Standing at the Threshold of Success
Situation Analysis
Target has always been a leader in trend-right affordable design… it’s one of the hallmarks of our
“Expect More/Pay Less” brand promise. Target gathers design inspiration from a variety of
sources: from our guests to our own in-house design team to innovative partnerships with
emerging designers. When we say “Design for All” as a differentiation strategy… we live it every
day.
Target has recently launched the Threshold brand in our home lines of merchandise. Threshold is
the right mix of classic and modern:
• An effortless elegance.
• Beautiful, yet affordable.
• Designed for a lifetime of housewarmings.
• It's everything you'll love about your home.
To ensure the success of this exciting brand launch, we want to leverage the power of the Target
brand in every available channel. Target’s integrated multichannel strategy seeks to provide the
ultimate guest experience. We view every touch point with our guests a channel: website, TV, the
in-store experience, sponsored events, social media, and even our credit card call center are all
vehicles where guests can experience the Target brand. Our goal is to create a seamless
experience so our guests can enjoy the Target experience whenever/wherever they choose.
Project Question
How might Target leverage a comprehensive omnichannel/multichannel strategy to support the
Threshold brand, beyond what’s being used today?
Project Parameters
Develop a strategy to leverage the power of Target brand to support the Threshold launch using all
available channels. Assess current multichannel strategies for Threshold and how they could be
even better.
Include in this proposal a SWOT analysis (Internal: Strengths/Weaknesses, External:
Opportunities/Threats) of the current situation Target faces, as well as a second SWOT analysis
based upon implementation of the proposal.
Suggested Topics
•
Guests: Who is the Target home guest now? How do they shop? What channels do they
currently use? How do they use those channels?
CONFIDENTIAL
Copyright 2012 Target Corporation. This document and its contents are confidential and the property of Target Corporation and its
subsidiaries (collectively, “Target”). They are for the sole use of this Case Study Program and the students participating in this
program, and shall not be reproduced, disseminated, or disclosed in any form to any party whatsoever without the express written
consent of Target.
•
Brand: What is the essence of the Threshold brand? What is the lifestyle/guest we are
trying to appeal to? What channels are most appropriate to share those messages?
•
Technology: How might social media be leveraged differently (i.e. beyond what Target is
doing now)? What is the intersection between home, design, social media, and purchase
behavior?
•
Competitors: What brands will compete with Threshold? What types of channels are being
leveraged to promote those brands? How might Target leverage the best of our
competition without employing a “me too” strategy?
Company Information
Who is Target?
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at more than 1,800 stores
across the U.S and in Canada – and at Target.com. Since 1946, Target has given 5 percent of its
profit through community grants and programs; today, that giving equals more than $4 million a
week. For more information about Target’s commitment to corporate responsibility, visit
Target.com/corporateresponsibility.
What is the Merchandising Strategy?
The merchandising mission of Target is to drive profitable market share growth by fulfilling its
“Expect More. Pay Less.” brand promise. Target is dedicated to providing guests with the right
merchandise mix, from everyday commodities and grocery offerings to trend-right home and
apparel lines.
To remain relevant to its guests over time, Target merchandising is focused on the following areas:
•
Differentiation is about the unique and compelling merchandise guests can only find
at Target – from exclusive merchandise by top designers, to its industry-leading list of signature
national brands, to its exclusive owned-brand portfolio.
•
Value and low price promise is a balance of design, quality and affordability.
•
Reliability is about having what guests’ want, when they want it, and where they expect to
find it.
•
Frequency is about increasing guests’ visits to stores by creating a convenient shopping
experience that meets their lifestyle needs.
Who is the typical guest?
Target works to appeal to a range of guest segments, including women, kids, teens, young singles
and families. Target’s guests are young, well-educated families who live active lifestyles. The
median age of Target’s guests is 40, the youngest of major discount retailers. They have a median
annual income of $64,000. Over 55 percent have completed college and approximately 43 percent
have children at home.
How has Target grown?
The first Target store opened in 1962 in the Minneapolis suburb of Roseville, Minn., with a focus on
convenient shopping at competitive discount prices. Today, Target currently is the second largest
general merchandise retailer in America, with Target.com consistently ranked as one of the mostvisited retail websites. New strategies for growth include CityTarget, which are smaller format
stores located in urban areas, and expansion into Canada.
CONFIDENTIAL
Copyright 2012 Target Corporation. This document and its contents are confidential and the property of Target Corporation and its
subsidiaries (collectively, “Target”). They are for the sole use of this Case Study Program and the students participating in this
program, and shall not be reproduced, disseminated, or disclosed in any form to any party whatsoever without the express written
consent of Target.
CONFIDENTIAL
Copyright 2012 Target Corporation. This document and its contents are confidential and the property of Target Corporation and its
subsidiaries (collectively, “Target”). They are for the sole use of this Case Study Program and the students participating in this
program, and shall not be reproduced, disseminated, or disclosed in any form to any party whatsoever without the express written
consent of Target.