Wellness Target Health and Wellness Proposal Right on Target Consulting Right on Target Consulting 19th Ave South Minneapolis, MN 55455 (612) 564-3468 Target Corporate Officers Target Corporation 1000 Nicollet Mall Minneapolis, MN 55403 December 7, 2009 To Whom It May Concern: We at Right on Target Consulting have devised a proposal to promote the Target Wellness Campaign. The focus of this proposal is to increase the sales and awareness of Target’s wellness products and services. We believe that our proposal will enhance the Target shopping experience for both the primary market, the “typical guest,” and the secondary markets, children and young adults by: Establishing a Wellness Center Revitalizing the Ask Us service at the Pharmacy Introducing the Wellness Points Program Connecting with the community with health and wellness education We believe that our recommendations will help Target improve the shopping experience for the target markets by emphasizing convenience and savings on quality goods and services. Please do not hesitate to email us at rightontarget@rotc.com or call us at (612) 564-3468. We look forward to working with you. Thank you for your time and consideration. Respectfully, Right on Target Consulting 2 Table of Contents Executive Summary………………………………………………………………………………………………………………… 5-6 Background Information…..…………………………………………………………………………………………………….. 6 Pre-Wellness Proposal SWOT Analysis…………………………………………………………………………. 7 Audience……………….……………………………………………………………………………………………………. 8 Typical Guest……………..……………………………………………………………………………………………………. 8 Children…………………………………………………….....………………………………………………………………….8 Young Adults……………………………………………………………….………………………………………………….. 8 Recommendation 1: Target Wellness Center………………………………………………………………………….. 9-12 Pre-SWOT Analysis……………………………………………………………………………………………………… 9 Proposal……………………………………………………………………………………………………………………… 9 Wellness Center Signage……………………………………………………………………………………………….… 9 Endcap Opportunity………………………………………………………………………………………………………... 9 Health and Wellness Books……………………………………………………………………………………………… 11 Poster Display………………………………………………………………………………………………………………….. 12 Recommendation 2: “Ask Us…………………………………………………………………………………………………… 13-15 Pre-SWOT Analysis……………………………………………………………………………………………………… 13 Proposal…………………………………………………………………………………………………………………….. 13 Staff an “Ask Us” pharmacist from 11 am to 7 pm…………………………………………………………… 14 Create an “Ask Us” lane…………………………………………………………………………………………………… 14 Facilitate promotion………………………………………………………………………………………………………… 14 Post-SWOT Analysis…………………………………………………………………………………………………… 14 Recommendation 3: Target Wellness Points Program……………………………………………………………. . 16-18 Pre-SWOT Analysis…………………………………………………………………………………………………….. 16 Proposal……………………………………………………………………………………………………………………… 16 An Extension of the Pharmacy Rewards Program………………………………………………………….… 16-17 Overview of Wellness products and points …………………………………………………………………….. 17 How to Earn Points………………………………………………………………………………………………………….. 18 Forms of the Card……………………………………………………………………………………………………………. 18 Redeeming Points to Earn Rewards…………………………………………………………………………………. 18 Helping Guests Save Money and Time ……………………………………………………………………………. 18 Recommendation 4: Connecting with the Community………………………………………………………….… 19-20 Pre-SWOT Analysis……………………………………………………………………………………………………… 19 Proposal……………………………………………………………………………………………………………………… 19-20 Conclusion………………………………………………………………………………………………………………………….…… 21-22 Post-Wellness Proposal SWOT Analysis and Measurement……………………………………..….. 21 Next Steps…………………………………………………………………………………………………………………… 21 Closing………………………………………………………………………………………………………………………… 22 Bibliography………………………………………………………………………………………………………………………… … 23 3 Table of Figures Background Information.................................................................................................................6-7 Figure 1: Pre-SWOT Analysis .............................................................................................................. 7 Figure 2: Audience ............................................................................................................................. 8 Recommendation 1: Target Wellness Center.................................................................................. 9-12 Figure 3: Pre-SWOT Analysis .............................................................................................................. 9 Figure 4: Fall/Winter Health Products ............................................................................................. 10 Figure 5: Health and Wellness Books ............................................................................................... 11 Figure 6: Poster Display of Wellness Products ................................................................................. 12 Recommendation 2: “Ask Us” ..................................................................................................... 13-15 Figure 7: Pre-SWOT Analysis ........................................................................................................... 13 Figure 8: Post-SWOT Analysis .......................................................................................................... 