Colby GrabAdam de LaveagaBrett Bartell

Slide 1:Colby Grab Adam de Laveaga Brett Bartell

Hitting the Bulls Eye

Slide 2:Entities of the Target Corporation

The Target Corporation, formerly known as the Dayton Hudson Corporation, consists of three companies: 1. Target Stores - Upscale Discount 2. Mervyn�s Stores - Moderate Priced Retail Marshall Field�s Stores - Upscale Retail

Slide 3:Target Retail Stores

Target Retail Stores Mission Statement:�To give guests the best product at the best value, and to give generously to the communities where Target does business.�

Slide 4:Target Retail Stores- Success

Placing 25th on the Fortune 500 List. Placing in the top 50 in Forbes� top 500 list. Placing in the top 5 in the General Merchandisers industry ranking. Rated �one of the top 100� by Business Ethics Earning 2003 revenues of $48 billion. Success in 2003 is highlighted by:

Slide 5:History of Target Stores

Executives from the Dayton Corporation recognized the growing demand for reasonably-priced goods available at convenient locations. As a result, the first Target store was opened in Roseville, Minnesota in 1962. Built upon strong values of community giving, Target stores continued to grow. During the 1980�s, Target began to expand into new parts of the United States, opening stores on the west coast. Also, during this time, Target implemented electronic scanning. In 1995 Target opened their first SuperTarget store As of 2003, Target operates 1,147 stores in 48 states.

Slide 6:SWOT Analysis

Strengths Convenience �one stop shopping� Strong Brand Identity Strong Financial Performance Target �Experience� Innovative Advertising

Slide 7:SWOT Analysis

In 2003: Total Revenues reached $48.163 billion. Target Retail Stores alone: $41.346 billion. Net Earnings reached $1.84 billion. Strengths: Financial Performance

Slide 8:SWOT Analysis

Weaknesses Marshall Field�s and Mervyn�s - Poor Performance Failed �Smart Card� - Insufficient Promotion Customer Service Systems - Feedback Avenues Employee Benefits - Versus Competitors

Slide 9:SWOT Analysis

Weakness: Poor performing Mervyn�s and Marshall Field�s

Slide 10:SWOT Analysis

Opportunities Potential target markets - Hispanic Americans Multicultural marketing - �Tweeners� Potential market opportunities & social trends - SuperTarget stores Technological opportunities - Internet and online media retail Environmental involvement

Slide 11:SWOT Analysis

Opportunities: Hispanic-American consumers Facts: Since 1993, the Hispanic-American population has increased by 14 million individuals. The current total population of Hispanic-Americans has risen to 35.3 million people. Internet Marketing: Hispanic consumers spend 2.5% more time online than non-Hispanic consumer. By 2020, the number of Hispanic teenagers are expected to increase by 62% versus a 10% increase in total teenagers. Hispanic teenagers hold $19 billion in spending power, and spend 4% more than non-Hispanic teens.

Slide 12:SWOT Analysis

Threats Competition SuperTarget store success - New competitors - New markets Resistance to Target stores Saipan sweatshop concerns Economic Threats

Slide 13:Target Market Strategy

Market Segments: Gender Geography Age Income Ethnicity Family Cycle An understanding of these target markets is vital. Trends play a large role within each demographic.

Slide 14:Target Market Strategy

Store Distribution (random sample of states)

Slide 15:Target Market Strategy

Median household income of $54,000 Median age of 44 80% female Family-oriented

Slide 16:Target Market Strategy

Baby Boomers: Convenience Example: online shopping Easy access to advertisements Generation X: Creative marketing Focus on specific product categories Example: electronics; luxury items Promotional events

Slide 17:Target Market Strategy

Generation Y: Media-saturated Brand conscious �BullsEye Online� New brand introduction Tweeners: Growing segment Increase in buying power Name brands

Slide 18:Target Market Strategy

Amenities include: Bank Bakery Food Avenue Photo studio One-hour photo Optical center Pharmacy Starbuck�s Krispy Kreme Donuts

Slide 19:Target Market Strategy

Ultimately, service is the key differentiator between competitors in any field. Discount retailing isn�t simply selling products at low prices, but understanding that customers need the highest level of quality to be satisfied. Aesthetically pleasing environment Service-driven employees Quality partnerships

Slide 20:Target Market Strategy

Built amazing brand equity through innovative marketing campaigns.

