Target Communication Case Study - SWOT Analysis

[SUSTAINABLE GIFT CARD ] March 6, 2012
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Target Communication Case Study
Layne Robinson, John Runyan, Kathleen Saunders, Kylie Schuchard, Kiah Simmons, Mary Smith
The University of Tennessee

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Summary Overview:
In an effort to bring Target to the forefront of sustainable development, we designed a fully
recyclable gift card made from the plastic polypropylene that not only promotes the environmental
awareness of the corporation, but gives back to its community. By donating 5% of the proceeds of
this gift card’s sales to the Humane Society, Target will garner a growing market of pet owners and
further establish their corporation as one that cares about the earth, the community, and the
consumer. The marketing motto: “Good for the Earth, Good for the Community, Good for
Yourself” highlights the great benefits shopping at Target and buying this gift card can bring.
TABLE OF CONTENTS:
I. Marketing Plan……………………………………………………………………… 3
II. Why Target?............................................................................ 5
III. Partnering Up/Humane Society…………………………………………….. 7
IV. New Material………………………………………………………………………… 8
V. Card Design…………………………………………………………………………… 9
VI. Cost and Regulation…………………………………………………………….. 11
VII. SWOT Analysis…………………………………………………………………….. 12
VIII. Reinforcement…………………………………………………………………….. 18
IX. References…………………………………………………………………………… 19

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Why this Marketing Plan?
The “Good for the Earth, Good for the Community, Good for Yourself” marketing
campaign will not only ensure successful consumer recognition for the new gift card, it will
promote the sale of all Target’s green products and initiatives. This will bring in new customers,
new revenue and new awareness to one of the most successful retailers in the country.
● GOOD FOR THE EARTH
○ In the past decade, “buying green” has invaded the mainstream market and consumers
who make purchases based on the environment, sustainability, personal health and
social issues make up a more than $209 billion dollar market (McIntosh, 2009)
○ For this reason, the “Good for the Earth” portion of the plan will be the focal point; it is
the central reason that the plan is being implemented in the stores and will be at the
forefront of all literature and packaging
○ The recyclable gift card will promote Target’s dedication to environmental
responsibility, and in doing so, bring revenue to its other products that are “Good for
the Earth” such as:
● Archer Farms food products
● Non-toxic cleaning products (by Seventh Generation, Method, JR
Watkins, Mrs. Meyers, Green Works)
● Furniture from Room Essentials from sustainable forests
● Organic foods
● LED lights
● Organic sheets and towels
● Natural and organic beauty products
○ By doing this, the marketing plan is more than a gift card promotion, it is part of a bigger
goal to promote Target’s environmental awareness as a corporation and bring in
revenue from the $200 billion-dollar environmentally conscious market
● GOOD FOR THE COMMUNITY
○ In a recent study, Lii, Wu & Ding (2011) found that marketing of Corporate Social
Responsibility initiatives such as philanthropy, sponsorship, and cause-related
marketing enhances sales and public relations in the short term, but also raises
corporate reputation, image and brand in the long term

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○ Our decision to include a donation to the Humane Society not only continues Target’s
long history of community-giving, but draws in the consumer
■ This will boost sales of gift cards in the short run, and overall brand recognition
and customer commitment in the long run
● GOOD FOR YOURSELF
○ In the end, the consumer is focused more on the self than the the Earth and the
community
○ The most significant aspect about the new gift card and its marketing campaign is that
Target is making it easy for the consumer to be conscious of the environment and make
purchases that reflect this
○ Target can become a place where a customer can come in for cleaning products and
last-minute gifts and leave feeling they have contributed to something larger than
themselves
■ THE GREAT POSITIVE EFFECT THIS HAS ON CONSUMER SENTIMENT IS THE
BASIS OF THE SUCCESS OF OUR PLAN.
● IMPLEMENTATION
○ The motto “Good for the Earth, Good for the Community, Good for Yourself” will be
printed on all promotional materials and included in all promotional activities
■ The specific materials and activities are up to the discretion of Target
Corporation, however we offer a few suggestions:
● Promotional banners hung from the ceiling in Target stores displaying
the card and its motto
● Prominent display of the card at checkout lines
● Commercials promoting the Humane Society and making use of the
motto
● Creating shelving signs with the motto to place next to all sustainable
products

