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Target Corp. Christine Toner, Haley Washington, and Sarah Yoos Food Retailing M, W, F 10:10 AM Case Challenge Project 1

FMK Retailing - Target Project

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Page 1: FMK Retailing - Target Project

Target Corp.

Christine Toner, Haley Washington, and Sarah Yoos

Food RetailingM, W, F 10:10 AM

Case Challenge Project

1

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Agenda

› Project Overview

› Private Label SWOT Analysis

› Strategic Initiative

› Happy Hour Plan

› Program Support

› Implementation & Results

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Project OverviewCHALLENGE 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, Target’s

consumers, and the gross profit margin.

Source: Class Documents (Crowley)

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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, Hoover’s

Become a part of the Millennials schedule

Promote deep discounts

Increase end of month traffic and sales

Leverage product variety

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Strategic InitiativeObjectives Initiative

Source: Ad (Group Generated)

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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

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Program Support

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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

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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!!

Christine Toner
what's the deal with the last two picture? Do you think the can read the top 10 Millennial Brands chart/pic when it is project on the screen?
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Source: Qualtrics Survey 2015 (Group Generated)

Consumer Research

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91%

› Used Qualtrics

› Facebook & Email

› 100 people surveyed

› Majority age range 19-35

Survey

Would you be interested in purchasing Target’s private label grocery products if there was an allotted BOGO sale time

(5pm-8pm) for these items ?

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Why This Time Frame?

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› 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?

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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

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Why BOGO?› Drastic Price Reduction...gains attention!

› Opportunity for high-volume product movement

Source: Ad (Group Generated)

Christine Toner
have some type of number ready on this slide in case of questions
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Implementation & Results

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In-Store ImplementationHappy Hour Endcap Sampling Bar

Source: Boomisland.com, Sunflowergroup.com

Christine Toner
write cost and ROI of both
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Playlist

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Human Capital ConsiderationsETL Front End Logistics

Source: Glassdoor, Conversations with Target ETLs/SJU Alums

Two Additional Front End Associates

Two Additional In-Store Logistics Associates

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Financial Impact

*Estimated Costs; Human Capital excludes ETL costSource: 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

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Strategic Mapping

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RecommendationHappy Hour

› Leveraged Critical Thinking Skills

› Value Created Action Plan

› Appropriate Given Considerations:

› Store-Level Implementation

› Specific to Philadelphia marketSource: Ad (Group Generated)

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Thank You!Questions?

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Works Cited› Deloitte University Press

› Slideshare.net

› Hoover’s

› 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)