FMK Retailing - Target Project

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  1. 1. Target Corp. Christine Toner, Haley Washington, and Sarah Yoos Food Retailing M, W, F 10:10 AM Case Challenge Project 1
  2. 2. 2 Agenda Project Overview Private Label SWOT Analysis Strategic Initiative Happy Hour Plan Program Support Implementation & Results
  3. 3. 3 Project Overview CHALLENGE QUESTION: CHALLENGE GOAL: How can Target Increase Traffic and Consumption of Its Private Label Brands? Create an actionable initiative in the PHILADELPHIA MARKET while considering STORE-LEVEL IMPLEMENTATION, Targets consumers, and the gross profit margin. Source: Class Documents (Crowley)
  4. 4. 4 Own Private Label - SWOT Analysis Strengths Extensive product portfolio Not homogenous Weaknesses Brand loyalty nonexistent Lack of major discounts Opportunities Direct consumer engagement Professional, cosmopolitan Millennial market Threats National brands marketing mix and competitive pricing Last 2 weeks of the month Source: Deloitte University Press, Slideshare.net, Hoovers Become a part of the Millennials schedule Promote deep discounts Increase end of month traffic and sales Leverage product variety
  5. 5. 5 Strategic Initiative Objectives Initiative Source: Ad (Group Generated)
  6. 6. 6 Happy Hour Plan What: Exclusive Offer Who: Professional Millennials When: Last Two Thursdays of the Month Time: 5 pm - 8 pm Price: BOGO or BOGO 50% Why: Drive Traffic To Private Label Low-Risk Trial Incentive For Shoppers
  7. 7. 7 Program Support
  8. 8. 8 Industry Best Practices Fridays 4 pm - 7 pm & Saturdays 11am - 2 pm Select Kroger cookie brands Awareness via Social media Source: Supermarket News, Twitter.com/kroger Cookie Happy Hour
  9. 9. 9 Target: Millennials Source: Philadelphia Magazine, Businessinsider.com, Litcollegetour.com, Pewtrusts.org, U.S. Census Bureau 6.1% Increase in Philly Market On-The-Go; Price-Conscious; Tech-Savvy; Brand Ambassadors Live for the EXPERIENCE!!
  10. 10. Source: Qualtrics Survey 2015 (Group Generated) Consumer Research 10 91% Used Qualtrics Facebook & Email 100 people surveyed Majority age range 19-35 Survey Would you be interested in purchasing Targets private label grocery products if there was an allotted BOGO sale time (5pm-8pm) for these items ?
  11. 11. Why This Time Frame? 11 Shop for weekend needs Summer Shore Schedule Exclusivity factor Generate end of the month sales Balance government assistance spending in beginning of the month 55%35% 9% Source: Qualtrics Survey 2015 (Group Generated) Two Thursdays per Month What time of day would you prefer this BOGO sale?
  12. 12. 12 Social Media Input Source: Ad and Hashtags(Group Generated) Facebook, Instagram and Twitter Engage With Consumers Create Buzz Discovery #s: #Targethappyhour #ThursdayBOGO Reinforcement #s: #targeturnup #afterworktargetfun
  13. 13. 13 Why BOGO? Drastic Price Reduction...gains attention! Opportunity for high-volume product movement Source: Ad (Group Generated)
  14. 14. 14 Implementation & Results
  15. 15. 15 In-Store Implementation Happy Hour Endcap Sampling Bar Source: Boomisland.com, Sunflowergroup.com
  16. 16. 16 Playlist
  17. 17. 17 Human Capital Considerations ETL Front End Logistics Source: Glassdoor, Conversations with Target ETLs/SJU Alums Two Additional Front End Associates Two Additional In-Store Logistics Associates
  18. 18. 18 Financial Impact *Estimated Costs; Human Capital excludes ETL cost Source: Glassdoor, Target.com, Costs Per Store Per Happy Hour Human Capital (4 additional associates)...$72 In-Store and Point-of-Sale Signage.$750 Social Media Advertisements....$200 Product Sampling.$150 Supplies and Misc. $200 Maintenance$36 Event Insurance.included in store insurance policy Total Costs: $1,408 Expected gains: $4,000 Initiative ROI: $2,428
  19. 19. 19 Strategic Mapping
  20. 20. 20 Recommendation Happy Hour Leveraged Critical Thinking Skills Value Created Action Plan Appropriate Given Considerations: Store-Level Implementation Specific to Philadelphia market Source: Ad (Group Generated)
  21. 21. 21 Thank You! Questions?
  22. 22. 22 Works Cited Deloitte University Press Slideshare.net Hoovers Supermarket News Philadelphia Magazine BusinessInsider.com Litcollegetour.com Qualtrics Survey 2015 (Group Generated) Twitter.com/kroger Class Documents (Crowley) Ad(s) and Hashtags (Group Generated)