Created by The Dayton Company, as an idea to form a discount store chain that would combine quality service, fashion, and a delightful shopping experience, Target was the vision of the Dayton’s already vast experience in the retail department sector. The name Target was chosen in 1962 by the former Dayton’s Director of Publicity, Stewart K Widdess.
*May 1, 1962- Target has its grand opening in Roseville, Minnesota Target opens its doors and introduces customers to the luxury of department store shopping with retail store prices, never abandoning the idea of delightful customer service and quality products for consumers. * Three new locations are opened by the end of 1962. Stores are opened in St. Louis Park, Crystal, and Duluth Minnesota.
Target has defined itself as a retail that brings about fresh ideas to the retail sector. With their uncompromising value, for nearly 50 years, Target has created itself to be the one-stop shopping experience to loyal shoppers. (provided is a link to Target’s 2009 Annual Report)
Target continues to ease the strain of the economy by keeping their prices low and quality stores.
Target offers a unique niche above their competitors by offering fashion-conscious, budget friendly merchandise for the entire family. TARGET is currently the 2 nd largest discount chain retailer, making TARGET successful, but also leaves more room for growth and opportunity.
Recently, TARGET has remodeled stores and expanded the grocery departments. TARGET will be entering the Canadian market in the next few years, starting TARGET’s global expansion outside of the US. TARGET offers amenities and special departments such as TARGET Café, pharmacy, photo processing, optical, and Starbucks. TARGET actively contributes to communities and offers ‘green’ options that are natural, healthy and organic.
Consumers expect value, quality and a pleasant shopping experience at Target. Consumers look for a wide range of product, variety of products, a range of price points, and customer service.
By offering a variety of the basic items and a variety of items normally purchased on impulse or that a consumer will purchase not just because they need it, but because they want it. Displays and product placement on shelves can fit this need. Adequate staffing, clean & stocked stores, clean parking lot, and knowledgeable, friendly and empowered employees enhance the customer experience and will motivate them to continue shopping at TARGET.
TARGET stores serves to a wide variety of consumers, with young to old ages, male and females, different education and income levels shop at TARGET. By offering variety in price, product and selection, TARGET can please the wide variety of consumers. Women and families are TARGET’s largest type of consumer. With 1,745 TARGET stores nationwide, in metropolitan, urban, and rural areas, TARGET is accessible to a large population. TARGET offers products to specifically meet the geographic needs of each area, so TARGET stores relate to the communities to by offering product to fit their needs, and thus increasing customer loyalty.
Variety, brand, and quality are major factors for consumers to purchase at TARGET. TARGET offers private label, exclusive and national brands to fit the needs of the consumer. TARGET carries Up&Up, Archer Farms, Market Pantry, Merona, Xhiliration and Kitchen Essentials to name a few that offer quality and value. Exclusive labels carried by TARGET to meet the needs of brand name shoppers include: Mossimo, OshKosh, Converse and Eddie Bauer.
TARGET stores offer high-end brand labels for shoppers who prefer brand name at a reduced cost. CHI, Biolage, and Redken hair products can be found at TARGET for less than a salon. TARGET’s newly launched fit numbering system for women’s jeans make finding the right fit easier. TARGET.com offers an expanded selection of household goods and furniture.
TARGET’s sales are mostly household items, hardlines, and apparel. TARGET could re-vamp and focus on lower sales departments, such as pets and sports. Toys and electronics could be remodeled to give those departments an esthetic appeal that feels like they are at a toy store or Best Buy.
*Walmart, currently the #1 discount retailer chain boasts over 8,000 stores and 2.1 million employees, expanded internationally into Canada, Mexico, and Asia. *Walmart is currently the #1 retailer in Canada and Mexico. Walmart is currently boasting $408 million in sales in 2009, compared to TARGET at $63 million. *Kmart, operating 1,300 stores and targets the low income market, has an average of $16 million in sales in 2009 is the #3 discount retailer.
TARGET’s strengths in the company are offering exclusive brands that their largest competitor, Walmart, does not. Participation in community programs, such as TARGET Grants, Meals for Minds, and sponsoring art & culture programs keeps TARGET positively connected with communities. TARGET’s recent remodels and expansion of grocery selection have increased the shopping experience.
WalMart has almost 8 times more stores than TARGET and is a global retailer. TARGET can use this weakness to become a global retailer and open new stores.
TARGET’s reputation as a one-stop shop retailer offering low prices and quality is an advantage for TARGET. TARGET can continue to expand, grow and offer a pleasant shopping experience to their customers. TARGET’s innovation and creativity can be used to offer additional services and products to expand their consumer base. Acquiring more exclusive designer labels are also an opportunity for TARGET.
TARGET’s leading competition, Walmart offers a full grocery and has almost 8 times more stores. Consumers have been less likely to purchase due to a slow economy, resulting in lower sales.
They market to the consumer that may not shop at Wal-Mart or K-Mart. Target markets themselves as a department or specialty store that has discount prices. With energy, food and other day to day living expenses on the rise consumers of all income brackets are looking to save money where they can. Target can most certainly gain some of the market share from the moderately priced department stores. Target also is selling more consumables in their normal retail establishments. This may sway the customer who needs to pick up a few groceries to make one stop at Target. Target is also offering Target Red and Target Visa cards to its customers. This delivers a convenience to the consumer that desires that type of credit card. They also offer Target Rewards and Target Pharmacy Rewards programs to entice consumers into shopping there. Target also contributes 5% or $3 million to the communities they serve. By marketing themselves as a caring and contributing member of society customers may want to support a store that supports the area in which they live. Target offers products that offer quality, value, and an innovative design. They are constantly reinventing their brand, designs, and partnerships to offer newer products more frequently so the consumer does not get a stale and boring product selection.
TARGET stores have 4 target markets: First, 93% of shoppers are women, being the largest market for the company. TARGET could advertise small automotive, hardware and sporting goods towards men. Second, TARGET’s average shopper’s income is 63k and promotes ‘Expect more, pay less’. TARGET could focus on this philosophy even further by promoting the brand, quality and value that a shopper should expect to receive from TARGET and that it’s lead competitor Walmart, cannot compete with. Walmart offers a low price, but often lacking quality. TARGET can focus on the quality of merchandise.
