Analysis of Ecommerce Operations

1. Target.com!
An Analysis of ecommerce operations
and a brief assessment of Target’s
“Designer Campaign”!

2. The Essence of!
Target considers itself to be an upscale
discounter that provides high-quality,
on-trend merchandise at attractive
prices in clean, spacious and guest-
friendly stores. In addition, Target
operates the online subsidiary,
Target.com.!
"Target stores tend to attract younger
and more educated and a#uent
customers than its competitors like
Walmart; as a result, it is often referred
to in a tongue-and-cheek manner as
Tarjey.!

3. Mission Statement
!

4. Background and current State of Target
Corporation’s Target.com !
An American retailing company founded in 1902, Target is the second
largest discount retailer in the United States.!
Target Corp owns and overseas the company’s ecommerce initiatives
under the Target.com domain, founded in 2000 as Target.direct. !
Eager to build out their online presence with as little damage to their
brand as possible, Target contracted a third-party operator, Amazon,
in 2002, to last until 2010, in which Amazon.com would provide order
fulfillment and guest services for Target’s online customers. !
Indeed, given Amazon's success in online commerce from the very
beginning, it was a strategic partnership. !
After Target Corp. sold Marshall Field's and Mervyns in 2004,
Target.direct became Target.com. !
The domain target.com attracted at least 288 million visitors annually
by 2008 according to a Compete.com survey. !

5. From books to foods and beverages, apparel, electronics, household goods
and other products and services, Target.com continues to maintain its
competitive stature by means of the e-marketing strategy. !
! !
Online marketing has provided the company with a worldwide presence as
more and more people access information derived from the Internet. !
While online marketing is considered to be the most expensive, it is now the
most comprehensive marketing strategy within the trend of rapidly growing
technology that every company wishes to implement and apply in order to
stay competitive. !
Research studies have ascertained that online shopping is perceived to be
more time saving than other traditional approaches of shopping by
customers and supports the needs of busy working people. !
Target Corp. recognizes this convenience and continuously strives to create
innovative marketing solutions to support its online shopping operation.
These innovations are always directed to satisfactory, convenient, and
customer-oriented service, with goals of achieving e$ciency savings,
boosting sales, growing its customer base and increasing customer retention
while at the same time improving its brand position in the online market
place. !

6. Target.com is an exceptionally user-friendly web site that enables the
customer to navigate and “shop” with ease. In addition, Target.com
exhibits an extensive variety of products, equipped with customer reviews
and suggestions for the purchase of similar products. The target site is
informative, well organized and helpful, providing an e%ortless and
enjoyable shopping experience. !
"!
The site’s search engine is extremely e%ective. Target.com enables
consumers to shop via key word phrases, multiple word phrases, and even
correctly displays results for misspelled phrases. In addition, Target
displays an extensive selection of products that result from each initial
search. When conducting a search for various products, Target.com
generates a highly relevant list of results. The majority of items displayed
on the first page of search results match the descriptive phrase entered.
Moreover, correct results are displayed even for misspelled phrases. !
"!
Target enables consumers to shop by brand, price, season, new arrivals,
etc. In addition, target recommends certain products that coordinate with
the products that consumers are initial browsing.!
"!

7. Target does a great job at merchandising to the online consumer.
Target displays seasonal advertisements and special promotions on
the home page in an e%ort to entice the consumer with selective
merchandise. Similarly, Target.com allocates space for holiday
promotions, and special “themed” areas.!
"!
The multi-cross channel exhibited by Target is extremely e%ective.
Target.com does a very good job coordinating online merchandise.
Additionally, Target enables the viewer to shop weekly catalogs and
“daily deals” by both online and in store channels of distribution.!
"!
Target does an adequate job at “cross selling” products. Target
enables the consumer to view products that are similar to the
product that is already being viewed.!

