targetpresentation

Introductions

Target in a Nutshell

Current Target SWOT

The Other Guys

My Pantry & Cartwheel 2.0

Post My Pantry SWOT

Next Steps

OVERVIEW

WHO ARE WE?A PRETTY SWEET BUNCH

Hometown: Chesterfield, MO

Marketing Major

Senior (WOOO!)

Target Addiction: Café Pretzels

EMILY KROKSTROM

Hometown: Kuala Lumpur, Malaysia

Marketing Major

Senior

Target Addiction: Dollar Spot

AMALINA ZAINAL

Hometown: St. Louis, MO

Marketing Major

Senior

Target Addiction: Socks!

KYLE FURLONG

Hometown: Moberly, MO

Marketing Major

Senior

Target Addiction: Athletic Apparel

KELSEY BOARDSEN

Hometown: Washington, MO

Marketing Major

Senior

Target Addiction: Mossimo

NICK EATON

TARGETIN A NUTSHELL

1795 Stores in the United States

38 Distribution Centers

347,000 Team Members

5th Most Visited Retail Site with 51 Million Visitors per Month

TARGET FACTS

“How can Target use E-Commerce and

their mobile platform as effective cross-

channel marketing tools to drive sales

and profitability at their in-store brick

and mortar locations?”

PROJECT ANALYSIS

November to January Online SalesIncrease of 36%

Fueled by Holiday Free Shipping

Time Spent Browsing/Shopping on MobileRose 251% in March

Nearly 100,00,000 Hours

Same-Store Sales in the U.S.Grew 3.8% in 4th Quarter

Higher Store Traffic

Higher Online Sales

SUPPORTING DATA

Groceries as Low-Margin Profit DriverWalmart generated $267 billion (56% of Profits)

85% of Grocery Shoppers Visit 2x Per Week

42% of Shoppers Visit More Than 2x Per Week

Cartwheel and the Target App76% of Mobile Shopping/Browsing Time

That’s 76,000,000 Hours on Target Apps

Cartwheel UsersSpend 30% More Per Trip

Visit More Often

SUPPORTING DATA

STRENGTHS WEAKNESSES

• High Brand Recognition

• Strong Online Presence

• Wide Variety & High Quality

Products

• Excellent Customer Service

• Limited Awareness Outside of U.S.

• Bad Lingering Effect of Credit Card

Scandal

• Fewer Locations Than Competitors

(Walmart)

SWOT

OPPORTUNITIES THREATS

• Expanding Stores Internationally

• Engaging Online Customers to

Drive In-Store Sales

• Improving Shipping Services

• Walmart

• Online Retailers

• Retailers Who Provide Free

Shipping

THE OTHER

GUYS

COMPETITIVE ANALYSIS

S

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K

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W

A

L

M

A

R

T

D

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L

L

A

R

A

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A

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O

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Strong Retail Brand

Values Money for Customer

Low Prices

Target’s Biggest Competitor

WALMART

Family Owned Grocery CompanyHeadquartered in St. Louis, MO

100 Supermarkets in:Missouri

Illinois

Indiana

Iowa

Wisconsin

Sales of $2.6 Billion

Schnucks CooksRecipes

How-To Videos

Cooking Classes

Magazine

SCHNUCKS

Online Retailer

14 Million Mobile-Only Visitors in USAge 25-34

AmazonFreshTest Market

Potential Threat

Subscription ServiceOffers Discount

Scheduled Monthly Orders

No Fresh Produce Online

AMAZON

Popular Brands at Low Prices

Dollar General Nation’s Largest Discount Retailer

Increased Emphasis on Grocery

DOLLAR STORES

MY PANTRY

& CARTWHEEL 2.0

Improve Grocery Sales

From 21% of Sales ($15 Billion) to 25%

Improve Target House Brand Grocery Sales

By 3% Compared to Non-House Brands

More attention to Existing Target Recipes Page

Partnership with Cooking.com

Gain 1 million New Users to Cartwheel

OBJECTIVES

Millennials

Age 21-30

Health-Conscious

Young Professionals

Career-Oriented

Busy

Tech Savvy

Urban & Suburban Areas

Lower-Middle Income

TARGET MARKET

Newly Employed with Entry-Level Job

Lives with a Roommate in

an Apartment or Small Home

Interests Include:

Being Outdoors

Spending Time with Friends

Online Shopping

Travel

Yoga

Prepares Dinners at Home &

Packs Lunches for Work

MEET CHLOE

TARGET RECIPES

CARTWHEEL

MY PANTRY TAB

MY PANTRY TAB

Provide Recipe Cards in Grocery

Encourage House Brand Purchases

Advertise Cartwheel Offers on Shelves

Provide Related Info on Shelf Tags

Scan with Cartwheel for Recipe Ideas

IN STORE

Recipes for Grocery Section

Coordinate with Promotions

Scan with Cartwheel for Recipe

WEEKLY ADS

POST MY PANTRY SWOT

STRENGTHS WEAKNESSES

• Increased Target Recipe Awareness

• Increased In-Store Foot Traffic

• Increased Average Basket Size

• Added Awareness of Cartwheel

• Focus on Risky Target Market

• Focus on Low Profit Margin Dept

• Grocery Weaker Than Competition

• Increased Spending on Developers

OPPORTUNITIES THREATS

• Engaging New Target Market

• Potential Increased Sales for Other

Product Categories

• Increase in Grocery Profits

• Possible Decreased Sales in Other

Product Categories

• Competitor Recipe Strategies

• Food Expert Criticisms

1. Begin Development of My Pantry Tab

2. Run Focus Groups to Increase Usability

3. Develop Multi-Channel Marketing Campaign

4. Release Cartwheel 2.0 in App Store

5. Make Millions. No. Billions.

NEXT STEPS

http://pressroom.target.com/corporate

http://www.statista.com/statistics/271450/monthly-unique-visitors-to-us-retail-websites/

http://www.startribune.com/business/294015961.html

http://seekingalpha.com/article/2297975-targets-traffic-issues

http://fortune.com/2014/06/05/target-cartwheel/

http://www.statista.com/topics/846/amazon/

http://www.mobilecommercedaily.com/targets-cartwheel-on-a-roll-with-7m-plus-users-new-features

http://www.wsj.com/articles/target-revamps-groceries-for-millennials-1425350121

http://www.target.com/r/recipes?ref=sr_shorturl_recipes

WORKS CITED