14 Recommendation 3: Target Wellness Points Program .................................................................. 16-18 Figure 9: Pre-SWOT Analysis ........................................................................................................... 16 Figure 10: Points for Products .......................................................................................................... 17 Recommendation 4: Connecting with the Community .................................................................. 19-20 Figure 11: Pre-SWOT Analysis .......................................................................................................... 19 Figure 12: Proposed Museum List .................................................................................................... 20 Conclusion .................................................................................................................................. 21-22 Figure 13: Post-Analysis Analysis ..................................................................................................... 21 Bibliography ................................................................................................................................... 23 4 Executive Summary In the past few years Americans have begun to recognize their need for healthier living and have been more aware of their purchasing habits as a result. In response to this trend, Target launched its “Long Live Happy” program in 2007 to reach its guests and create a health and wellness focus. The following proposal builds on this concept and focuses on expanding Target’s health and wellness program to reach more of the public to create even stronger brand recognition. This proposal has four main recommendations. Recommendation 1 – Create a central “Wellness Center” in all Target stores Target has a number of excellent wellness products and services. However, greater cohesion could be brought by creating a “Wellness Center” around the pharmacy area of each Target store. This Wellness Center would include several surrounding aisles with health and beauty products as well as specific wellness-focus items such as dieting books and hand sanitizers. The endcaps of these aisles would be intentionally designed to highlight wellness and up & up™ products. In addition, there would be a simple display poster listing other wellness items found in different areas of the store. Recommendation 2 – Revitalize the “Ask Us” program in the pharmacy Target has an excellent “Ask Us” policy in place through the pharmacy which allows guests to ask a wide range of health and product questions to a pharmacist. However, from first-hand observation it was clear that a disconnect existed between the program description and actual implementation – the staff was unclear with how the “Ask Us” program worked and there were no pharmacists easily available for questions. Our proposal would be to add an “Ask Us” lane at the pharmacy and staff a pharmacist between 11 a.m. and 7 p.m. each day to help facilitate the existing program. Recommendation 3 – Create a Wellness Points Program In order to bring more attention to Target’s health and wellness focus a rewards program would be created around the purchase of up & up™ products and other wellness products throughout the store. This rewards program would link to the already existing pharmacy rewards program and would connect with a guest’s Target card or with a new Wellness Points Card in the absence of a Target Card. Recommendation 4 – Sponsor Wellness Exhibits at Local Museums With Target’s value of community and preexisting relationship with 100 museums across the U.S., an opportunity exists for a health and wellness focus and partnership with these institutions. Target can sponsor two exhibits per museum that are specifically related to living healthier. Guests at the museums would each receive a “goodie bag” of wellness items that are from Target, re-emphasizing the company’s focus on healthy living. The cost of this recommendation would be kept low in its trial stage by focusing on a few metropolitan areas to measure the impact. 5 The current trend towards health and wellness is showing no signs of slowing down giving Target ample opportunity to take hold of this market. With the proposed recommendations, Target will be able to strengthen its brand image and project itself as a leader in the health and wellness market. Background Information Poor nutrition, lack of exercise, and other unhealthy habits have caused America to become one of the unhealthiest nations in the world. These poor health habits have not only lead to an increase in obesity and other diseases (most commonly diabetes, heart disease, cancer, and strokes) but also a staggering increase in health care costs for Americans. The latest government figures offer more proof that many people are leading unhealthy lifestyles. Researchers gathered data on people's health behaviors from a large survey called National Health and Nutrition Examination Survey (NHANES). NHANES regularly polls thousands of Americans about their exercise levels, eating diets, history of smoking and many other health