Current Market Position of Walmart and Target
Walmart
Two of the most well-known and well-liked shops in the United States are Walmart and Target, each of which holds a distinct position in the market. Millions of customers frequent Walmart because of its low prices, large selection, and convenience. Walmart is the largest retailer in the world, operating over 10,500 stores across 24 countries and providing a wide range of products, including groceries, electronics, apparel, and more (Etumnu & Widmar, 2020). No matter the customer’s income level, Walmart’s main objective is to offer affordable, simple products (McKeown & Durki, 2017). The business has invested in technology to improve customer convenience and expedite operations, such as curbside pickup, mobile ordering, and self-checkout kiosks.
Target
On the other hand, Target has positioned itself as a more sophisticated and fashionable business, providing current merchandise at a marginally higher price range. Customers appreciate shopping at Target because of the stores’ stylish, contemporary layouts (McKeown & Durki, 2017). The business has made significant investments in its private label brands, which include Archer Farms, Market Pantry, and Cat & Jack, and provides high-quality, distinctive products unavailable elsewhere (Etumnu & Widmar, 2020). Target focuses on home decor, fashion, and beauty products in its selection of goods to appeal to clients who value quality and style. Additionally, Target provides its consumers with the convenience of online shopping, including free shipping on purchases over $35 and same-day in-store or curbside pickup.
Customer Identification Strategies of Walmart and Target
Walmart
Walmart and Target have a sizable customer base from low-volume to high-volume customers. They employ techniques like market research, customer data analysis, and loyalty programs to pinpoint their target audience. Walmart’s loyalty program, Walmart+, provides access to mobile scan-and-go checkout, free shipping on some items, and savings on gas at Walmart gas stations (Etumnu & Widmar, 2020). The campaign aims to draw regular Walmart shoppers who make large purchases. Walmart also analyzes customer data to understand better its consumers’ purchasing patterns, interests, and activities. For instance, the corporation employs data analytics to optimize its inventory levels to ensure that popular items are constantly in stock.
Target
Similarly, Target recognizes and rewards its high-volume consumers through its Target Circle loyalty program. The program provides early access to sales, exclusive discounts, and a 1% return on all purchases (Etumnu & Widmar, 2020). To develop new products and marketing tactics, Target also performs market research to determine consumer trends and preferences (Etumnu & Widmar, 2020). Target’s private label brands, such as Goodfellow & Co. and Project 62, are created to appeal to particular clientele groups, like millennials and fans of home décor.
References
Etumnu, C. E., & Widmar, N. O. (2020). Grocery shopping in the digital era. Choices, 35(2), 1-8. Web.
McKeown, N., & Durkin, M. (2017). The seven principles of digital business strategy. Business Expert Press.