8. How could we make Target.com more dynamic?
!
•! Introduce pre-order/monthly reorder capabilities !
•! Online Sweepstakes/Contests to gather customer contact information for future
marketing e%orts!
•! Gift with online purchase/Buy one get one free!
•! Buy more-Save more$ or % o% of future purchase. This feature would act as an
incentive for shoppers to revisit Target.com !
•! Free Shipping: Target.com currently o%ers free shipping on limited merchandise.
This parameter could be extended to include all or most products purchased online !
•! Free returns: provide pre-paid return shipping labels in all order shipments!
•! Product comparisons: Target.com could feature side-by-side reviews with customer
selected merchandise controls via a good/better/best format !
•! Informational videos/Audio, podcasts, downloadable PDF’s!
•! Calculators/Interactive Tools: Shopper enters requested information and receives
customized advice or a response; interface is often presented as a “wizard”!
•! Product Configurater: Ability to create a customized product using a visual interface !
•! Product Personalization: Ability to customize a product with initials, inscriptions or
other text; can include gift card customization!
•! Promoting in-store events: Listing of happenings at retail shown on site/List of retail
store “happenings” !

9. •! Free gift-wrapping!
•! E-gift announcements: Email sent to gift recipient notifying them that a gift is in
route!
•! 3D imaging: 360° product rotation !
•! Shop by outfit: Multiple, coordinating, apparel-related items displayed together that
can be purchased on one page, encouraging higher units per transaction!
•! Color change: such that image changes to color of selected color sample “swatch”,
rather than listing di%erent colored products separately !
•! Personalized “shelf”: segmented area containing recommended products that
Target.com has chosen for shopper based on preferences!
•! Blog: o%ering commentary or news on a particular subject where users can post
comments and rebuttals in a pre-established format to be part of the overall site
experience!
•! Community Boards: for users to post comments or photos and interact with other
site visitors or with the site’s moderator (i.e. forums, bulletin boards) !
•! Share: enable people to connect and share through social networking sites such as
Facebook, twitter etc!
•! Multinational site entry/Ability to shop in another language/International shipping!
•! Onsite order confirmation o%ering additional products or services!
•! Real-time, click-to-chat and click-to-call!

10. The Target Customer
!
•! Target shoppers have a median age of 41 - the youngest among major
retailers.&
•! The median household income of Target guests is $55,000.!
"!
•! Fifty-one percent of Target shoppers have completed college. More than half
of Target customers are employed in professional or other managerial
positions.&
•! Between roughly ninety percent of Target shoppers are female.&
•! Thirty-three percent have children at home - or in a red shopping cart with
them. This figure is consistently greater than any other discount store's
customer profile.&
•! Target customers are careful about how they spend and where they shop.
They know that any retailer can match price, but what about value? Target
shoppers strive to make the most of their time and money by recognizing
the di%erence between price and the more enduring concept of value. They
are people who like the idea that Target is the only place where they can find
competitive prices and value in addition to selection.!

11. The Target Customer (con’t)
!
•! Target customers are smart about their purchases, savvy to trends
and conscientious about their communities.!
•! Target also reaches out to multicultural customers by designing
inspiring and culturally relevant marketing campaigns. By
advertising multicultural beauty products in Essence and Latina
magazines, sponsoring "Target Presenta Nuestra Navidad," a holiday
musical celebration on Univision, o%ering a surprising selection of
ethnic food choices on the grocery shelves of SuperTarget stores,
and a variety of Latin and urban music, Target strives to find
innovative ways to connect with the communities it serves!

12. Market Segments: “Suburban Mom”
!
•! Reasoning: Target stores are mainly placed in residential areas. Also, the overall theme
of Cheap chic is appealing to this demographic. "Style and quality at lower prices".!
•! Ages 28-45!
•! Female!
•! Upper middle class!
•! Lives in Suburbia!
•! Often a stay at home mother, housewife or only works part time!
•! Health conscious: visits gym on regular basis, ensures that family eats healthy,
balanced meals!
•! Likes to shop!
•! Concerned with appearance and social status!
•! Does not like to shop at stores notoriously known as "discount super stores”!
•! Likes to buy quality goods at lower prices!
•! Trend savvy/ fashion conscious!
•! Typically have children (younger than teenagers)!
•! Well educated!
•! Acts as "socialite" for family (coordinates family events, and the attending of functions)!
•! Has little time to "shop"; attempts to multi-task and buy numerous items in one place!
•! Drives SUV to accommodate family!
•! Cooks and cleans for family on daily basis!
•! Involved in children's activities and local philanthropic leagues!

