The LGBT Guest
This case presents a scenario with a hypothetical challenge. Approach it as if you were a Target team member.
Diversity means more than just ethnic background or race. The U.S. population is more
vibrant and varied in composition than ever before with the makeup of rapidly growing,
changing, and most importantly blurring. According to The Intelligence Group, “This historic
shift is reshaping the nation’s long–held notions of multicultural. Millennials, in particular,
are more tolerant of other races, ethnicities, religions, sexual orientations & gender
identities compared to older generations.”
Media, brands and businesses targeting and marketing directly to the LGBT Community
are helping legitimize the community in broader culture, removing stereotypes and
beginning to reflect a new inclusive modern consumer mindset. Target’s Guest Insights
team has found that “Given the choice, consumers today prefer to give their business to
companies that share their inclusive values. They are supporting businesses that share
their values and turning away from those that don’t.” It is easy to spot one of these modern
consumers at Target: they are making more shopping trips per year, spending more per
trip with retailers who support inclusivity, including talking to the LGBT community. Target’s
LGBT guest over–indexes spend in style categories like apparel & home. As a buyer or
financial analyst within the Target style business, how would you develop a strategy that
stands for style and acknowledges Target’s support for the LGBT community?
Diversity means more than just ethnic background or race. The U.S. population is more
vibrant and varied in composition than ever before with the makeup of rapidly growing,
changing, and most importantly blurring. According to The Intelligence Group, “This historic
shift is reshaping the nation’s long–held notions of multicultural. Millennials, in particular,
are more tolerant of other races, ethnicities, religions, sexual orientations & gender
identities compared to older generations.”
1. Product/ Assortment: How should Target manage thoughtful expansion with
products that support the LGBT Community and elevate the brand? What kind of
financial investment might this require? What kind of partnerships could this entail?
2. Price: How can Target profitably deliver on “Pay Less” while also creating
meaning with the assortment?
3. Promotions: How and where should Target deliver seasonably relevant
promotions? What are the right seasonal moments in the LGBT Community? What
are the financial consequences of these promotions? [Suggestion: Look at what
other companies are doing in the months of June & October for the LGBT
Community]
4. Place/ Supply Chain: How might Target leverage store locations and broad
distribution centers to ensure product availability and to get it to the guest quickly?
How might we leverage engaged store team members? What are the financial
impacts of these decisions?