The two companies our squad chose to research are Target and Wal-Mart. We chose these two companies because they are comfortable companies where most Americans shop on a regular basis. Even with this economic system, these companies find strategic ways to acquire clients to purchase ware. While companies have differences, they have similarities in their communicating and selling manners.

Wal-Mart was founded in 1962 by Sam Walton. Walton ‘s pictured end when he opened his first shop was to salvage people money to assist them populate a better life. The first Wal-Mart shop was opened in Rogers, Arkansas. It is now the largest food market retail merchant in the United States. There are over 8,800 Wal-Mart shops located in 15 states. There are 2.1 million employees worldwide. In 1983, the first Sam ‘s Club warehouse was opened. The first supercenter opened in 1988. Ten old ages subsequently, Wal-Mart introduced the vicinity market. The original shops are now known as price reduction section shops. The central office and distribution centre are located in Bentonville, Arkansas. In 2010, Wal-Mart ‘s gross revenues totaled $ 405 billion ( “ Wal-Mart, ” 2011 ) .

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Target was founded in 1902 in Minneapolis, Minnesota by George Dayton. It was known as the Dayton Dry Goods Company. The first Target shop was opened sixty old ages subsequently in Roseville. Target is the 2nd largest price reduction retail merchant in the United States. Its central office is located on Nicollet Mall in Minneapolis. There is a Target or Super Target in every province except Vermont. Target Greatland is a general ware superstore that does non transport a full-line of food market merchandises. There are 1,743 shops throughout the United States. There are about 351,000 employees. This twelvemonth, Target announced they will be spread outing and edifice concerns in Canada. By 2013, they hope to be runing up to 150 shops throughout Canada. In 2010, Target ‘s gross was over $ 65 billion ( “ Target, ” 2011 ) .

Both shops have expanded and ware can be purchased over the cyberspace. It makes shopping speedy, easy, and hassle-free. Customers no longer hold to wait in lines to acquire the points they want. Both Target and Wal-Mart showed relevant additions in their one-year study last twelvemonth. For the financial twelvemonth of 2010, Wal-Mart ‘s one-year study shows additions in gross revenues. The net gross revenues were up $ 405 billion, which is an addition of an addition of one per centum from 2009 ( “ Wal-Mart Annual Report, ” 2011 ) . Target ‘s entire gross increased.6 per centum. This was an addition of $ 65 million. Target ‘s earning increased 12.4 per centum during the financial twelvemonth. This was an addition of $ 2.4 million ( “ Target Annual Report, ” 2011 ) .

Wal-Mart and Target both have web sites that are easy to voyage for prospective clients. Wal-Mart ‘s web site is and Target ‘s site is Each shop has a hunt saloon that makes happening precisely what you want easier. You can besides voyage through the web sites by sections. You can besides see clearance points and gross revenues points on the web sites. The images of the points are dramatic, so the client can see precisely what they are purchasing. You can hold the points shipped to the local shop or your place.

Corporate construction Wal-Mart hypertext transfer protocol: //

hypertext transfer protocol: // Now more than of all time my pa builtA Wal-Mart for these times.A

Rob Walton

hypertext transfer protocol: // Bill Simon, President and CEO, Wal-Mart US

“ This twelvemonth has been one of invention and positive alteration for Wal-Mart US. From our scheduling system, betterments to take stock direction and our new shop direction construction, we have delivered important consequences to our concern. Our shop remodels and ware lucidity have allowed our clients to populate better in a really hard economic system Sam Walton taught us that we must ne’er acquire set in our ways, to introduce and alter ; we ever look for ways to run our concern better so we can go on to offer our clients lower monetary values ” ( B Simon, EVP & A ; COO Wal-Mart US ) .

