Group #2           Group Members              M. Ali Raza             Kamil Farooq             Fatima Akram
Company case              TARGET‘Target has Guest,Walmart has Customers’
Agenda•   The Journey So far•   Where it stand today?•   Industry Analysis•   Brand Identity Prism•   Customer Thinking•  ...
Journey So Far                                      Discount store               Electronic                               ...
Where it stand Today     Exclusive US retailer    Target is 5th largest retailer after Wal-Mart    No of stores 1803   ...
Brand identity prism                                                                             Self image:              ...
Customer Analysis                  Target             WalMartTarget Customer   Young, educated,   Middle age cost         ...
Retail strategy                target                      Wal-MartProduct         Home items – 40%.           Consumable ...
RecessionRecession of 2008 sales of Target was falling for 8 months.Sales Wal-Mart was increasing.Problem lied in mix of t...
During Recession• But in recession Wal-Mart bottom line increased to 5.9%. target profit Drooped down to22.3% which is 2...
Recovery•   IN 2010 Target sales rose to 5%.•   Profit up was whopping 54%.•   Perception of target’s value was increased....
Conclusion• changing direction of large corporation is an up hill task              •It like reversing a freight train.   ...
Target&walma rt
Upcoming SlideShare
Loading in …5
×

Target&walma rt

1,018 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,018
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
25
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Target&walma rt

  1. 1. Group #2 Group Members M. Ali Raza Kamil Farooq Fatima Akram
  2. 2. Company case TARGET‘Target has Guest,Walmart has Customers’
  3. 3. Agenda• The Journey So far• Where it stand today?• Industry Analysis• Brand Identity Prism• Customer Thinking• Recession• Recovery• Conclusion
  4. 4. Journey So Far Discount store Electronic bull’s eye logo scanning Present Department store 1920 1960 1980 20001895 1940 1970 1990 Shop within a shop Plano grams Loyalty program online stores
  5. 5. Where it stand Today  Exclusive US retailer Target is 5th largest retailer after Wal-Mart No of stores 1803 Revenue FY08 $65bn Profit Fy08 <$3bn 96% people recall Bulls eye logo Expect more payless Cheap Chick
  6. 6. Brand identity prism Self image: Self image: value, forward conscious, lively thinkingPhysique: red Physique: Culture:targeted logo Culture: Mammoth logo American, American, high workshop, Ruth on csr initiative. less Relationship: Reflection: Reflection: Relationship: Next door stylish, price Intelligent Handy man stylist conscious spender Personality: upper Personality: middle 40, aggressive, class, innovative, ur unsophisticated ban
  7. 7. Customer Analysis Target WalMartTarget Customer Young, educated, Middle age cost sophisticated, conscious customer fashionableCustomer Value Cheap Chic Best value for money
  8. 8. Retail strategy target Wal-MartProduct Home items – 40%. Consumable items like Consumable items like food etc-45%. food, health items-20%.Place Mostly In urban areas. Mostly in small town and cities.Price Little high 1-2% then Prices are very low. Wal-Mart.Promotion Spend 2.3% on on Spend only0.3% on advertisement. advertisement.Presentation Attractive promotions. Congested budget Larger then life products presentation. pictures.People Highly trained and Low trained, motivated motivated workers. contract workers.
  9. 9. RecessionRecession of 2008 sales of Target was falling for 8 months.Sales Wal-Mart was increasing.Problem lied in mix of the Target 40% shelf space was given to home and apparel goods. 20% shelf space was given to consumable goods like food45% of Wal-Marts retail mix consist of consumable products.Wal-Mart has always undersized targetWal-Mart annual revenue was 406 billion$.Target annual revenue was 65 billion$.
  10. 10. During Recession• But in recession Wal-Mart bottom line increased to 5.9%. target profit Drooped down to22.3% which is 2.2billion$.• They faced loss of 155 million $.• Out of which135million$ per credit loss in forth quarter.• Target also 47% of its receivable to Jp Morgan chase.
  11. 11. Recovery• IN 2010 Target sales rose to 5%.• Profit up was whopping 54%.• Perception of target’s value was increased.• They study micro and macro environmental factors.• They made it better and followed it.• Targets “Pay less” strategy continued without wavering.• Some wall street analyst expressed that target will loose its distinctive feature if continued like this.• Target also made mark on customers heart “ Target is a nice place to go. Wal-Mart may have good prices, but I rather tell my friends that I came back from shopping at target”.
  12. 12. Conclusion• changing direction of large corporation is an up hill task •It like reversing a freight train. •Company has to be determined. •It must have patience •By better planning

×