Lindsey Campbell, Chris Satterfield,Katie Miller, Jon Greene, Theresa Yang
E-commerce to Brick and Mortar
11/18/14
Meet the Team
Lindsey CampbellYear: Senior Major: Textile Apparel Management Emphasis: Merchandising Minor: Business Hometown: St. Louis, MOInteresting Fact: I have moved to five different cities in my lifetime.
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Meet the Team
Chris SatterfieldYear: SeniorMajor: Business Administration Emphasis: MarketingMinor: Music PerformanceHometown: Jefferson City, MOInteresting Fact: I play cello for Mizzou’s orchestra.
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Meet the Team
Katie MillerYear: Senior Major: Journalism Emphasis: Strategic Communication Minor: Textile Apparel ManagementHometown: Quincy, ILInteresting Fact: I am a certified group fitness instructor and teach seven classes a week.
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Meet the Team
Jon GreeneYear: SeniorMajor: Sports ManagementHometown: Kansas City, MOInteresting Fact: I've had 4 concussions
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Meet the Team
Theresa YangYear: SeniorMajor: Journalism Emphasis: Strategic CommunicationMinor: BusinessHometown: Shanghai, ChinaInteresting Fact: I have a cute nickname called “Penguin”.
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Agenda
Pre-Analysis
SWOT Analysis
Target “Guest”
Recommendations
Post-Analysis
Next Steps
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Fast Facts3rd largest discount retailer
• 1st - Walmart• 2nd - Costco
First store – Roseville, MN, 1962• 1,801 stores in 48 states; 133 stores in Canada
Focus on quality, focus on trends• Affordable prices• Clean stores• Enjoyable shopping
Corporate Responsibility• Give 5% of profits annually ($4 million each week)
Target.com – 1999 REDcard – 1995Mobile Retailer of the Year – 2013
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Project Analysis
“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?”
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Supporting Data/ResearchOnline retail spending grew 14% in 2013. Global e-commerce sales made via mobile devices are expected to top $638 billion in 2018. For perspective, that was roughly the entire size of the world's e-commerce market in 2013.
E-commerce sales will represent 8 percent of all retail sales in the U.S. by 2014, up from 6 percent in 2009.
In 2009, 154 million people in the U.S. bought something online, or 67 percent of the online population (4 percent more than in 2008).
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Competitive AnalysisWalmart (Low Price)• Weaknesses: attract lower class consumers, poor customer
service, poor employee benefits • Strengths: distribution system, high profit margin, extreme
low prices
Nordstrom/Macy’s (Great Customer Service)• Weaknesses: higher price, limited storage • Strengths: exclusive in-store brands, great customer
service
Amazon (Online/Convenience)• Weaknesses: timeliness, intangible products • Strengths: convenience, variety of items, easier in storing
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SWOT Analysis (Before)
Strengths• Recognizable brand• Social responsibility – education• Strong online and mobile sites• Quality store brands• Clean stores• Fashion apparel• Strong employee presence• Low prices• Department variety
Weaknesses• Credit card hack• Higher costs than some competitors• Higher prices than some competitors
Opportunities• Young adult market (fashion)• Strengthen store brands• Adapt technology into stores• International markets• Become more personal
Threats• Walmart and low-price competition• Online competition• Showrooming
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Target “Guest”
Median age of 40
Median household income of $64,000
Approximately 43% have children at home
About 55% have completed college
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Idea 1: Instagram
Enhance platform
Host Contests
Make your followers famous
Discounts through photo sharing when in
store
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Idea 1: Instagram
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Idea 1: Instagram
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Idea 1: Instagram Example
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Idea 1: Pros/Cons
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Pros:• Go in with friends or family
and take photos• Gain more followers • Photo gets looked at by
millions of people• Create customer interaction
and engagement throughout the store
Cons:• Cater more to younger teens
than adults • Can only be used by people
with mobile devices and have the app
Idea 2: Geofencing/GeotargetingGeofencingGeo-fencing is a feature in a software program that uses the global positioning system (GPS) or radio frequency identification (RFID) to define geographical boundaries.