Third, the median age for TARGET is 41 years of age. While TARGET has aimed at younger generations, TARGET could increase their advertisements to younger shoppers with celebrities, pop culture and new products. Fourth, TARGET can target new parents with promotions once the baby has arrived. Currently, TARGET offers baby registry, but could also offer a welcoming package with coupons to encourage shopping.
Grocery- The Target brand food not only has a great line of products but also has a great eye catching packaging and great pricing that attracts customers. Target also has a grocery selection that concentrates on &quot;Fresh&quot; and healthy produce for customers Pharmacy- This tells me that they care about their customer’s health. Target provides you with what are best and what will keep you healthy. With healthcare in the spotlight of current issues, Target can market their inexpensive prescription drugs as well as the efficiency of their pharmacy. They can ensure consumers that they will provide a knowledgeable staff within the pharmacy as well as a shorter wait time to fill prescriptions.
Target Corporation operates as a successful discount retailer, an online e-commerce store, and also a financial services entity. One in Five products purchased in retail establishments are private label products. Target thus far has an excellent reputation with their brands at this point and would be wise to continue improving and expanding them. By carrying more consumables, this could eliminate a portion of the outside vendors currently providing food items to the stores. They could market their own brands as comparisons with the national names and give out coupons in order for people to have an incentive to try their products. Another example would be to market their private label brand of electronics. Target could develop their brands of MP3 players, televisions, DVD players, etc. There is no end in sight for the products they could develop and market.
Target continues to promote innovative marketing in order to gain more of the market
.> Target currently has bright banners and nice photos over the grocery area they also put a &quot;sale&quot; flyer in the grocery store. Perhaps a POS ad would be an advantage. If they are expanding the grocery in some stores, certainly inviting customers to the &quot;new&quot; PFresh market with some cents or dollars off would bring more traffic in. >. Target can become a major competitor in the sale of sporting goods and apparel. Target's sporting good section doesn't seem to be very big, but they do offer a small, but nice selection of camping & sporting goods, and they are quality brands, like Coleman and Kelty. >Many customers may be under the impression that switching to Target pharmacy might be a hassle, reassuring customers of our efficient system should ease all worries.
Each of these marketing pieces will stand as individual pieces, however when combined will build the brand by telling a story, reinforcing the identity of Target and the consumers who are committed to showing they care by shopping there.
It’s Target’s goal to creatively and consistently reach women, especially middle-age mothers who make the buying decisions for the entire family.
This four part campaign message strategy is designed around the daily narrative of the Target shopper. Creating an engaging campaign our shoppers will want to personally identify with. Our messages will contain consistently vibrant and engaging visual graphic design elements with striking color use and upbeat music.
This ad coincides with Easter, Earth day, Arbor day, Daylight savings time, spring cleaning & planting season.
This ad promotes summer free time and fun which includes volunteering with Target.
This ad promotes backyard cookouts and patriotic parties while paying homage and supporting to those who serve us.
This ad promotes back to school sales and excitement as well as Targets outstanding education programs.
This ad shows people in red shirts helping others, sharing smiles. It shows shopper purchasing items and leaving them in a drop box, shows relief kits being boxed up with items purchased.
This ad features Halloween shopping, fun and trick or treating, kids with flashlights and a community patrol officer close by.
This ad features holiday themes of thankfulness, family, celebrations and gifting to community organizations and those in need.
Research shows that women engage in charitable activities far more than men regardless of income level and age. Combined with the fact that more women do the shopping in family households, it is only natural to combine the two in order to increase sales and build loyalty.
>Television is the most expensive form of advertising and requires the largest percentage >Interactive-More people are gaining information and seeking entertainment via web. Interactive advertising an essential necessity in the modern age. Television ads can be converted for multi media web ads relatively inexpensively and we can reach far more customers with less cost than with any other media. >Inserts-This is not your typical newspaper sales insert, while there will be some featured items relating to regular weekly household needs and a small % of featured seasonal items,
The most common and popular of sales promotions are customer marketing directed sales promotions. Customers are exposed to sales promotions nearly every day. Studies have shown that sales promos do play a conscious role in the buying decision process of customers. Promotions can offer discounts on products from home décor to groceries which will influence customers purchasing habits.
Trading sales promotion marketing targets other business entities. It is a sales promotion that may propose a certain level of distributorship and other trade functions to companies. The objective often includes obtaining or improving shelf space and position, building inventories for our brand, gaining trade support through display and advertising help and generating enthusiasm for new product introduction. Often formal and less creative than a Customer Market Directed Sales Promo, it works well in business-to-business dealings. This type of sales promo can also be limiting due to the marketer’s personal network.
An effective and relatively expensive way to achieve a trial of a product. The expense comes from manufacturing, inventory, and distribution of special trial sizes of a product. Product trial, therefore, has become a more urgent objective to new product introductions than before. If you cannot get people to try your product, you can never achieve repeat purchase behavior. Take for instance our own brand of baby formula (Up & Up), clothing (Dwell Studio), groceries (Archer Farms), and home décor (Target Home). Product trials have become a more urgent objective to new product introductions than ever before.
Couponing is a great promotional tool that we can use. There are several advantages that make using coupons worth considering a brand. They allow you to offer a reduced price on a product, assures the manufacturer that the savings are going to the customer and coupons offer a temporary price reduction. The disadvantages of coupons are that established customers tend to use them instead of new customers. Another disadvantage of coupons is Coupon fraud with customers making fake coupons or reuse of the same coupon several times.
Merchandise incentives, offering products & services for free or reduced price can be used as an incentive reward for shoppers. Discount bins offering simple, quick impulse buys for a low cost promote purchasing.
A refund or rebate obtained by a customer is typically required to send in proof of purchase to the manufacturer. Many customers are willing to do so but majority of new customer want them instantly.
TARGET communicates to their consumers multiple ways to reach consumers. Advertising weekly deals on TARGET online, which can be personalized to the types of product the consumer is interested in can be found on TARGET.com, called ‘My Target Weekly”. TARGET’s circulars are in the Sunday paper, television ads, and social media such as Twitter and Facebook.
TARGET maintains a positive image to consumers, by dispeling negative opinions and information about our brand. By keeping a positive image, speaking well of the brand, treating every customer right, and caring for employees and the community are a part of TARGET’s goal to keep a positive public image. While negativity is inevitable, by focusing on the positive, TARGET will continue to succeed.
