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

Team Eye of the Bull | 2

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


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


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


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


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


Designer Lines: Recommendation 1

Mod Vintage Funk

MICHAEL VAN DER HAM


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


Evaluation of Recommendation

Disadvantages Benefits


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)


Evaluation of Recommendation

Disadvantages Benefits


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


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


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


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


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


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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