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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%

Target Corporation - Brand Management Target Corporation - Brand Management Presentation Transcript

  • “ Target has guests, Wal-mart has customers”
    kanusha |lintukjohny | praveen das | sahithaks | sathyanaraynanc | surajbyndoorholla |vivekkapoor
  • Target – The Journey so far
    Industry Analysis
    Brand Identity
    Competitor Analysis
    Conclusion
    Agenda
  • 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
    • Exclusive US Retailer
    • 5th largest retailer in US after Wal-mart, Home depot, Kruger, Costco
    • No: of stores : 1803
    • FY08 Revenues $65bn
    • FY08 Profit < $3bn
    • 96% people recall Bullseye logo
    • Channels : Traditional & Online
    • Expect more, pay less
    • Cheap chic
    • The discount store with attitude
    Target : Where it stands today
    Target Brands
    Target Financial Services
    Target Sourcing Services
    Target Commercial Interiors
    Target.com
  • 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
    • Population
    • Employment
    • Personal disposable Income
    • Individual debt
    • Department stores: large stores offering huge assortment of goods
    • Discounters: Compete mainly on price
    • Demographic: Aim at a particular segment; ex: wealthy individuals
    • Warehouse Club: low-cost, low ambience, low margin operations; Price leader
    • Supercentres: focused on food retailing, large supermarkets with full-line discount stores – fastest growing format in the U.S
    Cost Drivers
    • Competition
    • 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,
  • Customer Analysis
  • Retail Strategy
  • Retail Strategy
    Price based advertising for both Target and WalMart
  • 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
  • Retail Strategy
    “ Target has guests, Wal-mart has customers”
  • Voice of the Customer…
    • More mention of clothes and fashion related products with Target
    • Mentions of Shopping at target being heavy on the wallet and leaving feelings of guilt
    • More mentions of complaints with Walmart
    • 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
  • 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’
  • Store front - Target
  • Store Front – Other stores
  • Store Interior layout
    TARGET
    WALMART
  • 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
  • Thank You!
  • Retail market share in US
  • 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
  • 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
  • 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
  • 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.
  • 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?
  • 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
    • Sponsored restoration of Washington Monument
    • Take care of education program
    • Partnership with Coca-cola in Color My World red line campaign
    • Sponsored Survivor
    • Minnesota Timberwolves home stadium called “Target Center”
  • 21/12/08
  • 19/7/09
  • Walmart
  • Walmart
  • Walmart – Fall Beauty Campaign
  • Rough work – might help in presenting
  • Rough work – might help in presenting
  • The End