Target Corporation Consulting Project - Growth through acquisition. Interim report.
University of Michigan, Ross School of Business, MO 470, Winter 2015.
This PowerPoint examines the corporate structure of Target in a strategic manor. See how it compares to its competitors and why it is one of the leading retailers in today's society.
This PowerPoint examines the corporate structure of Target in a strategic manor. See how it compares to its competitors and why it is one of the leading retailers in today's society.
The charge from Target was to deliver recommendations for improving the relationship between Target's retail stores and online website. In addition, shopping behaviors of the cross-channel consumer were to be considered while developing recommendations. Each MKT 301 class was broken into 7 groups to deliver their own report. After these reports were delivered, leaders from each group formed a 7-person team, who created a presentation for Target executives. This presentation is from Spring 2010 MKT 301 Section B at Miami University.
Broad analisis of the biggest company in the world. It includes WalMart history, internal and external analysis and a focus on WalMart's internationalization with some suggestions for the future.
The charge from Target was to deliver recommendations for improving the relationship between Target's retail stores and online website. In addition, shopping behaviors of the cross-channel consumer were to be considered while developing recommendations. Each MKT 301 class was broken into 7 groups to deliver their own report. After these reports were delivered, leaders from each group formed a 7-person team, who created a presentation for Target executives. This presentation is from Spring 2010 MKT 301 Section B at Miami University.
Broad analisis of the biggest company in the world. It includes WalMart history, internal and external analysis and a focus on WalMart's internationalization with some suggestions for the future.
I lead a team in the intense 2015 Target Case Competition. The objective of the Target Case was to find a way to enhance Target Corporation’s grocery offerings using technology. Upon further research, we were able to identify that Target’s offerings were not perceived as fresh by their consumers. The company was interested in enticing millennials with focused product assortments but they had yet to push these offerings in a way that was compelling for their desired target market. Knowing that Target often creates special experiences within each section of their stores, it is important they carry this within their grocery sections, too. Therefore, we recommend that Target Corp. install interactive digital signage within its grocery sections. We offered them uses of the digital screens and methods to calculate ROI. We also took it a step further to calculate that the expected cost of installing such technology would be roughly $2000 per store. We projected that implementing our recommendation would highlight the freshness and sustainability of Target’s grocery offerings and its value chain. We won the first place grand prize, here is our presentation.
Project Objective: To gain local relevancy while maintaining corporate brand, margin goals, and commitment to shareholders in order to provide a relevant shopping experience for Target customers.
Managed a team of four members to obtain an overall goal; Studied demographics and geographics in order to determine consumer preferences base on regionalization throughout the United States and Canada, Researched and developed the concept of mobile application implementation in Target stores across these regions, allowing sales and product promotions to be delivered to customers via email & mobile notifications; Regionalized areas of the United States and Canada based on location of Distribution Centers, Food Distribution Centers, and Corporate Offices to analyze best delivery of implementation of new ideas; Consulted with upper-management to improve product niche merchandising and later presented ideas to these members of the Target team; Placed 2nd out of 24 competing teams in overall competition.
Retail Merchandising Strategy for Fashion MerchandiseVISHWA VARUN
Research provides a basic understanding of the merchandising concept to underline the relevance of merchandise planning in a retail organization. To provide information on merchandise grouping, defining the concept of merchandise hierarchy. It explains what is meant by merchandise buying and replenishment planning.
This research also covers the planning and carrying out of buying and selling activities including the responsibilities of buyers. It follows the flows of merchandise from arrival in the store to purchase by the customers. Today, stores use aggressive merchandising techniques for men’s and children clothing too. Fashion influence has also spread to all other areas of retailing from cosmetics and home furnishings to cookware.
Every area of merchandising responsibility needs planning and organization to make it function properly and to ensure successful buying and selling. Merchandising responsibilities are usually divided between two chains of command .The buying line has responsibility for merchandise content and assortment; the store line is the liaison between the merchandise organization and customers. The buying line works behind the scenes; the store line interface with customers on a daily basis. The goal is to sell merchandise.
