Brand irrelevance leads to evaporating brand value
Australian retailer Target has struggled in recent years to maintain a valued, differentiated consumer proposition in the market. As competitive pricing has become a table stake rather than an active brand differentiator, mid-market retailers like Target (and the now defunct Dick Smith) are losing their relevance, customer loyalty and brand value at an alarming rate. In the space of two years, the estimated value of the discount department store’s goodwill (closely associated with brand value) has fallen from around $2 billion to around zero as the result of mounting losses and strategic misfires by management. Three Chief executives have come and gone in the last three years, each reinventing the retailer’s offer without success. The Target brand must find a way to swim out of the spiraling rip of consumer irrelevance that is dragging it down by identifying a sustainable, meaningful consumer value proposition (as Kmart has done in recent years) and building a new brand around it from the ground up.
David is the founder of Truly Deeply, a brand agency with 25 years experience working with brands to position them for growth. His deep expertise is in the creation of high engagement brands that attract the attention of their audience and stand out from their competitors. David has extensive experience working with corporate, retail, food & beverage and entrepreneurial clients. Find out more at…
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Pic: Steven Siewert