Target aims to improve Susan's in-store experience and spending. They analyze social trends like increased smartphone use and word-of-mouth influence. Their recommendations include implementing digital platforms like QR codes and iPads in stores, and exciting guests with exclusive partnerships and private label promotions. This is expected to increase trip frequency, sales, and basket size, generating an estimated $2.9 billion in additional apparel and accessories sales.

1. 1
The TARGET Experience
ETL Softline Consultants
Marissa Pettineo
Gabriella Kirkpatrick
Brooke Tuttle
Emily Cooke

2. 2
Susan at TARGET
“How do we improve Susan’s
in-store experience, while
increasing her trip frequency
and basket size?”

3. 3
2. Vision
3. Analysis
5. Implementation
6. Outcomes
1. Key Issues
4. Recommendations
AGENDA

4. 4
Reduced number of
potential sales due to high
online competition
Key Issue #1 Key Issue #2
A BULLSEYE VIEW
Key Issues Vision Analys
is
Recommendation
s
Implementation Outcome
s
Lack of a seamless in-store
shopping experience that
integrates new technology

5. 5
Innovative shopping
experience
Vision
Key Issues Vision Analys
is
Recommendation
s
Implementation Outcome
s
Easier accessibility to
product information
A unique floorplan to create
an immersive experience

6. 6
Target Sales
Key Issues Vision Analys
is
Recommendation
s
Implementation Outcome
s

7. 7
Target’s Average Guest
Key Issues Vision Analys
is
Recommendation
s
Implementation Outcome
s

8. 8
Social Trends
Key Issues Vision Analys
is
Recommendation
s
Implementation Outcome
s
Smart phone use in
The United States

9. 9
Word of Mouth Influence
Key Issues Vision Analys
is
Recommendation
s
Implementation Outcome
s
90% 68% 84%
consumers read
online reviews before
visiting a
business/purchasing
products
consumer purchases
are impacted due to
online reviews
people trust online
reviews as much as a
personal
recommendation
How does Target compete with Amazon?

10. 10
Internal Strength
Key Issues Vision Analys
is
Recommendation
s
Implementation Outcome
s
Increase in online sales
Increased growth of 42% online sales in Q2 of 2018

11. 11
Social Trends
Key Issues Vision Analys
is
Recommendation
s
Implementation Outcome
s
Growth in active-wear
industry

12. 12
Implement new digital
platforms in stores
• Q.R. Codes
• iPads
RECOMMENDATION 1
Recommendation
s
Implementation Outcome
s

13. 13
Excite guests with exclusivity
RECOMMENDATION 2
• Increase amount of
exclusive partnerships
• Increase promotion of
private label
Recommendation
s
Implementation Outcome
s

14. 14
Implementation Steps
PHASE 1
Software Development
• Team of 10 software developers to enhance
app
• Link QR codes to reviews/Instagram posts
• Implement in test markets
Order iPads to Stores
• 1,800 stores
• 5 per store for each clothing department
Implementation Outcome
s

15. 15
Implementation Steps
PHASE 2
Sign Contract with Adidas
• 6 month contract development
• Exclusive clothing “athleisure wear” line with
Target
R&D for Adidas Line
• 5 month design and sourcing materials
Implement Team Member IVS
• iPad Value Signing
• Showcase fashion trends, reviews, new lines on
iPad
Implementation Outcome
s

16. 16
Implementation Steps
PHASE 3
Adidas Line Launch
• 1 Month line launch (until sell out)
• In front section (boutique style)
Private Label Promotions
• “Money Saving Month” Calendar
of discounts
• Increased social media posts
directly referencing labels
Implementation Outcome
s

17. 17
Expected Outcomes
20% 20% 84%
Increase Trip
Frequency
Increase in
Sales
24%
Increase in
Basket Size
$2,875,160,000 Estimated
Increase in Sales
For Apparel & Accessories
QR Software & App Costs
$7,000,000
iPad Costs
$1,800,000
Adidas Line Costs
$5,150,000
Private Label Costs
$250,000
*$179,697,500 potential
increase in
sales from private label
calendar promo
Total Costs $14,200,000
Outcome
s

18. 18
Conclusion

19. 19
Target Sales (In Millions)

