And there it is. In my pile of mail. A Target direct mail piece. And not just a direct mail piece. But an honest-to-goodness coupon. From Target. It’s my first. And I’m more than a little awestruck that the great and mighty Target has sent me a coupon.
Who would have thought that Target needed to “coupon.” But a couple people I know also received it. This was no small endeavor.
The offer? Electronics. $10 off a purchase of $100 until April 9, 2009. Not a lot – 10%. But then again, electronics have such slim margins anyway.
THE REAL WORLD RETAILING TAKEAWAY
Fish where the fish are running.
In this down economy, electronics are still faring well, with consumers still spending [albeit at lower levels] on plasma TVs, video game consoles and the like.
Target is wise to try to capitalize on the market, especially given the demise of Circuit City, leaving only Best Buy as the major electronics retailer in the game.
Am I going to head to Target to buy my electronics? Well, the Target store staff is never going to match the electronics experts at Best Buy for product knowledge. And Target isn’t going to carry the selection that a Best Buy has.
But the fact that more and more Targets are being built in the same retail complexes as Best Buy stores means I have easy access to a price comparison (and that additional 10% off may just make me buy electronics at Target if they have the make and model I’m looking for).
And that’s where Target wins. In this down economy where price and value mean everything, slicing 10% off electronics prices may just get consumers to check them out. And that’s smart marketing.