Our direct marketing campaign is an inexpensive way to communicate with our customers and engage them to participate with a call to action. These actions will be tracked and provide us with a valuable measure of our efforts. Our goal is to strengthen relationships and build loyalty with our customers on a personal level. Some of the methods used are: online surveys, postcard invites to preferred customers, and credit card inserts are effective methods TARGET can use to directly market.
TARGET stores are known for their reputation to provide value and quality to all consumers. By offering an expanded selection of products, TARGET can please even the choosiest shopper. Focusing on lower traffic areas of the store, such as sporting goods and toys, TARGET can make any department in it’s stores comparable to specialized stores such as Academy or Toys R Us. Creative, innovative methods to advertise to consumers and keeping the message to customers fresh and creative will keep TARGET as a reputable discount retailer. New and fresh advertising methods and promotions within the company will keep TARGET’s image upbeat. The seasonal/monthly marketing message strategies will focus on a variety of products throughout the year and will keep the vibe new and inspired. Increased usage of the internet and social media are advertising opportunities for TARGET to utilize new methods of advertisements.
General Inquiries Members of the media are invited to call the ACTD at (800) 865-5500 or email [email_address] . The Hotline is generally staffed between 8:00 a.m. and 5:00 p.m. Central Monday through Friday. Media may leave a message during other times. The Hotline voicemail system is checked periodically. We strive to return all calls within one business day. Shooting Footage Inside a Target Store If you are interested in shooting footage inside a Target store, select “ Find a Store ” on Target.com to locate and contact your nearest store. Ask to speak with the Leader on Duty to request a visit or interview. Please note we cannot accommodate all requests.
Marketing Communication Plan Presented by : The ACTD Team Ava Mackey, Cameron Eaton, Tammy Naramore, Tiyana Jordan, Dana Dobbs
Name that Store <ul><li>“ As a marksman’s goal is to hit the center bulls-eye, the new store would do much of the same in term of retail goods, services, commitment to community, price, value, and overall experience.” (Stewart K. Widdess) </li></ul><ul><li>From the beginning, it was the vision of The Dayton Company, the proprietors of the then “unnamed store “ as it was first publicized, to think of a name that would embody the overall experience of the retail chain. With numerous names brainstormed, Target was chosen in 1962, by Stewart K Widdess. </li></ul>
Right on “Target” <ul><li>Target first open its doors on May 1, 1962 in Roseville Minnesota. </li></ul><ul><li>With a name like Target, it was only proper that the store offered discount prices for items with quality of department stores. By doing this, customers were introduced to retail, that just like its name was able to target all of their needs, from fashion to home décor with the exact same features of a department store. Target was and has been a stickler for customer service and quality inventory. </li></ul><ul><li>At the end of 1962 Target opens more stores in St. Louis Park, Crystal and Duluth, Minnesota. </li></ul>
Introduction/Overview <ul><li>Through community outreach, corporate responsibility and creating a one-stop shopping experience, TARGET has become a successful retailer. Affordable prices, quality products and esthetically pleasing stores are just a few of the attributes that has made TARGET become a reputable retailer with loyal shoppers. As TARGET stated in their 2009 annual report, “Nearly 50 years of fresh thinking has made TARGET the place to shop, the place to work, the place to invest, and the place to experience what’s new and remarkable. Fresh ideas come to life in everything we do. From our clean stores, to our market-fresh produce. We’re continuing to bring outstanding quality and great design together at an incredible price. With speed. With personality. With uncompromising value. </li></ul><ul><li>http://investors.target.com/phoenix.zhtml?c=65828&p=irol-eportsannual </li></ul>
<ul><li>During tough economic challenges and changes in consumer spending, TARGET can still offer value, quality to every budget conscious consumer. </li></ul>
Situation Analysis <ul><li>Company Analysis </li></ul><ul><li>Headquartered in Minneapolis, MN , TARGET stores employs 351,000 employees , operates 1,745 TARGET stores , and averaged $63.4 billion in sales in 2009. TARGET is the 2 nd largest discount chain retailer (behind Wal-Mart) </li></ul><ul><li>TARGET stores focuses on offering: </li></ul><ul><li>one stop shopping </li></ul><ul><li>value without compromising quality </li></ul><ul><li>pleasing customer experience. </li></ul>
<ul><li>Company Analysis Cont’d </li></ul><ul><li>Currently, a challenging economy and changes in consumer spending habits is a prompt for TARGET to re-position advertising to ensure consumers that TARGET will fit their needs. Some changes implemented to increase customer satisfaction: </li></ul><ul><li>TARGET recently: </li></ul><ul><li>expanded grocery departments in stores </li></ul><ul><li>remodeled stores </li></ul><ul><li>will be entering the Canadian market within the next few years. </li></ul><ul><li>TARGET stores offer amenities such as: </li></ul><ul><li>TARGET Café, </li></ul><ul><li>pharmacy, </li></ul><ul><li>photo processing, </li></ul><ul><li>TARGET Clinic, Starbucks, and optical departments. </li></ul><ul><li>Rebranding of TARGET brand household items </li></ul><ul><li>Actively participating and contributing to local communities </li></ul><ul><li>‘ Going Green’ offering natural, healthy, and organic items </li></ul><ul><li> </li></ul>
<ul><li>Consumer and Market Analysis </li></ul><ul><li>Offering value, quality and a pleasant shopping experience is crucial for consumers to be motivated to shop at TARGET. </li></ul><ul><li>Purchasing motivators are: </li></ul><ul><li>Wide range of available products </li></ul><ul><li>Variety of products (offering multiple brands, sizes, etc) </li></ul><ul><li>Price ranges to fit the need of every customer, while still offering value </li></ul><ul><li>Excellent customer service & store function </li></ul>
<ul><li>Consumer and Marketing Analysis Cont’d </li></ul><ul><li>Consumers purchase because of their needs, wants, or desires. </li></ul><ul><li>Offering products that fit all of those needs will enhance consumer satisfaction. </li></ul><ul><li> </li></ul><ul><li>Consumers expect good customer service. </li></ul><ul><li>TARGET can focus on customer service as a motivating factor for consumers to shop, as consumers will remember where they received excellent service and motivate them to continue to return. </li></ul>
