Target is the fifth largest retailer in the U.S., facing challenges due to a heavy focus on apparel and home goods while Walmart captures a larger share of the consumables market. Target's sales have declined for eight consecutive months amid an economic downturn, whereas Walmart's sales have increased, highlighting a shift in consumer behavior toward cheaper options. Recommendations include adjusting their product mix, emphasizing online retailing, and maintaining a premium brand image to recover market share.

1. “ Target has guests, Wal-mart has customers”kanusha |lintukjohny | praveen das | sahithaks | sathyanaraynanc | surajbyndoorholla |vivekkapoor

2. Target – The Journey so farIndustry AnalysisBrand IdentityCompetitor AnalysisConclusionAgenda

3. The story so far…….Electronic scanningPresentDepartment StoreDiscount storesNew Bulls Eye logo19801920196020001940197019901895Shop within a shopPlan-o-gramsLoyalty programsOnline stores

4. Exclusive US Retailer

5. 5th largest retailer in US after Wal-mart, Home depot, Kruger, Costco

6. No: of stores : 1803

7. FY08 Revenues $65bn

8. FY08 Profit

9. 96% people recall Bullseye logo

10. Channels : Traditional & Online

11. Expect more, pay less

12. Cheap chic

13. The discount store with attitudeTarget : Where it stands todayTarget BrandsTarget Financial ServicesTarget Sourcing ServicesTarget Commercial InteriorsTarget.com

14. Second largest industry in the United States Generates in excess of $ 4.5 trillion in salesEmploys more than 23 million Americans (11% of all employment in the United States)12.4 percent of all business establishmentsRetail Industry AnalysisDemand DriversInterest rates

15. Population

16. Employment

17. Personal disposable Income

18. Individual debt

19. Department stores: large stores offering huge assortment of goods

20. Discounters: Compete mainly on price

21. Demographic: Aim at a particular segment; ex: wealthy individuals

22. Warehouse Club: low-cost, low ambience, low margin operations; Price leader

23. Supercentres: focused on food retailing, large supermarkets with full-line discount stores – fastest growing format in the U.SCost DriversCompetition

24. Cost of factors of productionBrand Identity PrismPersonality: 25-30, Upper Middle Class, Trendy, Innovative, UrbanPersonality: 40, Aggressive, Suburban, UnsophisticatedPhysique: Red Logo, Target dogPhysique: Mammoth, LogoTargetWalmartCulture: American, Socially Sensitive, high on CSR InitiavesCulture:American, No-Nonsense, Workshop culture,RuthlessRelationship -Next door stylistRelationship: - Handy ManSelf Image: Value Shopper, Forward thinkingReflection: smart Spender Reflection: Discerning, StylishPrice consciousSelf Image: Value Conscious, lively,

25. Customer Analysis

26. Retail Strategy

27. Retail StrategyPrice based advertising for both Target and WalMart

28. Target – Advertising CampaignsTarget Print Ads Ever since I was a teenager I've had a very odd habit every Sunday. As soon as I open the paper, I flip not to the comics, not to the sports, but to the Target Ad.To me, the Target Ad is everything an advertisement should be. An eye catching, attactive layout. Items and colors appropriate with the theme

29. Retail Strategy“ Target has guests, Wal-mart has customers”

30. Voice of the Customer…More mention of clothes and fashion related products with Target

31. Mentions of Shopping at target being heavy on the wallet and leaving feelings of guilt

32. More mentions of complaints with Walmart

33. Mentions of walmart and Target bring along the fact that the same product is relatively cheaper at WalmartFinancial PerformanceProduct mix is hitting Target hard in current economy(20% Food, 40% Apparel & Household)WalmartTargetHome Depot

34. Target’s sales have fallen for 8 straight months while Walmart’s sales have increasedBoth firms have been recognized for managing inventories and costs efficientlyProblem lies with the retail mix at Target40% of shelf space devoted to home and apparel goods – Discretionary purchases in recessionary times20% of shelf space devoted to consumables like food and beauty products while 45% of Walmart’s mix consists of consumablesWal-Mart is America’s largest food retailer, while target is largely as an apparel sellerHowever as the economy revives, it is expected that sales at Target will pickup faster than at Wal-Mart Recession - Target and WalmartShutdown Target store at Riverside, ILIn the downturn, Wal-Mart's low prices have trumped Target's cheap chic in the battle of the ‘Fashionista’ versus ‘Frugalista’

35. Store front - Target

36. Store Front – Other stores

37. Store Interior layoutTARGETWALMART

38. Increase share of consumables in the merchandise mixRationalize private labels and build strong private labels through product innovationPush online retailing and the hypermarket formatRetain ‘Up-Market’1 image – Increased emphasis on use of Exclusive DesignersAim towards going global to grow despite the maturing US Retail marketRecommendations1 as compared to Wal-mart