The merchandise managers and buyers of the buying line must do all the planning and other activities necessary to bring the right merchandise in to the store at the right time to satisfy the store customers.
Best Retails Brands 2014 by Interbrand
http://interbrand.com/assets/uploads/Interbrand-Best-Retail-Brands-2014-3.pdf?_ga=1.101985793.1041352849.1412858098
There is no shortage of speculation that US department stores are poised to continue declining in the years ahead. Some even believe they could become extinct. However, there is evidence that department stores can revive their proposition with the right strategy
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Global Retail Market Analysis, focusing on the US, the latest trends, drivers, and the Impact of Covid on the future trend. Also, the report has a brief analysis of the key players of the Industry. What has worked for them? Did a detailed analysis on Costco Wholesale
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Ruth shares insights on how large international brands blend disruptive thinking, and a culture of experimentation, to deliver value to your customer sooner.
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Global ecommerce is the process of selling products or services online across geopolitical borders to customers in foreign countries.
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This complete presentation has PPT slides on wide range of topics highlighting the core areas of your business needs. It has professionally designed templates with relevant visuals and subject driven content. This presentation deck has total of fifty eight slides. Get access to the customizable templates. Our designers have created editable templates for your convenience. You can edit the colour, text and font size as per your need. You can add or delete the content if required. You are just a click to away to have this ready-made presentation. Click the download button now. https://bit.ly/3fSsHKZ
Can Vietnamese Vinfast rise to the stars? Learnings from Proton’s failure in ...Jonathan Zimmermann
In both, Japan and South Korea, the Automotive industry was one of the major sectors for fast economic development with the help of targeted government support and intervention – is this concept replicable in other now developing countries in South East Asia?
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Illustration of the patent hold-up problem through the Rambus v. FTC trial
ECON 490 - University of Michigan - Fall 2014
Presentation by Jonathan Zimmermann
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
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It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
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Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
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Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
1. Eeshin Chang, Meg Crawford, Yuliya Kozyreva, Erin (Yale) Lim, Jonathan Zimmermann
2. Company Background
Guiding Questions
Situational Analysis
Industry Analysis
Internal Analysis
Issue Tree
Initial Recommendations
Data Collection Strategy
3. ● Founded in 1902 as a subsidiary of Dayton-Hudson Corporation
● Became Target Corporation in 2000
● Divested credit business in 2013
● Divested Marshall Field’s and Mervyn’s in 2004 because lag in
revenues
● Rolled out PFresh in 2010 (grocery in Target)
● First Super Target (hypermarket) opened in 1995
● Purchased Canadian mass merchandiser Zellers in 2011 (expand
internationally)
● Data breach between November and December 2013
● Decrease in sales due to lowered customer trust in Target in 2014
6. Strengths
- Multiple stores across the U.S.
- One-stop-shop
- Well-known and respected brands
- Knowledge of consumer
- No brand identity confusion
- High end with low prices
- Clean, bright, and inviting stores
- Strong CSR practices
- Well-know brand: 97% of people are able to
recognize the Target Bull’s-Eye
- Exclusive products and partnerships with designers
- Price matching
- Treat employees well
- Great customer service
- High customer loyalty
Weaknesses
- Not an international company
- Low number of distribution center
- Low number of locations in comparison to
competitors
- Lack of online review, and minimal product
descriptions
- Weak competitor in telecommunication and IT
distributor
- Difficult to differentiate from other online
competitors due to the nature of the industry, as
they are not a niche in any category and some
online stores cater to a specific category
- Difficult to compete from a strategic level
7. Opportunities
- Open more stores throughout the U.S. (i.e.,
Hawaii, Alaska, Vermont)
- Venture into international markets
- Focus on cost-cutting to increase market share
(acquisition, steal share)
- Capitalize on the fact that they have brick-and-
mortar stores (vs. Amazon’s online presence) for
in-store pickup, convenient returns, etc.
