Target Corporation: A Robust Entry in the United Kingdom (UK)

Target Corporation: A Robust Entry in the United Kingdom (UK)
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Executive Summary
Target is a leading retail chain store in the US, with approximately 1,950 physical stores in more than 50 states. The company has 55 supply chain facilities and revenue of USD106 billion. The COVID-19 outbreak introduced a paradigm shift in the global retail industry. However, a notable improvement is observed in the British market. British households expressed discretionary spending behavior and price sensitivity since the pandemic due to the 17% inflation rate. Brands like Tesco, Sainsbury’s, Asda, and Morrison’s have the most market share, titled the Big Four. The environmental scanning further indicated that the British government strictly regulates environmental laws, data protection, and privacy rights, bounding companies to strengthen infrastructure. Target is proposed with a robust marketing objective for FY2024. The company will enter through Greenfield Investments to build a strong network and brand relevance in the UK. Target must monitor the paradigm shifts and align promotional strategies to operate sustainably in the British retail industry.
Table of Contents Executive Summary. 2 1. Introduction. 5 2. Environmental Analysis. 5 2.1 PESTLE Analysis. 5 2.1.1 Political 5 2.1.2 Economic. 6 2.1.3 Social 7 2.1.4 Technological 7 2.1.5 Legal 8 2.1.6 Environmental 8 2.2 Porter’s Five Forces. 9 2.2.1 Bargaining Power of Buyers – Strong. 9 2.2.2 Bargaining Power of Suppliers – Moderate. 10 2.2.3 Threats of New Entrants – Strong. 10 2.2.4 Threats of Substitutes – Strong. 11 2.2.5 Industrial Rivalry – Strong. 11 3. Market Entry Strategy. 12 4. Initial Marketing Strategy. 12 4.1 Marketing Objectives. 12 4.2 Segmentation, Targeting, and Positioning (STP) 13 4.3 Marketing Mix. 14 4.3.1 Product 14 4.3.2 Price. 14 4.3.3 Promotion. 15 4.3.4 Place. 15 5. Conclusions. 16 6. References. 17 7. Appendices. 21 List of Figures Figure 1: GDP Speculations in the UK.. 20 Figure 2: 17% Inflation Rate in the UK – Highest since 1980. 20 Figure 3: Opportunities to Capitalise for Overcoming GDP Deficit until FY2023. 21 Figure 4: GDP Deficit of GBP71.6 billion. 21 Figure 5: E-Commerce Sales in the UK.. 22 Figure 6: FinTech Usage in the UK by Specialised Segments. 23 Figure 7: Emerging Household Spending Trends in the UK.. 23 Figure 8: British Household Spending Trend on E-Commerce Retail 24 Figure 9: Retail Store Market Share in the UK.. 25
Target Corporation: A Robust Entry in the United Kingdom (UK)
1. Introduction
This report aims to create a marketing strategy and examine the environmental viability of Target Corporation (Target) in the United Kingdom (UK). Target was founded in 1902 by George Draper Dayton in Minneapolis, Minnesota. Target is a leading American retailer that offers customers general merchandising and food assortments. The portfolio includes perishable goods, fast-moving consumable products (FMCGs), dairy items, frozen goods, clothing, accessories, and genera...