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Target Case Study: Diversity

Target Case Study: Diversity. Andrea Bowers Tristan 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

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Target Case Study: Diversity

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  1. Target Case Study:Diversity • Andrea Bowers • Tristan Lazor

  2. 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”

  3. 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

  4. 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

  5. Do women’s obesity rates vary amongst different races? • Black population- 58.5% • Mexican population- 41.4% • White population- 32.3%

  6. Narrows down to: Female minorities living in Southern states with middle to low incomes

  7. Average measurements of women ages 36-45: • 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

  8. 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

  9. 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

  10. Search Options Women: 4,285 Juniors: 1,224 Plus Size: 374

  11. 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

  12. 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

  13. Solution? • Fashion forward, affordable plus size clothing to make shopping easier and more accessible for women over size 14

  14. “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, 23 of Keller, TX “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, 17 of Carrollton, TX Interviews

  15. Suggestions Plus-size shape wear and jeans are two categories lacking in Target’s product mix. $30-$60 at ASOS Curve on ASOS.com $39.99 at ModCloth.com 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.

  16. Suggestions • 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

  17. Qristyl Frazier’s Mystique Collection

  18. Monif C. Swimwear 2013

  19. 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

  20. 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.

  21. Bellafante, G. (2010, July 28). Plus-size wars. Retrieved from http://www.nytimes.com • /2010/08/01/magazine/01plussize-t.html?pagewanted=all&_r=1& • Begley, S. (2012, September 18). Fat and getting fatter: U.s. obesity rates to soar by 2030. • Retrieved fromhttp://www.reuters.com/article/2012/09/18/us-obesity-us-idUSBRE88H0RA20120918 • Denee, M. (n.d.). Add Plus Size designer Collaborations to Target. http://www.petitiononline • .com/petitions/plus9231/signatures?p • Denee, M. (August 1, 2011). My Top 10 Plus Size Shopping Haunts. The Curvy Fashionista. • http://thecurvyfashionista.mariedenee.com/2011/08/my-top-10-...1 • Edut, O. (n.d.) The Expanding Plus-Size Industry. Adios Barbie. http://www.adiosbarbie.com • /feature-articles/filling-out-fashion-...1 • Haupt, A. (2012, March 13). Obesity in america: 10 fattest cities. Retrieved • from http://health.usnews.com/health-news/articles/2012/03/13/obesity-in-america-10-fattest-cities • Karen, M. (April 11, 2006). Target Made me Cry. Planet Feedback. http://www.planetfeed • back.com • Landau, E. (2010, June 29). Obesity rising; southern states have highest rates. Retrieved • fromhttp://thechart.blogs.cnn.com/2010/06/29/obesity-rising-southern-states-have-highest-rates/ • Low-Income and Food Insecure. (n.d.). In Food Research and Action Center. Retrieved • from http://frac.org/initiatives/hunger-and-obesity/why-are-low-income-and-food-insecure-people-vulnerable-to-obesity/

  22. Obesity and Overweight Adults. (2012, April 27). Obesity and Overweight for Professionals: • Adult: Defining. Retrieved fromhttp://www.cdc.gov/obesity/adult/defining.html • Overweight and Obesity. (n.d.).  In Food Research and Action Center.  Retrieved • from http://frac.org/initiatives/hunger-and-obesity/obesity-in-the-us/ • Petro, G. (February 28, 2013). Retailer/Designer Collaborations-The Missing Link. Forbes. • http://www.forbes.com/sites/gregpetro/2013/02/28/retailerdesig/ • Plus Model. (March 21,2013). Plus Size Designer Qristyl Frazier Launches.http://www.plus- • model-mag.com • Target Addict. (July 20, 2010). The Plus-size Selection at Target. Target Addict. http://target- • addict.blogspot.com/2010/07/tuesdays-rant-plus-size-selection-at.html • Texas Nutrition. (2012, November 12). Texas Nutrition Data Obesity Prevention. Retrieved • fromhttp://www.dshs.state.tx.us/obesity/NPAOPdata.shtm • Zernike, K. (March 1, 2004). Sizing Up America: Signs of Expansion From Head to Toe. NY • Times.http://www.nytimes.com/2004/03/01/us/sizing-up-america-signs-of-expansion- • from-head-to-toe.html

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