MKTG Course: Marketing Plan for Target Corporation in Saudi Arabia

This report provides a comprehensive marketing plan for Target Corporation's expansion into Saudi Arabia. It begins with a description of the company, including its vision, mission, and business objectives for the Saudi Arabian market. The marketing plan details the target market, marketing mix strategies (product, place, price, promotion), and a SWOT analysis. The report also includes micro and macro environmental analyses using Porter's Five Forces and PEST analysis frameworks. It discusses building mutually beneficial relationships with customers, consumer decision processes, market research, and the evaluation of market segments. Furthermore, the report addresses value propositions and the management of existing products, along with steps in the new product development process for Target Corporation in Saudi Arabia, aiming to establish a strong market presence and customer loyalty.

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