Target gets mod in Manhattan - new Target House - Brief Article

DSN Retailing Today, August 20, 2001 by Laura Heller

Chain takes marketing efforts to new heights (3 stories up)

NEW YORK -- Target Stores unveiled perhaps its most lofty marketing ploy to date when it opened the Target House, a 6,000-sq.-ft., four-story townhouse in Manhattan's trendy Tribeca neighborhood. The building is nothing less than a showcase of Target's merchandise "from top to bottom," according to the company

The project opened its doors to a select group Aug. 7 and featured Target's triumvirate of designers: Mossimo Giannulli, Sonia Kashuk and Michael Graves. But the house is not open to the public, according to spokeswoman Mary Morelli. Nor were analysts invited or even informed of the project. Presumably, Target's intention is to woo the consumer press, getting coverage in the kinds of glossy magazines in which it advertises.

"This is a very creative, innovative way to market the [Target] brand," said Neil Stern, partner at McMillan/Doolittle, a retail consulting group. "This is the kind of stuff you do to stand out."

And standing out appears to be Target's intention. A virtual tour of the house is available at Target. com, where visitors can view a 360-degree revolving image of all seven showcase rooms. Drag a mouse over displayed merchandise and the product pops up in a window. Click on the "Shop Now" link, read a description or purchase it on line.

In fact, a large goal of this new marketing vehicle seems to be driving traffic to the Web site, which has recently been updated with several new programs. Consumers can now purchase gift baskets for the Back-to-School season, sending goodies such as "Midnight Munchies" or "Laundry Care" gift baskets off to college students.

Another Back-to-School addition is Bullseye, a dedicated site linked to Target.com that serves as a community for teenagers.

The site offers beauty and fashion tips, horoscopes, relationship advice, music news and updates about different Target-sponsored events and programs geared for the younger set. No product is available for sale on Bullseye, but a link back to Target.com is clearly displayed should a visitor want to make a purchase.

Target is a bit more obvious about getting consumers to buy items from Target House. Artwork on display in the New York abode by four separate artists with distinguished pedigrees are signed, numbered and part of a limited edition series created exclusively for Target.com, claims the company. One hundred copies of each print, matted and framed under glass, are available and range from $430 to $630, a definite step up from the Plexiglas-covered poster art typically sold by the retailer.

Target is also taking the opportunity to promote its gift registry programs, as well as sister business Marshall Field's, which has furniture showcased on the virtual tour.

Rather than offering the item for sale or a link to the department store's site, it refers consumers to a toll-free phone number for further information about Marshall Field's furniture.

Target will also use the house to give sneak previews of upcoming fall and winter merchandise and, when its usefulness is worn out, all items will be donated to the Coalition for the Homeless.

But just how long Target House will remain open, the company isn't saying. One analyst speculated, "Maybe they're thinking they might open in Manhattan and are trying to get people excited about it."

But according to Stern, "The only people who think that live in New York." Rumors of Target planning to enter the Manhattan market have swirled for years. In truth, the retailer has more to gain by reaching the largely New York-based consumer media on their home turf with a showcase of this sort, than taking on the expense of a costly city location. It's simply part and parcel of Target's ambitious and largely successful branding program.

Stern added, "It's the kind of groundbreaking stuff that I think [keeps them] way ahead of the retail world."