related questions. Using this data, researchers noted the changes in the five following healthy habits during two time periods: 1988 to 1994, and 2001 to 2006. Exercising 12 or more times a month: This dropped from 53 percent of adults exercising regularly to 43 percent. Eating five or more servings of fruits and vegetables a day: This dropped from 42 percent of adults to 26 percent. Maintaining a healthy weight: The percentage of obese adults rose from 28 percent to 36 percent. Smoking: This didn't change over the study period, with around 26 percent of adults smoking. Drinking alcohol in moderation: This increased from 40 percent to 51 percent of adults. Moderate alcohol consumption was defined as up to one drink a day for women and up to two for men. This is considered a healthy level, so this was a positive trend. Adhering to all five healthy habits: This dropped from 15 percent of adults to only 8 percent. Currently, there is an abundance of information about health and wellness but very few Americans actually lead a healthy lifestyle. Target aspires to incorporate wellness into their guests’ everyday life. The following proposal is to encourage guests to look store-wide for their health and wellness needs. Target realizes that developing healthy habits today will not only add years to their guests’ lives, but will enhance the enjoyment and quality of those years. 6 Pre-SWOT Analysis This is pre-proposal SWOT analysis that depicts the current state of Target in relation to our proposal. The analysis is a tool that measures the overall impact of the proposal. It will illustrate the proposal key benefits for Target. It is important to highlight the crucial transformation of certain weaknesses into strengths and threats into opportunities. Finally, notice how the identified opportunities have become strengths in the post-proposal SWOT analysis. Strengths Weaknesses •Excellent brand image and reputationloyalty •Superior service •Strong partnership •Differentiated "good, better, best" strategy •Many different stores and layouts •Not a specialized pharmacy •Wellness is not naturally associated with the Target image Opportunities Threats •Large market for healthcare •Further promote brand image •Greater differentiation •More focused community involvement •Specialized competitors already have strong wellness industry positions •Intense rivalry with competitors •Economic status of the nation Figure 1 7 Audience Our proposal splits the target audiences into two tiers: primary and two secondary. The primary target audience is the current “typical guest” the secondary focuses on children and young adults. Typical Guest Young Adults Children Figure 2 Typical Guest Our primary target market is Target’s current Typical Guest. This guest is a woman around the age of 42. She is well-educated and 33 percent of the time has children. Target’s current core values emphasizing convenience, quickness, and family are congruent values of this target market. Children Recommendation 4: Connecting with the Community focuses on an expansion of the current museum sponsorship program. Our wellness recommendations focus on educating children, typically between the ages of 3-12 on wellness topics while representing Target and its core values. By doing this, Target is able to continue to support and build the brand image with their future guests. Young Adults Young adults are educated, mid-twenty year olds that value Target’s current values along with health and the “Green Initiative”. Target already has a strong following from this market because of its current values, which creates a new, great opportunity to appeal directly to them with the new Wellness Center program and proposal. A short few years ago this market was the children of the current primary market. This naturally places “young adults” in the up and coming target market, but this program creates another opportunity to solidify this future relationship by appealing to new generational values. 8 Recommendation 1: Target Wellness Center Objective Create a well-defined and unified wellness center and encompasses the pharmacy, and surrounding aisles and endcaps that highlight and introduces specific wellness products. Pre-SWOT Analysis Strengths Weaknesses • Pharmacy already promotes convenience and service • No additional space is needed to create the wellness center • Wasted space • End caps lack cohesion and are cluttered Opportunities Threats • Large market for healthcare • Promote brand image • Visible focus on Health and Wellness • Competitors are a step ahead of Target and already have well-defined wellness centers Figure 3 Proposal This first component of the proposal focuses on creating health and wellness awareness within Target stores. Currently, the pharmacy and surrounding aisles and endcaps appear to be disconnected. This proposal is intended for Target’s primary guests, women around the age of 40 with children and also, Target’s secondary guests, the young adults. We propose that Target creates a Wellness Center that highlights health and wellness and unifies the area. Wellness Center Signage The first step to creating Wellness Centers within Target stores is to properly advertise. Colored signs that clearly segment the Wellness Center from the rest of the store are key to the success of this proposal. The goal is to make shoppers feel as though they are in a specialized health and wellness area while maintaining Target’s environment. 