Exotic pencils are a unique set of writing materials in their design and operations. Incorporating simplicity in use and complexity in appearance makes the pencils stand a chance to fetch high revenues at Target Corporation, a global retail store. Due to the variety of stationery merchandise handled at the company, exotic pencils face massive competition from the existing pencil varieties, which enjoy reputation and customer loyalty. To gain recognition in the market, strategic marketing opportunities such as customer relationship management (CRM) and product improvement would be critical in promoting exotic pencil’s global recognition.
Overview of the Company
Target Corporation is a big box store that houses a variety of merchandise, ranging from groceries to pharmaceutical products in the United States. Founded in 1902 by George Dayton, Target is the seventh-largest retail store, with its success attributed to its unique marketing strategy (Safiullin et al., 2020). Target Corporation has had substantial historical success since its sales rose to $200 million in the 1970s, six decades after its emergence (Safiullin et al., 2020). The exponential rise in revenues was attributed to the high number of stores that operated across the United States. In its significant growth, Target Corporation uses the acquisition strategy, which includes buying rival stores to complement it. The already established stores bring their customers and reputation to the firm, a move that has seen Target Corporation grow in its market operations.
Potential Product Explanation of Exotic Pencils
Exotic pencils are multipurpose writing material with unique writing and erasing capabilities. The multipurpose stationery product is a creative tool designed explicitly for artwork and writing, which is different from ordinary pencils in structure and function. The link in exotic pencil is made of permanent lead, a component that makes its artwork conspicuous and lightfast (Chochole, 2022). When drawing and making portraits, the smooth train in pencil improves the contrast, hence the quality of the drawings.
Exotic pencils also have an anthracite grey box, which houses various colorful graphics. The graphics replace the ordinary silver metal tin, which provides a single color, giving the user a complete package. Additionally, the pencil provides an array of colors, making it economical to purchase over an ordinary pencil. Packaging is a critical part of the marketing of a product since it reflects the product’s branding. New Luminance 6901, a sample of an exotic pencil, is packaged in bright boxes with an explicit feature description (Chochole, 2022). On the back end of the pencil is the Alchemix rubber. The rubber, made up of fused elements in the periodic table, leaves no stain whenever erasing the written surface.
Market Needs for Exotic Pencils
Market needs are general or specific and primarily depend on customer preferences. Several strategies are employed to identify specific customer demands and adjust, either in product specifications or demand, to meet them (Walker & Mullins, 2014). The market needs exotic pencils to be functional, social, or emotional. For exotic pencils, the customers have specific requirements on the product’s specifications, prices, and demand, considering the high number of substitutes in the market.
The central goal of the exotic pencils is to make writing and artwork more comfortable and superficial. The exotic pencils have unique features in their design, such as the Alchemix rubber and a permanent lead tip which attract customers better than other brands. However, the pencils have unmet demands, which increases the product’s risk of neglect (Chochole, 2022). At Target Corporation, market demand for the exotic pencil arises from artists, students, architects, and children, who use pencils for professional, academic, and entertainment purposes. The clients pose functional needs based on the exotic pencil’s relative performance. The customer’s purchasing power, buying patterns, financial capabilities, and distribution of pencil products dictate functional needs.
Target Corporation is the ideal retail store to deal with the distribution demands. Its stores are evenly distributed across the United States of America (Eades et al., 2020). Based on the exotic pencils, the problems identified due to the lack of exotic pencils include poor quality artwork. To curb the shortcomings in the drawing quality, an alchemic rubber, which is smooth and clean, easily erases the ink, providing a quality artwork solution. The alchemic ink, made of elements in the periodic table, makes the pencil unique and uplifts its user’s social class (Eades et al., 2020). Earning a position at Target Corporation makes the pencils gain a good reputation, making the users feel socially satisfied and increasing their demand for their products.
Market Growth for Target Corporation
In its effort to achieve growth at Target Corporation, Exotic pencil needs to look into the opportunities in the market. Since competition is a critical part of an organization, market penetration, development, and product development strategies are critical to the growth of exotic pencils. Target Corporation provides the initial opportunity for a product to be seen globally. However, the presence of highly competing products prompts various developers to devise strategies to stay afloat in the market.
Market penetration is a crucial strategy for exotic pencils to increase demand and improve sales as high-quality writing material. The exotic pencils must be produced in high volumes, which would necessitate their availability in all the retail stores (İnanç Baykur, 2022). The pencils’ total market share should be identified, and equal volumes of the products manufactured to match the demand to achieve the desired market growth.