<ul><li>Consumer and Marketing Analysis Cont’d </li></ul><ul><li>TARGET serves a wide variety of customers. Consumers at TARGET come in ages from children to seniors, males and females, low income to higher income, and high school educated to college educated. A wide range gives TARGET a large consumer audience to meet the needs of, but also provides opportunity to advertise to each kind of customer to motivate them to shop at TARGET. Most of the consumers are budget conscious, even higher income shoppers, although they are more likely to purchase the higher-end brands. TARGET offers both high end brands and at a reasonable price. Women and women shopping for their families are a large consumer market for TARGET. </li></ul><ul><li> </li></ul><ul><li>With 1,745 TARGET stores nationally, TARGET is located in major metropolitan cities, urban areas outside of large cities, and also in rural areas. This allows TARGET to reach a large variety of consumers and fit the needs of each area. TARGET offers products to fit the geographic needs of locations </li></ul>
<ul><li>Product Analysis </li></ul><ul><li>TARGET offers private label and unique, exclusive designer brands to fit the needs of every consumer. </li></ul><ul><li>TARGET private label brands include (but not limited to): </li></ul><ul><li>Up & Up, recently rebranded to offer sophisticated packaging & appearance. Household items & health/beauty. </li></ul><ul><li>Archer Farms & Market Pantry- Food & Produce </li></ul><ul><li>Merona, Gilligan O’Malley, Xhiliration- Clothing & Accessories </li></ul><ul><li>Boots & Barkley- Pets </li></ul><ul><li>TARGET Home & Room Essentials-Kitchen Essentials by Calphalon, Simply Shabby Chic, and Sonia Kashuk,. </li></ul><ul><li> TARGET exclusive designer brands include (but not limited to): </li></ul><ul><li>Mossimo, OshKosh, Eddie Bauer, Michael Graves, Converse, and Champion. </li></ul>
Product Analysis Cont’d In addition to private label and exclusive designer brands, TARGET stores carry almost all national brand items for households, pets, and health/beauty. TARGET offers high end brand health & beauty products not easily found at competing discount retailers, such as Biolage, CHI, and Redken. TARGET offers high quality, affordable clothing & apparel for the entire family. TARGET recently designed a new fit system for their women’s jeans & pants with a color-coded numbered system to make shopping by fit preference easy and straightforward. target.com offers an expanded selection of household goods and furniture.
Product Analysis Cont’d TARGET sales based on product category: Household essentials 23% Hardlines 22% Apparel/Accessories 20% Home Furnishing & Décor 19% Food & Pets 16%
Competitive Analysis <ul><li>TARGET’S biggest competitor is WALMART </li></ul><ul><li>Kmart recently started offering a product neither Walmart or TARGET offers: washers, dryers, and refrigerators from Sears (Kmart is a subsidiary of Sears) </li></ul><ul><li> </li></ul>
SWOT ANALYSIS Strengths, Weaknesses (internal) and Opportunities, Threats (external) <ul><li>STRENGTHS </li></ul><ul><li>Exclusive, designer brands </li></ul><ul><li>Diverse workforce (named a Top 100 Employer by the Black Collegian in 2008 & 2009) </li></ul><ul><li>Community programs such as (but not limited to): TARGET Grants, Meals for Minds, Library Makeovers, and sponsors for art & culture programs. 5% of TARGET’s income is put back into the community </li></ul><ul><li>Organized, clean, aesthetically pleasing stores </li></ul><ul><li>Remodels and expansion of food/grocery selection </li></ul><ul><li>Quality brands & products </li></ul>
SWOT ANALYSIS Cont’d <ul><li> </li></ul><ul><li>WEAKNESSES </li></ul><ul><li>Not as many stores as its main competitor, Walmart </li></ul><ul><li>(1,745 TARGET stores to 8,400 Walmart) </li></ul><ul><li>High pharmacist turnover due to schedules, a department that accounts for 7% of sales </li></ul><ul><li>Not a global retailer </li></ul>
<ul><li>OPPORTUNITIES </li></ul><ul><li>Ranked No. 19 on Fortune Magazine ’s “Most Admired Companies” in 2009 </li></ul><ul><li>Ranked No. 30 on Fortune 500 list </li></ul><ul><li>TARGET’s reputation is usually perceived as affordable and offers quality products </li></ul><ul><li>TARGET’s reputation for product development, creativity and innovation, such as ClearRX prescriptions </li></ul><ul><li>Acquire more exclusive designer brands </li></ul><ul><li> </li></ul>
<ul><li>THREATS </li></ul><ul><li>Walmart has more stores & higher sales, most competition is located within a 10-mile radius of TARGET </li></ul><ul><li>Slow economy, consumers less likely to make purchases </li></ul><ul><li>Almost all Walmart stores offer full grocery </li></ul><ul><li> </li></ul>
<ul><li>Target Markets </li></ul><ul><li> </li></ul><ul><li>Target Corporation has marketed itself as a trendy and hip retailer that offers high quality, excellent value, and is a fun place to shop while saving money with their discount prices . “Expect More, Pay Less” is their promise. The demographics for Target are the following </li></ul><ul><li> </li></ul><ul><li>93% of their shoppers are women </li></ul><ul><li>Median age is 41 </li></ul><ul><li>Median household income is approximately $63K </li></ul><ul><li>Approximately 45% have children at home </li></ul><ul><li>About 48% have completed college </li></ul>
Target Markets, Cont. • Target Market 1: Being that 93% of Target’s regular shoppers are women, it would make sense to market their stores to the male population. Men also have to shop and I am sure that they like to save money too. • Example: Target currently has a small automotive, hardware, and sporting good departments. They should air commercials, directed at men, showing these departments. Target Market 2: Target a lower income bracket. The average income for Target shoppers is $63K. Considering income levels are dropping and other economic woes, Target would be wise to market their “Expect More-Pay less” philosophy even further. • Example: Instead of trying to run head to head with Wal-Mart, I would suggest emphasizing the value you receive. Wal-Mart cannot compete with Target in respect to their designs. Apparel and home décor are areas that Target excels in. Market the quality you get for your money and that may appeal to the frugal shoppers that feel Target is an expensive place to shop. By stressing the pay less of their “Expect More-Pay less” tune they could win new shoppers looking for fresh merchandise.
