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Target E-commerce marketing plan
This document presents a proposal for how Target can use e-commerce and mobile platforms to drive sales and profitability at brick-and-mortar stores. It introduces three ideas: 1) enhancing Target's Instagram presence to promote in-store engagement and discounts, 2) using geofencing to send customized deals to nearby customers, and 3) a buy-one-give-one holiday toy drive promoted on social media. Strengths, weaknesses, and next steps are discussed for implementing each idea. The document also includes background on Target and competitive analysis to support the proposed strategies.
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Target E-commerce marketing plan
- 1. Lindsey Campbell, ChrisSatterfield, Katie Miller, Jon Greene, Theresa Yang E-commerce to Brick and Mortar 11/18/14
- 2. Meet the Team LindseyCampbell Year: Senior Major: Textile Apparel Management Emphasis: Merchandising Minor: Business Hometown: St. Louis, MO Interesting Fact: I have moved to five different cities in my lifetime. 2
- 3. Meet the Team ChrisSatterfield Year: Senior Major: Business Administration Emphasis: Marketing Minor: Music Performance Hometown: Jefferson City, MO Interesting Fact: I play cello for Mizzou’s orchestra. 3
- 4. Meet the Team KatieMiller Year: Senior Major: Journalism Emphasis: Strategic Communication Minor: Textile Apparel Management Hometown: Quincy, IL Interesting Fact: I am a certified group fitness instructor and teach seven classes a week. 4
- 5. Meet the Team JonGreene Year: Senior Major: Sports Management Hometown: Kansas City, MO Interesting Fact: I've had 4 concussions 5
- 6. Meet the Team TheresaYang Year: Senior Major: Journalism Emphasis: Strategic Communication Minor: Business Hometown: Shanghai, China Interesting Fact: I have a cute nickname called “Penguin”. 6
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- 8. Fast Facts 3rd largestdiscount retailer • 1st - Walmart • 2nd - Costco First store – Roseville, MN, 1962 • 1,801 stores in 48 states; 133 stores in Canada Focus on quality, focus on trends • Affordable prices • Clean stores • Enjoyable shopping Corporate Responsibility • Give 5% of profits annually ($4 million each week) Target.com – 1999 REDcard – 1995 Mobile Retailer of the Year – 2013 8
- 9. Project Analysis “How canTarget use E-commerce and their mobile platform as effective cross-channel marketing tools to drive sales and profitability at their in-store brick and mortar locations?” 9
- 10. Supporting Data/Research Online retailspending grew 14% in 2013. Global e-commerce sales made via mobile devices are expected to top $638 billion in 2018. For perspective, that was roughly the entire size of the world's e- commerce market in 2013. E-commerce sales will represent 8 percent of all retail sales in the U.S. by 2014, up from 6 percent in 2009. In 2009, 154 million people in the U.S. bought something online, or 67 percent of the online population (4 percent more than in 2008). 10
- 11. Competitive Analysis Walmart (LowPrice) • Weaknesses: attract lower class consumers, poor customer service, poor employee benefits • Strengths: distribution system, high profit margin, extreme low prices Nordstrom/Macy’s (Great Customer Service) • Weaknesses: higher price, limited storage • Strengths: exclusive in-store brands, great customer service Amazon (Online/Convenience) • Weaknesses: timeliness, intangible products • Strengths: convenience, variety of items, easier in storing products 11
- 12. SWOT Analysis (Before) Strengths •Recognizablebrand •Social responsibility – education •Strong online and mobile sites •Quality store brands •Clean stores •Fashion apparel •Strong employee presence •Low prices •Department variety Weaknesses •Credit card hack •Higher costs than some competitors •Higher prices than some competitors Opportunities •Young adult market (fashion) •Strengthen store brands •Adapt technology into stores •International markets •Become more personal Threats •Walmart and low-price competition •Online competition •Showrooming 12
- 13. Target “Guest” Median ageof 40 Median household income of $64,000 Approximately 43% have children at home About 55% have completed college 13
- 14. Idea 1: Instagram Enhanceplatform Host Contests Make your followers famous Discounts through photo sharing when in store 14
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- 17. Idea 1: InstagramExample 17
