[Solved] The Target LGBT Guest (COMM 3210) Case Study


The LGBT Guest Case Study: Situation Analysis This case presents a scenario with a hypothetical challenge. Approach it as if you were aTarget team member. Diversity means more than just ethnic background or race. The US population is more vibrantand varied in composition than ever before, with the makeup of rapidly growing, changing, and, most […]

The LGBT Guest Case Academic Paper

The Target Corporation (Target) is a mass-market retail business dealing with general merchandise and large-scale food discount stores. Target is a US-based company and is considered to be one of the largest discount retailers in the region. In that sense, it is reputed for offering differentiated merchandises to its consumers at discount prices, ranging from everyday essentials to luxury products. At the same time, their efficient supply chain, loyalty offerings, advanced technology, devotion towards innovation, and suite of fulfillment options has facilitated the company in offering their clients with the preferred shopping experience. Target Corporation sells products through digital channels and its stores, and this has enabled the business to further facilitate the customer experience. To remain competitive, Target needs to adopt strategies for creating an inclusive experience that support the trends of consumers while staying true to its brand. In this way, Target will remain competitive by taking new initiatives that would capture the dollars and attention of LGBT consumers.

SWOT Analysis (Current Situation)

The LGBT Guest Case Current Case

The LGBT Guest Case Current Case


Digital services (App). The Target Corporation has developed a first-rate app, “Cartwheel,” for its digitally savvy clients. It allows the users to manage a credit card, order online, checkout, check prices, access offers/coupons, and find items by aisle location.

Superior customer shopping. Compared to companies, such as Walmart, Target provides a better experience to consumers through well-marked and lit aisles, an improved floor plan, clean store environment, and better shopping carts.

Brand positioning. The Target Corporation offers fashionable and trendy merchandise of high-quality and it does so at discounted rates for their clients.

Wide range of merchandise. The business is a one-stop shop for all items, such as home décor, designer clothes, sporting goods, pharmacy, electronics, pharmacy, and accessory.


Little presence in the global market. The company has not been successful in expanding to the global market. For instance, the effort to expand to Canada failed and the company had to close all of its stores in the region.

Customer data security. The Target Corporation had, in 2014, faced one of its worse incidents concerning the breach of data. Consequently, the company has faced many class-action lawsuits and affected the reputation of the business negatively.

High prices. Compared to its biggest competitors, including Walmart, Target appears to charge more on its products.


Expand private label brands. The Target Corporation has the opportunity to create its portfolio of private label brands, which as a retailer, will help the company different itself and carry higher margins as a result.

REDcard reward loyalty program. The company further has an opportunity to enlarge its REDcard loyalty program, enabling it to gain an understanding concerning the preferences and changing habits of customers.

Small-format stores. The organization has been setting up small-format stores that are situated in college campuses and dense urban areas. The Target Corporation has the opportunity to expand on these stores because they are approximately one-third of their standard average size stores.


Low barrier to entry. Despite being capital intensive, the retail business is easily replicable.

Failure to differentiate. The brand loyalty of the Target Corporation may be influenced negatively as a result of the shift of many shoppers towards price sensitive and emotionless online shopping.

Local competition. The industry where the firm operates is of low margin and highly competitive. Main players, including Home Depot and Walmart have different stores situated close to local population. The approach, in turn, impacts the market share of Target Corporation.

The 4Ps


The Target Corporation should manage thoughtful expansion with products that support the LGBT community and elevate the brand by ensuring that the customer-service, design, after-sale service, quality, features, and packaging consider the group in question. The management needs to understand the features and benefits that these products will offer to the LGBT group. Apart from that, the company needs to study the unique selling proposition of the product that appeals to this group. More so, in managing thoughtful expansion, Target should consider how the product is differentiated versus the competitors, how it is branded, how customers will experience it, and the features that it should have to meet the needs of the LGBT. Arguably, this might require the company to investment in research and development (R&D). In this way, the company will be able to generate new knowledge to enhance, design, and develop the proposed products. Achieving this end will require partnership with LGBT organizations that will help Target to gain an understanding of the needs of this group.


Target needs to make some pricing decisions once they have established a concrete understanding of the product offering to the LGBT. The company can profitably deliver on “Pay Less” while also creating meaning with the assortment by determining how the price compares with the competitors as well as the value of the product to Target Corporation group. In this way, the pricing decision will be significantly influenced or broadly determined by the 4Cs. The first one is cost to the company, and it entails the consideration of the combination of variable and fixed costs involved with the proposed product for the organization. The second one is competitors’ prices; in this case, Target needs to consider the substitutes and competing products as it determines the price elasticity of the consumer. In that sense, Target has to determine the market reference point or price point for the new product category while choosing the final price. The third one is customer value, and it involves the value that the LGBT community will identify that the product delivers. The last one is the strategic, marketing, and financial objectives that Target has decided to attain from this class of products.


After determining the product and pricing, the Target Corporation has to undertake the activities that will make the new merchandise preferred amongst and known to the users (LGBT) and trade. The company should deliver seasonably relevant promotions through ways that the LGBT consumers will be undoubtedly learn that Target is inclusive to the group. The company can achieve this by sponsoring LGBT charity organizations or events, through news stories and articles, and advertising specifically in LGBT media. Moreover, affluent clients belonging to this group are mire involved online compared to the general population. As such, Target should pay more attention to and consider using online and social media to reach them.

