Calling with target plans?
Target, after following its lead retailer Wal-Mart, decided to offer prepaid mobile service to its costumers. The $35 plan consists of unlimited calling and texting. After using Target’s mobile plans for six-months costumers will automatically receive a $25 Target gift card.
In terms of brand positioning, it’s obvious that Target is not the “first” in the field. This can be potentially problematic because the easiest way of getting into the mind of the consumer is to be the first. It is often easier for consumers to recall who is the first in the field, but not who is second. Although target’s value proposition is unique but it is not the first unique position in the mind of the consumer, (where as Wal-Mart has already positioned itself as the first). Furthermore, people generally associate Target Corporation with discount retailing and not mobile services. It can be difficult for consumers to believe Target is capable of producing efficient mobile services when they have only known Target for discount retailing. Brands should not compete with other brands that have already positioned itself as the best in a specific category. Since Rogers have already placed itself as being one of the best in the mobile service provider field, it makes little sense to compete with Rogers and other mobile service providers in this category. Based on these too points it may seem disadvantageous for Target to debut as a mobile service provider.
