Marketing Plan for Target Corporation in Saudi Arabia

This marketing plan outlines the vision, mission, and business objectives of Target Corporation in Saudi Arabia. It includes a SWOT analysis, micro and macro environmental analysis, market research, and evaluation of market segments.

Marketing Plan 1
Marketing Plan

Marketing Plan 2
Contents
Introduction.................................................................................................................................................3
Description of the company.........................................................................................................................4
a. Vision..............................................................................................................................................4
b. Mission............................................................................................................................................4
c. Business objective...........................................................................................................................4
d. Product and type of services............................................................................................................5
Marketing plan............................................................................................................................................5
Target market..........................................................................................................................................5
Marketing mix strategies.........................................................................................................................6
Swot analysis...............................................................................................................................................7
Micro environmental analysis......................................................................................................................9
Porter’s Five Forces Analysis..................................................................................................................9
Macro environmental analysis...................................................................................................................10
PEST Analysis.......................................................................................................................................10
Mutually beneficial relationships with customers and maintain customer sales........................................11
Consumer decision processes....................................................................................................................12
Market research for making better decision...............................................................................................13
Evaluation of market segments..................................................................................................................13
Value propositions.....................................................................................................................................14
Managing of existing products and Steps in the best development process for new products...................14
Conclusion.................................................................................................................................................17
References.................................................................................................................................................18

Marketing Plan 3
Introduction
Business expansion has the benefit of revealing the business to the wider audience. Customers
are the key of success in operating a successful company. Various market aspects will be
included in this report about the Target Corporation. Target Corporation has developed its
business operation in various countries, now it is planning to expand its business in Saudi
Arabia. The main aim of this research is to set up the vision, mission and business objectives for
Target Corporation, Saudi Arabia. The marketing plan and SWOT analysis will be helpful for the
company to expand its business in Saudi Arabia. Furthermore, macro and micro environmental
analysis are carried out by using various strategic frameworks. Various significant points related
to Target Corporation in Saudi Arabia are involved like customer decision making process,
activities to enhance the customer relationship and evaluation of market segments.

Marketing Plan 4
Description of the company
Target Corporation is the second-largest discount store retailer in the United States. It stands at
the second position in the industry after Wal-Mart. The organization was founded by George
Dayton in the year 1902. Target operates 1,834 stores throughout the United States currently
(Target Corporation, 2014). It is expanding its operation in Saudi Arabia to increase its revenue
by selling. The vision, mission and objectives of Target Saudi Arabia are given below:
a. Vision
The vision of Target Corporation is to fulfil the needs of customers and “Expect More, Pay Less”
is the commitment of this company.
b. Mission
The mission of Target Corporation in Saudi Arabia is “to make Target the preferred shopping
destination for its guest by providing them great services with continuous innovation (Farafan,
2017).” By opening the store in Saudi Arabia, the aim of the company is to increase the sales of
the store and make it preferable for all the shoppers of Saudi Arabia.
c. Business objective
Target Corporation is the second largest American retailer and mass merchandiser that want to
expand its business by providing everyday trendy and basics, unique merchandize at discounted
prices. The target of the company is to become the customer oriented in Saudi Arabia. It will be
determined on essentials and demands of customer that what products and services should be
operate in the market of Saudi Arabia.

Marketing Plan 5
d. Product and type of services
Target Corporation Saudi Arabia will offer various products and services at discounted retail
store. The goods categories of organization include hardliners, pet suppliers, groceries, home
furnishing and decor, apparel and accessories and household essentials. The services categories
of organization involve target optical, photo centre, in-store pick up, walk-in-clinic, and Target
RED card and portrait studio.
Marketing plan
Marketing plan will be created by Target Corporation with including target markets and
marketing strategies for expanding its business in Saudi Arabia. The target market and marketing
strategies are described below:
Target market
Target Corporation is defining itself as discounted store in the retail market of Saudi Arabia. It
offers various varieties in products and services with higher quality at discounted prices. It has
been found that the poverty rate in Saudi Arabia is low which shows that the people of that
country can prefer to buy things at discounted prices. Different characteristics will be considered
such as demographic, behavioural and psychographic by Target Corporation in targeting people
of Saudi Arabia. The target audiences for Target Corporation in Saudi Arabia will be lower and
middle income people, both males and females and medium age group i.e. 25 to 45 years old.
After targeting the people of Saudi Arabia, Target Corporation will focus on marketing mix
strategies to improve the sales of the company. It is mentioned below:

Marketing Plan 6
Marketing mix strategies
Product
Target Corporation will offer a variety of products and services in Saudi Arabia at discounted
prices. The products of company are mentioned below:
 Beauty products
 Furniture
 Jewellery
 House wares
 Apparel
 Books
 Footwear
 Baby care products
 Fitness products
Financial services, pharmacy services and sourcing services will be provided by Target in Saudi
Arabia at discounted price.
Place
Target Corporation will develop its distribution centre in developed city of Saudi Arabia. It has a
strong delivery network that facilitates in supplying products to its retails outlets with the help of
distribution centres. The products and services of the retail store will be reached directly to the
end customers without creating any mediator (McDonald, and Wilson, 2016).
Price

Marketing Plan 7
The pricing strategy of the company will be made after considering the lower and middle income
people. The products and services will offer on discounted prices so that the people of that
country can afford deliberately. The pricing strategy will be evaluated with the prices of existing
retailer in Saudi Arabia.
Promotion
Target Corporation will use effective advertisement strategies to promote its retail outlet in Saudi
Arabia. It will give the advertisement to online as well as offline media. It will adopt the above
the line (ATL) and below the line (BTL) promotional policies to enhance its customer base. It
will increase its partnership with Amazon and other online websites to increase the online selling
in different part of the Saudi Arabia (Bhasin, 2018).
Swot analysis
The SWOT analysis of Target Corporation is defined below:
Strength  It will offer broad range of products
and services in Saudi Arabia.
 It operates 1,834 stores throughout the
United States currently.
 The company has effective brand
image.
Weakness  The presence of the company is limited
in Saudi Arabia and other international

Marketing Plan 8
market.
 The cost of training program will be
higher due to hiring of employees
(Target Corporation, 2015).
 The company need to follow various
laws as per Saudi Arabia.
Opportunity  The business of Target Corporation can
be enlarged in various cities of
Kingdom of Saudi Arabia.
 New sales channel like same day
delivery and smaller neighbourhood
stores can increase the sales volume of
the company.
Threat  The company has to face the
competition from existed retails store.
 Different laws and culture can be the
threat for the company (Jin, Almousa
and Kim, 2018).

Marketing Plan 9
Micro environmental analysis
Porter’s Five Forces Analysis
Bargaining Power of customers (Low)
The bargaining power of company is lower because of fewer operations in retail industry in
Saudi Arabia. The company is providing higher quality of services and products to retain its
customers.
Bargaining Power of Suppliers (Moderate)
The Saudi Arabia’s government has control on the raw materials of food and retail goods which
moderate the bargaining power of suppliers. The company will tackle the bargaining power of
supplier by creating efficient supply chain with various suppliers (FernFort, n.d.).
Threats of Substitute Products or Services (Moderate)
The threat of substitute’s products and services is moderate as people of Saudi Arabia can buy
daily needs things and other retails products from theory nearby store. The company can tackle
this situation by understanding the core need of the customers.
Threats of New Entrants (Low)
The threat of new entrants of company is low as the brand image of the company is quiet good. It
would not be easy for other competitors to enter in this industry to match the standard of Target
Corporation.
Industry Rivalry (Moderate)

Marketing Plan 10
The retail industry of Saudi Arabia is energetic and approx 63% food of Middle East imports
from the Saudi Arabia that make the country as a leading player in the food industry. Almarai
Food Company is the major competitor of Target Corporation. It indicates that industry rivalry is
moderate as there are no strong player in this filed.
Macro environmental analysis
PEST Analysis
Political
The role of government in Kingdom of Saudi Arabia is vital in the businesses. The business
friendly regulation has been initiated by government of Saudi Arabia that would be advantageous
for the Target Corporation in the country.
Economical
The economy of Saudi Arabia is of capitalist economy. Globalization has facilitated to develop
the Saudi Arabia economy widely by carrying in thousands of workers, products and services
from all over the world (Jaiswal, 2016). Target Corporation can enhance more opportunities of
employment in the country.
Social
The lowest poverty rate has been found in the country of Saudi Arabia in the world. The poverty
rate of this country is 12.7% which is low (ADHRB, 2017). Target Corporation is offering
various products and services to the middle as well as lower income level population. It would be
beneficial for the company to increase its sales by providing merchandises at discounted prices.