- 18. Idea 1: Pros/Cons 18 Pros: •Go in with friends or family and take photos • Gain more followers • Photo gets looked at by millions of people • Create customer interaction and engagement throughout the store Cons: • Cater more to younger teens than adults • Can only be used by people with mobile devices and have the app
- 19. Idea 2: Geofencing/Geotargeting Geofencing Geo-fencing isa feature in a software program that uses the global positioning system (GPS) or radio frequency identification (RFID) to define geographical boundaries. Geotargeting Customizing an advertisement for a product or service to a specific market based on the geographic location of potential buyers. 19
- 20. Idea 2: Ideafor Geofencing Geotarget guests through geofencing by sending a push notification to their phone, with customized deals and coupons. 47% of shoppers surveyed said they’d be more likely to shop with a retailer if offered promotions while nearby. 20
- 21. Idea 2: Geotargeting Customization Appand REDcard calibration use location services to find customers in 5 mile radius. Allow to customize the deals/promotions for Target guests. 21 Think ahead: Plan for what they will buy, not what they’ve purchased • Example: Guest bought a baby outfit last christmas, now will need an outfit for a toddler.
- 22. Idea 2: GeofencingMobile Coupon Example Meet Susan (A Beloved Target Guest) Demographics Age: 36 Married Two Kids: Ages 7 and 11 Household Income: $75,000 Hometown: Overland Park, KS 22
- 23. Idea 2: Pros/Cons Pros: •Get nearby potential guests in the store • Lead to impulse purchases • Consumers love customization • Increased Red Card Members equals Increased Target loyalty • Offer coupons for slow moving items to increase inventory turnover Cons: • Decrease profit margin for couponed items • Guests may see geotargeting practice as intrusive • Recent data breach has consumers wary of having Target Cards 23
- 24. Idea 3: BOGOHoliday Toy Drive Buy one Give one (BOGO) Guests purchase item and Target donates item of similar value on guest’s behalf. Holiday Themed Toy Drive Goal: 2.5 Million Toys Donated to Children Dates Dec. 1st-25th 24
- 25. Twitter BOGO Hashtag: #BOGOand #TargetToyDrive 25
- 26. Facebook BOGO “Become aReal Secret Santa for a Child in Need” Hashtag: #BOGO and #TargetToyDrive 26
- 27. Idea 3: Pros/Cons Pros: •Introduce New Social Responsibility Platform • Reach a variety of guests through social media outlets • Easily adaptable campaign • Increase Target’s already good Image on being charitable Cons: • Limited reach with social media • Have to go into store to make the transaction 27
- 28. Recap Idea #1: Instagram •Enhance Instagram platform Idea #2: Geofencing • Target customers via geospotting with personalized deals Idea #3: BOGO • In-Store Holiday Toy Drive using social media push. 28
- 29. SWOT Analysis (After) 29 Opportunitybecomes a strength • Young adult market (fashion) • Strengthen store brands • Adapt technology into stores • Become more personal
- 30. To Do List 30 Instagram •Announce promotions and contests • Employees encourage customers take photo in store • Customers must photo share on instagram and use the required hashtags to redeem discount Geofencing/Geotargeting • Inform guests of new REDcard feature • Use guest purchase history to customize deals • Turn on location services for Target BOGO Holiday Toy Drive • Find appropriate charity and pick out toys • Create social media PR campaigns • Promote largely on social media and have cashiers ask at purchase in-store
- 31. Works Cited "Fact Sheet:Quick Facts About Target | Target Corporate." Fact Sheet: Quick Facts About Target | Target Corporate. Target, 2013. Web. 16 Nov. 2014. "Fast Facts | Target Corporate." Fast Facts | Target Corporate. Target, 13 Jan. 2009. Web. 16 Nov. 2014. Schonfeld, Erick. "Forrester Forecast: Online Retail Sales Will Grow To $250 Billion By 2014." TechCrunch. N.p., 08 Mar. 2010. Web. 18 Nov. 2014 Smith, Cooper. "US E-Commerce Growth Is Now Far Outpacing Overall Retail Sales." Business Insider. Business Insider, Inc, 02 Apr. 2014. Web. 18 Nov. 2014. "Target through the Years." Target through the Years. Target, 2014. Web. 16 Nov. 2014. Tode, Chantal. "Target Is 2013 Mobile Retailer of the Year." Mobile Commerce Daily. Napean LLC., 31 Dec. 2013. Web. 18 Nov. 2014. "Top 100 Retailers." NRF. David P Schulz/ Island Pacific and NEC, 01 July 2014. Web. 18 Nov. 2014. 31
