Big City
Small Target
Jennifer Brieke, Ashleigh Becker, Caitlin Burns,
Catherine Bruno, Kathleen Kroll, Zack Ruman
What is a CityTarget?
Characteristics of CityTarget:
• Initial Opening – July 25th 2012
• Urban Cities
• New York City, Las Angles,
Chicago, Seattle, San Diego,
Atlanta, Miami, Portland
• Average Store Size – 60,00080,000 sq ft
• Stores Carry
• Grocery, Pharmacy, Apparel and
Accessories, Electronics, Toys &
Apartment Essentials
Problem Identification
• How can Target continue to deliver an excellent customer
experience and offer products that meet customer demand in an
urban area?
5 C’s – Company
About Target
•
Founded in Minnesota – 1902
•
1,795 stores
•
37 Distribution Centers
•
17 Owned Brands, 22 Exclusive Brands
•
Refer to customers as “guests”
•
Over 340,000 employees known as “team
members”
•
Brain Cornell – CEO since Aug 2014
•
Average Store Size – 55,000 sq ft
•
Recognized as a leader in innovation across
the retail industry
•
Gives 5% of total profit to community
partners
5 C’s – Customer
Target’s Target Market
Orlando Market:
• Average age of customer – 40
• Average age of customer – 38
• Average income - $64,000
• 57% have a college degree
• Average income - $50,000 $60,000
• 43& have children
• 38% have a college degree
• 47.1% are working professionals
• Population - 275,000+
5 C’s – Competitors
Primary Competition:
• Amazon
• Sears
• Wal-Mart
• Publix
Secondary Competition:
• Best Buy
• Costco
• Kohl’s
• Macy’s
• Safeway
• Convenience Stores
5 C’s - Collaborator
• Designers
• TOMS, Lilly Pulitzer, Neiman
Marcus
• Distributors
• Employees
• Shareholders
5 C’s – Context
PESTEL Analysis:
• Socio-Cultural – people are moving to cities
• Technological – continually updating systems, store card readers
with chip-enabled smart-card technology, Cartwheel App
SWOT - Strength
• Target is a well known and reliable
brand
• High capital expenditure
• Previous established CityTarget’s
across the nation
Chicago, IL
• Strategic positioning of store
locations
• Established phone application
user base
San Francisco, CA
SWOT - Weakness
•
Limited floor and storage space
due to pre-existing infrastructures
•
Parking availability is limited
•
CityTarget brand recognition is
narrow
•
Restocking products
•
Employee scheduling during peak
hours
•
Breach aftermath still in affect
•
High initial investment
•
High fixed costs
* Seattle, WA CityTarget – Yelp Review
SWOT - Opportunities
• Limited competitors in the urban
area supermarket industry
• Ability to adapt to local market
and culture
• Expansion of fresh-to-purchase
items (convenience goods)
• Tourist destination
• Free parking with purchases
SWOT - Threats
• Limited customer base
• Reduced traffic during
9AM-5PM hours (with the
exception of lunch)
• Lack of product knowledge
regarding ready to eat food
options
• High homeless population
gathering outside stores
Our Task
Introducing a CityTarget to Downtown Orlando
Survey Results
• Majority of respondents
• Between 18-34 years old
• Household income - $30,000
• Monthly shoppers at Target
• Favorite Departments – clothing,
groceries and household supplies
• Shop online once a month
Alternatives
• Store Kiosks
• Customer Experience
• Create a CityTarget
Mobile Application
Recommendations
• Enhancing the Customer Experience
• Informative Signage
• Eye Catching Designs
• Diverse Product Mix
• Customer Service
• Local Feel
• Kiosk and Application Integration
• Educating customers and
employees
Integrated KIOSK Process
Log into your Cart Wheel Account
Username:
dreamteam@target.com
Password: ********
Sign up to save!
Sign in as a guest
Integrated KIOSK Process
Cart (2) Rewards (15 pts)
Search for a similar item
Order an Item to store
Scan for Price/Promotion
Clothing Homegoods Groceries Electronics Pharmacy
Integrated KIOSK Process
Scan your item ticket below
Integrated KIOSK Process
What we have in store
Order Online for next day store delivery!
Integrated KIOSK Process
Other Members Also Liked..
SKIP
Integrated KIOSK Process
Your item is located on Level 1 in the Petite
Junior Clothing Department
Your
fabulous
skirt!
Integrated KIOSK Process
Log Out & Open App on your phone to
guide you to your item.
Go Back to home screen
Education
• Customer Education
• Educational videos on the kiosk
• Employee interaction education
• Employee Education
•
2 hour training program
Marketing Mix - Place
• Downtown, urbanized business
location
• Fit in with local culture and
architecture
Marketing Mix - Product
Marketing Mix - Product
• Recommended:
• Household Essentials
• Food & Pet Supply
• Apparel & Accessories
• Electronics
• Home Furnishing & Décor
• Pharmacy
• Not Recommended:
• Large family size items
• Lawn care
• Limited infant merchandise
Marketing Mix – Promotion Campaigns
• Digital Marketing Campaigns
• Facebook, Twitter, Instagram, Pinterest, Google+, Emails
• Promotional Campaigns
• Google Ad Words, Facebook and Twitter Ads
•Traditional Marketing Campaigns
•Billboards on buildings, Bus Ads, Radio, Television, Magazines
• Local Campaigns
•Magic, Solar Bears, Orlando City Soccer Themed
Marketing Mix - Price
Recommendation
Math
Price
Kiosk Software
1,500 per Kiosk X 7 Kiosk
$10,500
Mobile Phone Application
Updates
$25,000
Employee Training of
software
100 Employees X 2 hours X 8.05
$1,610
Promotions (billboards,
social media, signs, etc)
$100,000 for the 1 Year
$100,000
Remodel of store for the
"Target Experience"
$1.2 Million
TOTAL $1.4 Million
Questions?