Target Gets Into Home Remodeling

Discussion
Mar 26, 2003
George Anderson

By George Anderson


The Wall Street Journal reports that Target is going to begin selling
pre-fabricated home addition kits designed by architect Michael Graves.


The kits, priced from $10,000 to $26,000, will be sold on Target’s web site
(www.target.com) under
the brand name Pavilions.


According to the Journal, “In addition to being turned into stand-alone structures,
the kits can be fashioned into dens, playrooms or guest rooms and attached to
existing homes. Buyers can customize the basic layouts with an array of sidings,
wall colors, roof and window shapes — 33 different combinations in all.”


John Remington, a vice president of events marketing, Target said, “We kind
of keep throwing things against the wall and see what resonates with customers.”


Moderator’s Comment: Will the availability of the Michael
Grave’s pre-fab design kits cause consumers to think of Target as being too
upscale or will it create an image of a chain that provides superior quality
products at low prices?


Michael Graves normally charges $20,000 for design fees
alone. Consumers need to be clear that the availability (and low price) of these
kits is only made possible because of Target. [George
Anderson – Moderator
]


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