Strategic Marketing Management for Target Corporation in Singapore

This report outlines a one-year strategic marketing plan for Target Corporation to initiate its services in Singapore in 2019. It includes environmental analysis, marketing objectives, target market, marketing mix, financials, and more.

Running head: STRATEGIC MARKETING MANAGEMENT
Strategic Marketing
Management
August 6
2018

STRATEGIC MARKETING MANAGEMENT 1
Table of Contents
Introduction...............................................................................................................................2
Target Corporation..............................................................................................................2
Environmental Analysis......................................................................................................3
Porter 5 Force Analysis for Target Corporation..........................................................3
Marketing Objectives..........................................................................................................4
Target Market.......................................................................................................................5
Marketing Mix of Target Corporation................................................................................5
Products............................................................................................................................5
Price...................................................................................................................................7
Place..................................................................................................................................7
Promotion..........................................................................................................................7
Financials..............................................................................................................................8
Pricing Strategies............................................................................................................8
Marketing program..........................................................................................................8
Controls.................................................................................................................................9
Marketing Channel Control Strategies.........................................................................9
Distribution Strategies.....................................................................................................9
Mass communication Strategy....................................................................................10
Marketing responsibilities for long-term success......................................................10
Conclusion..............................................................................................................................11
References.............................................................................................................................12

STRATEGIC MARKETING MANAGEMENT 2
Introduction
It is simple to reach the targeted consumers, but various marketers lack the
capability to make convincing brands and accessible practices with significant
consequences. To comprehend the promise of big-data profits, leaders of marketing
have to claim their stake in a progressively loud brand background, track the goals of
the business against developing analytics and provide significant benefits to the
customers who desire human connection first (Darden Virginia, 2018). This report is
being designed to represent the one-year strategic marketing plan for the Target
Corporation to initiate its services in Singapore in 2019. The strategic marketing plan
will conduct the environmental analysis for the Target Corporation to highlight the
factors that can affect the business in Singapore. Besides this, it will discuss the
marketing objectives, target market, and marketing mix of Target Corporation.
Financial assumptions will also be projected in this report.
Target Corporation
Target Corporation is the second leading retailing department store of United States,
after Wal-Mart, and is a constituent of S&P 500 Index. George Dayton established
the business with headquarter in Minneapolis, Minnesota. The first store of Target
Corporation was opened in 1962 in Roseville, Minnesota. Initially, in the year 1902,
the company was named as Good fellow Dry Goods but in 1967, it was renamed as
Dayton Corporation (Corporate, 2018). In 1969, the company initiated its merger with
J.L. Hudsob Company and became Dayton-Hudson Corporation. In the industry the
company has gained huge success and started regarded as the cheap-chic player
and due to this in 2000, the parent company was renamed as the Target
Corporation. The general merchandise stores of the Company provide an edited
food variety, comprising dairy, frozen items, dry grocery, and perishables (Reuters,
2018). The digital channels of the company comprise a variety of general
merchandise, including a variety of items in its stores, with an assortment, like extra
colors and sizes sold only online (Target Brand, 2018).

STRATEGIC MARKETING MANAGEMENT 3
Environmental Analysis
Porter 5 Force Analysis for Target Corporation
Competitive Rivalry- High
Target Corporation will face huge competition with key direct competitors like Sheng
Siong, Dairy Farm's Cold Storage, and Fair Price; yet in the market, there are
numerous smaller retailers. These four key stores possess a dominant share in the
market of around 85%. The supermarkets in Singapore have a low level of
differentiation in the product. The sector of retail is increasing steadily but slowly.
The intensive competition can result in reduced sales and higher operating costs that
can be an adverse point for Target Corporation.
The threat of New Entrants- Low
The dominant supermarket chains cover around 85% of the overall share of the
market in Singapore; therefore, it is an obstacle for the new players to fulfil the
excessive requirement of the capital into the severe competition (Connaisance,
2017). A new player needs to attain the economies of scale, which is required to
compete based on cost advantage with the top players in the market. Hence, it is not
a simple obstacle to cross over.
The threat of Substitute- High
Convenience store chains like Cheers and 7-eleven are developing in the market.
They are vending FMCG (Fast moving consumer goods) such as soft drinks,
packaged food, and dairy products that are sold by department stores and
supermarkets, thus it is a substitute of the department store.
Customer bargaining power- High
Target Corporation may face strong competition from the customary retailers of
grocery like hypermarkets and supermarkets, and from non-traditional rivals like
convenience stores, and restaurants at petrol stations. Consumers have numerous
options when it comes to purchasing groceries. Whereas pricing is the key,
convenience also performs an important part in the groceries shopping. People also
prefer purchasing regular groceries from their neighborhood store of grocery or