Marketing Plan 11
Technological
Technology has developed day by day in every industry and advancement in technology can help
the Target Corporation to lead the company’s operation in an effective manner. There are various
social media sites that facilitate to approach the customers from various places (Yüksel, 2012). The
population of Saudi Arabia has the largest users of mobile phone, internet and satellite.
Mutually beneficial relationships with customers and maintain customer sales
The relationship with customers of the operation of Target Corporation in United States is
superior. The company understand the value of the customers that is why it provides super
quality in products and services to the customer and resolves their query of them as soon as
possible. The customer will be approached by social media sites under this business expansion
(Guesalaga, 2016). The mutually beneficial relationship with customers can enhance by
understanding the needs and demands of the people of Saudi Arabia. The organization will make
personal relationship with regular customers through sending new updates by email. In addition,
the relationship with customers can be empowered by making them valuable and cherished. The
staff of the company will be friendly with the customers and help them to find and tell about
their desires products in retail stores (Ingram, LaForge, Williams and Schwepker, 2015). Target
Corporation will send a link of thank you and keep shopping via email to the customers so that
they can stay loyal to the company. By following this ways, Company will be able to enhance
the sales and make the better relationship with customers in Saudi Arabia (Rani, 2014).
In addition, Target Corporation will take the feedback from the customers in a softcopy forms by
using tablets after their shopping. Discounted prices of products and sales of the old product are

Marketing Plan 12
the best technique to maintain and enhance the sales in Saudi Arabia. The retail store will offer
the gifts on certain amount of shopping to the customers who come for shopping first time.
Consumer decision processes
Different process will be analyzed by Target Corporation under customer decision making
process. The five step of customer decision making process is defined below:
Need recognition
Target Corporation will recognize the needs of the population of Saudi Arabia and act
accordingly. It will be helpful for the organization to attract those customers who look out for
retail products such as baby care, healthcare products, body fitness products, grocery and many
more (Tsuchiya et. al., 2016).
Search for information
After analyzing the needs of the customer, organization will search for the alternative retail
products to the customers. The store keepers will be able to resolve the query of the customers
regarding products (Cheung, Shen, Lee and Chan, 2015).
Consider the Consequences
This step helps to review the benefits and drawbacks of the different options. The number of
retailers is less in Saudi Arabia which enables Target Corporation to take decision in an
appropriate manner.
Make Your Decision

Marketing Plan 13
After evaluation of consequences, Target Corporation will make final buying decisions regarding
products. The company will offer various products and services at discounted price to the people
of Saudi Arabia.
Evaluate Your Decision
After making the final purchasing decision, Target Corporation will evaluate the decision by
applying the feedback process. It will assist company to fulfil the needs of the customers.
Market research for making better decision
Target corporate will conduct market research for making effective decision in which it will
incorporate brand awareness, customer retention, customer acquisition and target audiences
(Babin and Zikmund, 2015). These components help company to analyse the needs of the
customers so that it can provide them at discounted prices to the targeted audiences. Brand
Awareness facilitates Target Corporation to analyse the image of company in the view of people
of Saudi Arabia (Veloutsou, 2015). Products and services at discounted prices will help to
acquire new customers in which team of company will find out the needs of products at lower
rates by customers. Market research will contribute to the ability of the company to recognize the
customer demographics and target demographic (Vida, 2015).
Evaluation of market segments
The evaluation of market segments will be done by considering the range of consumers, their
income levels and requirements towards retail products. Customer segments can be analyzed by
Target Corporation in Saudi Arabia in the competitive situation. The company can enhance the
sales in an appropriate manner without carrying the operations away from competing brands

Marketing Plan 14
products. It would be helpful to deal with the situation of less potential customers in Saudi
Arabia. The company can consider the lower and middle income people as the targeted market
by providing them products at lower prices.
Value propositions
The company will build an effective value proposition by considering the target market in
Kingdome of Saudi Arabia. Target Corporation focuses on the pricing strategies to deliver value
its customers. Everyday basics and fashionable merchandise will offer by company to fulfil their
commitment of expect more (Target, n.d.). Value proposition will define the reasons behind
purchasing the products and services of Target Corporation in Saudi Arabia.
Managing of existing products and Steps in the best development process for new products
Target Corporation, KSA will manage all of their products and services in an effective manner
by focusing on daily needs things and for this it will create an effective supply chain which helps
to provide the daily need things on time before out of stock. The team of the company will be
trained to manage the stocks of the organization in written and by adopting latest technology so
that the situation of excess stocks and out of stocks can be avoided.