Senior Leadership Team

Raul VazquezA -EVP and President of Wal-Mart West

Rosalind Brewer – Wal-Mart South EVP and President

Hank MullanyA – EVP and President of Wal-Mart North

Eric Zorn – President of Wal-Mart Realty

Johnnie Dobbs -Executive Vice President of Logistics

Corporate construction Target hypertext transfer protocol: // 7iUfYivQhG1Tz1Uc8tYJbAhu7BxoE17aArUKHv2IBbk

Target is an upscale discount house that provides high-quality, on-trend ware at attractive monetary values in clean, broad and guest-friendly shops. In add-on, Target operates an online concern,

hypertext transfer protocol: // ” At Target, diverseness is much more than a end or run. It ‘s a nucleus value we integrate into every country of our concern – from our providers, to our squads, to the shopping experience in our shops. We foster an inclusive civilization that allows our high-performing and diverse squad to drive invention ” . By Gregg Steinhafel Chairman, President and Chief Executive Officer

Gregg Steinhafel

Gregg Steinhafel

Executive Military officers

TimothyA R.A Baer -EVP, General Counsel and Corporate Secretary

Michael A R. A Francis -EVP and Chief Marketing Officer

John A D. A Griffith -EVP, Property Development

BethA M.A Jacob -EVP, Target Technology Services and Chief Information Officer

JodeenA A.A Kozlak -EVP, Human Resources

DouglasA A.A Scovanner -EVP and Chief Financial Officer

TerrenceA J.A Scully -President, Target Financial Services

Gregg A W. A Steinhafel -Chairman, President and Chief Executive Officer

Tina A M.A Schiel -EVP, Stores

KathrynA A.A Tesija -EVP, Trading

Laysha A L.A Ward -President, Community Relations and Target Foundation

Mission, Vision & A ; Valuess

The missions of both of these companies focus on doing certain to that the client is satisfied by salvaging money when shopping in their shop. Targets mission is to do Target the preferable shopping finish for their invitees by presenting outstanding value, uninterrupted invention and an exceeding invitee experience by systematically carry throughing our Expect More. Pay Less. A® trade name promise ( “ Target ” , 2011 ) . Salvaging people money to assist them populate better is Wal- Mart ‘s mission. Salvaging people money so they can populate better is at the bosom of everything Wal-Mart does that is Wal-Mart mission to the community each and every twenty-four hours, merely put, assisting people live better is more than something to make ( “ Wal-Mart, 2011 ) . Both companies focus on supplying responsible monetary values for their consumers. Wal-Mart and Target value their clients and work hard to go on to maintain their clients satisfied.

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Americans are seeking to be more loyal since the calamity of September 11. They are seeking to purchase more goods that are made in America. A bulk of the people shop at America ‘s two prima retail shops, Wal-Mart and Target. While Target sells more American made goods than Wal-Mart, happening the points can be clip devouring and expensive. American made points retail for more than points from other states. Fifteen per centum of Wal-Mart ‘s goods are produced in America and over 20 per centum of Target ‘s are. Wal-Mart is the individual largest importer of foreign goods. Eighty per centum of Wal-Mart ‘s providers are located in China with over 70 per centum of the points sold made at that place. The big figure of goods being imported to big retail merchants could intend losingss of occupations in America by destructing fabricating occupations that produce American made goods ( “ America ‘s Union Movement, ” 2011 ) .

With Wal-Mart holding 8,500 shops in 15 states, it is non surprising they have more employees than Target. In 2009, Wal-Mart employed 2.1 people worldwide. The bulk of the employees are full-time. Average wage for a full-time employee is $ 10.78 per hr ( “ Wal-Mart, ” 2011 ) . Target has fewer shops and employees than Wal-Mart. As of 2009, Target merely had 2009 employees located merely in the United States. They had programs to spread out their concern to Canada. Their full-time employee rewards are lower than the mean at Wal-Mart. The mean employee makes $ 8.50 per hr ( “ Target, ” 2011 ) .