STRATEGIC MARKETING MANAGEMENT 4
purchase drinks from the nearby convenience stores, in place of deliberately visiting
a department store or supermarket.
Suppliers bargaining power- Low
Due to the nature of the retailing business, the department store has to purchase
products from various suppliers and manufacturers. In the Singapore market, there
are various suppliers available that offer products to the supermarkets and
department store, which reduces the power of bargaining of the suppliers in the
market.
Marketing Objectives
Target Corporation conducts its business operations as a prosperous discount
retailer, a financial services entity, and as an online e-commerce store. All these
operations of the company succeeded in the market, but the target must create a
formal statement of vision and mission for the company. It will not just work as the
written goal but it will permit them to look how successfully they have encountered
their goals and attained their anticipated vision for the organization. Besides this, it
will help in creating brand equity in the market of Singapore.
For successful operations of the business activities in the Singapore market, Target
must expand its private label brands. One in five goods bought in a retail
establishment is called private label products. Today, Target possesses an
outstanding status in the market and it will be sensible to endure enhancing and
expanding business at different locations and markets. For example, they are
offering more consumables products in their stores; therefore they must expand their
items of food under their private label. This will definitely reduce the involvement of
external vendors such as suppliers of the Singapore market. The company can offer
coupons for people to try their goods.
Marketing Communications- In order to market the services in the Singapore
market, Target Corporation can make use of television, radio, hoardings, print media,
etc.

STRATEGIC MARKETING MANAGEMENT 5
Marketing channel- Target Corporation can make use of Wholesalers, and
suppliers to supply goods from the manufacturing units to the department store in
Singapore.
Target Market
Target Market is the directed customers to whom a business wants to sell its
offerings in the market. Target marketing comprises breaking the whole market into
different segments and designing marketing strategies or every segment in order to
grow the market share (The Economic Times, 2018).
Target Market 1: 93% of the shoppers of Target are women, it will make sense to
market their offerings in the population of the male. Men also like to shop and they
definitely desire to save some money.
For example, presently Target has a small sporting, automotive, and hardware
goods departments. They must air advertisements, targeted at men, representing all
these departments.
Target Market 2- The normal age of the shoppers of the Target Corporation is 41
years. As Target Corporation is a stylish, trendy place to shop, they should market
themselves among younger age groups.
For example, Company can run the advertisement in which it can cast a young
celebrity in order to attract the younger generations.
Target Market 3: Target Corporation can target the segment of lower income in the
Singapore market. Considering that the level of income is reducing, it will be a wise
decision for Target Corporation to market their offerings with the philosophy “Expect
more-pay less.”
Marketing Mix of Target Corporation
Products
Target Corporation offers a variety of products in its department stores like baby
equipment, electronics, luggage, fashion accessories for children, men and women,
fitness equipment, toys, outdoor sports equipment, home accessories, gift cards,

STRATEGIC MARKETING MANAGEMENT 6
seasonal and holiday items. Beside this, it also deals in pet supplies, entertainment
products, automotive accessories, consumables (food items), beauty and health
aids, jewelry, office and school supplies, etc.
Target Corporation also deals in some following services like pharmacy, super target
recipes, portrait studios, optical, target photo, target baby registry, health clinics, food
avenue restaurants, etc. (Target, 2011)
The product mix of Target Corporation involves its private label brands such as
Choxie, Embark, Archer Farms, ProSpirit, Target Limited Edition, Xhilaration, Circo,
Room Essentials, Kool Toyz, Trutech, Market pantry, Gilligan & O’Malley. They also
merchandise licensed brands comprising C9 by Champion, Cherokee, Fieldcrest,
Mossimo, ChefMate, Nick and Nora, Smith and Hawken, Waverly and Woolrich,
Eddie Bauer, Genuine Kids by Osh Kosh, and Simply Shabby Chic. Target
Corporation merchandises its offering through its own distribution channel or by third
parties.
All the stores of Target Corporation take care of the general amenities for its
customers. The company offers its services through an online platform and stores. It
is regularly enhancing its services through different partnerships, expansion, and
innovative ideas.
The customers in Singapore enjoy living a high standard of life and are very keen on
purchasing foreign products. Singaporeans are not just conscious about the brand
but are also cautious and loyal towards exploring substitutes. They prefer purchasing
new products but remain loyal to the familiar brand. They like to try new products
only after getting confident about its quality and services. The customers in
Singapore consider the quality, service, and price of the product while taking the
decisions of purchasing (Santander, 2018).
Considering the preferences of the customers of Singapore, Target Corporation can
sell its products because they are of good quality along with effective customer
service. Moreover, it also involves branded products that are preferred by the people
of Singapore.