Market penetration development is risky since it includes product modification, innovation, and supply chain strategy. To achieve a successful entry into the market, product profitability is critical. Reducing the cost of production through economies of scale would help exotic pencils fetch higher revenues at Target Corporation than its competitors (Walker & Mullins, 2014). Losses are expected during market penetration and development of a particular product. The distribution of exotic pencils to the retail store should be done efficiently, prioritizing the areas of demand to reduce the wastage losses.
Brief Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis of Target Corporation
Due to its scale in operation, Target handles a wide variety of merchandise in its stores. The store’s goods, which include pharmaceutical products, groceries, furnishings, and food and beverages, increase the chances of customers shopping with the corporation over its competitors. Target Corporation enjoys a significant market share since it operates in all counties in the United States. The vast operating diameter promotes loyalty and attracts high- and low-income earners to their stores (İnanç Baykur, 2022). Partnerships with other companies have improved Target Corporation’s market growth, increasing its revenues. For instance, partnering with CVS pharmacy has granted the pharmacy complete control of the clinics within Target Corporation’s jurisdiction (Safiullin et al., 2020). Target Corporation enjoys a strong brand that has been well-known since the 20th century, improving its market share.
Weaknesses
Relative to other retail stores, Target Corporation products are perceived to be expensive. Low- and middle-income earners prefer shopping with rival stores, which reduces Target Corporation’s competitive ability. Products at Target Corporation are not discounted, losing low-income earners to Walmart and Costco (Safiullin et al., 2020). Data breaches are reportedly high at Target Corporation. Using customer information for unethical marketing strategies has breached Target’s reputation, reducing its competitive ability.
Opportunities
Target Corporation partnerships are infinite since other businesses, such as Starbucks, have partnered successfully. Increasing partnerships would increase the range of services Target offers its clients. Establishing small format stores in urban areas, which are densely populated, would increase revenues (Walker & Mullins, 2014). Target Corporation garners from its sales due to the immediate increase in its customer base. Increasing bonuses and rewarding loyalty by increasing credit and debit programs would encourage higher customer turnout and retention.
Threats
Competition is always a threat in the market and narrows the opportunities at Target Corporation. Companies such as Walmart, Amazon, and Kroger have more discounted products, which challenge Target Corporation, reducing its revenues immensely (Safiullin et al., 2020). Currently, shopping has shifted from physical to online due to the rise in the technological era. Companies like Amazon have higher technological advantages and a relatively higher market and Target Corporations.
Competition for the Organization
Target Corporation faces a highly competitive retail environment due to the rise of giant rival firms, new firms entering the retail market, and internal factors such as poor supply chain management. Competing companies to Target Corporation, such as amazon, have reduced the prices of commodities Target Corporation to sustain the demand for its merchandise. Decreased product prices result in reduced revenues, hence the profitability within the retail store. Marketing function of a company determines its identity and influences its operations and relationship with the outside world (Chochole, 2022). It is essential to have substantial knowledge of the commodity prices in the enterprise to manage market information effectively. New entrance retail stores provide a variety of choices from which a customer can choose their merchandise. Although the old stores, such as Target Corporation, enjoy a good reputation and customer loyalty, introduction to new rival companies reduces their profits to a great extent.
Justification for Your Choice of Product
This research paper aims to study the market factors at Target Corporation that will influence the profitability of new writing material, the exotic pencil. The pencil, a retail product, is subject to price and demand fluctuations, and the research advice on the adjustments to be added to the product to fit at Target Corporation, a global retail store. Since its emergence, Target Corporation has been a giant retail store, portraying exponential growth. However, the 2008 financial crisis almost paralyzed the organization’s essential functions (Chochole, 2022). The financial shortcomings necessitate a SWOT analysis to provide market insight for an exotic pencil to ensure its growth.
Conclusion
Analyzing the product’s external and internal competition is essential for significant market growth. This research paper provides the marketing opportunities, challenges, and strategies for a successful venture of exotic pencils at Target Corporation. To ensure optimal growth in exotic pencils, marketing is an essential part. Therefore, strategic and operational alterations are vital in maintaining a firm’s competitiveness. Product development is a unique strategy that dictates a product’s profits in the market. Exotic pencils should be differentiated in appearance and functionality through innovation to guarantee high revenues from the market.
References
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Eades, K. M., Ding, D., & Yeaton, S. (2020). Target Corporation. SSRN Electronic Journal. Web.
İnanç Baykur, R. (2022). Small exotic 4-manifolds and symplecticCalabi–Yau surfaces via genus-3 pencils. Open Book Series, 5(1), 185–221. Web.
Safiullin, A. R., & Kalyadina, R. A. (2020). SWOT analysis in economic security monitoring of a corporation (by the example of Gazprom). Economics and Environmental Management, (2), 152–159. Web.
Walker, O. & Mullins, J. (2014). Marketing strategy: A decision-focused approach. (8th ed.). McGraw-Hill/Irwin.