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Why for Target?
Target has a long history of community outreach, corporate responsibility and
environmental awareness. The campaign surrounding the new, recyclable gift card will promote
this history in a time where corporate skepticism runs high. Target wishes to give consumers
tools and incentives to make sustainable living easy. Our card can do just that. The following is
a list of reasons why this campaign will be consistent with Target’s history and will launch it
towards its future.
● On the company website, Target states, “When we talk about our dedication to good
design, we don’t just mean how something looks, but how it satisfies a need, how it
simplifies your life, and how it makes you feel.”
○ Our card can do all of these things.
■It satisfies the need to produce less waste and create a more sustainable
Target.
■It simplifies your life by giving a thoughtful, environmentally conscious gift
to another
■It makes you feel good about yourself for not only reducing waste, but
promoting animal protection and corporate responsibility.
● Target’s history of Giving begins in 1918 and was given specific parameters in 1946 when it was
declared that 5% of the company earnings would go to the community
○ Our card builds on the 5% giving history in declaring that 5% of all proceeds from the
sale of the gift card will go to The Humane Society
● When Target changed its original name to the one it is known for today, it set out to be “a store
you can be proud to shop in, a store you can have confidence in, a store that is fun to shop and
exciting to visit”
○ Our card gives the consumer pride by giving back to the community, confidence by
reducing operating waste, and exciting by adding to the long lists of Target’s
environmental innovations

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How is Target already Green?
The campaign for the polypropylene gift card will not only promote the sale of the card itself, it will
promote all of Target’s green products, as previously stated. Target’s dedication to selling products that are
committed to both contributing to the community and helping promote a greener future for all is a central
to its competitive advantage.
● SEVENTH GENERATION (www.seventhgeneration.com/about/donations)
○ Leading brand of household and personal products established to help protect its customers
and the environment
○ The Seventh Generation Foundation established to help operate two grant programs to
further their quest to support the community through corporate giving
● METHOD (www.methodhome.com)
○ Prides itself on creating safe cleaning products that are not only effective but
environmentally friendly as well
○ Contributes to global communities and donated 23,000 packages of hand wash to those
recovering from the earthquake in Haiti
● J.R. WATKINS (www.jrwatkins.com)
○ Creates its products using the finest natural, environmentally friendly ingredients from
renewable resources
○ Products for personal/home care, remedies and organic flavorings offer customers upscale
everyday items that are both beneficial to them and to the environment in which they live
○ Proudly supports 32 community organizations, including Habitat for Humanity
● MRS. MEYERS CLEAN DAY (www.mrsmeyers.com/Garden_Parties)
○ Provides customers with alternative products for those who are concerned with the
environmental effects of cleaning products
○ Partners with local organizations around the country to create Garden Parties that promote
a clean and healthy environment
● GREEN WORKS (www.greenworkscleaners.com/get-involved)
○ Dedicated to creating a more natural lifestyle through their cleaning products made with
plant and mineral-based ingredients naturally derived

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Why The Humane Society?
Donating 5% of the revenue from the new gift card to The Humane Society will not only
contribute to the development of Target’s community goals, it will also boost revenue for
Target as a whole. By promoting a non-profit that support pets and other animals, Target will
capture a large part of the their Target market for reasons outlined below:
● 62% of US households own pets (APPA’s National Pet Owners Survey)
● The emerging trend of pet parents and the humanization of pets has brought about a high
demand for pet products and services (IBISWorld)
○ This has caused an increase in consumption of these products across retailers that has
been sustained sustained despite the economic recession (IBISWorld)
● 52% of household pets are owned by people ages 35-54 (IBISWorld)
● 38% of households with children 18 and under own pets (APPA)
○ The median age of the Target consumer is 40
○ 33% of Target consumers have children at home
● The Humane Society is that nation’s largest and most effective animal protection agency.
○ It is one of the 10 most fiscally responsible charities in the United States
● Therefore, promoting the Humane Society will draw in more people within the corporation’s
target market leading to greater revenue for the company

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Why Polypropylene?
In an effort to create a gift with sustainable elements, we propose that Target Corporation use
the plastic polypropylene for the following reasons:
● Polypropylene is a number 5 recyclable material
● Its properties make ideal for use in a gift card form (derived from lenntech.com)
○ Light in weight
○ Excellent resistance to stress and cracking
○ Non-toxic
○ Easy to produce and assemble
○ Highly economic material
● It can be recycled into use as medicine bottles, straws, and even new gift cards
(ecovillagegreen.com and The Knoxville Recycling Commission)
● Products made from polypropylene can be produced at a low cost and a high volume
● If on average, Target stores sell 40 gift cards per day, the corporation would reduce the amount
of plastic waste sent to landfills by nearly 130 tons per month nationwide by using
polypropylene.
○ This would assist Target in reaching its goal of reducing operating waste by 15% by the
year 2015 (sites.target.com).

