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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