B ULLS EYE S OLUTIONS P RESENTS :
C ITY TARGET
Katie Geiger│ Rachel Weiss │Samantha Tranfa │ Evelyn
Ramirez │ Michael Abne...
C ITY TARGET I SSUES



Urban Trends





Congestion of urban store
Urban consumer mentality

Availability of Space

...
S USTAINABLE C OMPETITIVE
A DVANTAGE


Shopping Atmosphere



Trendiness


Clothes



Other Products
S TRATEGY │C ITY TARGET
D EPARTMENTS
Implement:
Department/Product
Category
Clothing
Food

Pet Supplies
Home Goods
Small e...
S TRATEGY │C ITY TARGET
D EPARTMENTS
Eliminate:
Elimination
Department/Product
Reasoning
Category
Amenities such as:
Not d...
S TRATEGY │TARGET TO -G O
What is the Program
Online Service/Phone App to
order groceries off site

$9.99 a month
Gather G...
S TRATEGY │TARGET TO GO


How Does it Work


Reserved Scheduling from 4:00pm8:00pm



Target Personal Shoppers



$15....
O PERATING I NCOME
F INANCIAL B REAKDOWN
TARGET-TO - GO P ROGRAM
F INANCIAL B ENEFITS
TARGET-TO - GO P ROGRAM
Effect on Operating
Income
$4,500,000
$4,350,000
$4,200,000
$4,050,000
$3,900...
VALUATION
$400,000.00

$355,055.9
7

$305,055.9
7

$300,000.00
$200,000.00
$100,000.00
$0.00
PV of cash flows

($100,000.0...
PAYBACK P ERIOD

0

1

(50,00 60,47
0)
1

2

3

4

5

86,81
5

96,96
7

138,0
61

183,0
55
R ETURN ON I NVESTMENT
OVER THE Y EARS
300%
266%
250%

ROI

200%

176%

150%
94%

100%
50%

74%
21%

0%
2012

2013

2014

...
PHASES

Phase 1

Phase 2

Phase 3

Phase 4

• Preliminary Marketing Tactics (Ex. Email blasts to build anticipation)
• Tec...
FALL- OUT


Low guest response



Higher than expected turnout



Poor customer service


Allergies



Application fa...
C ONCLUSION


Reduce In-Store Foot Traffic



Reduce Stocking Time



Pertains to Target's SCA



Utilizes urban shopp...
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  • Rework slide to transition into program.
  • Evelyn. Talk about opportunity of food and wanting to keep the target feel. SWOTSize and Strong Brand ImageDecreased Customer Discretionary SpendingFood
  • essentially taking part in a form of “curbside” grocery service
  • Reserved Scheduling: set to handle 10 customers every 30 mins—with all orders in by 1:00 pm on the day they will be picked up Target Personal Shoppers: Gather items from Backroom Inventory-reduce shocking time Hours: meet the needs of customers coming home from work
  • Changing
  • katie
  • Evelyn
  • Michael
  • City Target Presentation

    1. 1. B ULLS EYE S OLUTIONS P RESENTS : C ITY TARGET Katie Geiger│ Rachel Weiss │Samantha Tranfa │ Evelyn Ramirez │ Michael Abney
    2. 2. C ITY TARGET I SSUES  Urban Trends    Congestion of urban store Urban consumer mentality Availability of Space  Shelf Space  Floor Size
    3. 3. S USTAINABLE C OMPETITIVE A DVANTAGE  Shopping Atmosphere  Trendiness  Clothes  Other Products
    4. 4. S TRATEGY │C ITY TARGET D EPARTMENTS Implement: Department/Product Category Clothing Food Pet Supplies Home Goods Small electronics Toy Department Arts & Crafts Skin Care/Makeup Implementation Details Maintain trendy clothing lines Scale down; focus on items that can be used for quick meals/snacks Limited selection Eliminate storage items & shelving units Including electronic accessories Limited to small scale items Limited Selection with a focus on office supplies Maintain current selection
    5. 5. S TRATEGY │C ITY TARGET D EPARTMENTS Eliminate: Elimination Department/Product Reasoning Category Amenities such as: Not directly correlated to the root The Pharmacy of Target’s brand Optical Center Starbucks Store Large electronics Not cohesive with target customers Gardening lifestyle Furniture: Home Furniture, Patio Furniture, Shelving Units Storage Units
    6. 6. S TRATEGY │TARGET TO -G O What is the Program Online Service/Phone App to order groceries off site $9.99 a month Gather Groceries from In-Store Pick-Up Window
    7. 7. S TRATEGY │TARGET TO GO  How Does it Work  Reserved Scheduling from 4:00pm8:00pm  Target Personal Shoppers  $15.00 Minimum Order  Strategic Placement
    8. 8. O PERATING I NCOME
    9. 9. F INANCIAL B REAKDOWN TARGET-TO - GO P ROGRAM
    10. 10. F INANCIAL B ENEFITS TARGET-TO - GO P ROGRAM Effect on Operating Income $4,500,000 $4,350,000 $4,200,000 $4,050,000 $3,900,000 $3,750,000 $3,600,000 2012 2013 Operating Income 2014 2015 Income from Target-to-go 2016
    11. 11. VALUATION $400,000.00 $355,055.9 7 $305,055.9 7 $300,000.00 $200,000.00 $100,000.00 $0.00 PV of cash flows ($100,000.00) Less costs $(50,000) NPV
    12. 12. PAYBACK P ERIOD 0 1 (50,00 60,47 0) 1 2 3 4 5 86,81 5 96,96 7 138,0 61 183,0 55
    13. 13. R ETURN ON I NVESTMENT OVER THE Y EARS 300% 266% 250% ROI 200% 176% 150% 94% 100% 50% 74% 21% 0% 2012 2013 2014 2015 2016
    14. 14. PHASES Phase 1 Phase 2 Phase 3 Phase 4 • Preliminary Marketing Tactics (Ex. Email blasts to build anticipation) • Tech Design • Layout Design • Marketing Development :Release of External Advertising & Promotional Material • Interior Development • Employee Training • Utilize Marketing Strategies: Release Internal Promotional Material (In-Store Signs, Brochures) • Implementation of Target To-Go program • Evaluation • Amendment (if needed)
    15. 15. FALL- OUT  Low guest response  Higher than expected turnout  Poor customer service  Allergies  Application failure and technological glitches  Poor inventory tracking
    16. 16. C ONCLUSION  Reduce In-Store Foot Traffic  Reduce Stocking Time  Pertains to Target's SCA  Utilizes urban shopping trends

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