“Target Canada prices drop lower than Walmart’s, study finds” –

When Target first entered the Canadian market their initial sales ell short of company predictions. This failure has had an interesting effect on consumers’ perception regarding Target as shown in Holly Shaw’s article in the Financial Post . Following Target’s launch blunder, the company lost The Power of Name effect, explained in an article by Trout and Ries on the Canadian market (article). Before expanding north , Canadians viewed Target as a firm that offered great quality brand names for a low price (powerful brand name). However, when Target opened up in Canada, they failed to uphold that same reputation that made the company desirable in the United States. In short, Target Canada has failed to live up to its brand expectations from its U.S. counterpart and as a result, has lost business from a large portion of their target consumer base (no pun intended).

This weakness in brand strength has inclined executives to spend the next year putting their efforts towards adjusting the mindsets of Canadian consumers. Unfortunately for Target, this is not an easy task. As Trout and Ries explain, “it is quite difficult to change a consumers impression once it is formed”. Target has a lot of work to do in order to erase the poor impression Target Canada has built for himself. Walmart currently holds the majority of the marketshare and has a very powerful name in the mind’s of consumers. This article shows how in a recent pole Target actually offers lower prices than Walmart for identical goods. This proves that Target’s problem now is not competing in prices with Walmart (as it was when first launched in Canada), it is about competing for the minds of consumers.

Target Canada