Both Wal-Mart and Target offer benefits and compensation to employees. Wal-Mart ‘s benefits include medical, dental, 401k matching, and preparation. The wellness insurance plan has inducements to assist employees discontinue smoke and supplying 100 % coverage on preventive attention. They have besides implemented a plan for pregnant female parents that offer support before, during, and after gestation. There is free, confidential guidance available to all employees 24/7. Other benefits offered include company-paid life insurance, dependent life insurance, inadvertent decease and taking apart insurance, critical unwellness and accident insurance, short-run and long-run disablement insurance, concern travel accident insurance, and an associate eyewear plan. Employees are besides covered under unwellness protection, where they are given paid ill clip off from work. There are besides many fiscal benefits for employees working at Wal-Mart. The company matches parts to 401k up to 6 per centum. Associates are allowed to buy stock within the company. A price reduction card is given to new employees that give a 10 % price reduction off on a regular basis priced general ware. Wal-Mart wages employees for vacations, holiday, personal clip, mourning, and jury responsibility ( “ Wal-Mart Stores, ” 2011 ) . Target ‘s squad members get 10 % off their purchases at the shop. Target besides offers a tuition reimbursement plan for squad members desiring to go on their instruction. Target has implemented an acceptance plan that offers up to $ 5,000 for acceptance fees. They besides spouse with many different fiscal establishments seeking to assist their workers get loans to buy places. Team members are besides offered discounted rates for day care. Dental and medical insurance is offered, along with pharmaceutical price reductions. There is besides confidential, free guidance offered 24/7 to employees. Other benefits offered at Target include 401k parts, paid holiday yearss, personal vacations, disablement and life insurance options, and wellness resources ( “, ” 2011 ) .

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Bing involved and giving back to the community is of import. Each company owes their success to their clients. Without their clients neither company would be able to last. For these two companies giving back to the community is of import. Wal-Mart and Target takes great pride in giving back to the community by back uping mundane causes of their clients. Wal-Mart provides support to over 100,000 charitable and community organisations. Wal-Mart has set in topographic point a plan called The Wal-Mart Foundation. This foundation focuses on bettering the lives of people in the community. This foundation provides support in instruction, workforce development/economic chances, environmental sustainability, and wellness and health. Wal-Mart besides focuses on hungriness alleviation. Wal-Mart and the Wal-Mart Foundation made a $ 2 billion committedness through 2015 to hunger alleviation attempts in the U.S. in order to back up the record 1 in 6 Americans who do non cognize where their following repast is coming from ( “ Walmart shops ” , 2011 ) . Most of Wal-Mart ‘s giving is done locally. Wal-Mart does this so they can assist to better the lives of the local occupants. In financial twelvemonth 2009, Wal-Mart and its foundation gave more than $ 378 million hard currency and in-kind gifts to U.S. non-profit-making organisations ( “ Wal-Mart ” , 2011 ) . The basic demands such as hungriness, homelessness, instruction, occupation preparation are some of Wal-Mart chief focal points. Target besides provides support to the community through their foundation. The Target Foundation provides support to instruction, humanistic disciplines, safe households and communities, and squad member engagement. Since 1946, Target has contributed 5 per centum of their one-year income to back up households and communities, and today Target remain one of really few companies that maintain this degree of sustained giving ( “ Target ” , 2011 ) . Today that equals more than $ 3 million every hebdomad to back up instruction, the humanistic disciplines, societal services and volunteerism ( “ Target ” , 2011 ) .A Community giving and support have been a portion of the Target bequest good before they officially opened our doors they work with organisations large and little in their countries of focal point to assist them accomplish a profound and permanent impact in their communities ( “ Target ” , 2011 ) . Giving back to community is a precedence of both Wal-Mart and Target.

Major Accomplishments

hypertext transfer protocol: // 7iUfYivQhG1Tz1Uc8tYJbAhu7BxoE17aArUKHv2IBbk In 2005 the Start Something Character Education Program started by Target and the Tiger Woods Foundation, surpassed the three million grade ( ‘Target ” , 2011 ) . A Target ranked 14th out of 119 companies on Business Week ‘s Best Topographic points to Establish a Career study ( ‘Target ” , 2011 ) . Target was the top-ranked retail merchant on the list, followed by Macy ‘s ( graded # 56 ) , Walgreen ‘s ( graded # 79 ) , Kohl ‘s ( graded # 94 ) , Abercrombie & A ; Fitch ( graded # 98 ) and Sears ( graded # 110 ) , severally ( ‘Target ” , 2011 ) .

