In my previous post, I wrote about Target’s much anticipated advertisement preceding its penetration into Canada.
Just 2 weeks ago, Target finally launched its 3 pilot stores in Guelph, Fergus, and Milton, and with just a 24 hour notice, Target opened 17 more stores today.
So how is Target doing in its first expansion out of America?
Responses have been extremely positive – largely due to its successful marketing tactics. Besides a small hiccup in its remake of Mr. Roger’s “Its a Beautiful Day in the Neighborhood” (Target definitely should have stuck with Mr. Roger’s original version), Canadians were extremely satisfied with the company’s approach. Target’s Canadian Ad definitely tugged on the audiences heartstrings with their adorable mascot – “Bullseye” the dog.
The long lines and the huge hype surrounding the opening of its pilot stores speak for Target’s superb marketing. Its very first customers in Canada received much coverage with articles even questioning whether the reported “first” customers were actually the first customers.
Nothing is more representative of Target’s successful marketing strategy than this – business was so good that it faced the problem of high demand. As John Morioka, senior vice-president of merchandising, said, “We haven’t been able to recover [in those three stores] because we are always surprised by the demand…we were definitely slammed.” Nevertheless, while high demand is great, it also points to Target’s need to work on a viable distribution strategy. Many customers complained of empty shelves and, in one case, spoiled food.
At this stage, Target’s biggest task has changed from getting Canadians to accept them as “neighbors” to ensuring high demand is met with supply. I hope Target executives seriously tweak and improve the company’s distribution strategy before launching the remaining of the planned 124 stores this year.