The Target Corporation: Strategic analysis.

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Discovering + Defining
WE WILL WALK YOU THROUGH ...
Objectives:
connectivity
Leverage Target’s expect more. Pay
less® brand promise
Guest experience
Communicate Target’s ‘Design for
all’ mantra
localization
Engage The behaviours +
expectations of millennials
sustainability
3. STRATEGY + IMPLEMENTATION
2. COMPETITORS
{
GUEST Experience
Sustainability
4. SUMMARY
1. TARGET MARKET
1. Target’s target market
“If evolution really works, how come mothers only have two hands?”
- Milton Berle
1. Target’s target market
“I want it fast and I want it
now”
“I’m a social
creature – both
online and
offline”
“I can make this world a better
place”
“I trust my friends more than the ‘corporate
mouthpieces’”
“My way,
right away,
why pay?”
“I want more choices in
products and services”
1. Target’s target market
Millennial Mom 22%
Gadget guru 13%
Hip-ennial 29%
Clean+green millennial 10%
Anti-millennial 16%
Old-school millennial 10%
Q: WHAT DO MILLENNIALS THINK ABOUT
THE TARGET BRAND?
What would
you draw?
Q: WHAT DO MILLENNIALS THINK ABOUT THE TARGET BRAND?
“Slick”
2. Competitors in the space
grocery
apparel
Health +
beauty
Household
needs
Guest Experience
Taking design innovation to a new level to
continuously improve
the TARGET guest shopping experience
(video)
Designing the shopping cart
a cart with a
cup holder
A cart that’s Easy +
ready
To use
a cart that will show me
where to shop so I can
easily locate my items
A cart that helps me
get the best bang for
my buck
DESIRABILITY
TABLET
INTERACTIVITY
light-weight. But
strong
material
MOBIL
E
FEASIBILITY
Integration
starbucks
PERSONALIZED
MAPING
QUICK, EASY-TOACCESS PRICING
SOCIAL
NETWORKS
HOM
E
[Guest experience]
ReNEWed SHOPPING CART DESIGN
New design
features
implementation
Clothing oriented
Pilot project
Connectivity
focused
Add-on to
Bemis design
[Guest experience]
ReNEWed SHOPPING CART DESIGN
+ accessibility of target
to all
Tablet
dock
Cup holder
POS System
 check-out
efficiency
Smartphone dock
+ partnership
with starbucks
 Connectivity, use of target
app, in-store wi-fi
[Guest experience]
renewed change room DESIGN
customization
experience
connectivity
[Guest experience]
Tablet integration
124 Canadian stores x 10 change rooms x $400 tablet = $4000/store
ROI = more happy guests, more dollars
[Guest experience]
Tablet integration
Interactive Store map, scan
+ search
Check prices
Check availability of size
and colours
Sync with personal target
app
Share great finds
Browse store items, get
Recommendations for
complimentary items
Instant savings
[Guest experience]
Tablet/PHONE scan integration
Line ups = 
 Scan own items
 Check prices + promotions
 Review running totals
 Instantly upload order to POS at
checkout
 Save valuable time
 Pay right on your mobile device
[Guest experience]
Guests + target’s designers
(audio)
Story-driven designer profiles
in motion On digital screens
• Giada cooking for her family
• Sonia kashuk on beauty & self-image
• Kate young’s design inspiration
[Guest experience]
Guests + target’s designers
#TargetTweets
Seasonal, in-store, live Q+A tweet-ups with partner
designers/associates
[Guest experience]
Guests + target’s designers
TARGET
Partner
designers
Up-and-coming
local designers
[Guest experience]
Sustainability
Reducing the TARGET footprint
to increase the TARGET impact on the world
around us
Case study:
One of Canada’s greenest employers 2012
recycle
Why?
90+% diversion rate
HOW?
1. Waste audits
2. Dumpster diving
3. Green bin
collaboration program
[sustainability]
Green Bin Collaboration
Food
waste
Coffee
grinds
reduce
Napkins, etc
garbage
Biodegradable waste
Up to 5000 tonnes/day
 3-4 toters
 1-2 pick-ups/wk
$300+/tonne to landfill
1.3B tonnes food
waste in
landfills/year
 $225-300/mo
OR
$3600/year
Up to $1.5 m/year
[sustainability]
TARGET + STARBUCKS = GREEN EARTH
reduce
LET’s reduce coffee
cup waste
Join the
give. sip. Shop.
movement
Save $$$ + give 1/2 back
Target will match!
[sustainability]
summary
How can Target be recognized as a leading
Company?
