FMK Retailing - Target Project
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Transcript of FMK Retailing - Target Project
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Target Corp.
Christine Toner, Haley Washington, and Sarah Yoos
Food RetailingM, W, F 10:10 AM
Case Challenge Project
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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!!
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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)
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Implementation & Results
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In-Store ImplementationHappy Hour Endcap Sampling Bar
Source: Boomisland.com, Sunflowergroup.com
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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)