Private Brand by Target "Threshold"

In these days, it is often seen that the retailer develop its private brand products with a high quality, low price. Usually, those private brands are not identical with its main brand. For example, Wal-Mart develops its private brands such as Dr. Thunder and Sam’s Choice. Target is also expands its private brands, but those private products with “Target” logo was not seen at the store. This might be to avoid appealing negative images to the customers.

The case of “Threshold” indicates the general ideas of what private brand is.

 

Customer Insight

People know, and Target knows, that most of the people who comes to Target tend to be lower to middle income.
Target is one of the largest retailer in the United States, and that provides multiple of products with a relatively low price.

It is easy to develop cheap quality products with a low price, and also it is easy to do with a high quality products with a high price.

People coming to Target basically expect the lower price, however, it would be better to provide high quality products with low price.

In order to do this, Target explores its private brands, and one of them is "Threshold."


Brand Promise

What this brand tells the customer is that people can enjoy trendy looking products with a relatively low price. It will increase the one's satisfactions or hapinesses of his daily life.


Brand Personality

As it is indicated above, Threshold is the private brand that for trendy lives with a lower price.
Also, most of the people do not know that the Threshold is private brand of Target, so that the ones do not have to care about make thier lives look cheap.


Target Segment

The targeted segment market would be the ones who want to enjoy or improve their quality of lives without costing large investment. Especially Threshold is appealing its decent designs. Therefore, the target would be house keepers, i.e., wife.

Brand Strategy

Private brand strategy is really popular for the retailers in these days. In Japan, this strategy is also taken among many retailers.
One of the common strategy is that those retailers tend to have enough market.
No one sees the private brand under a certain kind of small retailer.
Becasue they have enough funds and market, they can develop the private brands.

Also, Target can maintain the customer's relations by this trendy products.
"Threshold" should not be the initial motivations for the customers to come to Target, but customers can enjoy their shopping at Target with those well-designed products.

Critique

One of the possible curitique is that Target cannot re-sell this product to other retailers.
If that would be the national brand, Target is able to re-sell it to other retailers in many ways.
Therefore, Target has to develop its product lots as much as accurate numbers.