Target Markets, Cont. • Target Market 3: The median age of the Target shopper is 41 years of age. Since Target is a trendy, hip place to shop they need to market themselves to the younger generations. While they have done this to some extent with their commercials, I feel more could be done in other area. • Example: Run commercials or print ads showing the current “hot” celebrities popular with the 13-21 age group. Run promotions on products and events with these celebrities to engage the younger generations. • Target Market 4: Target should target the new parents. Target currently has a baby registry for expecting parents. They should consider running promotions for the new parents once the baby is born. • Example: If you register for your baby shower at Target, the parents could receive a thank you gift in the form of a coupon to obtain a free welcome package for the baby. This could include Target brand merchandise suitable for baby i.e. baby wipes, diapers, a blanket, etc. It could also contain coupons for money off Target brand baby clothes, toys, baby furniture and more. This may encourage more people to register at Target and bring in more business.
<ul><li>Current Marketing Objectives and Performance </li></ul><ul><li>Marketing Objectives </li></ul><ul><li>Health & Beauty could offer a bigger variety in this area. This gives the consumer a greater choice. This section is very popular with young and older consumers. </li></ul><ul><li> </li></ul><ul><li>Grocery - The grocery portion of Target is also a great marketing opportunity. They not only offer a full grocery store including produce as well as frozen foods but they also have their own Target brand food that has been very well received by consumers </li></ul><ul><li> </li></ul><ul><li>Pharmacy/Drug - Target is now offering more options for people to be healthier. Target has auto-refill, where they will refill your prescription automatically and call you when it is ready. That gives them the edge over their competition in terms of pharmacy. </li></ul><ul><li> </li></ul><ul><li>Sporting Goods/ Apparel: Target's line of sporting goods can be expanded to compete with the large upcoming chains like Bass Pro. This includes their sports clothing and apparel sections. </li></ul><ul><li> </li></ul>
<ul><li> Communications Objectives </li></ul><ul><li>Target should write a formal mission and vision statement for the company. Not only will it give them a written goal and vision for the company’s continued success, it will also allow them to see how far they have met their goals and achieved their desired vision for the company. </li></ul><ul><li>Target should also continue expanding their private label brands. </li></ul><ul><li>expand their food items under their private label brands even further </li></ul><ul><li>market their private label brand of electronics </li></ul><ul><li>Target should seriously consider entering the global market. </li></ul><ul><li>Considering the populations of China and India, billions of consumers are to be had. Expanding globally would also take a bite out of Wal-Mart, their number one competitor. </li></ul><ul><li>Target would also be less reliant on the US economy. They would have other countries’ economies to support them if the US economy enters a recession. At this point, they are entirely dependent on the US economy and with the dwindling disposable income of consumers this may not bode well for Target. </li></ul><ul><li> </li></ul><ul><li>Target Corporation strives to be innovative in their communications, to create excitement and to be fresh, fun, and trend right in all they do. </li></ul><ul><li>The Target weekly circular is distributed to over 50 million households each week. This brings increased traffic to both stores and the website. The Target marketing program consists of using traditional print media in the form of circulars and broadcast commercials. </li></ul><ul><li>They are currently using new marketing tactics such as the Channel Red in store, direct mailings to their best guests, and are currently working on a Target Mail program. In 2006 they launched the following marketing strategies: </li></ul>
<ul><li> Communication Objectives Cont’d </li></ul><ul><li>Target was a part of the Rolling Stone magazine’s 1,000 edition which featured a first of its kind back cover using lenticular-graphic technology. </li></ul><ul><li>Created red and white Target Express trains featuring the Bull’s-eye logo to transport people throughout the Alps at the 2006 Winter Olympics Games. </li></ul><ul><li>Introduced a first ever interactive billboard in New York’s Herald Square subway station. </li></ul><ul><li>Partnered with Saturn to sponsor an all red Internet scavenger hunt. The top prize was a new SKY roadster painted Target Red. </li></ul><ul><li>Launched a nationwide branding effort with the color red by advertising in train and subway stations in strategic markets. </li></ul><ul><li> </li></ul>
<ul><li>Advertising Objectives </li></ul><ul><li>How can Target attract grocery shoppers? </li></ul><ul><li>Advertise the affordable, unique gourmet and organic products in a weekly grocery circular along with Fresh Market choices, household staples and special sale items </li></ul><ul><li>Sporting Goods/ Apparel: How can Target compete with other leading Sporting Good outlets? </li></ul><ul><li>By expanding their Sporting good department, Maybe in geographic areas where outdoor activities are popular Target could focus more on their sporting section and possibly make it a little bigger than metro area Target’s </li></ul><ul><li> How do we communicate with customers that Target offers high end beauty products? </li></ul><ul><li>Advertise that they carry high end products, at an affordable price. Give discounts on healthcare items (vitamins, home health supplies, etc) once a month. Offer quality beauty aids at an affordable price. </li></ul><ul><li> </li></ul><ul><li>Pharmacy - The objective is to increase awareness to consumers of what Target Pharmacy has to offer and how it is superior to their current pharmacy. Target wants to show customers that getting your prescriptions at Target will be done just as fast if not faster than competing drug stores </li></ul>
<ul><li>Marketing Communication Strategy Overview </li></ul><ul><li>The goal is to increase sales while encouraging loyalty from customers. In order to achieve this, we recommend implementing a broad and dynamic combination of tactics which include; advertising, in store and regional sales promotions, direct marketing to our most valued customers and stakeholders as well as public relations as it relates to our giving programs. Each of these will convey an engaging and consistent message to consumers that entices them to purchase more items each time they visit, to feel good about the purchases they made and to shop more often from Target. </li></ul>
Budget allocations for communications elements: 40% - Advertising – Creative visual advertising is essential to brand identity and to connect with and engage customers. 20% - In store & regional sales promotions- Exciting in store events are essential to connecting customers with community. 20%- Direct Marketing- A personal touch with a special thank you spiff included to let those we value know how important they are and what impact they make. 20%- Public Relations - To educate and raise awareness about the Target giving programs and the impact it makes on others.
