Marketing and Management

This report provides a brief overview of the marketing aspects of the company Target Corporation for their expansion in Saudi Arabia. It includes SWOT, Porter, PESTEL, and other strategic analysis of the company. The report also talks about the ways to maintain customer relationship in KSA. The target market, marketing mix, and consumer decision-making process are also discussed.

Running Head: Marketing and Management
Marketing and Management

Marketing and Management 1
Contents
Introduction.................................................................................................................................................2
Background of the Organization..................................................................................................................2
Mission....................................................................................................................................................2
Vision.......................................................................................................................................................2
Business Objective...................................................................................................................................2
Product and Types of Services.................................................................................................................3
Marketing Plan............................................................................................................................................3
Target Market..........................................................................................................................................3
Marketing Mix.........................................................................................................................................3
SWOT Analysis.............................................................................................................................................4
Micro-environmental Analysis.....................................................................................................................5
Porter’s Five Force Analysis.....................................................................................................................5
Macro-environmental Analysis....................................................................................................................6
PEST Analysis...........................................................................................................................................6
Key Activities to Make Customers Relationships and Maintain Customer Sales.........................................7
Consumer Decision Making Process............................................................................................................7
Marketing Research for Better Decision......................................................................................................7
Evaluation of Market Segments...................................................................................................................8
Value Proposition........................................................................................................................................8
Steps in the Best Development Process for New Products..........................................................................8
Conclusion...................................................................................................................................................9
Reference....................................................................................................................................................9

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Introduction
Business expansion is an important activity which should be initiated by all organization present
in the environment. This aspect helps the companies to grow and compete with other
organizations present in the environment and gain competence as well. After successfully
establishing the business in home country, the organizations should go for expansion in other
countries as well. The purpose of this report is to provide a brief overview of the marketing
aspects of the company Target Corporation this organization is aiming to expand their business
in Saudi Arabia. The organization want to open their discount store in that area, the company is
formerly based in USA and is now aiming for expansion. The below mentioned report provides
details of SWOT, Porter, PESTEL, and other strategic analysis of the company. It also talks
about the ways to maintain customer relationship in KSA (Kingdom of Saudi Arabia). More
details about the task are discussed below:
Background of the Organization
‘Target Corporation’ is a discounted retail store based in United States of America. The company
is placed among largest retail stores present in the international market. Further, the organization
holds second position in this industry after Walmart. Target Corporation was introduced by
George Dayton in the year 1902; also the company is headquartered in Minneapolis, Minnesota.
Currently, the company is initiating their business activities in US where it has opened 1834
retail outlets as well. The company mainly targets the needs of young customers and image-
concerned shoppers (Target Corporation 2014). And now, the company is proposing new plans
for expansion in KSA. Saudi Arabia can be regarded as a good option for the company to grow
and expand sales as there is large target market in that area. Further the mission, vision and
objectives of Target Corporation of Saudi Arabia are discussed below:
Mission
In KSA, the company aims to initiate high quality, trendy merchandise at reasonable prices in
large, open and clean customer-friendly retail stores. The purpose of the company opening their
store in Saudi Arabia is to make their organization first choice of people for shopping in retail
stores.

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Vision
The vision of the organization states that they want to commit to their customers to provide high
quality products at low prices. The company has developed promises to community,
environment and society to provide greatest value (Target Corporation 2014).
Business Objective
As it is noted that Target Corporation is the second largest retail store based in America. So, the
organization aims to provide everyday fashionable and essential, differential merchandise at
affordable and discounted rates to the people of Saudi Arabia. Further, the organization also aims
to initiate customer-oriented activities that solely focus on their needs and preferences in the
products and services offered by them in the market.
Product and Types of Services
Target Corporation Company in Saudi Arabia will initiate their business activities by offering
differential products to customers at discounted prices in the market. The organization serves
different types of the products like household essential, food and pet supplies, grocery, baby
care, dairy products, beauty products and paper products etc. Apart from these products, the
company will also provide retail services in the market like target sourcing service, financial
services etc. Under the financial services sector, the company will issue credit card to the people
of Saudi Arabia (Target Corporation 2018).
Marketing Plan
In order to organize the business activities in Saudi Arabia, the company Target implements a
plan that includes all details that can help the company to grow and sustain their activities in new
market. Further, the strategies of marketing plan are discussed below:
Target Market
The target market of the company is the retail market of Saudi Arabia. As the company is
providing high quality products with extraordinary value at discounted prices in the market, so
the purpose of the organization is to target people who can easily attain the products offered by
the company. The fact should be noted that Arab is a country where there is high poverty ratio, it
should be noted that the company should offer their products and services to people who cannot