2009 named Target one of the “ Best Places to Work for Recent Grads ” ( ‘Target ” , 2011 ) . The following twelvemonth, 2010 J.D. Power and Associates ranked Target the highest in overall client service for mass merchants for the 4th twelvemonth in a row harmonizing to its National Pharmacy Study ( ‘Target ” , 2011 ) .

hypertext transfer protocol: // In 2002 Wal-Mart was Forbes magazine recognized us as one of the most beneficent companies in America ( “ Wal-Mart shops ” , 2011 ) . The same twelvemonth Wal-Mart received The Ron Brown Award for Corporate Leadership, a presidential award that recognizes companies for outstanding accomplishment in employee and community dealingss ( “ Wal-Mart shops ” , 2011 ) .

In 2009 The National Urban League honored Wal-Mart with the 2009 Corporate Leadership Award during the organisation ‘s 53rd one-year Equal Opportunity Day Awards Dinner ( “ Wal-Mart shops ” , 2011 ) . In 2010 Wal-Mart was named Donor of the twelvemonth by Feeding America for supplying financess, and vehicles, and more than 100-million lbs of nutrient ( “ Wal-Mart shops ” , 2011 ) .

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Both Wal-Mart and Target concentrate on a alone manner of strategic selling. Looking at the overall ends and scenes of both shops we as the consumer know and understand that they are trying to make their client base. The individualised manner in which each goes about the maneuver is really interesting in nature. Wal-Mart focal points on the lower and in-between category purchasers. Their forward selling scheme is appealing to the client ‘s billfolds and concentrating straight on cost and affordability. Wal-Mart has committed to a peculiar pricing strategy that is used in their selling scheme that allows clients to believe nest eggs. Using Numberss in their pricing such as 88 cents and 96 cents, allows clients to visualise nest eggs. This is one of Wal-Mart ‘s schemes to appeal to the lower income clients. Another selling scheme that Wal-Mart utilizations is through their sellers. Wal-Mart will non utilize any one seller more than four per centum of their entire gross revenues. This is to market to their clients ‘ assortment and competition, thereby maintaining the monetary values low for lower and in-between category clients. Wal-Mart continues to believe affordability.

Target on the other manus entreaties to affluent, middle and lower income clients. Their scheme tends to be a small more high-strung in nature. Target wants name acknowledgment more than pricing. Gregg Steinhafel the company ‘s CEO has pushed in the company ‘s selling scheme that pricing is non the chief focal point. They believe the manner to provide to their consumers is to supply a shopping experience that appears to classy and above the normal low cost rivals ; all the piece supplying regular family points that clients need on a twenty-four hours to twenty-four hours footing. This selling scheme allows for Target to be able to offer name trade name points in the shops for consumers, such as, Lancome, LEI, Vanity Fair, and many other points. Another scheme Target uses is the existent decor of the shop and the layout of the ware. Target focuses on appealing to consumer ‘s eyes by puting vivid colourss throughout the shop, including ware offered to buy. Puting outsize artworks and dad art throughout the shop, they are pulling the client utilizing sight.

Both companies have placed tonss of attempt in their selling schemes, guaranting that they attract their clients and maintain them revisiting their locations. They each take pride in research and developing the selling scheme that has carried and allowed their companies to win.

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Degree centigrades: Usersmylene01DownloadsWal-Mart.jpgWal-Mart considers that – ” Using the right media for developing selling programs is important- the right communicating channels can intend making your mark market or blowing a batch of money ” . Wal-Mart believes that the construct they have as a “ self-service Kiosk ” will give to their client ‘s better services and support, doing of the shop a better rival against Target Corporation. Wal-Mart chiefly channels of communicating are telecasting, direct mail, wireless, and cyberspace. Wal-Mart uses the booth to supply entree to the clients about their merchandises on stock or out-of-stock, the gross revenues, and shop merchandises. Therefore the company considers this service as the medium of communicating to inform their clients about their service. One of their ways to market their merchandises and services is through telecasting. Conveying their advertizements during peak hours and most watched shows is portion of their concern schemes. Wal-Mart has been a successful company for old ages due to their selling schemes communicating. Some of their mass mediums are, mail service, cyberspace, and telephone teleselling, assisting them in the designation of their “ mark markets ” . Their celebrated hebdomadal shopper is available in difficult transcript and through the cyberspace. This medium besides helps the company to pass on new merchandises and new booth services to their consumers.

