TARGE T Prepared by: Anisa Zhamo Bora Islami Elena Parangoni Jora Cakuli Linda Dundo Expect more. Pay less. CORE VALUES • • • • Design for all Great guest service More for your money A fun and rewarding place to work • Celebrating diversity and inclusion • A legacy of giving and service CULTURE • Team being their biggest asset • Emphasizing individualism • Rewarding career • Respect & Integrity • Cultural diversity & Inclusion • MAIN COMPETITORS: Walmart, K-mart, Costco • FINANCIAL DATA ($BLN): o Total assets $44.55 o Revenue of $21.52 o Sales (2014) $72.6 • INNOVATIONS: o Mobile services via apps and e-commerce. “Mobile retailers of the year”. o Shopping experience: Design philosophy , appealing building exteriors, easy-to-navigate store layouts. ALBANIA-PESTEL • • • • POLITICAL FACTORS Policy orientation towards EU Member of NATO December 2010- no visas needed for the Schengen states “Albania, 1euro” initiativeencourage competition of high efficiency projects • • • • • ECONOMIC FACTORS Economic reforms after Communism’s fall Improvement of country’s economy – 2006: fastest growing rate Poorest country in Europe Trade deficit High unemployment rate ALBANIA- PESTEL cont'd… SOCIAL FACTORS • Collective society • After 90s’- high demographic movements • Positive cultural change • Following consumer behavior trends • High level of corruption TECHNOLOGICAL FACTORS • Rapid development • Communication media achievements • E-commerce implementation • Advanced technology systems ALBANIA- PESTEL cont'd… ENVIROMETAL FACTORS • No effective urbanization • No “Go Green” strategy • No fair trade product Challenge: encourage sustainable development of urban areas. LEGAL FACTORS • Construction Permit • Floor Space Index • Urban Plan & Developing Plans • Time Spent on Construction CUSTOMER’s ASSESSMENT • CUSTOMER PROFILE o Located in capital, Tirana o Age group: 18-55 o Gender distribution: 50-50 basis o Income level: upper-middle and upper • NEEDS Product quality Convenience CUSTOMER’s ASSESSMENT • HOW TO MEET THE NEEDS o Country of origin associations o Strong customer-brand relationships o Variety of products in one store • TARGET MARKET SIZE o steady for many years o not large enough COMPETITORS • CARREFOUR- “All under one roof” o Acquired Euromax (biggest player) in 2013 o Hypermarkets: 2 (capital) o Supermarkets: 17 (around the country) o Low cost • CONAD- “People come first” o Nr. of stores:25 (10 in the capital) o Nr. of products: 1800 o High cost COMPETITORS • MERCATOR- “Enjoy buying” o o o o Hypermarkets: 1(capital) Stores: 2 Market share: 0.8% Expected to exit the market by the end of 2014 • MEGATEK- “Do it yourself” o o o o 100% Albanian investment Hypermarket: 1( capital) Nr. of products: 40,000 Low cost hypermarket • Small neighborhood stores SUPPLIER’s ASSESSMENT Target has been proving to be a very diverse company regarding its investments; therefore it will be easy adaptable to the complex Albanian market. • • • • Facilitating the process Finding the right venue Employees Additional suppliers MARKET ENTRY ASSESSMENT • BASIC MARKET ASSESSMENTS o Barriers to entry Competition: high Suppliers: low o Direct approach to the customer o New management o Additions on the Target building CONCLUSION • SHORT-TERM o Gaining market share o After 2nd year: significant increase in revenue • LONG-TERM o Main competitor o Large market share • POSSIBLE STRATEGIES o Focused differentiation strategy o Price-based strategy Thank you for your attention!