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buy high prices range products. They aim to offer them these products at low rates in the market
(Almutairi, et. al., 2015).
Further, the customers are segmented in KSA on the basis of demographic, psychographic,
behavioral feature of customers. The main target audience of Target Corporation is listed below:
 Males and females
 Middle Age Group: 25- 45
 Middle or lower income level people
By, targeting the above mentioned prospective customers, Target Corporation can easily create
and implementing marketing strategies that are listed below:
Marketing Mix
Product
In the country KSA, Target Corporation will provide products to the customers at discounted
prices. Different sections of the stores are mentioned below:
 Furniture
 School and office supplies
 Grocery
 Fitness products
 Personal Care products
While other services provided by the company are financial services, pharmacy services and
outsourcing services. The organization aims to offer good quality products so as to easily gain
advantage of diversification in the market of KSA.
Price
As discussed above that the company is targeting middle and lower income level people, so they
aim to initiate pricing strategies in such a way that they attain greater level of satisfaction at
lower prices. The company aims to used discounted pricing strategy to serve the products and
services in the market of KSA. The company will target prices existing retailer of KSA then the
provide products at discounted prices to the customers (Jin, B., Almousa, and Kim 2018).

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Place
Under the process of business expansion, the company will create a distribution channel in major
part of KSA. Target Corporation will initiate an extensive distribution network that properly
supplies the products and services in the market. These products will be directly delivered to the
end users through the retail stores and online websites.
Promotion
With the use of effective promotion strategy, the company aims to communicate its mission and
vision statement in the market of KSA. This will enhance the advertisement strategy, also the
company will provide offline and online media. The company will also make use of print media
to effective promote the name of the company in the target market. Further, Target Corporation
aims to align with various online websites like Flipkart to attract the online customers. Further,
to attract the customers and retain them, the organization uses the strategy of providing gift cards
to them and personally contacting them after sales (Ansari, and Qadri 2018). Thus, the above
mentioned attributes will help the company to easily target the customers present in Saudi
Arabia.
SWOT Analysis
Strengths
 Low Cost Model is the major aim of the organization that will enhance their market
activities.
 Strong brand image of the organization is another strength
 The organizations fulfill its commitments that are, Expect more, Pay less.
 Diversified range of products and services will attract more and more customers in the
new target market.
Weakness
 Less people know the name of the company in the market of Saudi Arabia and other
internal markets that act as a drawback for the company.

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 Higher cost of training is implied in the process of human resource management, as
people do not have enough knowledge of this field.
The company is being accused of not performing various employment related laws properly in
the organization (Abunar, S.M., Ali, M., Fazelrabbi, and Ismail 2016).
Opportunities
 Target Corporation gains the opportunity to open their retail stores in different parts of
Kingdom of Saudi Arabia.
 Also, the organization can bring diversification in its products. For instance, they can
sustainable seafood and organic food.
Threats
 The organization can face tough competition in Saudi Arabia due to presence of already
established retailers in the market.
 The company will be a new entry in the retail sector of Saudi Arabia (Hendrikse, Cliquet,
Ehrmann, and Windsperger 2017).
Micro-environmental Analysis
Porter’s Five Force Analysis
Bargaining power of buyer
There is presence of low bargaining power in the hands of customers in the market. As there is
presence of limited organizations in retail sector and relative high customer demand that gives an
advantage to companies and reduces the power of customers in the market. Also, the
organization retain its customers by providing high quality products at low prices in the market
(De Bel-Air 2014).
Bargaining power of supplier
There is presence medium level of power in the hands of suppliers in the retail sector. As the
government of Arab control the production and supply of raw material of food in the retail

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market resulting to which, it becomes difficult for the suppliers to demand higher from the
organization. Also, all suppliers provide similar price of products in the market which
subsequently decreases their power.
Threat of new entrants
Threat of new entrants is relatively low for the company in Saudi Arabia. Retail is an industry
that requires huge capital investment along with qualified human resource that can organize the
activities of business. Apart from that strong brand image is also a requirement for the sales of
the retails stores in market. So, it become very difficult to enter in the market compete with such
branded corporations (Al-Khatib, Dant, and Vitell 2015).
Threat of Substitutes
There is presence of medium level threat in case of substitution of products and services in the
market. All the retails stores offer similar kind of product with similar prices so the customer can
purchase the products from any of the organization. But, people wish to shop from nearby
departmental stores rather than super market.
Industry Rivalry
The retail industry of Saudi Arabia is very warm and vibrant where around 63% of Middle
Eastern region import their food from Saudi Arabia. This makes the country highly competent in
the food production and supply industry. The biggest competition of Target Corporation in Saudi
Arabia would be Almarai Company. Further, competition is moderate in this sector and many
companies do not have strong image like Target Corporation (Kadasah 2017).
Macro-environmental Analysis
PEST Analysis
Political: In the Kingdom of Saudi Arabia, the government plays a crucial role in business
market. The government of the country has developed a business friendly regulation that helps
the businesses to establish their branches in Saudi Arabia. The favorable political conditions
instigate business people to invest in this country.