13. Market Segments: “Single Working Mom”
!
•! Reasoning: Target stores are accessible to a wide demographic, including rural, and in
this case urban, customers of many socio-economic classes. Neither customer one,
nor two has significant time to devote to shopping. It is convenient, one-stop
shopping that provides great value.!
•! Ages 28-45!
•! Female!
•! Lower-middle class!
•! Lives in an apartment in the city, with mother and 6 year-old daughter!
•! Works as a receptionist full time, while taking online courses to complete a degree in
Occupational Therapy!
•! Does not have much free time for shopping!
•! Is very close with family!
•! Is religious/spiritual!
•! Is involved with the Latin Community!
•! When she does shop, it is mainly at big box retailers, discount stores, and chains (e.g.,
Loehmann's, the Gap, Costco)!
•! Is more concerned with value, than being on trend, but tries to make an e%ort to
appear stylish/fashionable."!
•! Does not own a vehicle; relies on public transportation!
•! ” Brown-bags" and cooks at home, does her own cleaning!
•! Friends with other mom's in the building, with whom she arranges play-dates; also
serves as her time for socializing (e.g., taking children to park with other mom's on the
weekend)."!

14. How can Target Corp better understand and serve
Target.com consumers? !
•! Design and implement customer surveys that will enable the
company to better understand the wants and needs of
consumers. !
•! Target will ask consumers questions that not only pertain to
their demographics, but also psychographics (including,
interests, hobbies, etc.)!

15. Consumer Survey
!
•! I. What is your sex?"!
! Male "Female!
"!
•! II. How would you classify yourself?!
"!
•! Caucasian!
•! African American!
•! Hispanic!
•! Asian!
•! Indigenous or Aboriginal Person!
•! Multiracial!
•! Other!
"!
•! III. What is your marital Status?!
"!
•! Married!
•! Divorced!
•! Living with another!
•! Separated!
•! Single!
•! Widowed!

16. •! IV. Please indicate your current household income before U.S. tax
dollar!
"!
•! Under 10,000!
•! $10,000 to $19,999!
•! $20,000 to $29,999!
•! $30, 000 to $39,999!
•! $40,000 to $49,999!
•! $50,000 to $79,999!
•! $80,000 to $100,000!
•! $100,000 to $150,000!
•! Over $150,000!
"!
•! V. What is your age?!
"!
•! Under 20!
•! 20-30!
•! 30-40!
•! 40-50!
•! 50-60!
•! 60-70!
•! 70-80!
•! Over 80!

17. •! VI. Where is your home of residence?!
"!
A) Suburbia!
B) Urban!
C) Slightly outside the suburbs!
D) Rural areas!
"!
•! VII. Do you prefer to shop?!
"!
A) Primarily in stores (physically at a store location)!
B) Primarily on-line!
C) Both!
"!
"!
•! VIII. What is the main reason that you shop at Target?!
A)" Convenience!
B) " Reasonable Prices!
C) " Product Selection!
D) " Customer Service!
E) " All of the Above!
F) " Other (please specify)!

18. Survey Participation
!
•! Once people have decided to take our survey, they will likely want to get started.
When the link provided in the e-mail is clicked, they will be directed to a landing
page on Target.com that is simple - it will let people take the survey right away!
Some additional information about the survey will be provided on this page,
including the length of time required to complete it, exactly what we are o%ering to
participants, as well as what the information will be used for and a guarantee of
anonymity. It will be succinct because studies show that most people don't read
extensive instructions.!
"!
•! Although fancy graphics can sometimes distract from the content of the survey, or
influence answers, they can be used to improve survey responses if used
appropriately. The landing page (which is also the survey page) will feature graphics
of our incentive - images of gift cards from each of the retailers/a$liates we are
participating with, including our own.!
"!
•! Studies show that a small token, gift certificate, etc., can increase responses
considerably, but that incentives need not be large. To encourage participation in
the survey, we will o%er $10 gift cards that are valid both online and in-store, and
can be used at specific a$liates, including Target stores, Jamba Juice and Starbucks
(which already have joint ventures with Target), Amazon (which is currently listed as
an a$liate on Target.com), as well as iTunes and AMC theaters with whom we could
negotiate a partnership. These companies have been chosen based on the belief that
some, if not all of them, will appeal to our target market - families of various ethnic
backgrounds, with children living at home.!

