Company Case 7 – Target: Where Store
Brands Offer More Than Low Prices
What benefits does Target receive from its store brands?
Target has the ability of providing the general benefits of discount like mass-merchandising shops, just
like those markets where you can find any category of good (for example Walmart). In addition of that,
Target also guarantees relatively low prices. Target has cut its costs and lowered its prices such that it
now competes fairly with companies like Walmart. Target customers continue to get the biggest
perceived benefits in relation to image and quality. In fact, the common perception considers Target
“better” in quality related to Walmart. Target items are considered trendier and with a better design.
This idea is supported by the exclusive designer relationships provided by Target. For instance, when
someone buys at Target, they feel like they have spent their money for a “higher–level” product. Some
of the strategies adopted by Target’s stores in order to create a tasteful effect, are the utilization of
bigger aisles and an overall cleanliness. Customers perceive these strategies, combined with a nice
welcome at the front, as a better and more complete service. One of the benefits that target’s own
products provide it’s that creates an identity of the store. This is important especially when people
