Another week and another full page ad in Target’s circular touting the REDcard Rewards program launched last fall. Nothing unusual about that right? The 5% savings program has been promoted heavily since is arrival last October to the point where it is impossible to look anywhere in a store and not seen 5% Rewards signs.
What’s different about the most recent ad is it enters some new territory in that Target is touting not only that its prices are low, but that they are in fact the lowest because shoppers are able to take advantage of a low-price promise and then save an additional 5%. The concept and messaging is similar to the situation in the home channel where Home Depot and Lowe’s have nearly identical low-price guarantees. However, they go a step further and promise to beat the competitor’s price by 10%, offering shoppers considerable savings on large-ticket purchases.