19. Target’s Social Media Community: User Generated
Content
!
•! That Target currently has 547, 842 Facebook fans demonstrates
the value of this platform for reaching our consumers. Earlier
this year, Target was highly praised for the success of its
"giving"7 campaign, which let fans determine which of ten
national charities, one of their weekly donations should go to.
This campaign ran on Facebook for a 16-week period, at the end
of which Target had donated a total of $3 million dollars.
•! The company received high praises for cultivating a Facebook
community that gave fans the ability to have a say. Giving, after
all, is a vital element of social media. Not only did the Bullseye
Gives campaign let people know that Target gives money to
charity, but it also let people have an influence. Influence is of
great significance of web 2.0 users, and is a pillar of online
communities.!

20. Next Steps: Suggested Social Media and interactive
online initiatives
!
Given the success of the User Generated Content community on Facebook
for Bullseye Gives and the importance of establishing a "home base" on the
native site in order to best brand and maintain the company's image and
vision, Target will establish a User Generated Content community directly on
the Target.com homepage. The community will be comprised of several
executable social media ideas each with their own goals and strategies that
will benefit Target as well as its consumers:!
1.! Goal: to utilize Target’s o$cial Facebook page data capture that will
ultimately benefit consumers !
Strategy: To make the most of Target's presence on Facebook, a link to
the survey will be available on Target's o$cial Facebook page, as well as
on the general promotions page of Facebook itself. To foster
interactivity, the discussion forum will have a thread for feedback and
comments related to the survey. "Although the sponsored page will
feature banner Ads for our a$liates, Starbucks, Jamba Juice, Amazon,
iTunes, and AMC theaters, it will not have discounts or promotions other
than for the survey, bearing in mind that Facebook is a social
environment where Target will talk to people first, before trying to sell
anything. !

21. 2. Goal: To involve consumers in the Designer Collaborations
program with intent to increase sales of limited-run designer
collaboration merchandise. Designer Collaborations is an
expansion of Target's existing designer fashion program and
each collection is available only for a limited time. Designer
Collaborations is a unique program that features well-
established designers. It is an exciting way of delivering the
latest styles to fashionable and contemporary guests at the
prices they expect from Target. """"""""""" """"""""""" """"""""""" """"""""""" "
!
Strategy: Online community members have the opportunity to
vote from a list of 5 possible candidates for Target's next
designer collaboration. ( Designer Candidates ).!

22. 3. Goal: To promote and increase sales of Target's sustainable/
eco-friendly products. Target strives to be a responsible
steward of the environment, complying with all environmental
regulations, seeking to understand and evaluate Target's
carbon footprint and continuously improving on business
practices in a variety areas."Consumers who are looking for
simple and a%ordable ways to respect the planet turn to Target,
which o%ers a wide array of natural, organic, and eco-friendly
products that have a reduced impact on the environment. From
fashion and beauty to household cleaners and groceries, nearly
every department o%ers ways for guests to make smart,
environmentally considerate choices.""""""""""" """"""""""" """"""""""" """"""
"
!
Strategy : Eco-friendly iniative whereby, in collaboration with
Flicker.com, community members can post and share photos of
themselves using Target's eco-friendly products. For each
photo posted, members will be entered into a monthly draw to
win a $50 Target Gift Card. (Shop Target's eco-friendly
products )""!

23. 4. Goal: To promote Target's Athletic Sponsorships. Target
sponsors some of today's top professional action sports
athletes, including snowboarder and skateboarder Shaun White,
freestyle motocross rider Nate Adams, freeride mountain biker
Alex Prochazka, freeskiier Simon Dumont, motocross rider Ryan
Dungey, surfer Carissa Moore,"and BMX athletes Mat Ho%man
and Kevin Robinson. """"""""""" """"""""""" """"""""""" """"""""""" """"""""""" """"""
"
!
Strategy : A portion of the proceeds from the sale of "Our
Athletes' favorite products" will go directly to their sponsorship
campaigns. Community members can watch videos of
sponsored athletes as they train and compete in national and
world events. The athletes will also share and update their
favorite Target products, and members can ask and get
answers to questions from the athletes themselves! (e.g.,
Carissa'' s favorite products , Ask Carissa , Watch Carissa )!

