaping system is able to watch and understand why customers buy certain items or types of coffee. An example of this would come into play if Target looked at which demographics were buying different types of coffee. An example of this would be if a older age group buys for example Folger’s coffee more than Starbuck’s coffee.The Point-of-Purchase videotaping would easily be able to identify these demographics for the managers of the retail store. By doing this and marketing to specific customer needs sales will increase because the consumers will purchase the item they were already looking for in a crowded