Target's Pricing Strategy

Target Corp. categorizes the prices of its products into several factors including:
According to Kahle, the current economic condition of the US significantly influences the price of the products the company provides to its customers. The price of goods is also influenced by the rate of unemployment in the nation and therefore Target will lower or increase the prices of its products as compared to the rate of unemployment in the US. The second factor that influences Target’s pricing strategy is demand and supply. The demand of both the existing and potential customers will always influence the price of goods in the store. In addition, the shortage or surplus of raw materials such as vegetables, wheat, fruits, and cotton among others will affect

According to Kahle, the company advertises in the newspapers in the areas where the stores would be located and in the national carriers to create an awareness of the company’s entry into the market. The company places adverts in the Sunday newspaper of major cities across the US and uses this repetition of viewing these adverts by the consumers to reinforce the company objectives to the consumers. Target also promotes its products and services through various sports including the US NASCAR (Sides, 2004). The company places advertisements in national and local TV stations in the US to promote its products. in an effort to reach a wide variety of customers especially the millennials who are social media users, the company has focused its marketing attention on digital marketing strategies. According to Mahoney (2015), Target Corp., has collaborated with social media companies such as Instagram, Facebook, and Pinterest to market their products to the most engaged social audience. In addition to these advertisement methods, the company is focusing on other strategies such as public relations to promote its products. For instance, Target sponsors minor league sports, charity events as well as many other items in the community in order to highlight the company’s good will and caring

As a result, the company has stores all across the US that provide for a diverse group of people. The retail company operates in 47 states across the US including an online retail store, which provides more convenience to the customers (Sides, 2004).The company is currently operating more than 26 regional distribution centers and has in place five warehouses for importing raw materials. The company also has an online shop Traget.com in which it offers its customer an online shopping experience. Good are normally transported from the different warehouses to the stores through the company trucks. On the other hand, items are shipped directly to the customers from the online distribution center through standard shipping options. Customers a normally receive their products with 1- 2 days which are the standard shipping