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Editor's Notes
- #9 About Target- 3rd largest discount retailer (NFR website ) 1st- Walmart 2nd- Costco First store - Roseville, MN, 1962 1,801stores in 48 states, 133 stores in canada Focus on quality, focus on trends Affordable prices Clean stores Enjoyable shopping Corporate Responsibility Give 5% of profits annually ($4 million each week) Target.com - 1999 RedCard - 1995- remaned RedCard in 2004
- #15 http://www.entrepreneur.com/article/224799 5. Make your followers stars. Choose a follower of the day and promote him or her with an @mention. Similar to Facebook and Twitter, an @mention is how Instagram users tag each other in comments. This can fire up powerful word-of-mouth promotion and deliver more followers and potential customers. Many people -- Instagram photo buffs included -- like to be personally recognized by companies for their loyalty, and they're more than happy to spread the word about their special status within their Instagram network. For example, Sharpie (@Sharpie) showcases Instagram images posted by followers who draw impressive doodles and sketches using, of course, Sharpie markers and pens. The result? Sharpie has attracted nearly 39,000 Instagram followers so far. Encourage customers who walk through the door to take photos in the store with themselves or whoever they are with. Then use a unique and new hashtag like #TargetTakeOver or #TargetTryOn with a familiar, trending hashtag like #TGIF or #Selfie tag with the @Target Instagram ID “Hashtagging is like free advertising” http://www.fox10phoenix.com/story/27258137/alexfromtarget-takes-over-twitter http://www.nydailynews.com/news/national/alex-target-social-media-sensation-article-1.1997459 Target already does post their social media users photos on Twitter (example: Taylor swift cd reposts of customers photos who bought their CD in store) - could use this idea on instagram but encouraging people to try on clothes and accessories and take pictures then posting them on Instagram with specific hashtags to redeem discounts throughout the store creates customer engagement and interaction throughout the store
- #16 http://www.entrepreneur.com/article/224799 5. Make your followers stars. Choose a follower of the day and promote him or her with an @mention. Similar to Facebook and Twitter, an @mention is how Instagram users tag each other in comments. This can fire up powerful word-of-mouth promotion and deliver more followers and potential customers. Many people -- Instagram photo buffs included -- like to be personally recognized by companies for their loyalty, and they're more than happy to spread the word about their special status within their Instagram network. For example, Sharpie (@Sharpie) showcases Instagram images posted by followers who draw impressive doodles and sketches using, of course, Sharpie markers and pens. The result? Sharpie has attracted nearly 39,000 Instagram followers so far. Encourage customers who walk through the door to take photos in the store with themselves or whoever they are with. Then use a unique and new hashtag like #TargetTakeOver or #TargetTryOn with a familiar, trending hashtag like #TGIF or #Selfie tag with the @Target Instagram ID “Hashtagging is like free advertising” http://www.fox10phoenix.com/story/27258137/alexfromtarget-takes-over-twitter http://www.nydailynews.com/news/national/alex-target-social-media-sensation-article-1.1997459 Target already does post their social media users photos on Twitter (example: Taylor swift cd reposts of customers photos who bought their CD in store) - could use this idea on instagram but encouraging people to try on clothes and accessories and take pictures then posting them on Instagram with specific hashtags to redeem discounts throughout the store creates customer engagement and interaction throughout the store