20. 20
Target Sales Segmented

21. 21
Target Weekday Guest Visits

22. 22
Target Competitive Advantages
• Inviting atmosphere that makes shopping fun and enjoyable
• Rebranded to attract a more affluent population.
• Cheap and chic
• Popularity with the younger generation.
• Free branding and promotion by influencers and celebrities love Target.
• Internet memes

23. 23
Statistics in Regards to Waiting times
Percent of people who would rather use self checkout kiosks (Retail Customer Experience):
• 66 percent of shoppers preferred self-service and self-checkout is by far the most preferred solution
Long line influence on retail store choice
• 43 percent of consumers said long lines would affect their decision to shop a particular retailer in the
future. (Retail Wire)

24. 24
Target Online Sales
Increased growth of
42% online sales in
Q2 of 2018*

25. 25
Smartphone Use in the U.S.

26. 26
Implementation Timeline

27. 27
Word of Mouth Marketing
(Reviews)
• 90% of consumers read online reviews before visiting a
business/purchasing products. (2016)
• Online reviews have been shown to impact 67.7% of purchasing
decisions. (2015)
• 84% of people trust online reviews as much as a personal
recommendation. (2016)

28. 28
Collaboration statistics
• Target announced that it would be collaborating with Lilly
Pulitzer
• On Sunday, April 19, 2015 Target stores across the U.S.
opened their doors at 8:00am to stampedes of women who
had been waiting in lines for hours
• Only 3 hours into the launch, the collection had all but sold
out in stores and online
• Target's e-commerce site and mobile app both crashed due
to an extremely high demand of the collaboration

29. 29
Comparative Competitive Revenues

30. 30
Sales &
Costs

31. 31
Porter’s 5 ForcesThreat of substitutes: MODERATE
Online shopping is growing and offers a more convenient way of shopping compared to traditional brick and mortar
retailers.
Target has increased their online presence to compete with Amazon and is working to create a complementary in-
store experience that will drive foot traffic into the store.
Threat of competitors: HIGH
Other retailers such as Nordstrom, Anthropologie, Lululemon, Gap, TJMaxx, Stitch Fix, Shopbop, Zappo’s and
Tuckernuck also offer a distinct and unique in-store experience.
Target is leveraging Apparel and Accessories to differentiate them from other retailers.
Threat of entrance: MODERATE
Target is currently the second largest general merchandise retailer in America and Target.com is one of the most
visited retail websites.
Threat of buyer power: LOW
Target is committed to providing a one-stop shop experience for guests by delivering differentiated merchandise and
outstanding value with its brand promise: Expect More. Pay Less
Threat of suppliers: LOW
Target has many private label brands. Target is large compared to its suppliers, making it hard for other suppliers to
have much influence.

32. 32
Athleisure statistics
• A recent report by The NPD Group shows that 24 percent of total apparel sales
are made in the athleisure segment.
• According to a new report published by Allied Market Research titled, "Active
wear Market by Product and Fabric: Global Opportunity Analysis and Industry
Forecast, 2017-2024,"the global active wear market was valued at $ 351,164
million in 2017, and is expected to reach $ 546,802 million by 2024, registering a
CAGR of 6.5 % from 2018 to 2024.

33. 33
SWOT ANALYSIS
STRENGTHS WEAKNESSES
• Have economies of scale which allow them to offer low
prices because of their lower variable costs. 3x2=6
• Have very diversified products which helps reduce
economic risk and also provides a one stop shop for
customers. 2x3=6
• Target introduced the REDcard Rewards loyalty
program in 2010 which has really strengthened
customer loyalty. 2x1=2
• Strong record data 1x1=1
• Well established brand that is highly respected.
2x3=6
• Viewed as a fun place to shop and bring the family.
1x2=2
• Their brand image has increased over the years and
have gone into a more affluent segment. 2x2=4
• Not as large and as diversified as competitors which
makes it harder to stay competitive. -2x1=-2
• Takes a long time to adjust to changes -1x1=-1
• Target has a large dependence on foreign countries
which causes heavy risk if the foreign countries
experience change in economy or politics. -3x2=-6
• In 2013, they experienced a data breach where lots of
important information leaked. -3x1=-3
• Target has suffered from many lawsuits which causes
requires them to put in a lot time and money towards
lawsuits and away from business. -3x2=-6