Marketing Management Analysis and Strategies for Target Australia

This report provides a comprehensive analysis of Target Australia's marketing management. It begins with an overview of the company and the Australian retail industry, highlighting Target's position as a mid-priced departmental store. The report then applies the 5Cs framework (Company, Collaborators, Customers, Competitors, and Context) to analyze both internal and external factors influencing Target's business. It examines the company's strengths, weaknesses, opportunities, and threats, as well as its customer base, collaborators, and competitive landscape. The report also details the context, including political, economic, social, and technological factors. Furthermore, the report explores market research and market intelligence techniques employed by Target Australia to gather information about its market environment, including customer needs and competitor analysis. Finally, the report discusses the development of marketing strategies, including target market selection, value proposition, and positioning, and concludes with an overview of marketing tactics based on the 4 Ps of the marketing mix (Product, Price, Place, and Promotion), aiming to enhance Target's brand image and competitive advantage in the Australian retail industry. This report is a contribution to Desklib, a platform offering AI-based study tools for students.

Running Head: MARKETING MANAGEMENT 1
Marketing Management: Target Australia

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Table of Contents
Introduction......................................................................................................................................3
Issue 1: Company and Industry Overview.......................................................................................3
Issue 2: 5 C’s for Target Australia...................................................................................................4
Company......................................................................................................................................4
Strengths...................................................................................................................................4
Key Resources..........................................................................................................................5
Weaknesses..............................................................................................................................5
Opportunities............................................................................................................................5
Threats......................................................................................................................................5
Customers.....................................................................................................................................5
Collaborators................................................................................................................................6
Competitors..................................................................................................................................6
Context.........................................................................................................................................6
Political factors.........................................................................................................................6
Economic factors......................................................................................................................6
Social factors............................................................................................................................6
Technological factors...............................................................................................................6
Issue 3: Market Research and Market Intelligence..........................................................................7
Issue 4: Developing Marketing Strategy.........................................................................................8
Choice of Target Market..............................................................................................................8
Value Proposition.........................................................................................................................9
Positioning Statement for Target Market.....................................................................................9
Issue 5: Developing Marketing Tactics...........................................................................................9
Product.........................................................................................................................................9
Price...........................................................................................................................................10
Place...........................................................................................................................................10
Promotion...................................................................................................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

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Introduction
Marketing management is the process to evaluate, plan, implement and to control different
programs which are designed to bring the desired exchanges with the targeted customers for the
objective of mutual and personal benefits. This process includes different marketing and strategic
aspects which assist an organization to improve its business operations and enhance brand image
among a large population (Goworek and McGoldrick, 2015). The major objective of this report
is to include different marketing aspects for the chosen organization i.e. Target Australia.
Target Australia is one of the most popular retailers in Australia that is using the logo of Target
Corporation. This report is focused on different aspects of marketing management in context of
Target Australia. It includes the discussion about different internal and external factors which
can impact the growth and success of business. These factors are analyzed by using 5Cs
framework of marketing. Moreover, it includes the marketing research process that can be used
to gain the information about 5Cs components. At the end, report discusses marketing strategies
and tactics for the company by using 4 Ps of marketing mix. These strategies will assist the
organization to establish a strong brand image and attain more competitive advantage in
Australian retail industry.
Issue 1: Company and Industry Overview
Target Australia is mid-priced departmental store that is owned and operated by Wesfarmers Ltd.
Australia. Currently, the chosen company is operating its business by establishing more than 300
stores and it is headquartered in North Geelong, Victoria. Target Australia is operating its
business in Australian retail sector. As of 2017, the total revenues of retail industry were $20
billion that indicates the increase in the past figures. The organization offers a wide range of
products and services like toys, cosmetics, consumer electronics, electrical equipment etc.