<ul><li>This is a two year strategy with an emphasis on not only showing the consumer that you can “Expect More. Pay Less” while shopping Target for all the weekly household needs AND desired specialty items, but by also ensuring them that the more they shop at Target, the bigger their impact is on their community. </li></ul>Adve rtising Strategy
<ul><li>Creative Strategy </li></ul><ul><li>While Target shoppers are a diverse collection of individuals from all walks of life, studies have shown that middle aged mothers shopping for their families make most of the buying decisions for the rest of the family. Consistently women shoppers outnumber men in daily household purchasing as well as with specialty big ticket items and women in all age groups are more likely to donate and participate in charitable activities regardless of income bracket. </li></ul><ul><li>Our goal is to entice women to shop Target instead of competitors for daily household needs as well as for unique specialty items while simultaneously building loyalty by showing the direct link between their purchasing habits and the impact it makes in their communities. </li></ul>
<ul><li>Message Strategy </li></ul><ul><li>“ Expect More, Get More, Give More, Pay Less” </li></ul><ul><li>With each advertising release we will show the following: </li></ul><ul><li>High quality products presented as a “slice of life” snapshot with an emphasis on design and lifestyle – Expect More. </li></ul><ul><li>Show person shopping, featuring items that include BOTH daily household needs; (grocery, cleaning, baby,) as well as unique specialty or featured items; (décor, ipad, accessories, clothing) – Get More. </li></ul><ul><li>Transition to community benefit, The message; tie together the lifestyle depicted & products featured with community and sustainability commitments.- Give More. </li></ul><ul><li>End with a few affordable specials for the week or season.- Pay Less. </li></ul>
<ul><li>Advertising & Message Cycle Tactics: </li></ul><ul><li>This campaign will coordinate social and environmental awareness messages around a yearly “giving & awareness cycle” using the four part message strategy. Reminding shoppers that at Target you can: </li></ul><ul><li>“ Expect More, Get More, Give More, Pay Less” </li></ul>
Jan: New Year: New You – Resolve, Renew, Rejuvenate <ul><li>1) Opening Frame--blue sky, white clouds, Target logo & red words across top of screen “ New Year: New You ” , words fade, Zooms back into snowy ground, further back, into living room, bold colorful living room, stylish lady walks across room picks up sugary coated orange tree, drops into trash can. </li></ul><ul><li>2) Shows shopping at Target, looking at items such as: WiiFit, Yoga Mats, water purifier, organic and Archer Farms products. </li></ul><ul><li>3) Picks up prescription and passes customers waiting in the Target clinic, Target specialist taking blood pressure, weighing customer. Spoken text, “Target is a founding member of the Alliance to Make US Healthiest, a new coalition that strives to help U.S. citizens become more physically and emotionally healthy, and aims to help the U.S. become the healthiest nation in a healthier world.” </li></ul><ul><li>4) Shows lady back at home on yoga mat in yoga pose in front of her wiifit, with water bottle on the table= zooms out window, across snow into blue sky with white clouds, Target logo & red words across top of screen, “ Resolve. Renew. Rejuvenate.” </li></ul>
<ul><li>Feb: Show Love for the Arts-Discover. Learn. Inspire </li></ul><ul><li>1) Opening Frame, bedroom, lots of reds, orange & black. Target logo and bold words across the top, “ Show Love….” The dots in the text fall down as hearts that turn to rose petals landing on a bed, Against the pillow is a gift box and an invitation that says, “ JOIN ME, TONIGHT” camera pans left, shows a waking woman , still in bed, reaching out to pick up the card, she smiles. </li></ul><ul><li>2) Woman is at Target, shopping, we see her holding up a dress in front of her looking in the mirror, we see her looking at the jewelry, we see her in the valentine isle picking up kids candy valentine treats, we see her pick up a box of Kashi Heart Smart cereal and put it in her cart, we see her smile when she sees the mens heart covered boxer shorts. </li></ul><ul><li>3) We see a happy dressed up couple walking into a fancy theatre, followed by their two children. We see them sitting in the audience and watch the light reflect off their faces as we hear the spoken text; “Target invites you and your family to see more of the arts while spending less. As part of our efforts to support education in the communities we serve, Target sponsors free or reduced-price admission to thousands of arts and cultural events nationwide.” </li></ul><ul><li>4) Woman falls onto her bed, looking up, smile on her face, rose petals bounce, turn to hearts and float toward the wording that fades in across the top, “…for the arts ” followed by target logo and the words, “ Discover.Learn.Inspire.” </li></ul>
<ul><li>Mar.-Ap: Spring Forth…Sustainably, Replenish.Restore.Recycle . </li></ul><ul><li>1) Opening Scene, Target logo and bold red words, “ Spring Forth…” at top of screen, fades, words fade in at bottom of the screen “… Sustainably.” We see blue skies, green grass, bright flowers,very surreal, fairytale styling, bunny hopping, frog jumps in pond, cute cottage in the background to the left. Lady opens curtains wide with vigor from inside, we see her through the window she is wearing a retro styled apron over an orange polka dot dress. She fans dust away from her face, covers mouth in cough. Moments later walks out the front door . </li></ul><ul><li>2) We see her shopping at Target picking up generic Target organic cleaners, put in cart, we see her pick up florescent bulbs, archer farms organic products, Doc Bronners peppermint soap, lipstick and allergy medicine. </li></ul><ul><li>3) She pays for the items on her red card as she places items in her stylish recycled, reusable shopping bag. We see her walking by the recycling center (provided at many Target stores) as we hear the spoken words, “Target has a long-standing commitment to the environment with programs around recycling, environmental compliance and energy conservation with a focus on sustainability and organic/ holistic products and practices.” </li></ul><ul><li>4) Show spring sale items followed by Target logo and the bold red words, “Replenish. Restore. Recycle.” </li></ul>
<ul><li>May & June – Action. Adventure. Activate . </li></ul><ul><li>The message- Throughout the year, Target team members donate hundreds of thousands of volunteer hours to countless community projects across the country. From painting schools to feeding the elderly Target employees are making a difference and challenge you to join them this summer…Find a Volunteer opportunity near you. </li></ul>
<ul><li>July: Patriotism, supporting our troops and celebrating our freedom . </li></ul><ul><li>The message- Target donates funds and volunteer hours to local and national veteran and military organizations around the country. From distributing care packages to troops to providing educational scholarships and grants to service members and their children, Target is there to let our troops know we care. </li></ul>
