Target Australia: Brand Positioning and EDLP Model

TARGET AUSTRALIA

TWO PROBLEMS
Brand Positioning
• Target Australia has confusing
positioning strategy as its product
portfolio is occupied with range of
diverse products. Moreover, the product
portfolio has products even those not in-
demand (News.com.au, 2019).
EDLP Model
• The “Everyday Low Price (EDLP)” model is widely followed by
department retailing brands. Kmart, another subsidiary unit of
Wesfarmers has particularly been pretty successful with EDLP model.
• Target, on the other hand, has not been effective with EDLP because
of many reasons.
• The list of reasons include higher inventory management cost,
unnecessarily large product portfolio, ineffective brand positioning,
etc.
(News.com.au, 2019)

BUSINESS ANALYSIS
Vision, Mission,
Values and
Objectives
• Mission: To be the most preferred brand for the
community in which it operates. They want to become
the most loved department brand in the country
• Vision: To offer the products under the “everyday low
price segment” to the middle-income groups
• Values: Offering range of items in the most effective
pricing bracket. Target wants to satisfy customers
under all age brackets
• Objectives: Offering quality products under a
competitive price range and acquiring a leadership
position in the EDLP segment (
Target.com.au, 2019)
Strategic Planning
Process
• Target is in the department retailing industry
• The industry is majorly dominated by four
major brands
• It is important to know whether Target has
been able to sustain its competency
(Target.com.au, 2019)
SWOT analysis
• Large number of stores is a positive aspect for
Target
• Product portfolio is unnecessarily very large
• Brand image is pretty confusing
• Inventory management cost is on a higher side
• Market competition is extensively high
• Target faces competition from Kmart, Big W and
Myer
(Target.com.au, 2019)