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(Source: Target Australia, 2017)
To operate its business in Australia, Target Australia has taken the right to use the logo from
Target Corporation United States, but it is owned by Wesfarmers Ltd. It was established in 1926
by George Lindsay and Alex McKenzie (Target Australia., 2017).
Currently, it is operating 183 retail stores and 125 county stores all over Australia. It is offering
its services by targeting the middle level market and emphasizing on the quality and value. With

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a significant growth and revenues, the company is enjoying a good market position in the
industry. Target Australia is running its business operations with the mission to make quality,
fashion, style more affordable for the whole family. It is a popular retailer that offers the best
value and quality of products. In addition to this, it supports different communities and fulfills its
duties and responsibilities towards its staff, suppliers and customers. The company changes its
slogan time-to-time considering its marketing campaigns and promotional activities (Target,
2017). According to its current marketing strategy, the slogan is “Higher Quality, Lower Prices”.
For its products and services, Target Australia adopts societal and marketing orientations
because it emphasizes on the needs and preferences of customers and adopts a low cost model
for providing the products with excellent quality at reasonable prices. Under its strategic actions,
the online store of company has played a crucial role in approaching a large customer base. The
organization is able to offer the low cost benefits to its targeted audiences due to its prices.
Branding plays an important role in the Target’s marketing strategy because it assists the
organization in increasing its customer base and develops brand loyalty towards its products and
retail services (West, Ford and Ibrahim, 2015). Developing a brand for the company is assisting
both the customers and employees to create a win-win situation.
Issue 2: 5 C’s for Target Australia
The 5C framework is an environmental analysis on the basis of five key areas which are
applicable to the marketing decisions of company. It covers micro-environmental, internal and
macro-environmental factors (Hakala, 2015). These 5Cs are company, collaborators, customers,
competitors and context. 5Cs for Target Australia is given below:
Company
Strengths
 Target Australia has a strong brand image in Australian retail sector.
 It offers a wide range of products like consumer electronics, home appliances, toys,
cosmetics, clothing etc.
 Low cost model of Target Australia is its biggest strength.
 It has developed good relationships with its customers and it provides them a better
shopping experience.

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Key Resources
As a leading retailer, Target Australia owns various significant resources which assist the
organization to operate its business smoothly. The company owns both tangible and intangible
resources like retail outlets, skilled workforce, leaders, staff, environment at stores and brand
image of the organization, corporate culture, and excellent guest services. These are the major
resources that support the operations of Target Australia.
Weaknesses
 The company faces intense competition from other leading retailers in Australia like
Woolworths and Coles.
 Hiring more employees will cause higher training costs to the organization.
 The company has limited brand presence in the global retail market (Target, 2017).
 Low cost model can stable its revenue growth as compared to its competing brands.
Opportunities
 Target Australia has opportunities to expand its business in international markets.
 It can enhance its brand image through brand awareness programs.
 It can use the product development strategy to compete with the rivals.
Threats
 It is facing fierce competition from leading retailers like Woolworths, Coles and David
Jones (Low, 2016).
 There is an increase in the number of e-retailers.
 The changes in taxation policy and increased tax rates threatened the business of Target.
Customers
Target Australia is targeting its customers on the basis of demographic and psychographic
variables of market segmentation. It is attracting the customers based on their income level, age
and their interest. Considering them, it is attracting the people from middle income group and
age group of 20 to 50 years old people (Payne, Frow and Eggert, 2017). In addition to this, it
considers that customers are showing that they are very conscious about product quality,
environmental and health concerns. The company is making efforts to satisfy the customers via
unique products and great value.

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Collaborators
Target Australia is one of the retailers that work with its suppliers by developing a closed
partnership. Suppliers play an important role in the business of this company. The organization
considers its suppliers as its business partners who assist it in supplying the products to the
marketplace. In addition to this, it is using them to increase its profits and revenues. Thus, it has
established strong relationships with its collaborators so that it can provide great quality, great
value and great style of products to its customers (Hakala, 2015).
Competitors
As mentioned above, the chosen company is facing intense competition in Australian retail
industry such as Woolworths, Coles, David Jones, K-mart, Wal-Mart etc. For this firm, the threat
of new entrants is low as it needs higher capital investment to introduce a retail business.
Moreover, higher operating expenses are decreasing the attractiveness of retail sector. Entry of
foreign brand can affect the business growth of Target Australia (Knox, 2015).
Context
Political factors
In Australia, changes in the overtime rules and regulations are affecting the retail industry.
Changes in the taxation policies may affect the business operations of Target Australia. The
organization needs to develop good relationships with foreign nations. It may have effects of
tariffs, trade restrictions and taxation (Rothaermel, 2015).
Economic factors
Australia is an emerged economy and living standard of its population is high. The economic
state of this nation is favorable for Target’s growth. The products which are offered at its retail
stores are proposed to sell to lower and middle levels of society.
Social factors
The people in the country prefer to shop at Target’s outlets as it offers the products on more
affordable prices. It is providing an excellent shopping experience that attracts customers
towards this. It is making investments in the community programs as well.
Technological factors
In the country, technological environment has become very advanced and people are actively
using social media sites. The company is using social media like Facebook, Instagram to interact

