Exercise 6-Kaitlin Manning PDF

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Kaitlin Manning MKT-315 Professor Berger March 7, 2021 Exercise 6-Company Case Target: A Serious Contender in the Same-Day Delivery Business 1. As completely as possible, diagram the value delivery network for Target’s grocery business, from raw materials to finished consumer goods. a. Farmer b. Wholesaler c. Distributor d. Target e. Shipt f. Consumer 2. Is Target a producer, a customer, or an intermediary? How about Shipt? Explain. a. Target can be considered both a producer and an intermediary because it is a major store that produces a large variety of items from produce to household essentials. Target is also considered an intermediary company because they partner with other brands to sell their products in their store. For instance, Target purchases products from the Nintendo company to sell Nintendo products such as Switches, accessories, and video games. 3. Discuss Target’s channel management procedures.

a. Target’s channel management procedures are organized because the company is cautious and thoughtful about the products it retails. Target also keeps in mind its competition and does its best to stay ahead. Once Target saw that other companies such as Walmart and Amazon began offering same-day delivery, Target jumped on the marketing opportunity and immediately saw an increase in online sales. 4. Regarding the same-day delivery venture, why are Target’s partnerships important? a. The partnerships are extremely important because it allows Target to stay ahead of the competition and stay one of the largest grocers and retail stores in the industry. By offering same-day delivery, Target is building not only its customer loyalty, but brand loyalty as well. Partnerships allow Target to spread its name and market to an even larger audience and become an even stronger store to compete against. 5. Will Target’s acquisition of Shipt result in growing revenues in the coming years? Explain. a. Target’s acquisition of Shipt was an incredibly smart marketing objective and I believe will allow Target to increase their revenues in the coming years. The convenience of same-day delivery will strengthen Target’s customer base as well as reel in new customers. Target is already a popular store among the Gen-Z culture and will continue to increase as the use of social media and influencers skyrocket. Same-day delivery is quick and convenient and allows people to order an item in a rush if they are not able to physically drive to a store and pick up an product....