Slide 21:Product

Core Product: Convenient and exciting shopping experience Perfect mix of fun, excitement, convenience One-stop shopping location Store Environment Large signage, superior lighting, minimal aisle clutter, cleanliness Actual Product: Wide range of quality items � tends to have one brand of each House brands � Sostanza, Merona, Honors, Cherokee Benefits: In-store services Financial services

Slide 22:Product

Product life-cycle = growth stage Increase in sales and profits Emergence of competitors � Wal-Mart, Costco, Kmart Heavy advertising to build company/brand loyalty

Slide 23:Product

Brand name: �Target�s bull�s eye still �hitting the mark with consumers� �Target� has certain charisma � accuracy, fun, excitement Flashy red symbol recognized by 74 percent of consumers on the first try Goal � make the Target logo �as big as the Nike swoosh� Customer satisfaction In the core product � maintain energetic/appealing atmosphere Offering desirable products and competitive prices Universal return policy

Slide 24:Product

Customer value Store positioning Recognition Inconvenience: further distance, heavier traffic Less adequate customer service and higher prices Element of shopping experience are added value Incredible selection of unique and name brand labels In-store services Customer service Representatives Feedback � with manager or guest service hotline

Slide 25:Distribution

Online shopping Contracting separate shipping company � UPS Limits overhead expenses � trucks, drivers, organizational systems Distribution centers 19 centers owned and operated nationwide Marshall Field�s: Illinois, Michigan, Minnesota Mervyn�s: California, Texas, Utah Target: New York to Florida to California

Slide 26:Distribution

Access to facilities High access Stand-alone stores vs. stores attached to malls Improvements Parking lots High traffic = high stress and high anxiety Location and visibility Chosen based on target markets Strategic expansion Recognition of bull�s eye logo � extreme or subtle

Slide 27:Distribution

Atmosphere Wide aisles, clear of clutter, well-lit and organized Friendly and helpful employees Noise Music from electronics section Metal hangers Cash registers Two customer types: edgy vs. leisurely

Slide 28:Advertising

Target employs a number of various effective media sources They don�t look at advertising as purely paper and film Dominated awards shows � most winning retail organization Television Direct mail Magazine Internet

Slide 29:Advertising

Focus on pop-culture; especially in the last 2 years First retailer to put its name on a stadium Timberwolves Arena $250,000 Co-branding Lowers costs Maximize exposure Consistency Logo �Fun & friendly�

Slide 30:Public Relations

Community giving Give away $2 million per week Education Arts Social services Recent bad publicity US Veterans email Response / recovery Critical to this corporation

Slide 31:Personal Selling

Relationship selling Satisfaction for customer and seller; mutual benefits Building, maintaining, and enhancing customer interaction

Slide 32:Personal Selling

Employee compensation Less attractive than competitors� Discounts at all store locations Savings on prescriptions, discounts on airfare, car rentals, and hotels Flexible scheduling Structured sales force Managers provide direction Match sales staff with target groups Cosmetics vs. electronics

Slide 33:Sales Promotions

Rebates Premiums Point-of-Purchase Target acts as an intermediary Link between producer and consumer The �specials� aren�t necessarily efforts on behalf of Target Consent of the parent company

Slide 34:Sales Promotions

Weekly Ad Found in newspapers, stores, and online Feature a large variety of products Target Guest Card / Target Visa �Rewards programs� Encourage loyalty Another element of community-giving SmartCards Actually on behalf of Target Consumers reap huge benefits

Slide 35:Price

Determines what the customers buy and where they buy it! Penetration pricing Captures large portion of the market with low pricing Can�t compete on price alone Focus on quality of products and services Differentiate to remain competitive

Slide 36:Price

Disadvantage: Don�t employ a specific program to evaluate customer satisfaction in relation to prices Psychologically� Price can subconsciously affect consumers� buying decisions Low price = better deal? Low price = lower quality? All types of payment options accepted Consistent convenience for the consumer