Marketing cases Essay Example | Topics and Well Written Essays - 1500 words

Marketing cases - Essay Example The main macro-economic factors that influenced the Target’s performance during that period were the economic and social conditions that existed among the consumers. Due to the economic recession in 2008, there was a high unemployment level and an increased inflation, which had a direct connection with the sales outcome of the company. Along with this, the purchasing power of the consumers began to deteriorate due to the decline in the income of the sizable households. With the company’s products being viewed as expensive ones, it further impacted Target’s revenues. However, Walmart showed a far better growth due to its cheaper prices strategy hindering the Target’s upscale products. The Target’s â€Å"pay less† strategy was a risky one as it has to sustain its high-quality. That is, even while coping up with the changing economic conditions and its consumers’ attitude, it needs to focus on quality. However, it has successfully managed to overcome through the recession crisis and have switched towards a hopeful direction with this new strategy. Despite the high unemployment and increased inflation, Target takes an optimistic view in improving its sales through its new launches such as mini-grocery stores and up-and-up. By focusing on its ‘pay less’ part, Target has certainly pursued a best strategy by retaining the quality of its products even while emphasizing on the discount part. Expanding the advertising campaigns before focusing towards lower prices should have been the alternate strategy for Target during their decline in sales and revenue. As the company was keen on offering one stop shopping with lowered prices and improving the store’s infrastructure, it did not have enough time to analyze the consumers’ tendency towards their products, thereby missed formulating effective advertising strategies. Once they found the