Step 1: Problem Definition–DONE
Define the problem clearly using not more than 500 words. Focus on the 4Ps and 3Cs of
marketing and the Hierarchy of Effects Model.

Target is a company headquartered in Minneapolis, Minnesota in the United States. The first company in the United States to put forward the concept of “discount” stores, has now become the second-largest retailer and with the most fashionable “senior” discount retailer in the United States. Target Corp. on Wednesday reported its best sales growth in more than a decade, a sign that the effects of Covid-19 went well beyond the early days of panic buying by shoppers. However, the retailer’s profits suffered as consumers focused on lower-margin products and it spent heavily on store cleaning and raises for staff. The secret of success is that Target never tries to imitate Wal-Mart’s low price but to show its style. In terms of price, Target does not use low price as a magic way. When shopping at Target, low price is not the attraction to customers, but instead the fashion, quality, and uniqueness of the products are the fatal attraction. Although it also sells affordable, mass-market products, it is mostly about updates of fashion items and exclusive collections by famous designers. Due to the pandemic and stay-home order, consumer’s needs for clothing and related fashion items decreased. This might be one of the reasons for their lower profits. As for the place, Target has been taking action in response to the Covid-19 pandemic. We could find it on their website that Target is increasing cleanliness, monitoring, and metering guest access, requiring masks upon entry, dedicated shopping hours for vulnerable guests, placing reminders for social distancing as well as sanitized carts between use. The increase in their sales indicates that those actions effectively raised consumers’ confidence when shopping at Target. However, these actions also increase retailers’ fixed costs, and their profitability decreases.
For the Hierarchy of Effects Model, Target did well on forming advertisements to influence consumer’s decisions to purchase a product or service. Target contains a wide range of products from clothing to grocery, and consumers can easily purchase products from their online website. They also provide delivery services which are very useful during the pandemic. In the three months through May 2, Target’s comparable sales rose 10.8% from a year earlier, driven by a 141% leap in digital sales. Digital sales accelerated through the quarter, rising 282% in April alone. More than five million customers shopped at Target for the first time, indicating their success in advertising and online shops.
The problem that Target faces, as well as other retailers while the pandemic (Covid-19) rages across the nation, is how to continue operating and generating income while strict “stay-home” orders are in place.

Step 2: Research Objectives
List your Research Objectives