STRATEGIC MARKETING MANAGEMENT 7
Price
Target Corporation charges a significant amount and offer-differentiated products
that have yet not been matched by any of the retailers in the whole industry. It offers
products at discounted prices. The business deals in the Target Visa card, which
permits consumers to purchase on credit. The policy of Packaging pricing of Target
Corporation offers a range of deals such as buy 2 get one free, and buy one get one,
etc. In the market, it competes with Wal-Mart stores and Amazon.com. Due to tough
competition, Target Corporation arrives in the market with a brilliant strategy of
pricing. The company is continuously putting its efforts to match its prices of the
products with the giant players in online retailing. It provides a discount for every
online purchase. Beside this, it also offers a discount on the shipping charges during
the holiday season.
In Singapore, online shopping has increased because of considerable population,
which is tech-savvy and most of the time look for different offers, and deals. Target
Corporation will definitely get boom and success in the Singapore market if it will
give more importance to its online dealings and customers.
Place
This is a very significant portion of the marketing process of Target Corporation. The
key goal of the company is to be a one-stop-shop for consumers. Target allocates
the huge majority of stock distributed to the stores by the distribution network. It
offers common merchandise by its Target stores, Website, and Target.co. (Bhasin,
2018)
Promotion
Catchy phrase of Target Corporation ‘Expect more, pay less’ majorly concentrate on
offering products with high quality and at low prices. The company has various
strategies for promotion, which comprise special offers, coupons, flyers, and
commercials. The business also depends on television and newspapers
commercials. Circulars of Target are supplied every week to around 50 million
households. It also posts weekly ads on the Internet. Target Corporation has an
online presence on YouTube, Twitter, Instagram, Facebook, and many other social
platforms. The company also believe in mailing and greeting their loyal guest about

STRATEGIC MARKETING MANAGEMENT 8
new offers or on special occasions. The business has executed various strategies of
promotion such as it has initiated the “Black Friday” strategy of promotion. Besides
this, it has also publicized a “10 Days of Deals” promotion, in which it provided
discounts on kitchenware, electronics, toys, etc. (MBA Skool, 2018)
The International Monetary Fund (IMF) ranked GDP of Singapore as the fourth
highest in the whole world. Credit Suisse recently presented a report in which it
ranked Singapore people as Asia's richest population. However, there is also some
level of inequality in the wages. In spite of enjoying high incomes, customers have
been unwilling to spend money because of the soft market of job and a sluggish
economy. This reflects that Target Corporation can invest in the Singapore market
as most of the population has good purchasing power and enjoy offers and discounts
offered by different businesses.
Financials
Marketing Budget Plan (2019)
Category Estimated
Quantity
Estimated
Cost per Unit
Estimated
Subtotal
Research
Research firm fees 2 $2,400.00 $4,800.00
Web research 1 $1,500.00 $1,500.00
Independent research 3 $600.00 $1,800.00
Research Costs Total $8,100.00
Communications
Promotional brochures 5,000 $0.15 $750.00
Television 4 $1,500.00 $6,000.00
Radio 8 $350.00 $2,800.00
Web 3 $1,000.00 $3,000.00
Communications Costs Total $12,550.00
Networking
Memberships 4 $300.00 $800.00
Affiliations 1 $500.00 $500.00
Subscriptions 3 $350.00 $1,050.00
Networking Costs Total $2,350.00
Event
Number of attendees 50

STRATEGIC MARKETING MANAGEMENT 9
Meal (breakfast, lunch, or dinner)
Food $28.00 $1,400.00
Tax (10%) $2.80 $140.00
Food and beverage gratuity (20%) $6.16 $308.00
Meal Costs Subtotal $1,848.00
Additional Costs
Invitation
(printing and postage costs) $1,560.00 $1,560.00
Company staff T&E $500.00 $500.00
Customer testimonial T&E $300.00 $300.00
Additional Costs Subtotal $2,360.00
Event Costs Total $4,208.00
Event Price per Person $84.16
Promotions
Product giveaways 60 $8.00 $480.00
Product discounts 450 $2.50 $1,125.00
Special offers 150 $2.00 $300.00
Promotions Costs Total $1,905.00
Advertising
Brochures (development and
production) 4,500 $0.15 $675.00
Mailings 2,500 $0.04 $100.00
Television 2 $710.00 $1,420.00
Radio 5 $450.00 $2,250.00
Newspapers 4 $250.00 $1,000.00
Billboards 3 $600.00 $1,800.00
Advertising Costs Total $7,245.00
Public Relations
Charity events 3 $250.00 $750.00
Advertising 3 $400.00 $1,200.00
Employee promotions 6 $300.00 $1,800.00
Sponsorships 3 $200.00 $600.00
Public Relations Costs Total $4,350.00
ESTIMATED MARKETING GRAND TOTAL $40,708.0
0

