Welcome back to the Brand Marketing Spotlight, where we analyze the ad campaigns and marketing techniques of the world’s most successful companies. Today, we’ll showcase Target to explore how its philosophy of accessibility and inclusivity excites customers and drives revenue.
The day Target stood in support of BLM protestors
On May 29, 2020, Target CEO Brian Cornell released a statement that set the tone for how brands addressed Black Lives Matter. At the time, Target storefronts had been damaged by rioters and looters following the brutal murder of George Floyd. Cornell responded by firmly acknowledging the pain felt by demonstrators and Minneapolis community members while pledging to donate food, water, medicine, and baby care items to the city’s hardest-hit areas. In doing so, Target aligned itself with the protests and dedicated itself to social uplift.
Cornell’s statement was refreshing, but it wasn’t necessarily surprising. For years, Target cultivated a brand that prioritized inclusion and accessibility without coming off as self-congratulatory. While these principles were fully evident at this historic moment, a review of Target’s marketing strategies implies inclusion is embraced throughout the organization — and drives most of the brand’s biggest success stories.
How Target turned sluggish sales into record growth
In 2016, Target needed a change. After a sluggish holiday season and reduced sales, the brand was losing competitive advantages in a rapidly changing retail market. To address this decline, Cornell introduced a new expansion strategy with three key objectives:
- Invest $7 billion to redesign store locations, expand its range of exclusive owned brands, and lower item prices.
- Open smaller Target locations in big cities and near college campuses to attract new audience segments.
- Revitalize online sales and digital operations.
The digital operations were particularly noteworthy — like many retail chains, Target faces stiff competition from online vendors like Amazon and eBay. While enhancing its digital storefront was a good first step, Cornell wanted to go much further.
To begin, Target purchased the delivery service Shipt, enabling a same-day delivery option that kept it competitive with Amazon. It also expanded its app features to include in-stock viewing, custom shopping lists, and more. Target’s app even offers contactless payment options and drive-up pick-up options — a particular boon during the coronavirus pandemic. On top of these options, Target keeps its customers engaged with frequent promotions, Target Circle offers, and RedCard exclusives.
The end result? Target discovered that customers were spending 41% more when ordering items through Shipt than in-store. Within two years, the chain saw its fastest growth since 2005 and its stock jumped by 47%. Yet these gains weren’t attributed solely to product offerings — messaging played a significant role in Target’s success.
Accessibility matters when there is no singular Target customer
When it comes to brand messaging, Target’s primary goal, above all else, is accessibility. Right from its very first design partnership, the brand emphasized openness and inclusion in business expansions and promotional materials. Yet this strategy has a unique justification — according to Target executives, inclusion is necessary because there is no single ideal customer.
“More than three-quarters of Americans live within a short drive of a Target store,” said EVP, Chief Marketing, Digital and Strategy Officer Rick Gomez. “We’re accessible to everyone through our app and website. That means the days of a singular view of the Target guest are over. We serve people from every walk of life, so for marketing to provide value to our business, we have to consider all of our guests.”
Target’s emphasis on inclusion and accessibility is both practical and philosophical. To Gomez, helping everyone feel welcome at Target is what makes the brand grow and thrive. But instead of targeting a generic “everyman” customer, Target reaches out to customers who represent different walks of life.
Don’t choose between exclusive or inclusive; choose both
Accessibility and inclusivity are noble principles but can be challenging to realize. In this case, Target’s strategy was to create exclusive experiences that remained accessible to the public. This approach is visible in initiatives across the entire organization:
- Owned brands: Part of Target’s appeal is that it curates an inventory of national and in-house brands to feature a wide variety of products to customers. Its owned subsidiaries include brands like Archer Farms, Wine Cube, and Simply Balanced — enabling Target to offer exclusive products across multiple retail categories.
- Design partnerships: Over the past twenty years, Target has forged “design partnerships” with major brands to create exclusive product collections. Some previous collaborations include clothing and accessory lines from Victoria Beckham, Eddie Borgo, and many more.
- Department expansions: Target’s initial 2016 strategy included storefront expansions, but it also made sure to monitor the retail landscape for opportunities. For example, when brands like Toys“R”Us filed for bankruptcy, Target expanded its toy line to accommodate abandoned customers. This strategy took advantage of macroeconomic tailwinds to ensure customers had somewhere to turn for the retail shopping experience they once enjoyed.
Between its selection of exclusive products and a shopping experience tailored for inclusivity, Target stands out from its peers in the big box store world. Customers can find brand name products at a low price that aren’t available anywhere else while engaging with the brand through a multitude of touchpoints. Combine these elements with Target’s reputation for service, and it’s no wonder customers are excited to visit!
Radical inclusion is more than good PR
When most brands discuss inclusion, it’s usually addressing PR strategy. What Target shows us, however, is that inclusion is more beneficial as a core business philosophy. During a time when ecommerce-based alternatives threaten retail chains, inclusion can drive everything from product launches to engaging customer experiences. It also enables your positive messaging to be more genuine during a crisis, as the world saw last May.
“I’d go back to the importance of inclusivity. This is something I can’t stress enough,” Gomez said during his Forbes interview. “I’d encourage every brand to think about the stories they’re telling through their marketing. Really look hard at how you’re showing up and the messages you’re sending. And then ask, ‘Who am I missing? Who else can I invite in?’
“I think there’s a tremendous opportunity out there for brands that can find those universal truths that are relevant to their business and use those to not only bring people in, but to bring people together,” he concluded.
Not every brand has Target’s reach when it comes to forming design partnerships or expanding product line-ups. What you can do is let inclusion inform the unique differentiators you already have. Not only will that help you expand and thrive, but it will also enable you to establish customer relationships any community would be proud of.
