Target's success may be overshadowed by the legendary Walmart dynasty, but in actuality, it is creating phenomenal achievements in its own right.

Annual sales are larger than those of Coke and Pepsi combined

Shareholders have made 603% in the past 10 years.

Target dares to be different through trendy, distinct products.

The CEO pushes everyone to go the extra mile to find awesome products and continually redesign the way the stores look.

Target has not expanded beyond the US, nor mimicked the Walmart Supercenters and gone into direct rivalry with Walmart.

Target is the same size that Walmart was 10 years ago.

Target's original idea was to take high-end department store high-quality merchandise and sell it in its own discount stores. Their prices were slightly above the lowest sellers, and they offered everything imaginable, including artificial Christmas trees that no one thought would sell.

Though they started the same year as Kmart, Walmart
and Kohl's,

they went in a different direction that didn't depend solely upon cost, but also depended upon style.

Target shoppers are "treasure hunters", racing for bargain versions of expensive items.

Their ads were bright and colorful, so they always stood out among the other ads.

Displays were clean and artsy, instead of clean and antiseptic.

They licensed hot fashion brand names that were failing financially and remarketed them to the crowds.

Target also brought success to unknown companies, and worked with high-end manufacturers like Sony to create exclusive products.

They have made mistakes by launching initiatives too early, such as organic food lines.

Target calls its customers "guests".

The entire company helps to find the next big thing with a quarterly contest called "the Big Idea"
-- how can we make the packaging better, or do this or that better? Everyone is also always on the lookout for trends.

An employee got an idea while flipping through a wine book, which resulted in the author becoming a consultant for Target, helping to offer a specialized product.


However, the real profit that Target makes is from the basics of life -- diapers, paper products -- Walmart stuff. Lure them in for the treasure hunting and then sell them base items while they're here.

Target must distinguish 2 things: which "treasures" will bring them in, and when have they had enough of the item.

Every 3-4 years, they redesign the prototype of the stores.

They set up "stunt stores", or temporary floating, rolling shops, that market a certain item for a limited amount of time in public places. From $75 air conditioners, to breast cancer fundraisers, they gain buzz by surprising the world with where, when and with what they will show up.

Sears, Walmart and Target spent ad money last year, but there's only one logo people truly remember -- the red bullseye.

They turn guests into evangelists who proclaim the Target story, increasing the credibility factor.

Target's image of being more upscale than Walmart can be a disadvantage, because they cannot compete in the grocery sphere, because people expect Target foods to be more expensive than Walmart's. In reality, Target is LOWER than Walmart, according to 2 tests. The problem is that Target hasn't successfully communicated
that fact to shoppers. Walmart also does its own logistics.

Target doesn't open SuperTargets to gain numbers in the grocery business; they do it because shoppers go to a SuperTarget 75% more often than they go to a regular Target. They work on being clever, not on copying Walmart.

BRAINSTORM:

Target survives by being clever, trendy and distinct -- customers like that. Could you accurately describe your business with those three adjectives?

If not, what three adjectives would customers put on your business?

Target's merchandise is high-quality and fashionable, while being less expensive than department stores, but slightly more expensive than bargain basements. It's a fine line to walk. What exactly is the fine line you must walk for your product or services?

Target cashes in on the "treasure hunter" in shoppers; finding something of quality for an inexpensive price. How can you cash in on the "treasure hunter" in your customers?

What can you offer of perceived value that can make your customers feel they have found a "treasure", a "steal"?

The Target displays are artsy and bright, not clinical and dull, which attracts more shoppers. Wherever you are displaying your "goods", whether on the net or in a store, how would your customers describe your display? Bright, friendly and welcoming, or dull, boring and unexciting?

Target's suppliers are a combination of financially failing upscale manufacturers, combined with unknowns, along with large successful manufacturers who work in tandem with them to create specialty lines. That combination seems to allow them to hedge their bets, instead of putting "all their eggs in one basket". Who are your suppliers? Do you go for the same type of big supplier every time, or do you take a chance on an unknown or rescue a financial failure? Could you benefit from "mixing" up your suppliers at all?

Target calls its customers "guests". Do you think of your clients as "guests"? How would that change your business if you started treating them as such?

Everyone in the company, from top to bottom, is involved in finding the "next big thing". Do you brainstorm with EVERYONE associated with your business, or just certain people? Who have you neglected as a prospect who might have an interesting perspective?

Target lures shoppers in with bargains and trends, but truly supports itself by its base consumables. What are your "alluring" items? What "base consumables" do or could you offer your customers?

Target surprises and delights its "guests" with continual store re-designs, and "stunt shops". What could you re-design to surprise and delight your "guests"? What kind of "stunt shop" could you create? Where, when and how?

How can you turn "guests" into evangelists, proclaiming your praises?