The Target Corporation offers a 14-day return policy for purchases made at its stores or online. If the customer finds a better price on Costco within 14 days, Target will pay the difference.
Pricing Strategy And Target Market
A business’s pricing strategy is the most important pillar for the success of their marketing and business development strategies. There are many different pricing strategies that can be used by business management teams, but the most effective pricing strategy can be identified by evaluating the company’s positioning, segment, and capability.
Target’s target market is individuals between the ages of 18 to 45, mostly white, married, well-educated, who earn a middle to upper income. Whereas, Costco’s target market is individuals aged 30 or above with a middle to upper income who have families and small business owners or working professionals. ..
Business Model And Competitive Advantages
The business model of Costco is based on the premise that small to medium size businesses can be the potential customer for its products. This is done by selling branded products at a lower price than what is typically charged by larger retailers, and allowing the purchaser to buy items in bulk so that these businesses can become customers.
The competitive advantages of businesses support their efficient marketing and capture of target markets. These advantages include a warehouse membership model, low prices, selling in bulk, and a strong supply chain management system. These advantages make Costco more efficient in its marketing and capture of target markets, which makes it more attractive to customers.
Does Target’s Price Match Costco’s?
Target is a retailer known for its money-saving deals on a variety of products. It also offers a price match scheme as a marketing tactic to retain customer loyalty by providing an incentive for shopping at Target. According to that policy, if the buyer finds the purchased item at a lower price in any other retail store, then Target will match that lower offered price. But claimed item must have the same model number, must be from the same brand, same size, quality, color, and weight.
If the customer is using the Target app for a price match with Costco, then they must make sure that the price of the product is for the current visiting store location. If a lower price on an item at Costco could not be confirmed by Target, customer complaints would get rejected. This policy is not eligible for sale and promotional offers and the buyer must show a printed or digital invoice of the lower price as proof while claiming a refund. Target does not entertain customer claims for a lower price in conjunction with other offers such as clearance items, sale items, damaged items, and coupon purchases. ..
Target does not offer price match for: -Coupons -Dresses -Shirts There is a condition in which Target does not offer price match for: -Tickets
On items out of stock currently: Stores at Hawaii and Alaska locations do not offer a price match policy. On the holidays of Thanksgiving and a full week later: Stores at Hawaii and Alaska locations do not offer a price match policy on items that are out of stock on Thanksgiving, but do offer a price match policy on items that are out of stock a full week later. ..
Conclusion
The article discusses how Costco has a price match policy that overrules all other retailers collectively. It also discusses how Target has a purpose to provide members with good quality products and services at possible lowest rates.
Target is an American retailer that was established in 1962 by Dayton Company and headquartered in Minneapolis, Minnesota U.S. As of the 2022 S&P 500 Index, Target is the 7th largest retailer in the USA.
Costco is an American MNC or international membership warehouse that works on membership for warehouse stores chains. It was instituted in 1983 in Washington, D.C.
Starting in 2022, Target will offer to match the prices of items that were purchased at Costco within 14 days of purchase. ..
