ASSIGNMENT 1

PRINCIPLE OF MARKETING
f2017-247
10/23/2018

FROM: MOHAMMAD NAYYAR MALIK

SUBMITTED TO: DR ZARYAB
 From expect more to pay less

Question 1) What microenvironmental factors have affected target’s

performance over past few years?

Answer) 1. Competitors: walmart’s has strategized to provide products

at a very low price, because of the economic crisis in 2008 , which
has led to decrease in market share because it has huge
microenvironment affect as a competitor as a low cost store.

2.Customers: as recession hits the economy, unemployment

rises and people start to become responsible with money, their priorities
have changed from spending on luxuries but to fulfill the basic needs.

Question2) What macroenvironmental factors have affected target’s

performance during that period?

Answer) Economic factor was the macroeconomical factor that affected

target’s performance during that period the economical conditions were
rough since 2008 as recession and inflation were increasing.

Question3) By focusing on the “pay less” part of its slogan, has target
pursued the best strategy? Why or why not?

Answer) The targets was being achieved since beginning, they set
themselves apart and succeded as their slogan “Expect more pay less”.
As they reach at peak they made only one mistake that they were
stressing too much on “ Expect more” only, however they used the right
strategy but on wrong time to enforce the strategy.

Question4) What alternative strategy might target have followed in

responding to the first signs of declining revenues and profits?

Answer) Product standardaziation strategy should be used, that is target

should’ve reduced its inventory and increased the product variety in
stores. This strategy not only reduces retailer’s exposure to any single
product but also creates an artificial scarcity the less it is available the
product becomes more desireable.

Question5) Given target’s current situation, what recommendations

would you make to steinhafel for his company’s future?

Answer) In my opinion, I recommend that target should give more

coupons out in newspaper and offer more discounts in store like a store
membership cards. With these benefits customers will feel more self
valued and satisfied which will create loyal customers and will go on to
bring in new customers.