Putting your market right on target

Ogilvy Cape Town MD, Mike Abel says: "Target's fresh, funky ads, innovative marketing tactics and designer partnerships have made the brand into a media darling. The brand is one of living imagination and is arguably the best retail case study in the world."

After only four years, Francis and his team have developed a brand with a red and white bulls-eye icon that is recognised by more US shoppers than the Nike swoosh. In a retail field that Wal-Mart has all but mowed down, Target has achieved revenues in excess of US$48 billion for 2004. Francis attributes bottom line profitability largely to the establishment of this brand.

Francis says: "Our brand position is simple but radical and has made our business synonymous with top quality, high fashion items at affordable prices.

"We needed to claim a different audience - one that responded to style but would also beat down the door to pay less. Target's payoff line 'Expect More. Pay Less' relays just that to its audience, but has avoided the discount store trap of cheap advertising.

"No-one is doing the type of guerilla marketing we are doing. We simply did not look like every other retailer. Target's advertising style is fun and fresh, and doesn't mention price: the brand association was automatically achieving this."

So how does Target continue to live up to a brand promise where it encourages its guests to expect more? According to Francis, the key is to generate great loyalty and always broaden your target audience. In recent times messaging has been extended to teens, new moms and empty nesters.

A significant key to Target's past and future success hinges on generating what Francis referred to as the 'buzz factor', which amplifies the message. Buzz is related to a multi-media strategy, which includes philanthropic projects.

Target is rated as USA's most philanthropic corporate, giving 5% of pre-tax profits to charity. Target's community programmes are well known in the USA and include the 'Start Something' programme, which is endorsed by Tiger Woods, pro bono.

'Target House' is a home away from home for families whose children undergoing long-term hospital treatments. Through this programme, parents can stay near their children whilst they are in the St Jude's Children's Home.

Target's campaigns have achieved a balance between developing a brand that is associated with expecting more in life, as well as paying less for things you want. Examples of pure discount-related campaigns include "See Spot Save" TV campaign.

Spot (or Bulls-Eye Dog) is the Target mascot, a white bull terrier whose one eye is covered by the Target bulls-eye icon. This fun campaign featured various products on promotion - all items received no less than 35% increase in sales as a direct result of the campaign.

From a retail perspective, the cornerstone of the brand remains Sunday newspaper inserts. Francis said the single most important tool for marketers is to maintain contact with your guests. Target has invested significant marketing budget in direct mail and has a database that is able to customise mails based on consumer buying patterns.

When asked who targets Target, Francis stated that the brand has to re-invent itself every year: "We plan campaigns a year ahead. This gives us time to fine-tune and move in a new direction if anyone is going to imitate us."