Mission statement: Saving people money to help them live better was the goal that Sam Walton

envisioned when he opened the doors to the first Walmart in 1962. And it remains our focus today. We continue to find ways to reduce costs throughout our supply chain while bringing quality products to our shelves. That means a lot to the millions of customers who shop with us. Ratios:

Mission statement of competitor sams club:

3 Basic Beliefs & Values

Three simple things that make us great:

Our unique culture has helped make Wal-Mart one of the world's most admired companies. Since Sam Walton opened the first Wal-Mart in 1962, our culture has rested on three basic beliefs. We live out these beliefs every day in the way we serve our customers and each other.
1. Respect for the Individual

We're hardworking, ordinary people who've teamed up to accomplish extraordinary things. While our backgrounds and personal beliefs are very different, we never take each other for granted. We encourage those around us to express their thoughts and ideas. We treat each other with dignity. This is the most basic way we show respect.
2. Service to our Customers

Our customers are the reason we're in business, so we should treat them that way. We offer quality merchandise at the lowest prices, and we do it with the best customer service possible. We look for every opportunity where we can exceed our customers' expectations. That's when we're at our very best.
3. Striving for Excellence

We're proud of our accomplishments but never satisfied. We constantly reach further to bring new ideas and goals to life. We model ourselves after Sam Walton, who was never satisfied until prices were as low as they could be. Or that a product's quality was as high as customers deserved and expected. We always ask: Is this the best I can do? This demonstrates the passion we have for our business, for our customers, and for our communities.

2
Market Analysis The Target Corporation is part of a company that goes back over a hundred yearswhen the first Target store was opened in 1962. For the past forty years, Target has beencommitted to providing an inexpensive, yet chic and savvy shopping experience to theircustomers. As a result of Targets continued success, in 2000 their parent company, TheDayton Hudson Corporation, was renamed the Target Corporation. Target continues togrow financially; in January 2006 they announced success of $50 billion in sales for asingle year (Biesada). In more recent

news, Target reported in mid-November that therethird quarter profits have risen 16% and sales rose 11%. Target attributes these recentsuccesses to the increases they have made in building new stores; in 2003 Target had atotal of 1,225 stores, but currently they operate 1,494 (Freed).There are many economic, physical and technological conditions that influenceconsumer needs and behaviors to a corporation such as Target. An example of theeconomic conditions that have affected Target has been the recent war in Iraq. Becauseof the war, prices on certain items have increased, particularly gas prices, over the pastcouple years; but it is primarily the customers of competitor Wal-Mart that suffers,leaving Target to reap the benefits. The average Wal-Mart shopper makes an averageannual income $20,000-$25,000 versus the average Target shopper at $50,000-$75,000.Wal-Mart shoppers stay loyal to the purchasing of cheap staple products, but because of the rise in gas prices, they avoid the items that are not absolutely necessary. On the otherhand, Targets customers are not as price sensitive to economic conditions and cansomewhat afford to maintain their lifestyle. In the end Target keeps their numbers up,while Wal-Mart reports losses (Yerak)

3Target Corporation has many different kinds of competitors as a result of thevarious types of merchandise they provide. They do have competitors with clothingretailers, grocery stores and even drugstores; however, their main competition isconcentrated with other discounters or wholesale clubs. The top competitors of Targetinclude: Wal-Mart, K-Mart, Costco and BJs Wholesale Club. In a recent Gallop Pollabout 1,000 consumers were surveyed on which of the three discount retailers they wouldprefer to shop at. The results came back with Wal-Mart leading the way at 52%, Targetin second at 29% and K-Mart falling quickly behind at only 13% (Grant). If Targetbecame successful in becoming the number one discount retailer in the industry, Wal-Mart would likely be one of the few retailers with sufficient financial resources torespond. Therefore, it is very important to the Target Corporation to ensure that theirown marketing strategies are kept current and relevant with accurate information.According to a study performed by Maritz Research there 20% of Target shoppersare highly loyal to shopping at Target. The demographics in which 20% of consumersare loyal to Target, there are more females than males, 80% are under the age of 40 andare also college educated, and they are in the middle to upper income range. Customersof Target also prefer to shop at a place where there friends and family are likely to shop,and they are not price sensitive; these customers are willing to pay more at a store inwhich they feel good about and are treated well. In order to close the gap

between thepercentages of Target at 20% and Wal-Mart at about 50%, Target will have to analyze thereasoning behind Wal-Marts 50% mark. Research indicates that those who shop at Wal-Mart are attracted by the low prices and although 20% of consumers would still shop atTarget despite higher prices, in order to catch up to Wal-Mart Target Corporation would 4benefit from looking into ways of decreasing their prices of products offered (Wal-Martvs. Target Customers). Market Segmentation The store offers a wide range of selling from clothes (male and female), groceries,pet supplies, athletics, electronics, home accessories, pharmacy and shoes. Target hasaccomplished a lower median consumer age than its competitors at an age of 41. Themedian household income is $58,000. Approximately 80 percent of Target customers arefemale, of whom 43 percent have children still living at home (delayed full nest II, fullnest II, and single parent II), and 80 percent have attended college with 43 percentcompleting a degree program. In a recent poll done by CNN, consumers were asked tochoose between Target, Wal-Mart, and Kmart. The results found a sliding scale upward:16 % of people in the less than 20,000 annual income chose Target23 % of people with 20,000 to 29,000 annual income chose Target26 % of people with 30,000 to 39,000 annual income chose Target29 % of people with 40,000 to 74,000 annual income chose Target47 % of people earning more than 74,000 annual income chose TargetThe results show a high level of educated consumers lean more towards Target than theydo their competitors with 59% of people with annual income of $20,000 or less preferringWal-Mart (Grimm).Target likes to view its retail position as a discount department store, instead of primarily a discount store. This could be due to the companies desire to go above andbeyond the basic customer needs of a discount store. They are trying to perceive