Degree centigrades: Usersmylene01DownloadsWal-Mart 2.jpg Finally, they consider the self-service booth been the most of import and most successful as they continue developing their selling schemes. This new service may necessitate extra instruction on the portion of the consumer. Wal-Mart is able to develop this service and inform new clients by incorporating the information through telecasting, cyberspace, and wireless selling.

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The outside of a typical Target price reduction section shop. “ An early strategic pick to construct a trade name around the Target name fostered the company ‘s steady growing. Gerald Storch, Target ‘s frailty president, explained that the company had faced three strategic picks to undertake the increased competition in the retail market: “ to specialise, to go the low-priced manufacturer, or to distinguish itself ( hypertext transfer protocol: // # 3 ) ” . A However this pick would hold thwarted future growing, as Wal-Mart was by now a low-priced manufacturer, so Target decided to shift itself as a mass merchant of moderately priced fashionable merchandises. Interesting to advert that, despite Target ‘s committedness to fit Wal-Mart ‘s monetary values on similar points, Target was still perceived as weaker on mundane and advertised monetary values, every bit good as on mixture of goods.A Obviously, that did non keep Target back and alternatively decided to construct a really attractive patronage. Compared with other discount houses, Target ‘s clients referred to as “ invitees, ” more flush, younger invitees, and better educated. Their successful is that Target ‘s name is associated with younger, hipper, edgier, and more merriment image than Wal-Mart. Even their name pronunciation is in French, “ Tar-zhay, ” to connote its fashionable esthesia. Target has achieved its repute, with its successful stigmatization activities. Target ‘s concern end was to bring forth a replacement to Wal-Mart ‘s monetary value leading. It was good planned and executed by using upscale discounting, a fashionable construct, quality and monetary value to vie with others. The construct of “ cheap-chic ” was using interior decorator ‘s partnerships, attractive advertizements and creativeness, enabling Target to go a major trade name and consumer shopping finish.

“ Wal-Mart spends 0.3 per centum of its gross on advertisement. Target spends 2.3 per centum. With the aid of more than half a twelve bureaus, it on a regular basis comes up with advanced ad runs a remarkable scheme for a price reduction shop ” ( hypertext transfer protocol: // # 3 ) .

Target – bullseye Through steady selling and communicating, Target has transformed its signature bull’s-eye logo into an mundane life symbol. This alone bull’s-eye logo is recognized by 96 per centum of American consumers and considered a hallmark icon in a category. During twelve-months Target ran a national run in unusual musca volitanss in 1997some of the advertizements were on the Sunday magazines of theA New York Times, Los Angeles Times, andA Chicago Tribune, A among others. Ads were seen on walls of edifices in New York and in agencies of transit from Miami to Philadelphia.A Using unconventional selling plans to reenforce its message, Target has besides engaged in “ dimensional advertisement ” . Their success demonstrates the importance of alone communicating in making durable distinction on anything other than cost. Target continues to be a mass merchant, keeping rudimentss such as low monetary values, wide assortment, and shopping convenience. It is non a place trade name, but, through its promise to plan and open uping selling communications, it has managed to take ample advantage from Wal-Mart in footings of image and trade name, constructing a big loyal and attractive section of the American population and turning an highly profitable concern.


Our intent is to set up a comparing between two biggest retail shops in the US, Wal-Mart and Target. Although both companies are oriented to salvage money to their shoppers, it is obvious that they are viing against each other for leading. Both retail shops have different logistics and communicating manners. There is no uncertainty that Wal-Mart ‘s selling schemes are around nutrient and low monetary values, while Target focuses on manner and manner. The “ self service booth ” has given Wal-Mart a great advantage over Target in footings of presenting their clients with new merchandises and great services at low monetary values. To the contrary Target has concentrated all their concern selling schemes and attempts in the construct of “ cheap-chic ” , showing their rivals that they are a mass merchant that has a wide assortment of goods capturing a different population section. While one company builds and based their communicating in low-prices every twenty-four hours, the other continues to pull the section that looks for a more fashionable and smart merchandises.