STRATEGIC MARKETING MANAGEMENT 10
Pricing Strategies
Penetration Strategy- In this strategy the price of the products is set preciously low
to quickly attain the market share. It is done at the time when a business is
established in the new market. It is known that the price of the products will be
increased once the advertisement time gets finished and the objectives of the market
share are achieved (Kotler and Keller, 2016). Target Corporation can make use of
this pricing strategy in Singapore because the market is very competitive and it will
tough to gain the market share, hence, this strategy will support in attracting
customers.
Marketing program
Target Corporation can make use of public relation strategy in order to promote its
offerings in the Singapore market. Public relation is the practice of spreading
information among people or an organization and the public (Bernays, 2013). Under
this strategy, Target Corporation can cast any famous celebrity who is famous and
have a good public image, in order to promote the offerings of the company.
Controls
Marketing Channel Control Strategies
Selecting Channel Members- For the effective management of the channel, Target
Corporation need to select talented members in the channel because consumers
consider channel as the main company. Manufacturers must choose what features
will differentiate the superior mediators and profit record, cooperativeness, financial
strength, and service status of a potential member of the channel.
Motivation and Training of Channel Members- It is a key responsibility of the
business to inspect its mediators in the similar way it examines its consumers. The
company has to identify the needs of the intermediaries and create such type of
offerings so that superior value can be offered to them. In order to get superior
performance form the intermediaries, the company needs to offer training and
programs of capability building (Civil Service, 2018).

STRATEGIC MARKETING MANAGEMENT 11
Distribution Strategies
Direct Distribution- This strategy is used when a business either directly delivers
the goods to the consumer or when the length of the channel is less the sends the
product to end customer or when the channel length is very less (Dent and White,
2018). A company vending on an e-commerce portal or vending by a modern retail is
also called as direct distribution. Target Corporation can select direct distribution
strategy for its private label brands and e-commerce business to deliver its products
to the end user.
Indirect Distribution- This strategy is used when goods reach to the consumer by
various channels in between. For instance- The product dispatches from the place of
the manufacturer to C&F, passes to the distributor, then to the market retailer and in
the end to the consumer (Bhasin, 2018). Thus, it is used for the long chain. Target
Corporation can make use of this channel as it deals in a different type of products
that are delivered by different suppliers.
Mass communication Strategy
Advertisement and Sales promotion can be used by Target Corporation in order to
promote its offerings and cover a large population of Singapore.
An advertisement is a form of visual or audio marketing communication that makes
use of non-personal message to promote the service or product in the market
(Watkins, 2012).
Sales Promotion strategy make use of both non-media and media marketing
communications for a determined, limited time to grow the demand of consumer,
encourage market demand or enhance product accessibility (Cummins and Mullin,
2010).
Marketing responsibilities for long-term success
All of the planned strategies will be implemented at the beginning of the next
financial years. The department of promotion, marketing, and advertisement will
exclusively manage all the activities with the exception of the statement of vision and
mission.

STRATEGIC MARKETING MANAGEMENT 12
April 28, 2019- The administration department, as well as directors, will work to
introduce new vision and mission statements.
30 April 2019- All the department of marketing will conduct a meeting in order to
discuss the potential marketing plan and goals to attain the new strategies of
marketing.
28 May 2019- Vision and mission statements will be summarized
June 3, 2019- The Department of marketing will represent their strong idea and it will
be implemented to attain the goals of marketing.
July 2, 2019 - The management of the company will finalize the marketing plan and
process will be started to promote the offerings.
Conclusion
Marketing plan supports the business in developing services and products that fulfill
the needs of the target audience. Effective marketing supports the consumers in
understanding why the service or product is better or different from the rivalry. The
above report has presented the strategic marketing plan for Target Corporation to
expand business in the Singapore market. From the above analysis, it can be said
that the people in Singapore have good purchasing power and can invest their
money in purchasing products from Target Corporation. Besides this, they like to try
new things with different offers and discount. It can be a positive sign for the
company as it offers various discounts on its offering such as buy 2 get one free.
Moreover, the company should majorly focus on its online website to offer products
to the people of Singapore. In the end, a marketing budget has been presented for
the company.

STRATEGIC MARKETING MANAGEMENT 13
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