9 Endcap Opportunity Another opportunity Target has to unify their Wellness Center is through their endcaps. After several recent observations and interviews at Target, it was evident that the endcaps facing the pharmacy were disorganized and lacked cohesion. We propose that Target creates a health and wellness theme within these endcaps that highlights several of the up & up™ products. Following are some of the possible endcap displays that fall within Target’s health and wellness theme: Seasonal Health: Each season presents new health challenges—whether it's winter's cold, summer's heat, or fall and spring allergies. This endcap will help Target guests easily find products to stay healthy throughout the year. Possible Fall/Winter Health Products: Hand Sanitizer Cough Syrup Cold Relief GOLD BOND Gold Bond Ultimate Sanitize Moist up & up™ Hand Sanitizer with Aloe – (2 oz.) Delsym Adult Cough Orange Cough Relief DM Liquid Sudafed PE- Nasal Decongestant- 36 CT Maximum-Strength Nasal Decongestant PE Tablet 36-pk. Figure 4 Dental Hygiene: The practice of keeping the mouth and teeth clean in order to prevent future dental problems Medicine & Health: Using pharmaceutical drugs intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease or illness. Healthy Diets: Controlling the regimen of food and drink, as to gain or lose weight or otherwise influence health. 10 Health and Wellness Books Within the Wellness Center, we propose that Target highlights several top selling health and wellness books. Being able to continuously reference health tips and facts will help to keep them in a healthy state of wellbeing. Figure 5 lists some possible health and wellness book ideas. Eat, Drink & Weigh Less by Molly Katzen and Walter Willett MD •This diet book strays away from the traditional deprivation based diet, and instead shows you how to change your eating habits to include healthier choices, combined with regular exercise. The Pocket Food and Exercise Diary •This is a 10-week food and exercise diary that is non-dated, so you can start anytime. By writing down everything you eat, you can keep track of what you're really consuming and how many calories you have burned Master Your Metabolism: The 3 Diet Secrets to Naturally Balancing Your Hormones for a Hot and Healthy Body! by Jillian Michaels •Respected health and wellness expert and bestselling author, Jillian Michaels tells readers how she changed her diet, exercise and lifestyle to fix her hormone imbalances Pilates: Body in Motion by Alycea Ungaro and Russell Sadur •This book uses step-by-step mat work exercises and a wide range of programs from beginner to advanced to help you build a stronger, leaner, fitter body. 15 Minute Total Body Workout [With DVD] •15-Minute Fitness series gives the tools needed to squeeze regular exercise into a busy lifestyle. This fantastic new format offers easy, step-by-step instruction and a DVD to walk you through each routine The 150 Most Effective Ways to Boost Your Energy: The Surprising, Unbiased Truth about Using Nutrition, Exercise, Supplements, and Stress Relief •This book shows people how to naturally get more energy out of their body. Nationally known health expert Jonny Bowden presents small changes anyone can implement up front for big energy. Figure 5 11 Poster Display Finally, Target can create a poster display (Figure 6) on one of the center endcaps to highlight other health and wellness products throughout the store. Examples could include fitness clothes, biking and outdoor sporting goods, Wii fit products, air purifiers, and humidifiers. The idea is to make a connection for the guest between the Wellness center and the other products that Target carriers in relation to health and wellness. The benefit of the poster would be that the products would not have to be removed from their familiar place in the store. Wellness Products Women’s: Fitness: - Yoga Pants - Sports Bras - Athletic Shorts - Athletic Tops - Jump Ropes - Bikes - Helmets - Dumbbells Men’s: Home: - Activewear Pants - Activewear Shirts -Activewear Shorts - Air Purifiers - Humidifiers Figure 6 By creating a Wellness Center, Target can help guests identify symptoms of disease, care for any sicknesses, and protect themselves from injuries and harm. Once these behaviors are satisfied, Target will be well on their way to achieving favorable health and wellness. 