Dive Brief:
- Target is putting some extra marketing oomph to promote the 12 new private-label brands it recently introduced to store shelves, according to Ad Age. The brands, which include names like A New Day — a modern women's clothing label — and Target's first-ever menswear collection, Goodfellow & Co., are integral to the retailer's growth strategy as it weathers disruption from e-commerce websites and a shaky retail space.
- Target aired its first campaign spot on Sunday as part of the roll out for the new brands, Ad Age said. The full campaign, created by the agency Mother along with in-house shops Target Creative and Team Arrow, includes TV and digital spots, along with 360-degree video, individual brand landing pages and user-generated social media content. Target will host in-store events and visual merchandising for each new brand through September. Marketing outreach features Spanish-language ads, and Target intends to be more inclusive in its advertising overall, featuring a diverse span of ages, body sizes and ethnicities.
- The private-label strategy is a way for Target to set itself apart in a crowded marketplace, CMO Rick Gomez told Ad Age. Gomez signed on for the chief marketing role in January.
Dive Insight:
Target has curated an image as a more upscale retailer in recent years, putting a strong emphasis on style and working with noteworthy fashion designers like Victoria Beckham for limited-run lines. Doubling down on promotions for the new private-label brands now is a smart move, as they've already netted a good deal of consumer interest, according to Ad Age: Their initial unveiling earlier this summer won the brand nearly 900 million earned media impressions. This could translate to a strong sales boost heading into the crucial holiday shopping period, but Target needs to ensure people know what the dozen individual labels offer and are also able to try them out beforehand.
Target is casting a wide net by adding Spanish spots to its advertising for the private labels, targeting a growing base of Hispanic consumers that are often underserved by big-name U.S. brands. The retailer, which recently slashed its prices to remain competitive, also appears to be angling for the business of younger consumers who do more of their shopping online. Target leveraging trendy tactics like user-generated or influencer content on social media might drum up more engagement for this crucial shopper segment, and the brand is also tapping cutting-edge technology like 360-degree video.
Digital competition from Amazon on the "everyday essential" category of products has made an impact on Target's business. At the same time, recent research from Cadent Consulting Group cited by Ad Age found 51% of millennials don't have a preference for national brands over private-label brands. This creates an opportunity for Target to control the entire experience from product to sale.