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- 💀 Marketing Autopsy: How Target Lost "Tarzhay"
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Welcome to TWISM’s Brand New Autopsy Series!
In this series, we will examine the biggest actual marketing deaths worldwide. While others made expensive mistakes, 70K+ TWISM readers are learning from their failures for free.
Keep in mind that these Sunday autopsies could save your career.
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🔬 The Main Autopsy: Target's 200-Day Death Spiral
Patient Details
Brand: Target Corporation.
Campaign: DEI Rollback + "Authentic" Pride Month Strategy.
Budget: $2B+ DEI commitment abandoned + Pride merchandise losses.
Cause of Death: Tried to please everyone, pleased no one.
Time of Death: August 20, 2025 (CEO Brian Cornell resignation announcement).
What They Intended
In January 2025, Target rolled back its diversity, equity, and inclusion initiatives following Trump's anti-DEI executive order. The company aimed to avoid conservative backlash while maintaining its progressive customer base through "strategic" positioning and scaled-back Pride merchandise.
What Actually Happened
Target's corporate fence-sitting strategy exploded spectacularly:
Nationwide boycott launched by civil rights groups within weeks of DEI rollback.
Pride Month 2025 merchandise featured "lorem ipsum" placeholder text on product labels - the ultimate symbol of corporate indifference.
Target scaled back NYC Pride sponsorship and reduced nationwide Pride support.
Lost the affectionate "Tarzhay" nickname as customers fled to Walmart and Costco.
The Numbers
200 days of continuous boycott since the January announcement.
3.1% decline in year-over-year foot traffic in Q2 2025, per Placer.ai data.
Three consecutive quarters of declining comparable store sales.
23% stock decline over the past 5 years vs. Walmart's 125% surge.
$2B+ commitment to Black-owned businesses effectively abandoned.
Timeline of Destruction
January 2025: Target announces DEI rollback following Trump executive order.
February 2025: National boycott launches during Black History Month.
April 2025: Rev. Al Sharpton meets with CEO Cornell - no concrete outcomes.
June 2025: Pride merchandise disaster with placeholder text and minimal store presence.
August 20, 2025: Cornell announces resignation amid mounting pressure.
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🧬 Failure DNA Analysis
The Root Cause: Corporate Cowardice Masquerading as Strategy
Cognitive Bias #1: False Compromise Fallacy
Target's leadership assumed they could find a "middle ground" between progressive values and conservative pressure, failing to understand that authentic brand positioning requires choosing sides.
Cognitive Bias #2: Sunk Cost Fallacy in Reverse
Instead of doubling down on their successful DEI brand positioning that had fueled growth for nine years, they abandoned it at the first sign of political pressure.
Warning Signs They Ignored:
Customer loyalty surveys showed DEI initiatives were core to Target's brand identity.
Walmart's success proved that discount retail could thrive without progressive positioning.
The 2023 Pride backlash was temporary, but the 2024 recovery was slower than expected.
Internal resistance from employees who valued the company's inclusive culture.
Why Smart People Made This Dumb Decision:
The pressure to appease political winds overrode fundamental brand strategy. Cornell's team mistook tactical retreats for strategic pivots, not realizing they were destroying their core value proposition.
🎭 Myth Busted: "Playing It Safe Protects Brand Value"
The Myth: During polarized times, brands should take neutral positions to avoid alienating any customer segment.
The Reality: Target's "safe" strategy resulted in the worst possible outcome:
Lost progressive customers who felt betrayed by the DEI rollback.
Failed to win conservative customers who remained suspicious of Target's past.
Confused middle-ground customers who no longer understood what Target stood for.
Created operational chaos with inconsistent Pride merchandise rollouts.
Data Points:
Target stock down 23% vs competitors' growth proves "safe" strategy failed
Boycott organizers report 200 days of declining foot traffic show sustained customer loss
"Lorem ipsum" Pride merchandise became a viral symbol of corporate insincerity
Why This Myth Persists:
Risk-averse executives conflate controversy with crisis, not understanding that passionate customers (even angry ones) are more valuable than indifferent ones.
What to Do Instead:
Choose your customer base deliberately and serve them authentically, rather than trying to be all things to all people.
🛡️ Failure Prevention Toolkit: The "Brand Authenticity Stress Test"
Before making major brand positioning changes:
✓ Core Customer Analysis
Survey your most loyal 20% of customers about proposed changes.
Calculate the lifetime value of customers you might lose vs. gain.
Test brand messaging with focus groups from key demographics.
✓ Competitive Positioning Audit
Map where competitors stand on controversial issues.
Identify a unique brand territory you can own authentically.
Avoid "me too" positioning that commoditizes your brand.
✓ Implementation Consistency Check
Ensure all touchpoints reflect your positioning choice.
Train customer service teams on the new brand stance.
Prepare internal communications for employee questions.
✓ Crisis Communication Preparation
Draft responses for both sides of the controversial issues.
Designate a single spokesperson to avoid mixed messages.
Create escalation protocols for social media backlash.
Red Flags to Watch For:
Executive team split on brand direction.
Marketing saying "let's just test the waters".
Operations are unprepared for the positioning change impacts.
No clear answer to "What do we stand for?"
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P.S. - Have a social media disaster story to share anonymously? Reply with "AUTOPSY" and I'll send you our submission guidelines.
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That’s all for today. Thanks for reading. Now…
Go BIG or go home!
~ Josh from “This Week in Social Media”
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