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with customers (Parker and Justine, 2016). Adoption of modern technology will assist the firm to
enhance its customer base.
The above C’s framework shows different internal and external factors which can affect the
growth of Target Australia in the country.
Issue 3: Market Research and Market Intelligence
There are different techniques which are used by Target Australia to collect the information
about its external and internal factors under 5C framework. The major techniques, used by this
company are market research and market intelligence. Market research is an effort by the
organization to collect the information about the customers or targeted market. Under the
business strategy, it is an important component. Moreover, market intelligence is the data that is
related to the markets of a company that is collected and evaluated specifically for the objective
of accurate decision making to determine organizational strategy. Target Australia is using these
techniques to analyze the external and internal environment of the company. The above 5 C’s
analysis assists it in evaluating the market environment because it provides wide-spread
information (Keller and Kotler, 2016). By using the market research technique, Target comes to
know about its collaborators, competitors, customers and its environmental factors. Under this
process, first the company makes efforts to understand the needs and demands of customers by
arranging the questionnaires and surveys. Under this process, company has emphasized on its
targeted audiences and organized a survey. It assists the company to understand the needs and
preferences of customers towards retail products. Through this, it finds out that Australian people
prefer to purchase the products on reasonable prices. To understand the rivalry, Target Australia
is conducting market research on internet and social media so that it can know about the other
firms in the sector (Weinstein and Pohlman, 2015). It can analyze their social media marketing
strategies from their social media pages.
Moreover, it is enquiring the customers about other retail outlets, from where they are buying
their grocery products currently. In addition to this, suppliers are also assisting the company to
collect the data about the possible competitors. By reviewing the legal and government
regulations, the company can assess the changes in the business environment of the country. It
may confront the changes with the development in technology (Reyhle and Nicole, 2014). Under

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market intelligence, the company is considering the investor’s report and annual reports of other
companies so that it can understand the factors which may impact the growth of organization.
These factors may be legal, social, political and technological factors. Thus, the company can use
the process of market intelligence and market research that gather, analyze and interpret the data
about market, business environment and products which are to be offered in the Australian retail
market. In addition to this, the company will be able to have the information about the past and
possible customers for retail products (Kotlar and Armstrong, 2012). These processes support the
Target Australia to evaluate the customers’ characteristics, spending habits and needs and
preferences of targeted audiences.
Issue 4: Developing Marketing Strategy
From the above analysis, it can be stated that Target Australia is performing well with its current
market strategies, but still there is a scope to adopt new and innovative strategies which can
improve its performance in Australian retail sector. The marketing strategies are divided in the
three parts i.e. choice of an appropriate target market, effective value proposition and an
effective value proposition (Payne, Frow and Eggert, 2017). The company can develop its
marketing strategies considering the below points:
Choice of Target Market
As mentioned above, Target Australia is offering its products and services as trendy and
discounted retailer among Australian customers. It offers the products with excellent quality,
great value and an entertaining place to shop while saving the customers’ money with lower
prices. As per a research, 20% of the customers of Target are loyal to the organization. In this
group, females are more active than males (Price, 2016). This study indicates that most of the
customers are enticed towards lower and discounted prices of Target Australia. The company
targets its customers considering different characteristics like demographic, behavioral and
psychographic. Under demographic characteristics, it will target the people on the basis of their
income and age i.e. middle and lower income level people and 20 to 50 years old respectively
(Lynn, 2011). Primarily, it will make focus on the females. From the past history of the
company, it can be stated that 84% of the customers are females at Target. It is a mid-priced
store so it is very important to focus on the lower income level people. For an organization, it is
essential to select a target market so that it can offer them directly. Thus, the company plans to

