Final answer:
The correct answer is option 4.Target's introduction of Archer Farms Market within its stores serves as an example of expanding a private label branding strategy by enhancing its in-store brand.
Step-by-step explanation:
When Target introduced Archer Farms Market as a separate department within its stores, this is an example of a private label branding strategy extended to a department. Major US grocery stores are organized into various departments offering a wide range of products, echoing the structured layout seen in Target stores. This strategic move by Target is not aligning with a national brand or integrating an independent retailer, but rather expanding its own brand strategy by enhancing the shopping experience with its in-store brand, Archer Farms. This approach allows Target to monopolize on the established equity of its existing private label and capitalizes on consumer familiarity and trust in the Archer Farms brand.
The introduction of Archer Farms Market by Target does not represent a case where two different independently owned retailers are operating within a single retail store, nor is it an instance of a national food manufacturer setting up its operation within Target. It also is not a leveraging of a famous national brand from France or a reintroduction of a brand that had fallen from the retail scene. Instead, it's an embodiment of brand enhancement and an example of how companies like Target are leveraging their own private labels to differentiate themselves in a competitive market.
Supermarket chains often face challenges in defining market boundaries, which can lead to close scrutiny from antitrust regulators like the Federal Trade Commission. However, in the case of Target and Archer Farms Market, the focus is on brand expansion within the corporation's own retail space, minimizing antitrust concerns that typically arise from mergers and acquisitions, such as the Whole Foods and Wild Oats Market situation.