Geotargeting Customizing an advertisement for a product or service to a specific market based on the geographic location of potential buyers.
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Idea 2: Idea for Geofencing
Geotarget guests through geofencing by sending a push notification to their phone, with customized deals and coupons.
47% of shoppers surveyed said they’d be more likely to shop with a retailer if offered promotions while nearby.
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Idea 2: Geotargeting Customization
App and REDcard calibration use location services to find customers in 5 mile radius.
Allow to customize the deals/promotions for Target guests.
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Think ahead: Plan for what they will buy, not what they’ve purchased• Example: Guest bought a baby outfit last christmas,
now will need an outfit for a toddler.
Idea 2: Geofencing Mobile Coupon Example
Meet Susan (A Beloved Target Guest)
DemographicsAge: 36MarriedTwo Kids: Ages 7 and 11Household Income: $75,000Hometown: Overland Park, KS
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Idea 2: Pros/ConsPros:• Get nearby potential guests
in the store• Lead to impulse purchases • Consumers love
customization • Increased Red Card Members
equals Increased Target loyalty
• Offer coupons for slow moving items to increase inventory turnover
Cons:• Decrease profit margin for
couponed items• Guests may see geotargeting
practice as intrusive• Recent data breach has
consumers wary of having Target Cards
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Idea 3: BOGO Holiday Toy Drive Buy one Give one (BOGO)
Guests purchase item and Target donates item of similar value on guest’s behalf.
Holiday Themed Toy Drive
Goal: 2.5 Million Toys Donated to Children
Dates Dec. 1st-25th24
Twitter BOGO
Hashtag: #BOGO and #TargetToyDrive
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Facebook BOGO
“Become a Real Secret Santa for a Child in Need”
Hashtag: #BOGO and #TargetToyDrive
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Idea 3: Pros/ConsPros:• Introduce New Social
Responsibility Platform • Reach a variety of guests
through social media outlets• Easily adaptable campaign • Increase Target’s already
good Image on being charitable
Cons:• Limited reach with social
media• Have to go into store to make
the transaction
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RecapIdea #1: Instagram • Enhance Instagram platform
Idea #2: Geofencing• Target customers via geospotting with personalized
deals
Idea #3: BOGO • In-Store Holiday Toy Drive using social media push.
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SWOT Analysis (After)
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Opportunity becomes a strength• Young adult market (fashion)
• Strengthen store brands
• Adapt technology into stores
• Become more personal
To Do List
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Instagram• Announce promotions and contests • Employees encourage customers take photo in store• Customers must photo share on instagram and use the
required hashtags to redeem discountGeofencing/Geotargeting• Inform guests of new REDcard feature • Use guest purchase history to customize deals• Turn on location services for Target
BOGO Holiday Toy Drive • Find appropriate charity and pick out toys • Create social media PR campaigns • Promote largely on social media and have cashiers ask at
purchase in-store
Works Cited"Fact Sheet: Quick Facts About Target | Target Corporate." Fact Sheet: Quick Facts About Target | Target Corporate. Target, 2013. Web. 16 Nov. 2014.
"Fast Facts | Target Corporate." Fast Facts | Target Corporate. Target, 13 Jan. 2009. Web. 16 Nov. 2014.
Schonfeld, Erick. "Forrester Forecast: Online Retail Sales Will Grow To $250 Billion By 2014." TechCrunch. N.p., 08 Mar. 2010. Web. 18 Nov. 2014
Smith, Cooper. "US E-Commerce Growth Is Now Far Outpacing Overall Retail Sales." Business Insider. Business Insider, Inc, 02 Apr. 2014. Web. 18 Nov. 2014.
"Target through the Years." Target through the Years. Target, 2014. Web. 16 Nov. 2014.
Tode, Chantal. "Target Is 2013 Mobile Retailer of the Year." Mobile Commerce Daily. Napean LLC., 31 Dec. 2013. Web. 18 Nov. 2014.
"Top 100 Retailers." NRF. David P Schulz/ Island Pacific and NEC, 01 July 2014. Web. 18 Nov. 2014.
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Questions
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