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DESIGN

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Why this Design?
The design of our launch card combines many intentional elements that will not only set the card
apart, but draw attention to the newly implemented card production and maintain the card’s recyclable
qualities.
● The Bar Code
○ The use of the bar code on the back rather than the traditional magnetic strip maintains the
recyclability of the card
○ Magnetic strips cannot be separated from the card in the recycling process and would
prohibit the card from being fully recyclable.
● The Background
○ The choice of the light brown background was intended to invoke an immediate association
with sustainability.
○ Many products associated with the environmental and sustainable movement have adopted
to colors of brown and green to connote “earthiness” and environmental friendliness.
● The Humane Society
○ Since an essential element of the card is its donation to the Humane Society, we wanted this
to be central to its design
○ The logo will not only attract consumers, but remind them that buying this card benefits the
community
● The Motto
○ The “Good for the Earth, Good for the Community, Good for Yourself” is the motto for the
marketing campaign of the card
○ ts location on the card design is to associate this card with the campaign and remind
consumers of all the many benefits of purchasing this gift card
● The Target Symbol
○ The Bullseye symbol is recognized by 97% of American consumers
○ The Bulleye will associate this card with all the things that consumers love about Target: its
commitment to its customers and its community in making a sustainable lifestyle easy

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Cost & Regulation?
● Materials Cost:
○ Polypropylene cost ranges from $0.70/lb to $1.10/lb
○ As an average, if bought at $0.85/lb, to buy the polypropylene needed to
manufacture 50,000 (~625 lbs) gift cards it would cost ~$530
○ Cardboard displays: $0.35/display, so 1700 card displays: ~$600
(displays2go.com)
● Production Cost:
○ At ~$0.19 per card, it will cost ~$9500 to produce 50,000 cards
(ecardsystems.com)
○ At ~$0.03 per envelope, it will cost ~$1500 to produce 50,000 envelopes
(ecardsystems.com)
○ The total production cost is: ~$11,000
○ It will take approximately 15 business days for production, shipping and receiving
the cards in Target stores (ecardsystems.com)
● Total Cost
○ Materials (~$1130) + Production (~$11,000) = ~$17,530 per 50,000 cards
Gift Card Protections:
 “Protects recipients of gift cards by requiring all gift cards to have at least a five‐year life span,
and eliminates the practice of declining values and hidden fees for those cards not used within a
reasonable period of time. “ (Senate/Gov.)
 “Credit cards, gift cards and debit cards have all had to adopt the Credit Card Accountability
Responsibility and Disclosure Act regulations.” (Huff Post)

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SWOT Analysis: “is a strategic planning method used to
evaluate the Strengths, Weaknesses/Limitations,
Opportunities, and Threats involved in a project or in
business venture.”
SWOT Analysis: Currently
Strengths
 Differentiation
 Embracing current trends
 Branding
Weaknesses
 Not able to be recycled
 Geographically limited
 Limited awareness
Opportunities
 Fully recyclable card material
 Emphasizing environmental responsibility
 Creating awareness for animal protection
Threats
 Competitors’ gift card innovations
 Preference for mobile cards

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Current SWOT Analysis
● STRENGTHS
○ Differentiation
■One of the greatest strengths of Target Corporation over the years has been its ability to
differentiate from its competitors (DATAMONITOR). Target’s position in the gift card
market is not exception to this. The corporation is the first among its competitors to use
resin made from renewable resources. Its use of PLA and PHA decomposable resins
leads the industry in sustainable gift card innovation.
○ Embracing trends
■In the recent years the push to go digital has affected nearly every market, gift cards
included. Target has not only recognized this trend, but embraced innovation to stay
current. Along with their decomposable and re-loadable gift cards, they have introduced
an e-card that can be purchased and used online or through an application.
○ Branding
■Target has created a brand recognition that is unlike many others. The Bullseye logo is
recognized by 97% of the market, beating both Apple and Nike in scope of recognition.
Realizing this, Target has ensured that this logo has been used on all of their gift cards.
This is an enormous strength of the current gift card design.
● WEAKNESSES
○ Not able to be recycled
■Although the PHA and PLA resins are able to decompose and this is their great strength, they
are not accepted by recycling companies. Their materials cannot be re-made into useful
items such as bottles, pens or even new gift cards as other materials can. This poses a
difficulty and increased cost to Target in their manufacturing and distributing of the
cards.
○ Geographic Limitations
■The decomposable cards are very helpful for those groups of people and locations where
compost piles and gardens are common, but that is not true of every place. CityTarget is
a new initiative that Target Corporation has embraced to enter urban centers with
smaller versions of the store (DATAMONITOR). This new phase of growth for Target is
very important, but it could limit the use of the decomposable card due to lack of yards
and gardens in many urban environments.
○ Limited awareness
■Although gift cards are high sellers for Target, there are few people who have a significant
awareness of the cards. People may pick them up at the end of shopping outings or as a
last-minute, last-resort gift for a friend or coworker. There have been few efforts to
actively promote these gift cards, missing a great opportunity to garner new attention
and new consumers of gift cards at Target.

