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Target Corporation - Brand Management
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Target Corporation - Brand Management

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A brand management project presentation on Target corporations positioning and communication vis-a-vis its competitors Walmart, Kmart etc.

A brand management project presentation on Target corporations positioning and communication vis-a-vis its competitors Walmart, Kmart etc.

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  • Target Center – Basket ball arena – Minnesota TimberwolvesNASCAR and Indycar sponsorships MuseumsMuseum of Modern Art, ManhattanMuseum of Contemporary Art in Chicago, ILBrooklyn Museum Walker Art CenterBoston Children’s museumMinnesota Children’s museum
  • Target’s core mass merchandiser operations face an unpromising future in North America. With growth already constrained by maturity, the channel is seeing consumers increasingly drawn to the more wide-ranging offer of hypermarkets Private label thus helps to maintain the company’s upmarket image through the development of products that tap into trends such as the growing demand for health and wellness products. innovation has focused on the Archer Farm brand, introducing an organic range in 2006 and removing trans fats in 2007. The brand has also seen the introduction of upgraded packaging, such as a crisps/chips bag which is resealable with a zipper.
  • Internet sales – 2.7%
  • Transcript

    • 1. “ Target has guests, Wal-mart has customers”
      kanusha |lintukjohny | praveen das | sahithaks | sathyanaraynanc | surajbyndoorholla |vivekkapoor
    • 2. Target – The Journey so far
      Industry Analysis
      Brand Identity
      Competitor Analysis
      Conclusion
      Agenda
    • 3. The story so far…….
      Electronic scanning
      Present
      Department Store
      Discount stores
      New Bulls Eye logo
      1980
      1920
      1960
      2000
      1940
      1970
      1990
      1895
      Shop within a shop
      Plan-o-grams
      Loyalty programs
      Online stores
    • 4.
      • Exclusive US Retailer
      • 5. 5th largest retailer in US after Wal-mart, Home depot, Kruger, Costco
      • 6. No: of stores : 1803
      • 7. FY08 Revenues $65bn
      • 8. FY08 Profit < $3bn
      • 9. 96% people recall Bullseye logo
      • 10. Channels : Traditional & Online
      • 11. Expect more, pay less
      • 12. Cheap chic
      • 13. The discount store with attitude
      Target : Where it stands today
      Target Brands
      Target Financial Services
      Target Sourcing Services
      Target Commercial Interiors
      Target.com
    • 14. Second largest industry in the United States
      Generates in excess of $ 4.5 trillion in sales
      Employs more than 23 million Americans (11% of all employment in the United States)
      12.4 percent of all business establishments
      Retail Industry Analysis
      Demand Drivers
      • Interest rates
      • 15. Population
      • 16. Employment
      • 17. Personal disposable Income
      • 18. Individual debt
      • 19. Department stores: large stores offering huge assortment of goods
      • 20. Discounters: Compete mainly on price
      • 21. Demographic: Aim at a particular segment; ex: wealthy individuals
      • 22. Warehouse Club: low-cost, low ambience, low margin operations; Price leader
      • 23. Supercentres: focused on food retailing, large supermarkets with full-line discount stores – fastest growing format in the U.S
      Cost Drivers
      • Competition
      • 24. Cost of factors of production
    • Brand Identity Prism
      Personality: 25-30, Upper Middle Class, Trendy, Innovative, Urban
      Personality: 40, Aggressive, Suburban, Unsophisticated
      Physique: Red Logo, Target dog
      Physique: Mammoth, Logo
      Target
      Walmart
      Culture: American, Socially Sensitive, high on CSR Initiaves
      Culture:
      American, No-Nonsense, Workshop culture,Ruthless
      Relationship -
      Next door stylist
      Relationship: - Handy Man
      Self Image: Value Shopper, Forward thinking
      Reflection: smart Spender
      Reflection: Discerning, Stylish
      Price conscious
      Self Image:
      Value Conscious, lively,
    • 25. Customer Analysis
    • 26. Retail Strategy
    • 27. Retail Strategy
      Price based advertising for both Target and WalMart
    • 28. Target – Advertising Campaigns
      Target Print Ads
      Ever since I was a teenager I&apos;ve had a very odd habit every Sunday. As soon as I open the paper, I flip not to the comics, not to the sports, but to the Target Ad.To me, the Target Ad is everything an advertisement should be. An eye catching, attactive layout. Items and colors appropriate with the theme
    • 29. Retail Strategy
      “ Target has guests, Wal-mart has customers”
    • 30. Voice of the Customer…
      • More mention of clothes and fashion related products with Target
      • 31. Mentions of Shopping at target being heavy on the wallet and leaving feelings of guilt
      • 32. More mentions of complaints with Walmart
      • 33. Mentions of walmart and Target bring along the fact that the same product is relatively cheaper at Walmart
    • Financial Performance
      Product mix is hitting Target hard in current economy(20% Food, 40% Apparel & Household)
      Walmart
      Target
