The following sample essay on “Macroenvironment Of Target “: there are a plethora of factors that influence the marketing strategy that contributes to building a successful business.
They are broadly divided into companies Microenvironment and Macroenvironment. Microenvironment mainly involves the characters closely related to company who work towards constructing a strong foundation of consumer value and consumer satisfaction. Whereas Macroenvironment comprises various societal factors namely economic, cultural forces, natural, demographic and political. Here let’s discuss in detail about the macroenvironmental factors that have been considered for the Target
Demographic Environment: This factor mainly involves studying the populations considering their occupation, age, location, race, gender, density, and other statistics.
Changing the age structure of the population :
Baby Boomers: The population born between the years of 1946 and 1964 are called baby boomers. And targets shoppers comprise of 14% at this age.
Generation X: The Population born in the birth dearth between the years 1965 – 1976 are called generation X. Targets Shoppers comprise of 16% at this age.
Millennials (Generation Y): The people born between 1977 and 2000, who happen to be the generation to first experience the digital technology.
24% of the target’s shoppers are of the millennial age.
Generation Z: The children born post-2000 are considered as generation Z. They are easily adaptive to both offline and online worlds. Target has 8% of its shoppers in this category.
Hence the graph depicts that most of the targets shoppers are from the millennial age.
Generational Marketing: This involves marketing based on the development of products of specific age groups. It is also believed that targeting the consumers based on the life stage, lifestyle and the value they seek in the products is more effective rather than restricting them to the age group itself.
Target happens to comprise the products that are suitable for all age groups, lifestyles and values. Be it for infants, toddlers, kids, teens and adults they have a specific segment for every age along with a wide range of products to choose from basic to premium range.
The Changing Family: This feature defines the family structure of the shoppers which may include single parents, families without children, a decrease in the size of the household, also a boost in the number of working women. At Target 63% are female shoppers and 37% are male shoppers. 43% of the targets customers have children.
Geographic Shifts In Population: A recent shift in generational attitude towards fashion in and around is differing from time to time. However, Target always pulled up its sleeves to keep up to the change in drift.
A better-educated, more professional and more white-collar population: This is defined by the % of the population that is educated and employed in white-collar jobs which results in improved demands and buying methods. 57% of the targets consumers have completed college. Resulting in high white-collar jobs and hence targets consumers are majorly from these segments.
Increasing Diversity: This involves the diverse origins that put together makes the consumer percentage with different needs and wants. This is not just restricted to the ethnicity of cultures but goes beyond such as companies targeting lesbian and gay customers. 73% of consumers at target are white non-Hispanic, 10% of them are black non-Hispanic, 15% of them are Hispanic and 2% of them are from another ethnicity.
Economic Environment: This involves the aspects that influence customer buying power and patterns of purchase.
Changes In Income: The average household income and distribution keeps changing with years. The average income of the household of the consumers is assessed to be $64,000 annually Targets customers are younger by five years and are entitled to earn $13000 more annually per household.
Natural Environment: These are the natural assets that are required by the marketers as inputs and it is important for the marketers that they are aware of the different trends such as water, air, pollution, and natural assets management. Augmenting the practices and strategies that aid for the better economy of the world is mandatory for every business. Target has been religiously working towards the progress of natural environment such as conservancy of freshwater which enhances the quality of water and efficiency of it, eliminating or recycling the plastics for example 77% of the plastic hangers present in target are recycled, Acting towards reducing the carbon footprint by market giant like target is helping the climate, Target has successfully been the first retailer to implement a chemical strategy where the consumer has access to know what they are buying with complete transparency, Sustainable products have been a prime criteria of target for a long time now as it results in easy ways of reusing the products. And also results in the responsible usage of natural resources.
Technological Environment: This implies the new business opportunities created with enhanced technologies resulting in the production of new products. Target has been relentlessly updating their game in technologies as they have updated from time to time and have installed the robots on the warehouse floor which actively scan the existing stocks and place the new stocks on racks which results in a reduction of manual work and improves employee welfare. Self-checkout kiosks are available. IT bots are also installed which helps in troubleshooting the glitch immediately. Also, target is actively using social media such as Facebook, YouTube, Instagram and Twitter for advertising which enables the target to reach their consumers effectively.
Legislation and regulating business: Australia and New Zealand have many laws covering issues such as competition, fair trade practices, environmental protection, product safety, truth in advertising, consumer privacy, packaging and labeling, pricing and other important areas. And target abides by its legislation and laws faithfully and follows all rules efficiently. Which are laid by the Australian Competition and Consumer Commission (ACCC) & Australian Consumer Law (ACL).
Increased emphasis on ethics and socially responsible actions: Target promises to obtain and maintain the privacy of each individual, The rise in data fraud is a challenging the retail market with a change in the custom of shopping for browsers. Given, Target was duped under various names. To have taken control over it organized a personal inmate team to investigate the fraud, but with the change in each countrys laws, the team fails to submit the report. However, Target is vigilant about any upcoming offers on an online platform.
Cultural Environment: This mainly involves in the core beliefs and secondary values. In target with diversified ethnicity, each employee is encouraged to be an innovator and find solutions for changing the culture from time to time and making the workplace acceptable globally and giving a world-class experience for the consumers.
Considering the recent change in condition with consumers fluctuating interests which indirectly affects the inventory, Target has decided to take technology as their deciding factor for inventory maintenance and are concentrating on e-commerce affiliating all inventory under one roof, which will help them cut down the budget for warehouses and shipping to stores.