- Increasing awareness of the price-matching policy
Threats
- Dependence on the US market
- Low margins
- High price sensitivity of customers
- Competition from Wal-Mart, Kmart and Amazon
- Tension between high-end feel and low price
- The need to constantly keep up with market trends
- The continuing migration and evolution of retailing to
online and mobile channels has increased the
challenges in differentiating from other retailers
- Rise in popularity of price comparison tools, which can
lead to decisions based solely on price
- Earning are highly susceptible to the state of
macroeconomic conditions and consumer confidence
- Failure in accurately predict and respond to changing
market trends
8. Strengths
● Exclusive brands and products
○ Over 9 exclusive brands
○ Over 11 owned brands
● Competitive prices
● High breadth on select products
● Many stores across U.S.
Opportunities
● Synergies between online and
Brick-and-Mortar stores
● Expansion of product lines
Weaknesses
● Lack of online reviews and product
information
● Low depth within IT and
telecommunication
Threats
● Competition from Walmart (cost)
and Amazon (convenience)
● Price comparison tools - difficult to
differentiate
● Failure in accurately predict and
respond to changing market trends
9. ● Ranked 5th in overall retailing with 3% value in 2013
o Maintain market share by anticipating and responding to consumer needs
● Largest mass merchandiser in the country (1,541 locations in 2013)
○ Increased number of mass merchandising stores by 1% every year since 2010
○ Pace was 5% and 3% in 2008 and 2009 respectively
● 8 CityTarget locations in 2013 to attract urban customers
● Ranked 4th in hypermarkets in US in 2013
● Significantly behind Wal-Mart in sales -> Wal-Mart held 82% value share of channel compared to
Target’s 5%
● Had not expanded hypermarkets; instead focusing on smaller stores for highly populated urban
areas - CityTarget (2011)
● 251 SuperTarget outlets; number constant since 2009 to focus on smaller outlets instead of
competing with Wal-Mart
● 10th largest internet retailer in the country
○ Offers full range of merchandise online with exception of food and beverages
10. In 2013, Target ranked #10 in internet retailing.
There is a lot of room to improve and gain
market share.
11. ● Target continues to focus on its grocery offerings
● Target‘s audience:
● Referred to as "guests"
● On average younger, better educated, and more
affluent.
● Target has successfully associated its name with
a younger, hipper, edgier, and more fun image
than its competitors
● “Cheap-Chic" strategy
● Enabled Target to become a major brand and
consumer-shopping destination, articulated
around two main interrelated branding
activities:
● designer partnerships
● clever, creative advertising
12. ● High-profile design partnerships across merchandise lines
● Apparel: partnered with Mossimo, Isaac Mizrahi, launched new lines that complemented its
own private labels, such as Cherokee, Merona, and Xhilaration
● Each brand has a specific positioning so that Target's overall assortment appeals to a
broad customer base
● Decided to reposition itself as a mass merchandiser of affordable chic goods
13. ● 33% of company sales come from private label or
exclusive merchandise
● Known for partnering with popular clothing designers to
launch limited edition product lines
○ Missoni partnership of 400 piece collection of
apparel, footwear, accessories, and homewares
in 2011
■ Most items sold out in less than 24 hours
○ Prabal Gurung to launch similarly limited fashion
exclusive in February 2013
● Launched standalone C9 by Champion store in San
Francisco in May 2012
○ Sold clothing inspired by the success of women’s
performance wear lines
○ Compete against Lululemon and Gap’s Athletica
14. ● 4% of Target sales occur online
● March 2013: Acquired Chefs Catalog
and Cooking.com - websites that have
an active user base that contributes
reviews and recipes (gain consumer
insights)
● 2013: Launched Cartwheel - mobile
retailing grew from 8% of Internet
sales to 12%
15.
16. Pharmacy:
● Market: sales are expected to increase in
2014
● Target only major player to show significant
gender bias for drug store needs
○ In store: Male (34%) versus female
(42%)
● Target fails to attract older shoppers in store
○ 18-24 (46%), 25-34 (50%), 35-44
(42%), 45-54 (34%), 55-64 (30%), 65+
(25%)
In Store/
Online
41%
In Store
38%
Online
8%
Other
13%
Pharmacy Sales
17. Beauty:
● Online-only retailers are most commonly used for beauty and personal care purchases (42% of online
beauty shoppers buying from here)
● Total US consumer expenditure on beauty and personal care products at current prices (between
2008-2013) is steadily growing
● Target has already aquired an online-beauty store
Cleaning:
● Market: On an inflation-adjusted basis, sales of household surface cleaners declined
modestly, a drop of 6% between 2009 and 2014.