      Home Depot
    • 34. Target’s sales have fallen for 8 straight months while Walmart’s sales have increased
      Both firms have been recognized for managing inventories and costs efficiently
      Problem lies with the retail mix at Target
      40% of shelf space devoted to home and apparel goods – Discretionary purchases in recessionary times
      20% of shelf space devoted to consumables like food and beauty products while 45% of Walmart’s mix consists of consumables
      Wal-Mart is America’s largest food retailer, while target is largely as an apparel seller
      However as the economy revives, it is expected that sales at Target will pickup faster than at Wal-Mart
      Recession - Target and Walmart
      Shutdown Target store at Riverside, IL
      In the downturn, Wal-Mart&apos;s low prices have trumped Target&apos;s cheap chic in the battle of the ‘Fashionista’ versus ‘Frugalista’
    • 35. Store front - Target
    • 36. Store Front – Other stores
    • 37. Store Interior layout
      TARGET
      WALMART
    • 38. Increase share of consumables in the merchandise mix
      Rationalize private labels and build strong private labels through product innovation
      Push online retailing and the hypermarket format
      Retain ‘Up-Market’1 image – Increased emphasis on use of Exclusive Designers
      Aim towards going global to grow despite the maturing US Retail market
      Recommendations
      1 as compared to Wal-mart
    • 39. Thank You!
    • 40. Retail market share in US
    • 41. Walmart has always dwarfed Target
      $406 Bn Annual Revenue – Walmart
      $65 Bn Annual Revenue – Target
      Recently until recession hit, Target was winning the growth game
      Target’s Same Store Sales grew at 4.6% while Walmart grew at 2.9%
      Same period, Target’s annual profit growth averaged 16% against walmart’s 10.3%
      At the onset of recession things changed
      Target’s sales have fallen for 8 straight months
      Walmart’s sales have increased
      More important, Target&apos;s profits last year dropped a stunning 22.3%, to $2.2 billion. That figure includes a 40.7% earnings collapse in the fourth quarter. Wal-Mart&apos;s 2008 bottom line rose 5.9%, to $13.5 billion. Now Target is getting trounced.
      In the downturn, Wal-Mart&apos;s low prices have trumped Target&apos;s cheap chic
    • 42. Amid millions of job losses and plunging stock and housing markets, new customers flocked to Wal-Mart, at the expense of almost every other U.S. retailer except ultralow-price dollar stores
      Both firms win kudos from analysts and investors for managing inventories and costs at a tough time
      Target Will Lead in a Recovery
      &quot;People were shopping at Wal-Mart because it was the cheap place to shop,&quot; says Bernie McGinn, chief investment officer at McGinn, McKean & O&apos;Neill. An owner of Target shares, he believes consumers will gradually return to &quot;a sense of normalcy.&quot;
      First, it is reminding customers the chain offers good prices. Through its &quot;Low Price Promise,&quot; Target now promises to match the advertised price on any product offered by a competitor in the same market
      boasting of better merchandise and a more pleasant store
      Recession
    • 43. Target’s Retail “Double Whammy”
      Retailer’s product mix is not ideal for recessionary times
      Target devotes 40% of shelf space to home and apparel items
      Target – 20% of consumables like food, beauty products ; Walmart sets aside 45% of space for consumables
      Walmart sells more grocery items – It is America’s largest food retailer and its less expensive
      Target seen as an apparel seller
    • 44. Target’s Credit Business
      Large of the major retailers to own a credit card portfolio
      Rising defaults and delinquencies
      In 2008 credit-card profits dropped 80.5%, to $155 million, and the company incurred a $135 million pre-tax loss on its credit segment in the fourth quarter.
      In May, the company sold 47% of its receivables to JPMorgan Chase for $3.6 billion. Without that move, the devastation would be much worse.
    • 45. Target operates two criminal forensic laboratories
      Target diversity program – strength of many, Power of one
      Target Center, Minneapolis, Minnesota – Basketball Arena – home to the NBA – Minnesota Timberwolves
      Did you know?
    • 46. Sponsorships
      Target Center - Basket Ball Arena , Home to the Minnesota Timberwolves
      NASCAR and IndyCar racing team sponsorships
      Sponsoring museums
      Museum of Modern Art, Manhattan
      Museum of Contemporary Art in Chicago, IL
      Brooklyn Museum
      Walker Art Center
      Boston Children’s museum
      Minnesota Children’s museum
      Brand Building Efforts
      Unconventional Means of Advertising
      2.3% of revenue as comp to 0.3% for Walmart
      • Bridal Registry
      • 47. Sponsored restoration of Washington Monument
      • 48. Take care of education program
      • 49. Partnership with Coca-cola in Color My World red line campaign
      • 50. Sponsored Survivor
      • 51. Minnesota Timberwolves home stadium called “Target Center”
    • 21/12/08
    • 52. 19/7/09
    • 53.
    • 54.
    • 55. Walmart
    • 56. Walmart
    • 57. Walmart – Fall Beauty Campaign
    • 58.
    • 59.
    • 60. Rough work – might help in presenting
    • 61. Rough work – might help in presenting
    • 62. The End