The presentation provides recommendations to improve Target's business, including short and long-term strategies. Short term recommendations are introducing a kids play area and improving the in-store and mobile shopping experience. Long term recommendations incorporate technology and innovation into the strategy. The document includes analysis of key industry drivers and details implementation plans over 24 months for the recommendations.

1. Ascend consulting Group Presenter: Margo, Niki, Cong, Henry
Target

2. Agenda
— * —
03 Analysis
01 Overview & Problem
02 Recommendations
04 Implementation

3. 3 03 Analysis01 Overview & Problem 02 Recommendations 04 Implementation
Industry Key Drivers:
Digital
2.6%
3.6%
4.4%

4. 4 03 Analysis01 Overview & Problem 04 Implementation02 Recommendations
Long Term Recommendation
Short Term Recommendation
Incorporate Technology and Innovation into long term
strategy to improve customers’ shopping experience
and management efficiency
1. Introduce Kids Playzone
2. In-App Navigation & Mobile Shopping
3. Target Local

5. 5 04 Implementation01 Overview & Problem 02 Recommendations
Introducing Kids Zone
03 Analysis
20% Client Increase
Increased Annual sales $13,853 million
Increased Gross Profit from the project $13,848 million

6. 6 04 Implementation01 Overview & Problem 02 Recommendations
In-App Store Navigation
03 Analysis
Need
Navigation
Become
App Users
Mobile
Shop
Hard to
Find Items
73%
Do not ask
store assistant
for help.
91%
Shop at store
once/week
58%
Shop
efficiently
important
63%
Good
feedback
Data from:
-mapspeople
-nrf
-statista
16.3 Million
New Mobile Consumers
198.8 Million
Mobile Consumers in
Total
Benefit:
➢ Consumer Loyalty
➢ Better Shopping Experience
➢ Increase Basket Size (Promotions & Coupon)
➢ Mobile Commerce
40%
From Mobile
Shop

7. 7 04 Implementation01 Overview & Problem 02 Recommendations
Target Local
03 Analysis

8. 8 03 Analysis01 Overview & Problem 02 Recommendations 04 Implementation
2 months
Nav plan developing
and functioning the in-
app navigation
Local program::
collecting visitor flow
rate and utilizing data
to see what
commodities are
popular and do
research for local food
supplier.
Kids zone plan: do
online survey or paper
survey to get the
feedback for kid-zone
plan
5 months
Local program reach
the agreement with
local food supplier in
Texas and California
to have sales booth in
the store.
Kidzone plan: plan on
kidzone construction,
calculate the cost and
the incremental sales
growth rate.
Lorem 5Lorem 4
Nav Plan, Kidzone,
local program: get the
feedback from trial
and find the potential
operating problem.
After that, packaging
the pros and cons
from the test then
analyse the correlation
with sales growth to
decide whether to
implement or not.
Lorem 3
Nav plan:make a test
for the build-in
navigation system
combined with sales
system.Customer
training for all staff to
be familiar with the
new navigation
system and to be able
to help customers.
Kidzone plan: pilot
project in several
stores in different
regions
10 months 24 months
Implementation of all
three programs and
try to explore the
possibilities on online
sales through AI
technologies and
improve the shopper
experience in a long
term period to
compete with rival
companies..
16 months
Action Plan Timeline

9. 9
Thank You

10. 10
Appendix: Target

11. 11
Appendix: Target

12. 12
Appendix: Target

13. 13
Appendix: Target

14. 14
Appendix: Target

15. 15
Appendix: Target
Source: Statista

16. 16
Appendix: Industry
Source: Statista

17. 17
Appendix: Industry

18. 18
Appendix: Industry

19. 19
Appendix: Kids Zone

20. 20
Appendix: Kids Zone
Source from scribblemaps
Source: U.S. Census Bureau, Current Population Survey, 2017 Annual Social and Economic Supplement

21. 21
Appendix: App & Mobile

22. 22
Appendix: App & Mobile
Source: Statista

23. 23
Appendix: App & Mobile
Source: Statista

24. 24
Appendix: Target Local
Source: 2016 Annual Report

25. 25 Appendix: Target Local
Source: http://www.mwpvl.com/html/target.html
Target has $1437 retail
merchandise sales revenue per
square foot of distribution space.
By our estimate, that same figure
for Walmart is running closer to
$2750.

26. 26 Appendix: Target Local

27. 27 Appendix: Target Local

28. 28 Appendix: Target Local
Distribution
center Total sf
(thousands)
Sales/sf Total
Sales
(Billions)
Target 51,831 $1437 74.481
Walmart 176,681,091 $2750 485.873
Sales/ sf Sales
Increment
(Billions)
Increment
%
$2000 29.18 39%
Current
Estimated after “Target Local”
Cost Saving Calculation Increase Penetration Rate Support
Souce: National Retail Federation https://nrf.com/resources/consumer-research-
and-data/consumer-view/the-customer-channel
Souce: http://www.mwpvl.com/html/target.html