● Increased consumers’ willingness to spend leads to positive gains
Laundry Products:
● Market: On an inflation-adjusted basis,
sales of home laundry products fell by
16% between 2009 and 2014
18. ● Less than 1% of food and beverage
sales occur online
● Shopping habits are changing
● Niche online grocery services that
compete on convenience and
selection are gaining traction
● High distribution costs associated with
getting perishable items to customers
● Target’s grocery items on their
website are in-stores only, which
defeats the purpose of online-
shopping
● AmazonFresh will play a role in
compressing margins for the whole
industry Although US grocery sales are expected to
grow offline by 2018, online grocery sales are
not expected to grow much (only 3.1% of total
grocery sales).
Between 2013 and 2018, online grocery sales will grow
at a compound annual growth rate (CAGR) of 21.1%,
reaching nearly $800 billion.
19. ● Online Pet Food and Pet Supply Sales industry has increased at an average annual rate of
8.3%, totaling $3.3 billion in 2014
● Industry revenues will increase at an annualized rate of 8.2% to $4.9 billion in the five years
to 2019
● With rising revenue, industry profit margins have increased to 6.0% over the five-year period
Rising pet ownership in the U.S.
and growth across the e-
commerce sector have caused
the industry to experience overall
growth, despite the recession
20.
21. ● From 20% in 2009, revenue share of apparel and
accessories declined gradually to 19% at the end of
2013
● While the decline in revenue contribution of
fashion and furnishing categories isn’t alarming,
it clearly indicates that Target is shifting its
focus from its iconic categories to groceries
● This strategy hasn’t worked well for the retailer
so far, which is evident from its recent results
● Target made a name for itself in the U.S. market by
selling affordable stylish merchandise
● However, with its aggressive push towards
groceries, the retailer’s focus on its core
categories diminished
● With these efforts, Mr. Cornell believes that
Target’s brand image will gradually recover
22. ● US market size: 156.9B (2014)
o Expected market size: 190B (2019)
● Very small relative size of the department, notably compared the competitors
● High price sensitivity, but many still value expertise of in-store shopping experience
o Pickup locations also appreciated
23. ● Low growth for traditional electronics
(replacement of old items +
occasional upgrade to newer version)
● Big potential for newer categories
such as smartphones and tablets (not
reached market saturation yet)
● Upgrading an item is the leading
motivation
24. ● Most prominent frustration for electronics shoppers when buying products at a physical
store is limited product selection
Big opportunity to combine online store with pickup at brick-and-mortar
● Nearly 1/3 of consumers say they prefer retailers with both an online and physical
store
Opportunity for Target to create a comprehensive, hybridized strategy and meet
customers’ demands across both channels
● The rapid growth of online purchases for CE products indicates that retailers with a
strong brick-and-mortar presence can use e-commerce to augment the in-store
shopping experience
Target’s online store can expand a given location’s selection
● Target can offer consumers the ability to research products online and reserve or
purchase them to pick up items in stores
Encourages more interaction with sales associates and potentially increase
impulse buys when the consumer visits a store to collect his or her items
25. ● Lack of these products on the shelves
● Could be popular during Christmas/Valentine’s day
periods
● Incorporating a few of the most popular gadgets in
the brick and mortar stores could make the visit of
customers less boring, and then lead them into the
online store
● Target audience:
General computer users, students, geeks, fans
of a specific imaginary universe, pranksters,
children
● Good opportunity to differentiate and increase
number of exclusive brands, and potentially to
create a new brand
26. ● Gamers spend thousands of dollars per year on
games, and a big fraction of their time on online
gaming stores
● Video games is more and more popularized
Consumers buy less and less physical
games
● Generally prefer to download them on platforms
like Steam, Origin or Uplay
Still buy an activation code somewhere else,
sometimes even for a lower price
● Gamers love special promotions and pre-orders
with exclusive gadgets
27.
