Target, the everyday low price retailer that carries everything and anything, stepped outside it’s usually comfort zone this past Christmas since it collaborated with an American luxury specialty department store, Neiman Marcus.
The collaboration generated a line that boasted merchandises from 24 upscale designers such as Diane von Furstenberg, Oscar de la Renta and Tracy Reese. Each designer contributed a few new items that were specifically made for this co-branding strategy.
Many of the designers are famous for their clothing and accessories on the runway; however, for this particular partnership, they produced various merchandises from home décor to children’s clothing to novelty items (ie. The Alice + Olivia women’s 28” bicycle).
The initial thought that crossed my mind was “wow, designer items at a low everyday price? SCORE!” and I’m sure many agreed with me. But the unfortunate disappointment of the entire collaboration was deemed as “a partnership that was hyped to the hilt, and wound up as a major bust.”
The primary set back of this partnership seemed to be the price; it wasn’t right. “The Target + Neiman line was priced from $7.99 to $499.99, with most items hovering in the $60 range.” Although the collection represented great value at affordable price points, it was still priced a little too high.
To compound matters, the timing of the promotion wasn’t right either. “The collection hit Target stores on December 1, sandwiched between the two most promotional peaks in the holiday shopping season: Black Friday and the final week before Christmas.” Therefore, when consumers were looking for bargains, Target was selling a full-price collection.
Through COMM 296, I’m able to analyze the success of the co-branding strategy. Ultimately, the integration and cohesiveness of the price and place were not well incorporated with the product and promotion.