Leverage Target’s expect
more. Pay less® brand
promise
connectivity
Communicate Target’s
‘Design for all’ mantra
Engage The
behaviours +
expectations of
millennials
Guest experience
sustainability
technology
localization
programs
Identified objective for Target:
to offer unparalleled guest experience
for all + to engage our new generation in
responsible sustainability efforts.
partnerships
THANK YOU
references
Barton, C., Fromm, J., & Egar, C. (2012). The millennial consumer: Debunking
stereotypes. BrandChannel. Retrieved from
http://www.brandchannel.com/images/papers/
536_BCG_The_Millennial_Consumer_Apr_2012%20(3)_tcm80-103894.pdf
Consider the humble shopping cart. (2013). Fauxsuper Blogs. Retrieved from
http://fauxsuperblogs.com/
Ewoldt, J. (2013). Cheap chic, luxury didn't blend well. StarTribute. Retrieved from
http://www.startribune.com/
business/185696602.html?refer=y
Ferguson, R. (2012). Canadian millennial loyalty survey. Aimia. Retrieved from
http://www.aimia.com/files/
doc_downloads/Aimia_GenY_WhitepaperCanada_Final.pdf
Freeman, S. (2012). Target Canada to take sales from other retailers: Barclays.
Huffington Post. Retrieved
from http://www.huffingtonpost.ca/2012/10/01/target-canada-competitionretailers_n_1929547.html
references
Generations in Canada. (2013). Statistics Canada. Retrieved from
http://www12.statcan.gc.ca/census- recensement/2011/as-sa/98-311-x/98-311x2011003_2-eng.cfm
Generation Y: Marketing to the young ones. (2007). Euromonitor International.
Retrieved from http://
www.portal.euromonitor.com.ezproxy.library.ubc.ca/Portal/Pages/Search/SearchR
esultsList.aspx
Giada de Laurentiis for Target: Making kitchen tasks more stylish.(2011). Baby Savers.
Retrieved from http:// www.babysavers.com/giada-de-laurentiis-for-target-makingkitchen-tasks-more-stylish-spiced-coffee- with-cinnamon-whipped-cream-recipe
Gysberg, N., Lee, K., & Cline, R. (2010). The Target Corporation: Strategic analysis.
[PowerPoint slides]. Retrieved
from http://www.slideshare.net/Jack78/targetcorporation-report
Impacts on Canadian retailers of the impending Target Canada launch. (2012). SINS
Canadian Retail Index. Retrieved from http://sinsblog.com/2012/07/21/impacts-oncanadian-retailers-of-the-impending-target- canada-launch/
references
Olivarez-Giles, N. (2013). Sony Xperia tablet Z is the world’s thinnest Android slate.
Wired. Retrieved from http://www.wired.com/gadgetlab/2013/02/sony-xperiatablet-z/
Ratner, J. (2011). Target faces decisions with entry into Canada. Financial Post.
Retrieved from http:// business.financialpost.com/2011/01/14/target-facesdecisions-with-entry-into-canada/
Recycling & reducing waste. (2013). Starbucks. Retrieved from
http://www.starbucks.com/responsibility/ environment/recycling/
Retalix 10 Staff and shopper mobility. (2012). Retalix. Retrieved
from http://www.retalix.com/data/
product_pdf/RET_Staff&Shopper1.pdf
Sturgeon, J. (2013). Target takes aim at Canadians, but are we too tapped out? Global
Edmonton. Retrieved
from http://www.globaltvedmonton.com/target+takes+aim+at+canadians+but+ar
e+we+too+tapped +out/6442816264/story.html
references
Target for iPad. (2013). iTunes Preview. Retrieved from
https://itunes.apple.com/us/app/target-for-ipad/
id402742793?mt=8
Waste management. (2013). WM Waste Management. Retrieved from
https://www.wm.com/business/ commercial-waste-and-recycling-collection.jsp
Waste reduction at MEC. (n.d.). Mountain Equipment CO-OP. Retrieved from
http://www.mec.ca/AST/
ContentPrimary/Sustainability/GreeningOperations/WasteReduction.jsp
Weider, K. (2012). Target: Electronics department renovation. Behance. Retrieved from
http:// www.behance.net/gallery/T-A-R-G-E-T-Electronics-DepartmentRenovation/6075741
Wilson, J. (2012). BV exclusive: Jason Wu for target giveaway inspiration style
boards. Huffington Post. Retrieved
from
http://www.huffingtonpost.com/2012/02/09/jason-wu-for-targetgiveaway_n_1266684.html
appendices
RISKS + Mitigation
Risk: security and durability (breakage, tampering, inappropriate conduct) of tablet
and scanner system
Mitigation: Have guests pick up tablets at designated desk, which is monitored by
store associate(s), monitoring + check out system
http://www.youtube.com/watch?v=AHtnqB1tHkQ&feature=player_embedded
Risk: dumpster diving - diversion rates not as high as Target would like to advertise
publicly, therefore social media component might not work
Mitigation: Launch internal campaign to raise awareness for recycling and waste
program and set incremental goals. Maybe in year 2 of the program do a live
streaming.
Risk: composting - contaminating the process with improper disposal
Mitigation: Staff training and overview of composting process to stress importance of
proper disposal - cost effect also needs to be considered
Monitors
RISKS + Mitigation
Risk: Shopping Cart - Spillage from coffee cups/drinks
Mitigation: All cups from Starbucks/reusable cup program will have to provide securely
fastened lids.
Risk: Fitting Room Monitors - Lack of understanding of how to use screens in the
fitting rooms.
Mitigation: Have customer associates educate guests on the services offered by the
scanners and screens in fitting room areas
Q: WHAT DO MILLENNIALS THINK ABOUT
THE TARGET BRAND?
What would
you draw?
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