28. ● The Retail Market for Toys is expected to remain
in a mature and steady state of growth during the
next five years
o Drivers:
steadily rising disposable income levels
growing amount of children in the U.S.
increasing popularity of online shopping
● Consolidation and merger activity will continue
● The total number of industry operators is
expected to decrease an annualized 2.1%
over the five years to 2019
3,851 businesses
● E-commerce operators are expected to control an
increasing share of the total market, causing the
average industry profit margin to rise
29. ● Online retailers are expected to
increasingly dominate The Retail
Market for Toys during the next five
years,
Leads to increased consolidation
from brick-and-mortar retailers due
to competition
● As consumers continue to shop online,
e-commerce retailers fine-tune their
precise suggestion algorithms and
convenient delivery and shipping
options
Opportunity:
Consumers have increasingly become
comfortable with purchasing goods and
services online. This has benefited online
baby product sellers, as demand has
shifted from brick-and-mortar stores to
online retailers. The percentage of
services conducted online is expected to
increase over 2014, representing a
potential opportunity for the industry.
30. Growth in
Furniture Market
Between 2015 and 2014, Mintel
forecasts steady, continued
growth of 16%
Between 2009 and 2014, the US retail
furniture market grew by $13.8 billion,
or 16.6%, to reaching $97 billion in
2014
31. Drivers of Furniture Purchases
● A majority of respondents are averse to buying furniture online, with 58% preferring to see
and touch the furniture before buying it, and ⅓ considering it “too risky”
● In-store displays, sales associates, retailers’ own catalogs, and seeing items in the homes of
friends and family are the biggest motivators of furniture purchases.
32. Retail Channels
● Furniture stores still continue to command the majority share in the retail furniture
between 2012 and 2014
● There is growth in the “other” category of furniture sales, but this does not include
online retailers
33. ● Biggest challenge of Target.com
● Few ratings for most products, especially
compared to other online stores
● Lack of description of the product, etc.
● A link to a review/test could also be useful for
some products
● Retailers’ websites are the most commonly used
sources of information when consumers are
shopping for electronics
● 80% of respondents saying they use a retailer’s
website at some stage of the buying process,
compared to 48% who say they use
promotional email to help them discover or
research electronics products
Opportunity:
Target has an opportunity to improve the
quality of information on its website, and
have more rankings
34. How can Target be the leading
omni-channel retailer?
Differentiation strategy:
●Synergies between online and Brick-
and-Mortar stores
●Exclusive brands and products
● Information search and product
comparison
35.
36.
37. 1. Pet food and supplies
a) The demographic of people who are buying pet food online is similar to the demographic of people going to
Target
b) Growth is very high (2009 - 2014 was 8.3% growth)
c) From 2014 - 2019, projected growth is 8.2%
2. Toys
a) In 2015, total retail spending on toys is expected to grow 1.3%, reaching $50.3 billion in annual revenue by
2019
b) Online retailers are expected to increasingly dominate The Retail Market for Toys during the next five years
c) The total number of brick-and-mortar stores is forecast to decline an annualized 0.6%
d) Total number of industry operators is expected to decrease an annualized 2.1% over the five years to 2019,
to 3,851 businesses
3. Review Aggregator
a) Retailer's website is the most commonly used source of information when shopping online
b) Many review aggregation start-ups that could potentially be acquired for a fair price
c) Target.com's main weakness (compared to Amazon and other online retailers) is its lack of consumer
reviews
d) Consumers are looking for a fully integrated experience (not having to switch of websites for the different
steps of their purchases)
39. Primary Research
● Interviews
● In-store
● Focus group
● Qualtrics survey
● Observations
● Target
● Wal-Mart
● Pet Smart / Petco
● Toys R Us
Secondary Research
● Databases:
● Mintel Report
● IBIS World
● Simmons Data
● Online research