12 Recommendation 2: “Ask Us” Objective Revitalizing the “Ask Us” program by emphasizing Target’s core values through improved service, convenience, and savings! Pre-SWOT Analysis Strengths Weaknesses •Already initiated program •Somewhat successful •Staff already knowledgeable •Staff are already extremely busy •Restrictions on what they can say •Not used to spending time with customers this way •Possibly inefficient Opportunities Threats •Gain market pharmaceutical patrons •Advance Target’s service image •Greater differentiation by compliment ing the target guest better •Main competitors are specialized and have a leverage advantage •It is difficult to differentiate •Governmental regulation Figure 7 Proposal The objective of this new recommendation is to further and revitalize the current “Ask Us” program. This is a perfect opportunity to gain market share while creating a positive and significant differentiation point for Target. There are a few key action steps as aspects to this recommendation detailed in the following. Through direct observational primary research we discovered a small number of crucial points: Staff (pharmacists) was extremely busy and were not inviting. The “Ask Us” program is successful because people do like and utilize it. The program lacks proper promotion. There is a great opportunity for better program facilitation. These observations lead to the creation of our following recommendations: 13 Staff an “Ask Us” pharmacist from 11 am to 7 pm Having an “Ask Us” only pharmacist will help facilitate the program better. Our observations provided us valuable insight to this action step: Early afternoon (2 pm) on a Monday, five pharmacists were frantically working-so busy that a regular staff member could only speak with us and had to make several trips back to a pharmacist for answers to each of our questions. A separate “Ask Us” pharmacist would certainly boost service, efficiency, and speed, which are all core values at Target. Create an “Ask Us” lane Target pharmacy does an excellent job at facilitating quickness, but there is a great opportunity to add more service into the Target pharmacy experience through an “Ask Us” lane. Currently there is a quick pick-up and drop-off prescription lane. We want to add a lane that emphasizes and facilitates the “Ask Us” program where guests know that is the lane to be in when they have questions. Facilitate promotion This final action step stresses improved “Ask Us” program promotion through signage and the added “Ask Us” lane detailed earlier. This step brings this and the other recommendations together to create one, cohesive and congruent wellness program. Specific signage would be tied to the Wellness Center (recommendation one), this will help communicate to Target’s guests how the pharmacy, its service, and the “Ask Us” program are all part of the Wellness Center. This signage is a great way to convey the improved service of the “Ask Us” program. Post-SWOT Analysis Strengths Weaknesses •Improved service image •More experienced staff •Improved “wellness center” •Extra staff in pharmacy •New customer service regulationsadministrative boundaries Opportunities Threats •Larger pharmaceutical market share •Greater, substantial differentiation •Improved positioning in the pharmaceutical market •Main competitors are specialized and have a leverage advantage •Governmental regulation Figure 8 14 This recommendation offers a great benefit to cost ratio. The majority of costs come from the initiation of the original “Ask Us” program and the few remaining costs come from investments in great opportunities that drastically improve the program. The pre and post SWOT analyses highlight the key opportunities and the improved strengths this recommendation offers. It is important to notice current weaknesses are turned into strengths and threats are turned into opportunities. In essence, this recommendation takes an already great program and makes it even better. It also emphasizes Target’s current core values while effectively communicating them to their guests. Guests will experience even better service and Target will be able have an even stronger relationship with these guests. Ultimately, this recommendation creates an excellent point of differentiation for Target. 15 Recommendation 3: Target Wellness Points Program Objective To increase awareness and sales of wellness products (especially up & up™ products) while emphasizing Target’s focus on convenience and savings. Pre-SWOT Analysis Strengths Weaknesses •up & up™ has a scalability advantage with a breadth of products •Fast and simple service at checkout lanes •Pre-existing Pharmacy Rewards program with the Target REDcard •Time to label which products count as wellness •An extra thing for cashiers to train and bring up to customers •Not a very unique product Opportunities Threats •Reach larger demographics—younger than 18 years old •Link to the REDcard for convenience •Build program off of Pharmacy Rewards •Target consumers are focusing on the affordable “good brands” •Other competitors (i.e. CVS Pharmacy) may already have rewards program-It may be hard to differentiate this Wellness Card to other competitor’s similar programs •May need to increase direct materials and labor costs-will there be enough for production? Figure 9 Proposal The third recommendation is proposing the Target Wellness Points Program card. This card is open to all Target guests to utilize at Target stores. Guests will accumulate points on health and wellness products and earn future discounts. The main focus of creating this wellness card is to increase the awareness and sales of Target’s up & up™ brand and pharmacy service. It’s convenient for Target guests and will allow them to save immensely on up & up™ brands products