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Economic: Talking about the economy of Saudi Arabia, it should be noted that the company has
earned a significant growth due to supplying oil at high prices in worldwide. Oil is the major
asset of the country on the basis of which the GDP of the country depends. Thus, such favorable
conditions can help the business of Target Corporation to grow excessively in the market
(ADHRB 2017).
Social: KSA is a country with lowest poverty rate that shows that people in this country do not
hold enough cash in hand. Thus, if the organization will provide low rate products and services
in the market then they can easily earn revenue.
Technological: The Company can use the social media sites to approach to people.
Technological advancement is an important tool that helps a business to grow (Randheer, and
Al-Aali, 2015).
Key Activities to Make Customers Relationships and Maintain Customer
Sales
In US, the company is successfully building relationship with people, as they know that the
customers are the lifeblood of a business. Also, it should be noted that retail sector only works
when the customers prefers the services of the company. So, with that respect the organization
aimed to initiate personal interaction with people of KSA and acknowledge them about the
services rendered by the company. The satisfied the requirements of the customers and provided
them gift cards as well. This increases the customer loyalty as well. Further, the relationship can
be easily maintained through follow up and after sale services (Ezzi 2016).
Consumer Decision Making Process
The company initiates decision only after analyzing all the internal and external market
conditions. So, Target Corporation adequately identifies the requirements of the customer
present in the market and then they identify the alternative needs of the retail products. This will
help the company to adequately satisfy the customers. The company hires employees of Saudi
Arabia only who can understand the needs of the customers and satisfy them properly. Further,
they solely focus on the expectation of customers and aim to provide those products and services

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accordingly (Alam, and Elaasi, 2016). Lastly, feedback and response are the two most important
after sale activities organized by the company.
Marketing Research for Better Decision
Market research is an important tool that helps the organization to enter in the market and
effectively make a change in that market as well. Proper analysis will help the company to
oversee the risks and opportunities and work on them effectively. Research will also help the
company to evaluate the demand of products and services prevailing in the market (Verdin, and
Tackx 2015). With this, it will become easy for Target Corporation to identify the target
audience and focus on them as well. This aspect will help the organization in better decision
making process as with this effect they will easily get knowledge about the market in which they
are going to enter and its various attributes.
Evaluation of Market Segments
Many factors present in the environment can help the Target Corporation to choose the best
customer segment for them. First one is the market potential that includes the number of
customers, their income, needs etc. Competitive situation also helps an organization attaining
customers (Laszlo, and Cescau 2017). The company should target the lower and middle income
level people for better sales of their organization.
Value Proposition
The organization lays emphasis on their mission and vision statements and provides services
accordingly. ‘Expect more and pay less’ according to this motive the organization provides lower
price, high quality products. Fashionable and differentiated products are offered at differentiated
prices to increase the value proposition (Womack, and Jones 2015)
Steps in the Best Development Process for New Products
The organization initiates many activities to manage their products and services. Their focus is
on keeping top selling products like paper towels, detergent, and diapers on the stores every time.
Effective supply chain system is designed to attain products from distributors in a cost effective

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manner. The organization also try to avoid the situation of no stock or excess stock at stores
(Kavadias, Ladas, and Loch 2016). The company determines further, new product development
following goal:
 Evaluation of customer perception towards innovation of company
 Review of market segment for generation of better ideas for development
 Testing products with customers in crowd
Implementation of innovation in production process (Pollitt 2016)
Conclusion
Thus, in the limelight of above-mentioned events, it should be noted that target Corporation is a
fast growing retailer present in the international market. Now, the company is aiming to expand
in Saudi Arabia that gives them advantage to increase the customer base. Further, the above
analysis explains external and internal analysis and marketing plan that can support the company
in properly accomplishing their establishment in new market.
Reference

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Abunar, S.M., Ali, M., Fazelrabbi, M. and Ismail, H., 2016. A Study of State of Food Retail
Supply Chain in Saudi Arabia: A Conceptual Framework. Engineering Management
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ADHRB, 2017, Overview: Poverty in Saudi Arabia, Americans for Democracy & Human Rights
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Al-Khatib, J., Dant, R.P. and Vitell, S.J., 2015. Marketing and Economic Development: the
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