target case study: diversity andrea bowers tristan lazor

Target Case Study:Diversity

Andrea BowersTristan Lazor

Company Background

•Target guests are “young, well-educated, moderate-to-better income families who live active lifestyles”

•The company now has over 1,700 stores nation wide

•Described as “an upscale discounter that provides high-quality, on-trend merchandise at attractive prices in clean spacious and guest-friendly stores”

Demographics

•Obese: anyone with a BMI over 30

•Overweight: BMI between 25-29.9

•Obesity rates have more than doubled from the 15% in 1980

•10 out of 11 states with the highest obesity rates are located in the South

•Obesity rates are above 25% in 38 states

•In 2007, 32% of Texas high school students were overweight or obese

•It is predicted that in every state that rate will reach at least 44% by 2030

•Statistically, obese and overweight people are usually from low-income households

Do women’s obesity rates vary amongst

different races?•Black population- 58.5%

•Mexican population- 41.4%

•White population- 32.3%

Narrows down to:Female minorities

living in Southern stateswith middle to low incomes

• African American: 43-inch bust, 37-inch waist, and 46-inch hip

• Hispanic: 42.5-inch bust, 36-inch waist, and 44-inch hip

• Caucasian: 41-inch bust, 34-inch waist, and 43-inch hip

• Asian: 41-inch bust, 35-inch waist, and 43-inch hip

Average measurements of women ages 36-45:

Strengths•#2 in top discount retailers, second only

to Walmart

•One of the top 50 companies in the Fortune 500 list

•Large variety of products both in stores and online

•Fashion destination for young women

•One of the top gift card sellers in the United States

Weaknesses• “Well-educated, moderate-to-better income families”

does not include a large, diverse consumer market

• Specifically, there is a limited assortment of women’s plus size clothing in stores and online

• In a search for “plus size pants” on Target’s website, only 12 results are found- 6 of which are yoga or lounge pants

• Not a seamless channel between online and store inventories

• Many of the plus size styles are not available in stores

Women: 4,285Juniors: 1,224

Plus Size: 374

Search Options

Opportunities

•By creating a new product mix for a more diverse consumer, Target can gain a new market and create more loyal guests

•May also create more revenue and continue to improve their reputation in the fashion industry

Threats

•In a more diverse area with different consumers, consumers may be lost if the product mix does not cater to all of the consumers needs

•Customers in more diverse areas may be willing to sacrifice an enjoyable, quality shopping experience for the cheapest price

Solution?•Fashion forward, affordable plus

size clothing to make shopping easier and more accessible for women over size 14

“The arms never seem to be

proportional to the body of the shirts. I usually have to fork out a lot for a pair of jeans that fits right. Everything is either

too short, or too baggy!”

-Madison Terry, 17of Carrollton, TX

“Forget jeans, I mainly wear leggings and

dresses because jeans are just a pain to shop for! At trendy places like Forever 21 and

H&M, I can wear their purses.”

-Lacy Morganti, 23of Keller, TX

Interviews

Plus-size shape wear and jeans are two

categories lacking in Target’s product mix.

Fit is the key to success in these

categories. Including these products in the guest’s one-stop-shop

may secure loyal customers for life.

Suggestions

$39.99 at ModCloth.com

$30-$60 at ASOS Curve

on ASOS.com

•Incorporate plus size styles into the monthly designer shops Target is known for, such as

Kate Young and Prabal Gurung

•Partner with designers who have knowledge in creating proper fitting, trendy garments for

larger bodies

Suggestions

Qristyl Frazier’s Mystique Collection

Monif C. Swimwear 2013

• Strengths:-Creates a more diverse consumer market-May influence new loyal customers-Build a reputation in the plus size fashion world

• Weaknesses:-This change still doesn’t cater to every different female body type-Although Target is a clothing destination for young, fashionable women, it is not known as a place with a great plus size selection

• Opportunities:-Working with designers to create a seamless line that caters to both women’s and plus size categories

• Threats:-Competitors may take notice of this change and follow; This would create more competition amongst discount retailers

Conclusion• To solidify a diverse market,

Target must change their product assortment to better include plus size women.

• Locations where demographics include more minorities and lower income households would be the best to start this in-store change.

• Change in the product assortment could build a new and stronger sense of loyalty in consumers that would otherwise not shop at Target.

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