Universidad de la Sabana
Escuela Ciencias Económicas y Administrativas
Mercadeo 2013 – 2
Case 4: From “Expect More” To “pay Less”
Agosto 23 - 2013 * Camila Andrea Pinzón Gómez 201213506

WHAT IS ALL THIS CASE ABOUT?
The principal idea of the case is examine Target, a discount retailer who was always known for their ‘cheap chic’, “Expect More, Pay Less” value proposition. The evaluation between
BACKGROUND:
Target Corporation originally the Dayton Dry Goods Company and later the Dayton Hudson Corporation,
1902–61:
1902: Dayton Dry Goods Company was founded in 1902 by George Draper Dayton, a banker who built his wealth by buying farm mortgages in southwest Minnesota and an active member of the Westminster Presbyterian Church in downtown Minneapolis
1903:
In 1902, Dayton, looking for tenants, convinced Reuben Simon Goodfellow Company to move its nearby Goodfellows department store into his newly erected building. Goodfellow retired and sold his interest in the store to Dayton.[8] The store's name was changed to the Dayton Dry Goods Company in 1903, later being changed to the Dayton Company in 1911. Dayton, who had no prior retail experience yet maintained connections as a banker, held tight control of the company and ran it as a family enterprise. The store was ran on strict Presbyterian guidelines, which forbade the selling of alcohol and any kind of business activity--opening the store, advertising, and business travel--on Sundays. It refused to advertise in newspapers that sponsored liquor ads. In 1918, Dayton, who gave away most of his money to charity, founded the Dayton Foundation with $1 million.[7]
By the 1920s, the Dayton Company was a multi-million dollar business that filled the entire six-story building. In 1923, Dayton's 43-year-old son David died, prompting George to start transferring parts of the business to another son, Nelson