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target the people who cannot afford the shopping at costly grocery stores. The company can
enhance its market share by using its low-cost model and mid-priced strategy.
Value Proposition
Value proposition is an obvious statement which explains how the products of company fulfills
the needs of customers, enhances their situation and provides specific benefits. This statement
tells the customers that why should they buy the products of this particular company. Target
Australia should develop an effective value proposition for its products and services (Pantano,
2014). It should be emphasized on providing an exceptional value to targeted audiences. The
value proposition of Target Australia should include creative thinking, leadership via products
and services and promise to save the customers’ money so that they can live better life. The
company surpasses its value by developing effective relationships with its suppliers and
customers. The value proposition of the company should show its lower-priced strategy
(Osterwalder, et al, 2014). It can use more effective slogan i.e. “Expect More, Pay Less”. This
attractive value proposition will assist the company to grab the attention of a large population.
Positioning Statement for Target Market
Positioning statement of a company expresses how its products can meet the needs of customers.
Each and every organization uses an effective positioning statement so that it can develop
positive perception of customers towards its products and services. Target Australia should
position itself as a discounted and quality retailer. It can use a positioning statement that
indicates that company can save their money on grocery products. It can make their life better
and easier. In the Australian market, Target Australia should position itself as an iconic retailer
that is dedicated to make the quality, style and fashion reasonable for the entire family (Kipley &
Jewe, 2015).
Considering the above marketing aspects, the company can develop its marketing strategies and
tactics which can improve its future performance in retail industry.
Issue 5: Developing Marketing Tactics
Product
Target Australia offers daily essentials to the Australian customers which have continuous
demand in consumer market like:

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 Household items and consumer electronics
 Furniture
 Toys
 Fitness and sports items
 Entertainment products
 School and office supplies
As major customer segment of the company covers female group, so now it should develop its
product range by including women products such as footwear, jewelry, food products,
accessories, beauty care products etc. It should motivate the customers to buy the products for all
family members from one shop. In addition to this, the company should provide the excellent
quality products and use attractive packaging so that it can attract more customers (Davari and
Strutton, 2014).
Price
Current pricing strategy of Target Australia is very good and effective so it has a strong position
in Australian retail industry. Now, the company should provide the combo packs and discounted
offers so that people can save money on their shopping. Moreover, it should arrange sale on
some of its product range in the festive season. In the country, percentage of middle income level
is higher than others so organization should continue to use its low cost model with the excellent
product quality (Khan, 2014). In addition to this, the company should give the option to do the
payment through letter of credit that will be profitable for both company and its targeted
customers. In this process, Target Australia can earn the interest on late payment from
customers.
Place
Currently, Target Australia is serving the Australian customers only, now it should expand its
business operations to other nations. It should develop an extensive distribution network so that
it can approach more customers. Along with the urban areas, the company should offer its
products to the rural areas also. It can open more grocery and retail stores in the Australia and
other countries. Moreover, it should provide the products online and encourage the suppliers in
an effective manner so it can reduce the delivery time and shipping costs of products. To
enhance its brand image, the company can establish the strategic partnership with already

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established retailers in the country like David Jones, K-Mart etc. This improved place strategy
will help Target Australia to attain more competitive edge over its competing brands (Huang and
Sarigöllü, 2014).
Promotion
Promotion is one of the most important parts of the company’s marketing strategies and tactics.
It is a marketing strategy that includes different processes like sales promotion, personal selling,
public relations and advertising. By using this strategy, Target Australia will be able to
communicate its brand message to the targeted audiences. Under its promotional strategy, the
company should use both online and offline modes of advertising.
In addition to this, it should collaborate with different e-retailers such as Flipkart, Amazon.com,
eBay etc. Under offline media, it can give the advertisement in newspaper, magazine etc.
Moreover, it can contact with its regular customers through direct text messages and e-mails. The
promotional campaign should be attractive that can communicate the schemes and saving deals
to its customers. It should provide the weekly circulars in Australian states (Hackley and
Hackley, 2017). Thus, the company should think smartly while making investment in
promotional and advertising processes.
In this way, Target Australia should adopt the above-mentioned marketing strategies so that it
can stay competitive in Australian retail industry.