1. Target obtains the benefits of discounting mass merchandise, having everything undergone roof and low prices. Even though Walmart has outdone Target in taking the public eye, both Walmart and Targets overheads and lowered price averages are very close. Customers who picked to shop at Target remain to get the biggest alleged benefits in relation to image and quality
2. The strategic brands are working. The case clarifies the trends all across the retail industry on the way to brands and Target seems to be ranked towards the top. The brand the store carriers are explicitly for their store so people who want that product under the specific brand only Target carries, the customers will continue returning to Target. Target has developed numerous brands that time and again don’t appear like normal store brands.
3. One way in which Target could develop its strengths in store brands is by straddling multiple departments with their store brands. Instead of trusting on national brands and designer labels, Target could branch out and make their own store brands for clothing, fixtures, toys, etc. If they applied similar approaches as the ones they are using to market their food store brands, they could also be popular in increasing their profits storewide. Target could also continue to observe trends and adapt their store brands accordingly so as follow the interests of consumers.
4. By concentrating on store brands, Target is taking away its focus from maintaining relationships with the national brands that they carry in their stores. Although Target receives profits from their store brands, they also deeply rely on the national brands and designer labels that they carry in their stores. If they flop to maintain their relationships with these national brands and designer labels, they may not be capable to continue to renew profitable contracts with them. This could then become a difficult for Target. Another possible problem with this focus on store brands is that if they are not working to improve all aspects of their stores and company, they may fail to keep attracting customers in spite of having great store brands.