- #17 http://www.entrepreneur.com/article/224799 5. Make your followers stars. Choose a follower of the day and promote him or her with an @mention. Similar to Facebook and Twitter, an @mention is how Instagram users tag each other in comments. This can fire up powerful word-of-mouth promotion and deliver more followers and potential customers. Many people -- Instagram photo buffs included -- like to be personally recognized by companies for their loyalty, and they're more than happy to spread the word about their special status within their Instagram network. For example, Sharpie (@Sharpie) showcases Instagram images posted by followers who draw impressive doodles and sketches using, of course, Sharpie markers and pens. The result? Sharpie has attracted nearly 39,000 Instagram followers so far. Encourage customers who walk through the door to take photos in the store with themselves or whoever they are with. Then use a unique and new hashtag like #TargetTakeOver or #TargetTryOn with a familiar, trending hashtag like #TGIF or #Selfie tag with the @Target Instagram ID “Hashtagging is like free advertising” http://www.fox10phoenix.com/story/27258137/alexfromtarget-takes-over-twitter http://www.nydailynews.com/news/national/alex-target-social-media-sensation-article-1.1997459 Target already does post their social media users photos on Twitter (example: Taylor swift cd reposts of customers photos who bought their CD in store) - could use this idea on instagram but encouraging people to try on clothes and accessories and take pictures then posting them on Instagram with specific hashtags to redeem discounts throughout the store creates customer engagement and interaction throughout the store
- #18 http://www.entrepreneur.com/article/224799 5. Make your followers stars. Choose a follower of the day and promote him or her with an @mention. Similar to Facebook and Twitter, an @mention is how Instagram users tag each other in comments. This can fire up powerful word-of-mouth promotion and deliver more followers and potential customers. Many people -- Instagram photo buffs included -- like to be personally recognized by companies for their loyalty, and they're more than happy to spread the word about their special status within their Instagram network. For example, Sharpie (@Sharpie) showcases Instagram images posted by followers who draw impressive doodles and sketches using, of course, Sharpie markers and pens. The result? Sharpie has attracted nearly 39,000 Instagram followers so far. Encourage customers who walk through the door to take photos in the store with themselves or whoever they are with. Then use a unique and new hashtag like #TargetTakeOver or #TargetTryOn with a familiar, trending hashtag like #TGIF or #Selfie tag with the @Target Instagram ID “Hashtagging is like free advertising” http://www.fox10phoenix.com/story/27258137/alexfromtarget-takes-over-twitter http://www.nydailynews.com/news/national/alex-target-social-media-sensation-article-1.1997459 Target already does post their social media users photos on Twitter (example: Taylor swift cd reposts of customers photos who bought their CD in store) - could use this idea on instagram but encouraging people to try on clothes and accessories and take pictures then posting them on Instagram with specific hashtags to redeem discounts throughout the store creates customer engagement and interaction throughout the store
- #19 Pros: -Go in with friends or family and take photos -Mom doesn’t have instagram but would make me post the photo with her to get the discount -Gain more followers -Photo gets looked at by millions of people -creates customer interaction and engagement throughout the store Cons: -Cater more to younger teens than adults -Can only be used by people with mobile devices and have the app
- #29 Idea #1Instagram Enhancing Instagram platform Idea #2 Geofencing Target customers via geospotting with personalized deals Idea #3 BOGO In-Store Holiday Toy Drive using social media push. Target will donate a toy on guest’s behalf after the guest purchases a toy of equal value.
- #31 Instagram Target uses Twitter to announce promotions and contests Employees encourage customers throughout the store to take a photo and post it on Instagram Customer must photo share on instagram and use the required hashtags as well as follow and mention @Target then show the employee to redeem discount on that item or brand Geofencing/Geotargeting Use guest purchase history through Red Card to customize deals Update Target app legal disclaimer, turn on location services for Target Inform guests of new Red Card feature BOGO Holiday Toy Drive Find appropriate charity Pick out toys that will be donated create social media PR campaign using the platforms of Twitter and Facebook Promote largely on social media and have cashiers ask at purchase in-store “Would you like to participate in our BOGO Holiday Toy Drive Today?” “Target will donate a toy on your behalf”