Target Presentation

“Back to College” 2012| Team Eye of the Bull | Target Corporation | December 7th, 2010

Agenda

Pre-Analysis

– Industry Trends, Competition, SWOT

Target Markets

Recommendations

Post-Analysis

Conclusion

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TrendsDesigner Partnerships– Unique & stylish designs at low

prices– Started in clothing & now expanding– Enticing strategy for retailers

Mobile Apps– Smartphone and mobile app use is

on the rise– Competitors: IKEA and Walmart have

strong following

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Competitors

Kohl’s

• Offers a variety of products, with areas devoted to linens and home goods

• Has strong designer relationships (ex: Vera Wang and Elle)

• Strong presence on social media sites

IKEA

• Large assortment of low-price, high-quality bedding and furniture options

• Displays products in simulated rooms

Walmart

• Extremely low prices

• Recently added grocery and fresh food options, creating one-stop shopping

• Uses crowd sourcing on Facebook to initiate deals for customers

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Pre-SWOTStrengths

• Brand is highly recognized

• Differentiation through strong merchandise assortment

• One-stop shopping appeals to busy guests

Weaknesses

• Prices are higher than the competition

• High dependence on China as a supplier

Opportunities

• Growing market for electronics

•Mobile and electronic commerce

• Increased presence in food and grocery through Pfresh stores

Threats

• Recent economic decline causing a decrease in discretionary spending

• Increasing overlap in product assortment

TARGET

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Target MarketPrimary Market: College Students

– Millennial generation, low incomes

– Motivated by peer-group

Secondary Market: Parents

– Encompass core target guest

– Middle to high income

– Motivated by relationship with children

Low Price

Stylish

Long-term usability &

variety

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Transitioning from home to dorm to apartment

Attract guests with new designs, customizability, and added functionality

Reach out to guests through technology using new tools and engagement opportunities

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Designer Lines: Recommendation 1

Mod Vintage Funk

MICHAEL VAN DER HAM

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Marketing CommunicationsCapitalize on appeal of IKEA’s in-store displays

– Primary market: 71% indicated Very Appealing or Appealing

– Secondary market: 58% indicated Very Appealing or Appealing

Utilize in-store TVs with designer videos

– Better facilitates guest experience

– Guest can visualize transition from dorm or apartment

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Evaluation of Recommendation

Disadvantages Benefits

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Roommate App: Recommendation 2

CookSchedule Design

• New focus as a daily planner and schedulizer

• Ability to share events or keep them private

• Virtual room design

• Online Catalog showcasing designer line products

• Interactive meal-planning and recipe sharing

• Transitions from dorm to apartment (full kitchen)

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Evaluation of Recommendation

Disadvantages Benefits

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Expanded Marketing StrategyNationwide poster contest

– Create partnerships with design schools

– Designs submitted through online crowd sourcing

– Supports Target’s community initiatives

“Back to College” Catalog

– Show transition from dorm to apartment

– Designer profiles, Direct mailing

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Measures of Success

Designer Lines

• Sales volume

• Guest feedback

• Revenue

• Gross margin

Roommate App

• Downloads

• Number of daily users

• In-app purchases

• App ratings

Poster Contest

• Number of designs submitted

• Votes

• Poster sales

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Next Steps

June 2011

• Start to collaborate with designers

Oct-Nov 2011

• Approach design schools about poster competition

• Finalize designs and send to production

March 2012

• Launch Roommate app

• Poster competition submissions due

April-May 2012

• Voting opens for poster contest

• Poster winners announced

• Catalog is available

June 2012

• Setup in-store displays

• “Back to College” 2012 products are available

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Post-SWOTThreat of product overlap becomes mitigated

– Differentiation through strong merchandise assortment, enhanced by designer partnerships

Opportunity becomes a strength

– Strong presence in mobile

and electronic commerce

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Conclusion

Opportunities for Differentiation

Big Idea= Feasibility + Long Term Growth

Recommendations fit with Target’s core guest and targeted markets

Enhances potential for customer loyalty andincreased brand equity to the Target brand

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Big Idea emphasizes differentiation, customizability, and added functionality

Designer Lines: Stylish, low price options

Redesigned Roommate App: Creates a strength, increases convenience, creates bond with guest

Expanded Marketing Strategy: Crowd sourcing used to further connect with segment, increasing awareness

Next Steps: Outlined for “Back to College” 2012, with projects beginning in June 2011

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