Target’s 4-Word Core Strategy Aims To Win Over Customers From Walmart

Target has implemented a core strategy to woo customers over from Walmart. It comes down to a four-word approach, according to Inc.

The base of its promise lies in the strategy of “expect more, pay less.” This tagline draws customers into the store, believing they will get a great deal and pay less for their needed products.

“We reduced prices on 5,000 items,” said Brian Cornell, Target’s CEO, as reported by The Street. “But value is in our DNA. When you go back to the brand promise, ‘expect more, pay less,’ It’s what we do each and every day.” He added, “It’s a penny business, it’s a very competitive space, and we provide the value consumers are looking for.”

A Target corporate press release noted, “We know consumers are feeling pressured to make the most of their budget, and Target is here to help them save more,” said Rick Gomez, executive vice president and chief food, essentials, and beauty officer at Target. “Our teams work hard to deliver great value every day, and these new lower prices across thousands of items will add up to additional big savings for the millions of consumers that shop Target each week for their everyday needs.”

Cornell’s remarks came after the superstore announced that it lowered prices on 5,000 frequently shopped items this summer. He said of the decision, “We feel really good about the way the consumers reacted to the price investments we’ve made on those 5,000 frequently purchased items, but it really goes beyond those investments.”

“If you’re a Target Circle member, you’re getting personalized offers every time you shop. If you’re using a Target Circle card, you have the opportunity for that 5% discount,” he added.

Walmart’s tagline is “everyday low prices,” in comparison. EatingWell reports that during Walmart’s second-quarter earnings call on Aug. 15, Walmart president and CEO Doug McMillon explained, “As it relates to value, we’re lowering prices.” He cited the 7,200 rollbacks within the company, piggybacking on a February claim that overall, food prices were “lower than a year ago in places like eggs, apples and deli snacks, but higher in other places like asparagus and blackberries.”

Per Inc., both Target and Walmart may be known for competing on price, but the difference is that Target is also “offering a different experience. That’s where the ‘expect more’ part comes in.”