Marketing Plan 15
Figure 1: New Product Development
Source: (Stark, 2015).
The above mentioned steps will be helpful for the Target Corporation to develop the new
products in the company. These steps are mentioned below:
 Initially, company need to generate new ideas about the development of new products.
 In the second step of idea screening, company need to pick good ones and drop poor ones
ideas immediately.
 Attractive ideas must be developed in the process of Concept development and Testing
(Vahlne and Johanson, 2017).

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 The description of the target market is covered under marketing strategy development.
 The review of the sales, costs and profit projections are considered under fifth step.
 The R&D department will expand and analysis one or more physical description of the
concept of the product.
 The amount of test marketing essential differs with each new product (Claessens, 2015).
 Commercialization is the final step of new product development process.

Marketing Plan 17
Conclusion
It can be concluded that Target Corporation is one of the biggest retailer in United States that
provide products and services at discount prices. This report has been made on expanding its
business in Saudi Arabia. It has been analyzed that the external environment in KSA will be
advantageous for the company. The marketing plan has been mentioned with considering various
points which will be helpful for Target Corporation in expanding business in Kingdom of Saudi
Arabia. Hence, it can be concluded that Target Corporation should enhance its business in
number of countries.

Marketing Plan 18
References
ADHRB, 2017, Overview: Poverty in Saudi Arabia, Available from: . Accessed on 11th April,
2018.
Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.
Bhasin, H. 2018. Marketing Mix Of Target – Target Marketing Mix. Available from: . Accessed
on 11th April, 2018.
Cheung, C.M., Shen, X.L., Lee, Z.W. and Chan, T.K., 2015. Promoting sales of online games through
customer engagement. Electronic Commerce Research and Applications, 14(4), pp.241-250.
Claessens, M. 2015. The New Product Development Process (Npd) – Obtain New Products.
Available from: . Accessed on 11th April, 2018.
Farafan, B. 2017. Get Target's Mission Statement. Available from: . Accessed on 11th April,
2018.
FernFort, n.d. Target Corporation Porter Five Forces Analysis. Available from: . Accessed on
11th April, 2018.
Guesalaga, R., 2016. The use of social media in sales: Individual and organizational antecedents, and the
role of customer engagement in social media. Industrial Marketing Management, 54, pp.71-79.
Ingram, T.N., LaForge, R.W., Williams, M.R. and Schwepker Jr, C.H., 2015. Sales management: Analysis
and decision making. Routledge.
Jaiswal, S., 2016. Pestle Analysis of Saudi Arabia. Available from: . Accessed on 11th April,
2018.

Marketing Plan 19
Jin, B., Almousa, M.O. and Kim, N., 2018. Retailing amid regulation and religion: The unique
cultural challenges and opportunities facing market ventures in Saudi Arabia. Journal of Cultural
Marketing Strategy, 3(1), pp.70-81.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from
them. US: John Wiley & Sons.
Rani, P., 2014. Factors influencing consumer behaviour. International journal of current
research and academic review, 2(9), pp.52-61.
Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume 1)
(pp. 1-29). Springer, Cham
Target Corporation, 2014, Target 2013 Annual Report, Available from:
Target Corporation, 2015. SWOT analysis of Target Corporation. Available from: . Accessed on
11th April, 2018.
Target, n.d. Value Proposition. Available from: Accessed on 11th April, 2018.
Tsuchiya, J., Skorobogatykh, I.I., Weitz, B., Oh, H. and Singhe, R., 2016. Modeling links
between the decision-making process and luxury brand attachment: An international
comparison. Global Branding and Country of Origin: Creativity and Passion, p.5.
Vahlne, J.E. and Johanson, J., 2017. The internationalization process of the firm—a model of
knowledge development and increasing foreign market commitments. In International
Business (pp. 145-154). Routledge.

Marketing Plan 20
Veloutsou, C., 2015. Brand evaluation, satisfaction and trust as predictors of brand loyalty: the
mediator-moderator effect of brand relationships. Journal of Consumer Marketing, 32(6),
pp.405-421.
Vida, I., 2015, Retail Expansion into International Markets: The Case of United States Retail
Chains. In Proceedings of the 1998 Academy of Marketing Science (AMS) Annual
Conference (pp. 502-503). Springer, Cham.
Yüksel, İ., 2012. Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and
Management, 7(24), p.52.