24. 5. Goal: To gain insight directly from the Target community
on an on-going basis about what products members would
like to see online or in Target stores, as well as their
satisfaction with existing products. Target endeavors to
deliver on its brand promise of "Eat Well. Pay Less." by
o%ering the ultimate one-stop shopping destination that
will satisfy each and every customer."At great, low prices,
Target o%ers a full-service grocery store, including
delicious foods from an in-store bakery and deli, along
with a wide selection of unique grocery items that
complement the hip and fashionable merchandise found at
a typical Target store.!
"""""""""""" """"""""""" """"""""""" """"""""""" """"""""""" """"""""""" """"""""""" """""""""""
"
!
Strategy: Target will host a discussion forum for ratings,
reviews, comments and suggestions, where members can
share their ideas with the community about products they
would like to see made available at Target, and
communicate their experiences with existing merchandise.!

25. Designer Collaborations !
Target is now famous for its "design for all" playbook, drawing bevies of
well-heeled consumers into the big-box store in search of limited-run
designer collaborations. Target launched its Designer Collaboration
program In March of 2009, bringing a series of established designers to
the masses at low prices. The program is estimated to do more than $100
million in annual sales. It is geared toward Target's trend-minded guests
who are always on the hunt for the newest and hottest looks at an
a%ordable price; Designer Collaborations is another way in which Target
brings an emporium of designers to its guests!
Within the current economic climate, consumers are in search of quality
products at lower prices. This is especially true in the fashion industry. At
this point in time, it seems that trendier clothing at low prices is very "in
vogue". Target is a wonderful retailer for quality clothing at extremely
reasonable prices. In fact, Target is well known for its many partnerships
with designers o%ering comparative styles at the price of a budget retailer.!

26. Suggested collaboration + new media promotion
!
•! In an e%ort to promote Designer Collaborations, Target will collaborate with Emilio
Pucci to execute a promotional campaign that features a line of brilliantly colored
apparel for the everyday consumer. The collection will uphold the design
characteristics, fabric patterns, and overall brand image of the Emilio Pucci Fashion
House.!
•! The Emilio Pucci for Target collection will be supported by an online video
advertising strategy designed to drive buzz and tra$c via experiential marketing
that is distributed across the Internet as well as e-mail. !
"!
•! The Pucci name is synonymous with geometric prints in a kaleidoscope of colours.
The video promotion will feature pieces from collection, which will uphold the
design characteristics, fabric patterns, and overall brand image of the Emilio Pucci
Fashion House. An e-mail with the subject line "Emilio Pucci for Target Sneak Peek:
A kaleidoscope of color at low prices" will be distributed and will be embedded with
a youtube video promotion. The youtube video will also be tweeted and be viewable
on both Target.com as well as Target's o$cial Facebook page, as a supplement to a
special Facebook promotional event whereby fans can register for an "on-line"
drawing for the chance to win one of four ensembles from the Emilio Pucci for
Target Collection!
Youtube Pucci for Target promo: !
http://www.youtube.com/watch?v=Rn9AGcxpCMw !

27. Target Consumer
!
The target market for the promotion will be fashion savvy young
women (ages 20-30) that want quality clothing at reasonable
prices.!

28. Goal
!
To bring designer clothing collections to consumers at reasonable
price points.!

29. Product Line
!
•! The various designer collections will include full product lines of
apparel, shoes, and accessories.!
•! Each season, Target will release a series of new designer
collaborations that coincide with current fashion and runway
trends. !