The right seasonal moments in the LGBT community that the Target Corporation needs to consider are June and October. In that sense, October is LGBT history month where the company can target the group through LGBT-friendly ads. June is pride month and Target; it is a time of commemorating Stonewall riots of 1969, which is extensively observed as a turning point in the LGBT movement. During this period, Target can put on pride parades to celebrate LGBT identity. The financial consequence of these promotions is that the Target will be able to maximize on return on investment by ensuring that each touch point is sustained by a well-positioned brand.

Place/supply chain

It is fundamental for the Target Corporation to assess what the ideal locations are transform potential LGBT customers into clients. At present, even in circumstances where the main transaction does not take place on the internet, the initial place that Target can engage and convert potential clients is online. Apart from that, the company has to use a sales force to leverage the store locations and broad distribution centers to ensure the availability of the products and that they get to the clients quickly.

Team Structure

Indecision is a negative concept that will slow down the progress of the proposed endeavor. When a lone individual is liable for decision-making, they often feel worried and concerned about the consequences of making the wrong choices. The Target Corporation should develop a decision-making unit (DMU), which consists of a group of individuals who obligated to make decisions in the promotions, pricing, and assortment contexts. The reason for this is that within companies, including Target, the marketing and buying approach requires input from different components of the firm, such as the senior management, finance, information technology management, purchasing, and accounting. The DMU will ensure decisions are made as quickly as possible without missing the input of stakeholders or cutting corners.

Scalable frameworks for decision-making would assist the team to maintain momentum. Properly adopting and defining the decision-making framework will ensure each individual is aware of what their role is in the process of decision-making. The personalities will be more confident with the process by adopting a scalable framework that consists of clearly designated roles. One approach that the Target Corporation can consider to achieve this end is the Driver, Approver, Contributors, and Informed (DACI) decision framework. The “driver” is the person who will gather the stakeholders and get all the information to make the ultimate decision. The “approver” is responsible for making the final call. The “contributors” do not make any decision but they provide the relevant information. Lastly, the “informed” are those who are enlightened on what has been decided.


The best way to improve the sentiments of its brand while attracting the best possible talent is for the Target Corporation to ensure LGBT are visible as consumers in their marketing. One approach that the company can use to inform and excite the group under analysis is the “gay window advertising.” In this strategy, the company will use special markers, signals, and cues that enable their ads to be particular detected by gay consumers, but go more or less undetected by the general customers. Another way that Target Corporation could reach the LGBT is through sponsoring gay charities and events as well as through targeted marketing initiatives utilizing gay media platforms. The reason for this is that providing financial support to gay/lesbian causes, using gay/lesbian images in both gay and mainstream media, and treating gain/lesbian employees fairly are all seen as fundamental dynamics to achieving support from the LGBT community.

Product Categories

Within either home or apparel, the product category that the Target Corporation should prioritize for building a relevant assortment are those on the home classification. The reason for this is that compared to the average U.S household, the buying power of the household of same-sex partners is substantial. Arguably, this gives Target the opportunity to satisfy the requirement of the group under analysis. Furthermore, the household with same-sex partners shop at almost the same rate as the average household in the following three main traditional channels: drug, mass merchandiser, and grocery. Nevertheless, the household with same sex partners index higher in specialty retail channels, such as health food retailer, pet stores, electronic stores, and online retailers. Apart from that, they are also more likely to spend more on personal grooming and alcohol. To this end, compared to the average U.S home, the households with same-sex partners are indexed-higher in shopping for household product categories. The point then is that the LGBT community spends more home products than the average US household. It is, therefore, in this product category that Target Corporation has the biggest opportunity to win this demographic.

External Competition

The greatest threat of the proposed strategy is external competition. There is the potential for many organizations to compete for LGBT as consumers. The rivalry consists of established firms as well as startups that may expand into the targeted market. The risk that the Target Corporation should consider is the potential for price war. It will involve Target competing with other firms in lowering charge rate on the merchandise in a strategic objective to capture greater market share and undercut one another. Nevertheless, Target can prevent a price war through strategic management of the price that depends on non-aggressive pricing, which entails a robust communication with the competitors and thorough understanding other main players. Target Corporation should also consider that the competition may have the potential to develop superior intellectual property, including patents and trade secretes that enable them to outperform the company.

Second SWOT Analysis

The LGBT Guest Case Second SWOT

The LGBT Guest Case Second SWOT


Superior service and product quality. Focusing on the LGBT will ensure that the Target Corporation increases its share in the market as current clients are extremely loyal to it. The reason for this is that Millennial considers the LGBT to be something entirely normal; therefore, they deserve equal acceptance and rights.

Managing business environment and regulation. By focusing on LGBT through social enterprise and human resource management, the Target Corporationwill be able to build strong associations with political network and lobby groups.

Diverse product portfolio. By considering the LGBT as potential consumers, the brand and product portfolio of the Target Corporation will ensure that the company builds diverse profit mix and revenue source.

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Published On: 01-01-1970

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