and still get the similar brand name quality. An Extension of the Pharmacy Rewards Program The Wellness Points Program is based on the Pharmacy Rewards Program. Under the Pharmacy Rewards Program, guests utilize their REDcard to pay their prescriptions from the Target Pharmacy. For every 10 prescriptions they pay with their Target card, they receive a certificate to get a 10% discount to shop throughout the Target stores. Similarly, the Wellness Points Program allows guests to automatically earn points on wellness and health items, including pharmacy prescription refills. For every 100 points guests 16 earn, they will receive a 10% off coupon to use on future Target purchases. Throughout the year, guests will receive coupons to save on up & up™ brands and on promotional wellness items. Furthermore, guests with REDcards can register for the Wellness Points Program under the same card to use at the checkout lanes. Additionally, guests under both the Pharmacy Rewards Program and the Wellness Points Program can earn points on prescription refills. For instance, a guest who refills prescriptions at the Target Pharmacy will be able to pay for the prescription with the REDcard and have that count for the Pharmacy Rewards. At the same time, he or she will earn 20 points under his or her Wellness Points Program card. Potentially, the Wellness Points Program card may encourage prospective guests to open a Target REDcard and become a regular Target Pharmacy guest to utilize the savings offered by both programs. Not only will the Target Wellness Points Program increase guests’ awareness to save by purchasing up & up™ products, but it will increase their awareness to save on prescription drugs by encouraging them to sign up for the Pharmacy Rewards Program and the REDcard. Overview of Wellness products and points The list of wellness products is extensive, such as athletic wear, granola bars, athletic equipment, personal hygiene…etc. Each wellness product is valued at different points. The highlight of this program is that guests will earn double points on up & up™ products and on pharmacy prescription drugs. Figure 10 contains examples of wellness products and point values: Earn Twice the Points on Target’s up & up™ Products Cough Medicine up & up™, 16 points All other brands, 8 points Contact Lens Solution up & up™, 18 points All other brands, 9 points Acne Face Wash up & up™ 14 points All other brands, 7 Figure 10 Target Pharmacy Prescription drug, FIRST TIME: 50 points Target Pharmacy prescription drug refill: 20 points Athletic Wear: Includes all athletic wear in men’s and women’s clothing department. o Pants: 20 points o Sport bras and athletic socks (i.e. sweat absorption): 10 points o Shorts and T-Shirts: 15 points o Jackets: 30 points Athletic Equipment: Includes athletic equipment in the fitness department such as fitness videos, free weights, yoga mats, and more. Depending on the product, points vary from 15 points to 40 points Fitness Foods: Includes whey powder, fitness bars, granola bars, vitamin water, natural water…etc. 10 points 17 How to Earn Points To earn points, the guest swipes the Wellness Points Program card at the cashier lane. All wellness products scanned will automatically be aggregated into an electronic personal account. Guests can check their points status online and will receive electronic notification each month of their status. The more points earned, the closer the shopper is to redeeming future coupons to save at Target. Furthermore, the points will never expire. Guests are able to accumulate the points at their own pace. Forms of the Card At the time of registration for the Wellness Points Program, guests will receive various forms of the card: stickers with the card’s barcode, keychain card, and the typical credit card- size- card. The variations of Wellness Points Program Card exemplify the convenience of savings for the guests. Redeeming Points to Earn Rewards For every 100 points earned, Target shoppers will automatically be sent coupons in the mail. The coupons will feature promotions on up & up™ products (i.e. receive $1.00 off,) the Target Pharmacy (i.e. refer a friend and receive 10% off your next refill,) and a 10% off a total purchase at Target. Helping Guests Save Money and Time By utilizing the Target Wellness Points Program Card, Target will capture a larger section of demographics that the Target REDCard was unable to get: Shoppers under 18 years old and those who do not want a Target credit card. Most importantly, this rewards program fulfills Target’s focus on consumer savings and convenience. For instance, one swipe of the card at the register automatically accumulates points on the guest’s wellness card. In addition, existing REDCard users will be able to add the Wellness Points Program under the same card. That way they don’t need to carry two cards. Target shoppers are saving almost a third by shopping for the up & up™ brands and are getting similar quality as the brand name products. Moreover, this program will increase public awareness on the up & up™ brands and promote Target’s focus on helping consumers save more on quality goods. In other words, the Wellness Points Program can