The Dayton Company/Target Corporation history and strategies

The Dayton Dry Goods Company, which began in 1902 in Minneapolis, Minnesota gradually evolved into the Target Corporation. Originally founded by George D. Dayton, experienced in banking and real estate, purchased the land and established the Dayton Dry goods Company upon (Target Corporation, 2010, Through the Years) “the higher grounds of stewardship.” This included fair business practices, dependable/guaranteed merchandise and a giving spirit (2010).

George Dayton managed the Dayton Company until his death in 1938. Under his leadership, the Dayton Company became a founding member of the Retail Research Association, which later expanded in 1918 and became known as the Associated Merchandising Corporation (Target Corporation, 2010, Through the Years). Additionally, Dayton inevitably faced significant challenges including the 1920s freight-handlers strike (2010). This not only threatened his business but alternately affected customers. Because of this, Dayton hired two airplanes to transport 400 pounds of goods across the country. While it was the largest commercial flight in history, his customers in Minneapolis flocked to the planes paraded in the streets to purchase the scarce and newly arrived merchandise (2010).

After his death in 1938, his sons and grandsons assumed leadership (Target Corporation, 2010, Through the Years). Under their guidance in the 1940s, the Dayton Company establishes its annual 5% pre-tax giving policy, infusing the community with the spirit of giving (2010). In the 1950s, the Dayton Company expands into the first-ever enclosed shopping mall, Southdale Mall, not only facing competitors but also expands into the suburbs in the 1960s and mid 1970s (2010). Despite this expansion, the Dayton Company merely covered the Minneapolis metropolitan region. However, it also offered auditorium performances, senior holiday shopping helpers and introduced the annual Santa Bear, which not only enriched shopping experiences but also extended and expanded its community spirit of giving (2010).

Throughout the late 1980s and 1990s, the Dayton Company evolves. In 1988 it not only opens its first store in the Pacific Northwest but also experiments with UPC bar-codes (Target Corporation, 2010, Through the Years). In 1990, the Dayton Hudson Company also purchases the Chicago-based Marshall Field’s Company, originally founded in 1852, and then became the Midwest’s premier department store (2010). Not surprisingly, the Dayton Hudson Company opened eleven stores in the Chicagoland area on the same date. Meanwhile, Target Greatland in Minnesota offers wider aisles and fresh foods (2010).

Less than one hundred years after Dayton founded the original store, his dependable merchandise principles and fair business practices evolved into the Target brand promise(Target Corporation, 2010, Through the Years) —“Expect More. Pay less.” In 1995, it offered its own credit card and opened a Super Target in Omaha, Nebraska, which offered one-stop shopping for all household needs including fresh dairy and meat (2010). By the late 1990s, the Target store brand appeared, as did its nationwide gift registry (2010). Closing out the 20th century, Target engaged in online store presence (2010).

By 2001, the Dayton Hudson Company/Target Corporation had stores in 47 states and introduced Super Targets in many of them. In 2004, it sold Marshall Field’s and Mervyn’s concentrating its attention on Target stores. In 2005, Target Pharmacy changes its labeling practices making bottles with easy to read labels and color-coded instructions, adds organic foods to its selections and ergonomically redesigns the shopping cart in 2006 (Target Corporation, 2010, Through the Years). Additionally, Target’s GO International program provides affordable fashion from emerging designers (2010). In 2008 and 2009, it opened stores in Alaska and Hawaii and also opened its food distribution center in Florida (2010).

Through the years, the Dayton Companyhas evolved from its original store. However, each transformation and expansion reflects the original stewardship principles set forth by Richard G. Dayton. As evidenced in its current mission statement (Target Corporation, 2010), “Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less.® brand promise,” Target prices and quality continues to drive corporate and retail actions, missions and vision. So does the target commitment to the community. As evidenced not only through the preceding historic account but also through its current stewardship mission statement (Target Corporation, 2010), “To support our mission, we are guided by our commitments to great value, the community, diversity and the environment,” the Target community giving spirit persist through current day (2010).

Target Corporation Vision, Mission and Strategies

Based upon these preceding paragraphs and the Dayton Company/ Target Corporation history, its mission, vision, and objectives have remained fairly constant. With the advancement of technology, the rise of the suburbs, the Internet and the associative community demands for more fair prices, better quality, clear pharmaceutical instructions and organic foods, the Dayton Company/ Target Corporation has continued to adapt. Mirroring the founder’s novel approach to the freight-packer’s strike, Target corporation leadership continues to harness new avenues to satisfy its customers through its price and quality commitments. As evidenced from its presence within the first enclosed shopping mall to its expansion into the suburbs and its eventual presence across within 49 states, Target has not only selected its locations but its merchandise and its distribution wisely.

While its Mervyn’s and Marshall Field’s purchases originally bolstered the company image and granted it presence beyond its traditional Minnesota reach, its sale of these two stores also allowed the target Corporation to focus on its own development of store brands, its line of chocolates, and its own brand.” In an era of brand awareness and one increasingly informed by various media avenues including the Internet and social media, this, perhaps, is the most crucial. Moreover, its commitment to the shopping experience, either online or in-store and the comforts offered for the latter, the ergonomically designed carts, the shopper assistance service during the holidays and the like also inspire brand loyalty.

Because of all these aspects, target’s vision statement should be “We bring you more for less,” or, “To become the number one food and general merchandise retailer through greater value and lesser price.”

Its mission statement could be, “To make Target the preferred one-stop shopping destination for customers by delivering outstanding value, service, and quality through continuous innovation, while fulfilling our Expect More. Pay Less.® brand promise and honoring our commitment to the community and the environment.”

External Threats and Opportunities

External Threats

  • Wal-Mart also known for lower prices on general merchandise and foods (Clifford, 2010, p. 1).
  • Dollar General- also owns Family Dollar and Dollar Tree offers low cost general merchandise (Clifford, 2010, p. 1).
  • Grocery stores- many of which offer pharmacies, and some general merchandise. However, grocery store locations may be closer to where customers live.
  • Economic Downturn- More people may be buying resale or online via outlets like eBay and the like.
  • Farmers’ markets- also offer organic foods locally every week without a high price tag.
  • Target’s donation to an anti-gay activist- The public disclosure in theNew York Times and its apology (2010).
  • Trader Joe’s- offers organic foods with great quality for lesser prices (Freakonomics, 2010).
  • K-Mart/ Sears- offer similarmerchandise, quality, and price.

External opportunities

  • Wal-Mart’s persistent problems with equal opportunity lawsuits- Provide opportunity to highlight Target stewardship and commitment to fair business practices, diversity and commitments to the community and the environment (The New York Times, 2010, A million women).
  • Whole Foods- Also offers organic foods but at significantly higher prices.
  • The current economic decline- Target can capitalize on its Expect More-Pay Less promise and its commitment to the community during such times. Moreover, it can harness buying strategies engaged in the past (Clifford, 2010, p. 1).

References

A million women vs. Wal-Mart. (2010 Aug. 30). The New York Times. Retrieved from

Clifford, S. (2010, Sept.). Stores scramble to accommodate budget shoppers. The New York

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Freakonomics (2010 Aug 27). Trader Joe’s secrets. The New York Times. Retrieved from

Target Corporation. (2010). Our mission. Retrieved from

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(2010). Through the years. Retrieved from

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Target Corporation. (2010). The New York Times. Retrieved from

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Voter (and customer) beware. (2010 Aug. 18). The New York Times. Retrieved from

Wal-Mart Stores, Inc. (2010).The New York Times. Retrieved from

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Whole Foods Market, Inc. (2010). The New York Times. Retrieved from

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