The “cheap chic” marketing machine of target has come out with a novel idea for this holiday season. Instead of just giving a thoughtless gift card how about giving a gift card that is a gift it’s self! Sound confusing?

Target recently introduced the new Target Digital Camera Gift Card ($50-$1000). This is the Hybrid of the retail world. The gift card features a 1.2 mega pixel camera that holds 50 pictures. The camera / card comes with a USB cord, driver disc and voucher for 40 free prints at Target.

The gift card works the same as all other gift cards you chose how much store credit you want to load on to the card ranging from $50 to $1,000 of store credit.

This is a great idea to help spark lagging retail sales during the holiday season. The camera is fairly useless but it offers a fun cool factor that is sure to attract attention to the otherwise boring gift card.

From a marketing standpoint this move makes a lot of sense for the retail chain.

1.) It is a novel concept that is sure to attract attention and excitement.

2.) Encourages shoppers to purchase gift cards and it will also entice gift card purchasers to up their spend to a minimum of $50 so they can get the camera.

3.) It empowers the lazy gift givers, it is a simple holiday gift solution that keeps the giver from looking like a thoughtless shopper.

4.) It is cool ideas that will attract lots of word of mouth and positions target as a hip creative innovator in their market further differentiating Target in the minds of consumers from the relic Wal-Mart. This is a strong move since Wal-Mart has attempted to re-energize their brand with a more positive, youthful look. Their new logo looks remarkably similar to Targets. And their new tagline: Save money. Live better seems inspired by Targets tagline: Expect more. Pay less.

We will see if this gift card campaign is successful as we approach the holidays.

But it feels like this trend of incorporating utility into gift cards is going to carry on. I could see a company like Apple jumping on this trend with an IPod gift card hybrid. With the high priced items in an apple store they could justify the cost of a music playing gift card. With a minimum spend starting at $300 dollars or so.

I am sure Jobs is already on this and if not Steve better give me a shout out on this one!

Tags: Apple, Digital Camera Gift Card, Retail Sales, Target one ups Wal-Mart, Targets New Gift Card.