Target is changing its ways and turning towards healthy products. They plan to put vegetables, yogurt and whole grains in front and all the packaged sugary sweets in the back for good. So it’s very bad news for companies like Kellogg Co and General Mills Inc, who have just been informed that their products are no longer in line with Target’s image.
By choosing to promote healthy foods, Target is going to win a lot of popularity among parents concerned about what their children eat. And to further prove that this is their main target audience, they plan to include the highest quality products in the baby and children isles.
In line with its new branding strategy, Target will compartmentalize all of its products into three very different categories: “signature”, “outperform” and “perform”.
Obviously, all the whole grain goods along with the juicy fresh fruit and vegetables and all the bio products in the store will be included in the “signature” category and the promotion carried out by Target will focus on this one.
Therefore, Target will soon be associated with the words “affordable” and “healthy”. And that make for a much better reputation than “fine offer”.
The biggest struggle that the mainstream non-organic companies will have to surpass is getting into the “outperform” category rather than in the “perform” category.
While some products like Campbell Soup Co’s additive filled canned soup will go into “perform” without any chance of ever escaping it in the near of further future, there will be a fine line for others, like some Kellogg Co products, that will have to fight to get included in the “outperform” section.
The main reason why falling into the “perform” category is very risky for business is that it will be a true fighting pit, as Target private-label products will be very hard to beat for the purchase.
The company plans to heavily promote their own products from the “perform” category, leaving the others on the back of shelves, with little or no promotion tactics drawing attention to them.
“That doesn’t mean that mac and cheese is being eliminated, but clearly assortment is being shaped around what consumers are looking for,” said CEO Brian Cornell.
He is the man behind this colossal re-branding process and his plans are most definitely going to make Target bring in a very pretty income. By focusing on healthier products, the company could easily outdo its closest contenders and take home the prize.
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