help build customer loyalty among Target guests and increase sales. According to the Performance Improvement Council of the Incentive Marketing Association, Bain and Company’s research shows that a “5% increase in a company’s customer retention rates will increase the average lifetime profits per customer.” To sum up, this rewards program will encourage guests to maintain their shopping habits at Target. Nonetheless, this program will help Target increase sales. On the whole, the Target Wellness Points Card ultimately helps the typical guest, children, and young adults conveniently save on wellness and health items. Because of the double points earned on Target up & up™ brands, this program will increase their awareness of up & up™ brands and the Target Pharmacy for potential future savings. 18 Recommendation 4: Connecting with the Community Objective Connect with the community through the already existing museum program by refocusing it on wellness education for youth. Pre-SWOT Analysis Strengths Weaknesses •Reinforces Target’s values of education and community •Pre-existing museum relationships makes implementation easy •Allow Target employees to fulfill community service hours •Requires a new plan and design strategy for exhibits •Exhibits are not Target’s main focus or expertise •Cost and time of research and implementation Opportunities Threats •Promote brand image and allow others to see that Target is focused on wellness/health •Using trail cities for program will reduce risk of failure •Community interest in museums may not be strong enough to warrant costs •Marketing costs to highlight museum program are unknown for most cities Figure 11 Proposal This final component of the project focuses on creating awareness for Target and its wellness program by connecting with the community. Currently Target offers free admission to over 100 science museums across the U.S. on select days of the week. We propose that Target uses this existing relationship to highlight its wellness focus by sponsoring at least two small exhibits in each museum beginning in select large city areas. Examples of possible exhibits include: an interactive display showing the importance of washing hands to avoid germs and sickness; a display showing how exercise can lead to a long and healthy life; an exhibit portraying healthy eating habits and how they can affect your life. 19 Minnesota Children's Museum - Chicago Children's Museum - •Target Free 3rd Sundays 10 West Seventh Street St. Paul MN, 55102 651-225-6001 •Target Free First Mondays Free admission for kids 15 and under. First Monday of every month, 10 a.m.–8 p.m. 700 East Grand Avenue, Navy Pier Chicago Children's Museum at Navy Pier Chicago IL, 60611 312-527-1000 Children's Museum of Manhattan - Seattle Art Museum - •Target Free First Friday Nights 212 West 83rd Street New York, NY 10024 212-721-1234 •First Free Saturdays presented by Target at the Seattle Asian Art Museum Free First Saturdays, 10 a.m.–5 p.m. 1400 East Prospect Street Seattle WA, 98112-3303 206-654-3100 Figure 12 Each of these wellness exhibits could include Target “goodie bags” with small sample sizes of toothpaste, dental floss, kid vitamins and other health items. These products could include name brands as well as the Target up & up™ brand to market the store to children and families. In addition to the health product samples, each bag could also include a symptoms-sickness-solution packet that would describe symptoms of common illnesses such as a cold and how someone could prevent/cure the sickness. In addition to Target’s presence in the museum by goodie bags and its name on exhibits, Target can also have employees volunteer at the exhibits. Target employees would be able to complete some of their required service hours and the company would be able to have on-site staff at no cost. This proposal would strengthen Target’s connection with its primary guests, women around the age of 40 with children, and strengthen a secondary guest group of children ages 4-13. These children are up and coming shoppers who will already have brand awareness of Target both in and out of the store setting. 20 Conclusion Post-SWOT Analysis This is a post-proposal SWOT analysis illustrating Target’s industry position after our proposal’s implementation. An effective program takes a strategic approach that looks to transform weaknesses into strengths and threats into opportunities. For example, in the pre-proposal SWOT analysis a weaknesses is the loose relationship Target’s brand has with wellness, and the post-proposal SWOT analysis identifies this as a new strength. This transition represents the positive cost/benefit ratio the proposal achieves and is essential to the measurement process. As a final measurement tool we suggest doing periodic surveys biannually to gauge guest response to the implementation of the entire Wellness Program. Strengths Weaknesses •Outstanding brand image and guest loyalty •Improved community involvement •Improved service •Positive differentiation in the wellness industry •Alignment of the Target brand and wellness •More resources utilized in Wellness Center •More staff is required •Increased training Opportunities