30. Marketing Campaign
!
The advertising strategy will be roadblock advertising. This
strategy will deem to be an effective tactic for gaining user
attention. The campaign that will promote the new Emilio
Pucci for Target collection will be over a time period of two
days. The first day will lead up to the product launch, and the
second day will be the first week that the product line is
available in Target Stores. This strategy should be effective
due to the fact that Target will own 100% of the given voice
for the given time period. The short, yet affective campaign
will work to deliver a rich and powerful media advertising
experience.

31. Media Buys
!
•! :60, :90 and 2:00 buys on TV!
•! Streaming online Video!
•! Video e-mails targeted by zip code in select urban markets!
•! Online ads linking to Target.com!
various social websites

32. Online Advertising
!
•! WWD
•! Who What Wear
•! shopstyle.com
•! Facebook: Target will have a special "promotional event" on
their facebook fan page. Fans will be able to register for an
"on-line" drawing in which they have the chance to win one of
4 various ensembles from the Emilio Pucci for Target
Collection.

33. Print Advertising
!
•! Various Fashion magazines: Lucky, Teen Vogue, Allure, Glamour!
•! Major newspapers (USA Today, New York Times)!
•! Womens Wear Daily!

34. Television Advertising
!
•! Designer collaborations will be advertised on television networks
whose viewership is in line with the consumer profiles for this
product category at Target. !
•! Example:!

35. Designer Collaborations Marketing Strategies!
+!
January:!
The idea behind the “Design for All” collaboration concept is to
provide universally accessible products that in the past have only
been obtainable for wealthier market segments. To market the
“expect more, pay less” philosophy further, a designer
collaboration line could still be introduced to the mix that caters
to the lowest end of Target shoppers’ income brackets. This
could be particularly viable in the current economic environment,
as income levels have been dropping. In order to determine the
media buys that would have the greatest scope, it is necessary to
consider what this market segment primarily uses the Internet
for. Considering that anyone with Internet access can and
generally does create an e-mail account (for free), an e-mail
server such as Hotmail would be likely to reach a significant
portion of this market segment. !

36. +!
June (father’s day):!
The majority of Target.com’s regular shoppers are female, meaning
that the potential to increase male market capture is great.
Beginning in the new year, Target will launch a new designer
collaboration exclusively for male consumers. Media buys for this
men’s line may include banners on male-dominated websites such
as AskMen.com. AskMen has both Facebook and Twitter accounts
which could be utilized to incorporate a social media component
beyond Target’s own social media outlets.!

37. August (back-to-school): !
The median age of the Target shopper is 41 years. However,
Target is perceived and positioned as a trendy, hip place to shop
for younger generations as well. With this in mind, a
collaboration line with a younger designer could prove very
successful in appealing to the younger Target demographic.
Media buys for this line might include a 30 second video
promotion that would run before streaming videos on MTV.com.!
+!

38. +!
April:!
Target now has an online baby registry for expecting parents.
Target might choose to focus its promotional e%orts towards
this market with the launch of a designer baby boutique. Parents
who register for their baby shower at Target.com could be
entered into a shopping spree sweepstake and entitled to a
complimentary welcome package for the newborn that would
include items from the designer baby collection and promotional
coupons, in addition to other baby merchandise (baby wipes,
diapers, a blanket, etc.). Target.com already collaborates with
Parents Magazine to produce a web-based baby resource on
Target’s own website where parents can find information on
parenting and child related topics. Target also advertises on the
Parents Magazine website which would be an appropriate media
buy to promote the designer baby line. !

39. Budget
!
Total Event Costs!
•! $120,000 !
Total E-mail Lists!
•! $20,000 !
Total E-mail Campaigns!
•! $30,000 !
Total On-line Ads!
•! $120,000 ! Total Budget!
Total Banner Ads! $500,000 !
•! $55,000 !
Total Magazine!
•! $25,000 !
Total Digital Media (Movie/Video Stream)!
•! $120,000 !
Total Direct Mail !
•! $5,000 !
Total Research (Questionnaire)!
•! $5,000 !

40. Measurement: Analysis
!
•! Response to e-mail invitations!
•! New email/newletter sign-ups!
•! Response to live events!
•! Response of visits to web sites from various media channels !
•! Merchandise sell-through online & in store!
•! Sharing of data acquired!
•! ComScore evaluation of Target’s Facebook/Twitter accounts !