Target is an American retailing company that was founded in Minneapolis Minnesota in 1902. It has since then become one of the United States largest discount realtors that is ranked high on the Fortune 500. So what exactly makes Target so successful, and recognized around the country? Ever since the new advertising campaign that began in the early 1990’s, the Target stores have seen a drastic increase in sales (something was really working!). It was these unique and memorable television, magazine, and billboard advertisements that helped to shape the Target image, and set this brand apart from all others. Over the past few years however, a drastic shift has taken place amongst the advertising world…and that is the focus to reach consumers online.
Clearly the advertising campaign for Target has already been working, but there is always room for improvement to help this company stay competitive, not only with the more traditional forms of advertising but the online ones as well. Two of the major challenges that Target is faced with today is the depleting economy (which causes problems when it comes to steep prices for advertising) and stepping out of their traditional target market to reach a younger (and highly product oriented) age group. With this downward economic trend the goal is to create a “campaign cocktail” that is both beneficial for the company and consumer.
A “campaign cocktail” essentially means an effective and up-to-date mix of advertisements and marketing for a specific brand; in this case, Target. One of the main components of this cocktail, that will help Target reach out to younger consumers is the use of online social media. The two main outlets that we will be focusing on are Facebook and Twitter (which are both a continuously growing source for brand recognition). With these outlets, customers will be able to obtain a more interpersonal way of keeping “in touch” with Target. By creating a company Twitter account, the promotion of sales, store events, and new merchandise is easily accessible, as well as cost efficient. Facebook as a wide array of benefits, one of the major being Targets ability to promote (such as the holiday page seen on the slide). Moreover, these outlets are selectively exposed, and are accessible to the consumer 24/7.
The second component to the “campaign cocktail” is the use of Google AdWords. AdWords is a highly cost efficient way to advertise online. With the pay per click function, it allows Target to pay for only the consumers who are clicking on the advertisements (thus actually viewing them)! Another tool that Google AdWords has to offer is the keyword search function. This means that by specifying certain words that people search on Google, the results will direct them towards Target.
The third and final component of the campaign is the integration of previous and more traditional forms of advertising with the newer online forms. It is with this mix that you achieve the perfect “cocktail” that will prove to be not only effective, but profitable as well. Achieving this mix will make people more aware of the Target brand…because of the variety of different advertising outlets.
How will the success of this new campaign be measured? FEEDBACK! With online outlets, it is even easier for Target to receive direct feedback from its consumers. With this feedback, along with a public relations team, it will be easy for Target to stay on top of suggestions, trends, and customer satisfaction. There will also be online surveys and contests for customers to win Target gift certificates, which is an incentive. There will also be a specific focus on holiday season months, as this is a prime time for Target to promote deals and savings for budget conscious consumers.
Target is already known for their outstanding in-store customer service, but what about reaching online customers? With today's technology it is easy for customers to be in direct contact with a Target representative in the comfort of their own home, via online. Question boards, chats, and even SKYPE is a great way for Target customer service personnel to be in touch with customers who may have questions, concerns, or suggestions. Also, store events that are advertised online ONLY that invite customers to come into their local store for a meet-n-greet (while also offering sales) is a great way to obtain direct feedback.
The budget for this campaign will take the previous traditional advertising campaign and cut that cost by 1/3. The remaining money will be placed towards the online campaign, improving its costumer outreach and accessibility. The proposed online budget (including meet and greets as a result of online advertising) will be around $50,000 depending on region and predicted target sales. Another outlet that will be added into the budget is philanthropic events.
It is important to stress Targets continuous philanthropic efforts (as this gains extremely positive brand recognition). The Target Bullseye dog is an icon that is widely known and associated with the Target name, so if Target sponsors various different award shows, and charity events where celebrities attend, it is another effective outlet to gain customer viewing and support which leads, ultimately to more sales. It is the integration of all campaign components, with a heavy focus surrounding newer online components that will help to improve Targets overall profitability.