Threats •Creating an even greater relationship between Target's brand and wellness •More involvement with the community •New partnerships within the wellness industry •Governmental Regulation •It is difficult to sustain points of differentiation •Program imitators Figure 13 Next Steps After Target approves the proposal we suggest the following implementation steps: January 31, 2010 review and create plan for endcaps and Wellness Center restructuring. February 1, 2010 staff each Target with an extra pharmacist for the “Ask Us” program and create the additional “Ask Us” lane. March 31, 2010 have all of the products selected and ready for full implementation of the Wellness Points Program. May 1, 2010 establish Wellness exhibit designs for national integration as part of the Museum Program. June 1, 2010 have full roll-out of the Wellness Points Program. August 1, 2010 have Museum Program exhibits implemented in selected cities. January 31, 2011 have the full implementation of the Wellness Center at all Target locations. 21 Closing By utilizing our four recommendations, building a Wellness Center, revitalizing the “Ask Us” program at the Pharmacy, creating a Wellness Points Program, and connecting with the community at local science museums, Target will increase its public brand image by offering guests a convenient shopping experience that will allow guests to lead a long-term healthy lifestyle while saving money. By creating one central location called the Wellness Center, Target will enhance the shopping experience for the typical guest, working mothers who thrive on convenience and savings. The endcaps that compares and highlights the immense savings of up & up™ products compared to brand name products will increase savings for our typical guest. Furthermore, the endcaps will help Target shoppers easily trace various wellness and health products, books, athletic apparel and equipment, home supplies, personal hygiene products, and more, to stay healthy throughout the year. Moreover, staffing an “Ask Us” pharmacist at the Target Pharmacy will enhance the guests’ pharmacy experience. This proposal will improve the communication among the pharmacy employees and guests. The improved relationship between the two parties will encourage guests to continue shopping at Target. In the long run, Target will retain the typical guests. In return, they will increase Target’s guest population by stringing their children along at Target stores. Furthermore, signage about the Ask Us program at the Wellness Center will create one harmonious wellness program that shows Target’s focus on helping consumers use the Ask Us program with ease. Furthermore, the Wellness Points Program allows Target guests to conveniently save on wellness products by earning points for future discounts on Target purchases and promotional items. It also highlights the benefits of buying Target up & up™ products and utilizing the pharmacy to save and earn more points. This flexible program will attract prospective guests from a variety of ages and backgrounds to join. Thus, Target will experience increased sales and awareness of it’s up & up™ brand. Nonetheless, Target will promote a positive brand image by increasing health awareness among the community by establishing exhibits at local science museums to educate children and parents about health and safety awareness. This program will strengthen the relationship between Target and communities by exemplifying one of Target’s core values, community service. It will also increase the traffic at Target stores to attend the Wellness Center, sign up for the Wellness card to save on up & up™ products and become a regular pharmacy guest, and utilize the Ask Us service at the Pharmacy. 22 Bibliography Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more. Web. 04 Dec. 2009. <http://www.amazon.com>. Association of Children's Museums. Web. Nov. & Dec. 2009. <http://www.childrensmuseums.org/>. "Customer Retention: Keeping Your Best Customers for the Long Term." Incentive Central. Performance Improvement Council of the Incentive Marketing Association, 2008. Web. 6 Dec. 2009. <http://www.incentivecentral.org/ “CVS Pharmacy Health and Wellness Interview" Interview and Observation by Right on Target Consulting. 29 Nov. 2009. Target, Eagan, MN. Hill, Charles W. and Jones, Gareth R. Essentials of Strategic Management: Special Edition. Boston: Houghton Mifflin Harcourt, 2008. Science Daily: News & Articles in Science, Health, Environment & Technology. Web. 06 Dec. 2009. <http://www.sciencedaily.com>. Target.com: Furniture, Baby, Electronics, Toys, Women’s Clothing & more. Web. 07 Nov. 2009. <http://www.target.com>. "Target Health and Wellness Interview 1" Interview and Observation by Right on Target Consulting. Super Target, Rosedale, MN. "Target Health and Wellness Interview 2" Interview and Observation by Right on Target Consulting. 05 Dec. 2009. Target, Chanhassen, MN. "Target Health and Wellness Interview 3" Interview and Observation by Right on Target Consulting. 05 Dec. 2009. Super Target, Minnetonka, MN. "Target Health and Wellness Interview 4" Interview and Observation by Right on Target Consulting. 29 Nov. 2009. Target, Eagan, MN. 23