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● OPPORTUNITIES
○ Fully recyclable card
■Recycling companies are expanding and embracing more and more recyclable materials,
especially plastics. Target has the opportunity to tap into these new innovations by
creating a fully recyclable card out of materials accepted by these companies. This
would help Target reach its goal of reducing operating waste sent to a landfill by 15%
(Target’s environmental responsibility packet). With this Target could not only recycle
its cards into new items such as bottles or pens but also use the recycled material to
create new cards, reducing its carbon footprint. Also, introducing a patent on the
design of a recyclable gift card could create a new source of revenue for the company.
○ Environmental Responsibility
■Target has taken many steps to promote its image as an environmentally responsible
corporation and enact the ideas of “Sustainable Living, Sustainable Products, and Smart
Development” (Environmental responsibility packet). By making embracing a more
sustainable card and a marketing campaign surrounding it, Target has the opportunity
to enhance this image.
○ Animal Protection
■Target has a commitment to the community like few other large corporations do. It has
been part of their history; remains part of their present, and will guide its future. The
corporation has gained much recognition for this, receiving the Medal of Honor for
Community Giving by President Reagan in 1983 (target.com/history?). In its efforts to
embrace the community, it has not yet supported groups that benefit the well-being of
animals? Expanding its influence into the realm of animal protection is an opportunity
for many things. Target would gain new customers who are attached to this cause and
would support the corporation because of this. Also, being a leader in the market,
Target could influence other corporations and people to become more aware of the
issues with animal cruelty and protect more animals nationwide.
● THREATS
○ Competitors’ gift card innovations
■Seeing the emphasis Target has placed on sustainable innovation and its new gift card
designs, competitors could introduce a fully recyclable gift card before Target does. If
that company gains a patent for the material and the design, it will increase the cost of
creating the card. It would also take Target’s place as a leader in gift card innovation, a
switch whose influence could not be quantified.
○ Preference for mobile-based cards
■As the market moves to a more mobile-based emphasis, the preference for e-cards over
plastic ones will increase. This could pose a threat to the differentiation and leadership
that Target has managed to gain in the gift card market. These e-cards could easily place
all competitors who use them on the same playing field.

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SWOT Analysis: Implementation
Strengths
 Further Differentiation
 Recognition for Environmental Consciousness
 Helps Reach Environmental Goals
 Innovation Leadership
Weaknesses
 Learning Curve
 Lack of Proven Success
Opportunities
 Patenting a Design
 Acceptance in Urban Centers
Threats
 Awareness of Weaknesses in the Recycling System
 Global Competition

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SWOT Analysis after Implementation
● STRENGTHS
○ Further differentiation
■As mentioned in the current SWOT analysis, Target’s main strength is in its ability to
differentiate from the market (DATAMONITOR). Implementing the polypropylene
gift card will be yet another way that the corporation sets itself apart from its
competitors. This material is yet to be used in competitors’ gift card design and will
draw consumers to Target for its ability to think and act sustainably in all areas.
○ Recognition for being environmentally conscious
■Corporate environmental performance has become an emphasis in the current
business environment and its usefulness for both reputation and financial
performance has been noted in literature as well as practice (Guenster, Bauer,
Derwall & Koedijk, 2011). If Target gains more recognition for its emphasis on the
community and the environment, this will increase consumer confidence and draw
in more customers, leading to greater revenue.
○ Moving towards environmental goals
■Environmental responsibility is already a very important part of the way Target
presents itself to the market. The corporation has done a commendable job of
setting forth goals and making changes that make a difference. Their environmental
goals for the year 2015 are challenging but achievable, and this new gift card design
helps them reach those. If the company sold and average of 40 recyclable gift cards
per day in each their stores, it could decrease their operating waste sent to a
landfill by nearly 130 tons per week. This helps reach the goal of only wasting 24%
of operating materials by 2015 (packet).
○ Innovation Leadership
■The polypropylene card would be the first of its kind. In a competitive market driven by
innovation and differentiation, this would be extremely beneficial. Setting itself as
an innovation leader, Target will increase its share of the market and begin to edge
out its competitors.
● WEAKNESSES
○ Dealing with the learning curve
■As with all new products, there is a span of time in which consumers are not fully aware
of the benefits of a new product. As research has noted for decades, there are a
few who catch on early (innovators and early adopters) but many take their cues
from those who have tried and like the innovation (early majority, late majority and
laggards) (Rogers, 1962). Target will most likely notice the delay in the full profit of
the card until these later groups have seen its potential.
○ Risking a product that lacks proven success

