Products bought at Target stores affect everyday living for those who value style. But can they cater to the purely cost-conscious consumer too - without hurting their brand?

ThinkInsight

As sales slip and the economy is in a cash crunch, Target is looking to pump up their bottom line by temporarily stocking more generic “warehouse club-like” bulk product offerings. Coming from a brand that prides themselves on stylish yet affordable furnishings and clothing, this may just dilute the “specialness” of the brand altogether by dumbing it down to a Sam’s Club or Costco level.

At its core, Target’s success stemmed from appealing to a segment of consumers who were looking for discount shopping that was hip and cool, yet completely affordable. They accomplished this not only through their marketing efforts, but throughout their in-store retail experience as well. The merchandise itself was consistently stylish (usually created by high-end designers), allowing it to appeal to a more youthful audience; thus, infiltrating the world of high fashion. So to hype that Target is now selling generic items goes completely against the grain of the original branding that set them apart.

Though the target end date for this promotion, called the Great Save Event, was February 21^st, they are still continuing this online. This tactic remains somewhat removed from their core operations, which is a good thing. Devoting more space and attention to the Costco-model would certainly interfere with the core values that make Target such an exceptional brand.

I use the term Mad Men to define CD because most executives, directors, planners and creatives were men (yes, Virginia — even in the early 90’s).

Modern advertising reflects vintage style in an Ad Age promo for Mad Men.

The book chronicles the extreme ups and downs of running an agency, and battling internally whether to position the agency as a “creative shop” or to become a business partner with the client.

There were striking parallels between their struggles in 1989 and the challenges facing many agencies today (not withstanding our economic woes).

Is the mark of a great agency comprised of award-winning work that brings in new business, but ultimately falls short of supporting the client’s objectives?

Probably not.

Perhaps the answer lies in the support of client business goals with award-winning work that’s rooted in consumer insight. Couldn’t both live in harmony?

Clearly, ARGUS would not be in business if we did not achieve both. Our clients stick around for the long-term, because we work for this balance.

At a time when consumers truly own brands, won’t tolerate change on package design or product formula (remember new Coke and Tropicana?), and CMOs are looking for ROI, you’d better be sure to marry the two — or you’re dead.

Image by Keane and Hunt

ARGUS has long believed that the traditionally known general market is rapidly dissolving into a multicultural marketplace. We’ve held this view for over 10 years, and our work is guided and supported by this concept.

America is becoming a blended nation that is reflected in the adoption of various cultural traditions. And as the largest research project in the nation, the upcoming 2010 Census is expected to confirm this.

“The concept of an ‘average American’ is gone, probably forever,” demographics expert Peter Francese writes in 2010 America, a new Ad Age white paper. “The average American has been replaced by a multidimensional society that defies simplistic labeling.”

The message to marketers is clear, according to Bradley Johnson of Ad Age: “No single demographic, or even handful of demographics, neatly defines the nation.”

What does this mean for marketers that want to reach underserved or hard-to-reach populations?

Our nation is becoming more diverse, particularly among younger populations. Smart outreach strategies will have to certainly take this into account. Consumer insight, more effective segmentation, and “niche” targeting will most likely become the norm.

ARGUS has used this strategy with wildly successful results for many clients, including Comcast. Building on our proprietary acculturation model, known in the marketplace as LatinoTRUTH™, ARGUS has targeted smaller niche markets within the Hispanic market.

By employing an approach that accounts for cultural commonalities in both offline and online strategies, you get more bang out of your marketing dollar and avoid the “spray and pray” effect.

Considering that by 2010, Hispanics will be both the nation’s fastest-growing and largest minority population segment, isn’t it time you took that into consideration?

C. Hammond
Director of Client Relations