<ul><li>August: Engage. Enlighten. Educate . </li></ul><ul><li>The message- We are committed to playing an active role in supporting education, with special emphasis on early childhood reading and support of teachers and classrooms. </li></ul>
<ul><li>Sept: Caring. Communities. Commitment. </li></ul><ul><li>The message- Target is committed to the communities we serve. When a crisis strikes, our priorities are to partner with community organizations to help those in need. From providing emergency relief kits to helping on the ground with recovery efforts, Target is committed to community. </li></ul>
<ul><li>Oct : Spectacular Spooky Savings and Safety </li></ul><ul><li>The message- Target focuses on fostering safe families and communities through a number of community initiatives. We partner with local law enforcement agencies to strengthen communities. </li></ul>
<ul><li>Nov& Dec: ‘Tis the Season of Giving </li></ul><ul><li>The message- Target is committed to funding programs that support basic needs of families in need, which strengthen families and promotes the happiness and well-being of every child. </li></ul>
<ul><li> Media Elements </li></ul><ul><li> </li></ul><ul><li>The Target audience includes women of all ages with targeted messages to the various age and interest/ lifestyle groups. </li></ul><ul><li>Media will be strategically positioned through a variety of avenues focusing specifically on programming with a high % of female viewers. The consistency and continuity of the messaging is sure to increase awareness of our programs and affordable products, engaging existing customers while enticing new ones. </li></ul>
<ul><li>Media Distribution </li></ul><ul><li>35%- Television - Dynamic visual ads are essential to the identity and branding of Target, additionally it resonates with the consumer and entices them to shop with us. This is the most expensive form of advertising and requires the largest %. </li></ul><ul><li>20%- Interactive - Banner ads, click throughs and direct e-mail ads via our databases are other inexpensive ways to broaden our visibility. </li></ul><ul><li>15%- Magazines - By advertising in well respected and fashionable women’s magazines we will be able to continue to build on the quality image Target already possesses. </li></ul><ul><li>10%- Radio- Radio ads that feature sound bites from the TV & interactive campaign will be essential to further build the messaging in this campaign, additionally, regional radio spots will be important for community centered in store events. </li></ul><ul><li>10%- Sunday Newspaper Inserts - Visual imagery that is consistent with the Magazine and TV campaign is essential to continue building the momentum, the main purpose of this insert is to build the message and to support the community events. </li></ul><ul><li>5%- Billboards- Key visual component to further support the campaign, concentrated in new, urban or struggling markets </li></ul><ul><li>5%- Direct Marketing - These include postcard invites to community events, emails, surveys, letters to stakeholders in the company, credit card statement inserts, holiday donor pitch letters as well as thank you spiffs and coupons to our loyal customers. </li></ul><ul><li> </li></ul>
<ul><li>Sales Promotions </li></ul><ul><li>Sales promotions are essential to the proper marketing of products and companies. There are many variations of sales promotions: </li></ul><ul><li>One sale promotion objective would be to entice customers to try our product line </li></ul><ul><li>Secondly retain current loyal customers </li></ul><ul><li>Thirdly would be to increase the overall sales of our brand </li></ul><ul><li>Fourth reinforce advertising efforts by incorporating and build trade support with other companies. </li></ul><ul><li>Finally by identifying types of sales promotions, we can develop a more defined campaign with higher chances of success </li></ul>
<ul><li>Strategy One </li></ul><ul><li>CUSTOMER MARKET DIRECTED </li></ul><ul><li>One way we can improve our brand is by defining our customers : Parents, Teenagers, Singles, the Elderly and every Ethic Group would be great markets to advertise too. </li></ul><ul><li>Giving customers samples of our brand, discounted prices: coupons or rebate offers on popular brands can assist in bringing customers to Target stores and /or our website. </li></ul><ul><li>Move customers toward considering and eventually purchasing Target brand and visiting the store or website more frequently. </li></ul><ul><li>We can retain current loyal customers and influence them to buy more with premiums brands sold at a lower cost. It can also help reinforce and increase brand usage. </li></ul><ul><li>Increasing the overall sales of our Target brand line is key to growth. </li></ul>
<ul><li>Strategy Two </li></ul><ul><li>BUILD TRADE SUPPORT </li></ul><ul><li>The business market directed campaign can tap into its suppliers and offer them the opportunity to carry products for a share in the profits. For example: We can make a deal with many of our vendors. </li></ul><ul><li>Coca-Cola purchase and 24 pack of Coke for $5.98 </li></ul><ul><li>Purchase GAIN liquid detergent and receive 12 dryer sheets free </li></ul><ul><li>Brand name Apparel 10% off regular price </li></ul><ul><li>Customer purchase a bedding set and receive two additional shams </li></ul><ul><li>Mossimo and Merona shoes and accessories buy one get one half off first pair </li></ul><ul><li>This trade practice can be found in the following methods of Sampling, Couponing, Premiums, and Rebates. </li></ul>
<ul><li>Strategy Three </li></ul><ul><li>Sampling </li></ul><ul><li>Place Target brand product next to a well known brand and have a slight difference in price of about 5% cheaper. We would be competitive with the well known brand and it will entice customers to purchase just for that reason alone. </li></ul><ul><li>We can persuade customers to purchase our brand because it is cheaper and include a sample of other one of our products. </li></ul><ul><li>Market our product to new customers by putting Target brand up front of the store, at the beginning of aisles and shelves, make it less inexpensive than leading brands, and offered bigger quantities. </li></ul>
<ul><li>Strategy Four </li></ul><ul><li>Couponing </li></ul><ul><li>Coupons offer cents off the dollar or a certain amount off the regular price for a time period. </li></ul><ul><li>Free product for a customers who redeem the coupon. </li></ul><ul><li>Time Release: Several cents-off coupons offered at the same time but have different expiration dates to encourage repeat purchases. </li></ul><ul><li>Multiple Purchases: Coupon offer only good when more than one product is purchased. </li></ul>
<ul><li>Strategy Four Cont’d </li></ul><ul><li>Couponing </li></ul><ul><li>Self –Destruct: helps with fraud, because when two or more coupons overlap each other. So, when a customer redeems one coupon the other coupon is destroyed. </li></ul><ul><li>Cross-ruff: the customer receives a coupon for another unrelated product with the purchase of a product. </li></ul><ul><li>Related Sale: a coupon that a customer receives from the purchase of one product to use on a related product </li></ul>