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■As polypropylene has not been used in other gift cards, its successful implementation
cannot be proven. There are nuances and complications to all new innovations that
cannot be foreseen and must be dealt with as the production and implementation
is in process. This should not deter a company from innovating, but it should ensure
that companies are prepared for the surprises and challenges that leading the
market brings.
● OPPORTUNITIES
○ Patenting a design and reducing carbon footprints globally
■Being a leader in the market poses great opportunities for influence in the market. If
Target is the first to adopt the polypropylene card and gains patented rights to this
design, it has an enormous potential for new revenue. Other competitors will find it
essential to obtain this sustainable card in order to keep up, and Target will have
the option to sell their design. This is not only a revenue-gaining mechanism, but
also a step towards “thinking locally and acting globally” as the environmental
movement encourages. If competitors adopt these cards, Target will not only have
helped its customers reduce their carbon footprint, but the entire generation as
well.
○ Gaining acceptance in skeptical urban markets
■The new venture of CityTarget has been largely successful one for the Target
Corporation. Its success has been and will be entirely due to its ability to reach the
urban community with different products and services. The implementation of a
recyclable gift card will help achieve this connection. Persons living in urban
environments tend to be highly educated and have high levels of income which
have been found as differentiating factors in environmental concern, knowledge
and actions (Arcury & Christianson, 1993). In order to gain acceptance in these
communities, Target must continue to be on the cutting edge of sustainable
development.
● THREATS
○ Growing awareness of the weaknesses in the recycling system
■The newness of the expansion and implementation of recycling in large corporations
and other organizations and institution has brought about many questions about
whether these objects actually get recycled. Also, there has been recent skepticism
about the energy that it takes to recycle products and the relative benefit it
provides. Although recycling still holds positive connotations in the public mind,
those who question it are speaking loudly for its reform which could cause doubt
about the new card.
○ Facing the global competition
■The threat of becoming over-powered by its competitors who have global market shares
affects Target in all areas. The success of the gift card is inherently tied to the
success of Target as a whole and is dependent on the corporation’s expansion into
the global marketplace or continued viability at home.

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Reinforcement: Incorporate Our GiftCard
“Good for the Earth,
Good for the Community,
Good for Yourself.”

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REFERENCES
American Pet Products Association, 2010. 2009-2010 APPA National Pet Owners Survey APPA,
Greenwich, CT)
IBISWorld. (2011 October). Pet Stores in the U.S. Retrieved from IBISWorld Industry Market Research
database.
Guenster, N., Bauer, R., Derwall, J. & Koedijk, K. (2011) The economic value of corporate eco-efficiency.
European Financial Management, 17(4), pp. 679-704. doi: 10.1111/j.1468-036X.2009.00532.x
Rogers, E. M. (1962). Diffusion of innovations. The Free Press: NY
Arcury, T. A. & Christianson, E. H. (1993) Rural-urban differences in environmental knowledge and
actions. The Journal of Environmental Education, 25(1), pp. 19-25. doi: 10.1080/00958964.1993.9941940
McIntosh, M. J. (2009). Determinants of environmentally conscious consumer behaviors: Measuring the
value consumer environmentalism and predicting behavioral intention to purchase environmentally
friendly products. Electronic Doctoral Dissertations for UMass Amherst. Paper AAI3379991.
http://scholarworks.umass.edu/dissertations/AAI3379991
Lii, Y.S., Wu, K.W. & Ding, M. C. (2011) Doing good does good? Sustainable marketing of CSR and
consumer evaluations. Corporate Social Responsibility. doi: 10.1002/csr. 294

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