Target in Brazil
Target Corporation that was founded in 1902 is an American retailing company that recently expanded to Canada in 2011. It is the second largest among the United States retailers providing a variety of products to the market like food, electronics, toys as well as furniture. Additionally, Target provides online shopping though its website where particular products that are unavailable in stores are ordered or advertisements are done on the website…
The Target corporation mission is to foster connections inside and outside their doors, which incorporates provision of high quality products, continuous innovations and creating memorable experiences for the customers.
. On establishment of Target Corporation in Brazil by the team carrying out the expansion process, employees will be employed from the ever-increasing Brazilian population. This will be done according to the country rules and regulation governing the employment and labor relations.
Target expects to get a huge market from a wide range of consumers in terms of age, social and economic status from the unsaturated foreign retail market and existing huge population since Brazil is the fifth largest in the world in terms of its population. The target city Rio de Janeiro has a striving middle class, increasing rates in incomes and better security making it a promising destination for the company. Two major events, the recently ended 2014 world cup and 2016 anticipated Olympics also increases the market and retail sales by stores.
Target Company will use accessible technology for advertisements to reach as many people as possible. The fact that Brazil is ranked third in the world, with the highest internet users as well as an increased social media activity amongst the users, ensures a highly effective cost saving way to create a brand. Other methods such as giving gifts especially those relating to soccer can be used considering the interests of Brazilians in soccer. This mainly targets the less fortunate within Rio de Janeiro city.
Wal-Mart and Carrefour retail stores are the major competitors for Target Corporation. The two hypermarkets open an average of 70 retail stores in one year all over Brazil. They have gained success by avoiding the North American style of shopping malls and instead enabled consumers to shop for different products in multiple locations rather than one store for different types of products.
The business operations the Corporation plans to undertake is establishment of efficient ways of distributing products support the local community and help in growing their economy by buying from local farms, carry out corporate responsibility activities like donate food, provide education and public safety to those who need it and finally lower the prices of products by cutting down their costs.
Targets financial projections are based on year 2012 Global Retail Development Index putting Brazil in the lead on foreign retail destination. High rates of consumption, increasing population and reduction in financial risk makes it economically viable to start a retail business in Brazil. The growth of retail sales between 2009 and 2012 by 12% and increase in retail market size by 15% between the years 2011 and 2012 indicate the estimated financial gains to be derived from the market. The company plans to implement the stores by late 2015 to target the probable sales increase in retail due to summer Olympics to be held in Rio de Janeiro in 2016. There are chances that retail sales will also be positively affected by the 2014 World Cup even if it takes place one year before.