<ul><li>Strategy Five </li></ul><ul><li>Premiums </li></ul><ul><li>Like merchandise incentives are offers on products and services for free or at a reduced price as tangible rewards of incentives for the purchase of a product. Premiums can be offered free of charge, or they can be self-liquidating. </li></ul><ul><li>Self-Liquidating premiums offer merchandise of some value to the customer that the can offer at greatly reduced prices. Take for instance our famous One Dollar Bins at the entrance of our store. We offer kids toys, calendars, socks, kitchen items, and quick gifts. </li></ul><ul><li>Premiums can also be used as part of our plans to encourage customers to use Target brand on a continuous basis. These saving using coupons, proof of purchase on items that are turned in for the premium. </li></ul>
<ul><li>Strategy Six </li></ul><ul><li>Rebates and Refunds </li></ul><ul><li>Offers a brand rebate or reimbursement option to customers. This makes the customer feel they are getting a deal on a product so with that in mind. </li></ul><ul><li>We could offer more manufacturer rebates on products we sale for our vendors and make the redemption process easier with completing the full rebate process online all at one time at their convenience on Target’s website. (We will be compensated my the vendor later but the customer will be happy). </li></ul><ul><li>Offer large purchase sales tax or purchase more save move reimbursement at certain times of the year to entice purchases of Target brand products. </li></ul><ul><li>On Target brand products offer some portion of the purchase price of a product immediately upon customer proof of purchase in store and online. </li></ul><ul><li>We offer rebates or no shipping for online purchases </li></ul>
<ul><li>Public Relations </li></ul><ul><li>Our public relations effectiveness comes down to getting good publicity for the Target brand. We inform our customers how to select, buy, and use our product to better their lives. We offer this online, in-store, newspapers, and television advertisements. </li></ul><ul><li>Advertising weekly deals online at our set referred to as “My Target Weekly”. </li></ul><ul><li>Sales papers in the Sunday newspaper in store sales. </li></ul><ul><li>Television ads showing our upcoming sales. </li></ul><ul><li>Facebook and Twitter ads that run on the side of the site. </li></ul><ul><li>In store and online “Bullseye” deals that go back to our logo “Target” </li></ul><ul><li>Through our advertisements we can show new uses for our brands as a cost saving alternative to name brands. </li></ul>
<ul><li>Public Relations Cont’d </li></ul><ul><li>Target persuades the customer to purchase our brand with quality products: </li></ul><ul><li>Archer Farms: Groceries </li></ul><ul><li>Up& Up: Home Goods and Health </li></ul><ul><li>Target Home: Home Décor </li></ul><ul><li>Sonia Kashuk, JK Jemma, Pixi: Beauty Aids </li></ul><ul><li>Paul Frank and Xhilaration for Target : Apparel Adults </li></ul><ul><li>Cherokee: Footwear </li></ul><ul><li>Just One You: Kids Fashions </li></ul>
<ul><li>Public Relations </li></ul><ul><li>How Target dispels negative opinions and information about our brand: </li></ul><ul><li>We do so by trying to keep a positive imagine through supporter ships, community involvement should as assisting with fund raisers in communities where our stores are located, and donating products to organizations in need. </li></ul><ul><li>We only speak well of our stores, customers, and products: Target shows that we cares about our employees, customers, community and brand image. </li></ul><ul><li>Target wants everyone to shop here: we want high store and online traffic. </li></ul><ul><li>We don’t have celebrities advertise for Target. We have our “Target groups” do our advertising like the parent of three running a household of five, looking for meal options for a week. The single person looking for new home décor to make there place feel more like home. The elderly customer who wants a convenient place to have their prescription filled. </li></ul>
<ul><li>Public Relations Cont’d </li></ul><ul><li>We don’t have celebrities advertise for Target. We have our “Target groups” do our advertising for use take for instance: </li></ul><ul><li>The parent of three running a household of five, looking for meal options for a week. They can try our low prices on name brand and our brand of products . </li></ul><ul><li>The single person looking for new home décor to make there place feel more like home. Trendy styles at affordable prices. </li></ul><ul><li>The elderly customer who wants a convenient place to have their prescription filled and pick up some household. </li></ul><ul><li>Word of mouth is our best advertisement. If our customers are happy then they will recommend Target to others. </li></ul>
<ul><li>Direct Marketing </li></ul><ul><li>Strengthening Relationships. Building Loyalty. </li></ul><ul><li>Tactics: </li></ul><ul><li>Online surveys in return for coupons for registry participants and online shoppers. </li></ul><ul><li>Postcard invites to Preferred Customers for special events. </li></ul><ul><li>Direct e-mails inviting customers to sales and community events, to complete online surveys in return for coupons, quarterly newsletter and annual “giving works” report. </li></ul><ul><li>Holiday donor appeal letters to preferred customers with an invite to attend a private holiday shopping event & sale. </li></ul><ul><li>Credit card statement inserts would include one action piece per month, coupons, survey invites and community event announcements. </li></ul><ul><li> </li></ul>
<ul><li>Budget </li></ul><ul><li>15% of revenue (63 billion in 2009) should be allocated to advertising, roughly $900 million </li></ul><ul><li>Allocated as follows: </li></ul><ul><li>$315 Million: Television; includes HULU Plus and mobile device ads. </li></ul><ul><li>$180 Million: Interactive and online multimedia ads, social network ads, site updates and maintenance. </li></ul><ul><li>$135 Million: Magazine Ads; online and print ads per publication </li></ul><ul><li>$90 Million: Direct Marketing; mailers, inserts, surveys, events </li></ul><ul><li>$90 Million: Sunday circulars; regionally targeted </li></ul><ul><li>$90 Million: Outdoor advertising; billboards, transit bus stations , subways, train stations </li></ul>
Summary TARGET stores are known for their reputation to provide value and quality to all consumers. By offering an expanded selection of products, TARGET can please even the choosiest shopper. Focusing on lower traffic areas of the store, such as sporting goods and toys, TARGET can make any department in it’s stores comparable to specialized stores such as Academy or Toys R Us. Creative, innovative advertising methods that spotlight everyday household items as well as quality specialty merchandise will position TARGET as a reputable discount retailer. New and fresh advertising methods and promotions within the company will keep TARGET’s image upbeat. The seasonal/monthly marketing message strategies will focus on a variety of products throughout the year and will keep the vibe new and inspired. By enticing women to shop Target instead of competitors for daily household needs as well as for unique specialty items while simultaneously building loyalty by showing the direct link between their purchasing habits and the impact it makes in their communities. Increased usage of the internet, portable devices and social media are advertising opportunities for TARGET to utilize new methods while expanding reach and increasing market share.