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 Target Corporation Marketing Plan205740076200Team Members: Coleman Foley, Hannah Hall, Lisa Misch, Tamas Peterson, Emily Tani-Winegarden and Leonard VibbiTable of ContentsExecutive Summary - 3Target Specification and Assessment of Current Marketing Strategy - 5Environmental Trends- CDSTEP - 8Competitive Analysis - 17Target SWOT Analysis - 19Segmentation of Viable Markets - 20Targeting - 23Positioning Marketing Mix - 24Implementation, Timeline, ROI - 28Appendices - 31Executive Summary -9524219075Target Corporation Strategic Marketing Plan -Meeting the Needs of a Changing Demographic-9524219075Situational Analysis In an environment where fresh and locally grown produce have become increasingly important to the American people, a farmers market fits well with Target guests. Another rising trend involves utilizing various retail channels, such as online, mobile devices, open- air, or in-person to appeal to guests, rather than simply traditional brick and mortar stores. Demographic ChangesAs the American population is growing and changing, the increase in Hispanics, specifically the 36 % of Hispanics who consider themselves bicultural - identifying both with their Hispanic roots and American traditions - offer a new market segment to infiltrate with the Target “Expect More. Pay Less.” mentality. Additionally, technology has experienced a shift becoming more prevalent in its use in the market place. Buying, viewing, and sharing products across online social media channels has become the norm, which greatly influences how guests interact with a store while there.TargetMarket Market ProfileWe work to appeal to a variety of guests, with a heavier influence upon women, particularly, young Hispanic women. Our guests are at a transient point in life, the median age being 30 and typically being a young professional or entering the stage of starting a family. The typical guest connects to her Hispanic roots, values family, technology and authentic food,and also identifies with younger American culture, finding value in ease, accessibility and local goods. What is TargetMarket?The mission of the TargetMarket is to offer a monthly local farmers and artisans market in the parking lots of Target, instigating community involvement while also drawing new guests to Target. At the TargetMarket guests will have access to local and authentic foods and products, helping the local community while also offering brand awareness for Target. Through the use of a ‘Target stand’ that has a family-centered theme each month, Target will interact directly with new guests, providing them with promotional deals in order to draw the guest back, not only to the next TargetMarket, but also to the Target store. The Target stand will provide people with connections to Target online and Cartwheel; incentives that will drive guests to shop at the Target store. Finally, TargetMarket entices the guest to come inside Target stores through promotions for grocery goods not sold at the farmers market and highlighting recipe cards featuring a product from the market as the main ingredient, but also with other ingredients found in Target. The promotion of TargetMarket comes through various channels in order to reach the guest. A typical ad would focus on internet ads: e-mail, flyer, ad over CartWheel, or an invitation to an event on Facebook. With utilizing social media, TargetMarket would have a weekly spotlight on a vendor and their products through Twitter and Facebook. There would also be an interactive component by having guests post their ‘best find’ picture on Facebook or Instagram at TargetMarket. Target would then pick the best weekly photo and post it to Target’s Facebook and Instagram with the hashtag #bestfind and #TargetMarket. The winner of the selected best photo would receive a small promotional gift, such as a farmer’s market tote bag with the Target Bullseye design. Other ad possibilities include radio advertisements or word of mouth through the use of flyers. Why is TargetMarket Appealing to New Markets? Our target market typically prefers a retail shopping experience that promotes fresh local food, family and community atmosphere. We believe that our research supports that TargetMarket will appeal to this new influential market as Hispanics spend more money on food related items such as groceries and are likely to buy more organic food because they value the organic food production. Generally this includes fresh fruits and vegetables, poultry, eggs, and dairy products. Overall, Hispanics advocate a retail product assortment that supports a family-friendly focus.How Will TargetMarket Fit into Target’s Existing Market?TargetMarket offers existing guests exactly what they need: great value at a great price with no hassle. Meaning, TargetMarket stays true to “Expect More. Pay Less.” but also promotes a sense of community while providing new opportunities for guests to visit Target.TargetMarket will cater to the shopping needs of Target’s existing market due to the compatibility of farmers markets to current Target guests. An AgEcon study conducted in California displayed that 56% of farmers market shoppers were females and 61% married. Other research shows that the mean age of shoppers is 46, with a mean income of $56,000 and with a mid to high level of education. Promoting TargetMarket to existing guests would be easy for Target because of the already existing marketing channels, such as petitive Advantage Target Market is a novel and innovative opportunity to offer guests a new shopping experience that cultivates a sense of community through a family-centered gathering space that offers fresh produce ‘locally grown and straight to your home’. Additionally, by providing various amounts of new products at a minimum cost to Target, Target can analyze the products that each TargetMarket always sells, contemplate partnering with that company, and incorporate their product into Target’s arsenal.26241380Target Specification and Assessment of Current Marketing Strategy Target Corporation MissionTarget’s mission is to make Target stores the preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling their “Expect More. Pay Less.” brand promise. Target aims to surprise customers with deals, high-quality owned-brand products, innovative partnerships and exciting marketing efforts that speak to the way guests live.As America’s largest corporate philanthropists, volunteerism is at the heart of Target.” Case Study ObjectivesTo identify potentially influential new markets in American retail due to changing demographics.Develop marketing strategy to appeal to growing target market.Target’s Current and Future GoalsReaching guests in recently opened stores in Canada. Developing Ship from Store option for online customers for same day or next day rush delivery.Build up an urban core of customers through smaller format stores in Metropolitan areas with CityTarget and TargetExpress.Include fresh groceries into existing stores as a sales driver.Omnichannel retailing: continue to develop connections between in-store, online, and mobile experiences through various programsCartwheel, BabyCenter, Target Ticket, Pinterest Rich PinsTarget MarketTarget appeals to a range of customer segments, including women, kids, teens, young singles and families. Typically, customers are well-educated, moderate-to-better income families who live active lifestyles.Median age is 40. Median annual income of $64,000.57% have completed college.43% have children at home. Marketing MixProductTarget is dedicated to providing guests with the right merchandise mix, from everyday commodities and grocery offerings to trend-right home and apparel lines.Target markets merchandise in five categories: consumable and commodities; toys, electronics, entertainment and sporting goods; apparel and accessories; home furnishings and décor; and food and beverages.Target Corporation is well-known for its highly successful formula of offering discounted general merchandise but also stocking inexpensive designer products to attract relatively affluent customers.According to Jeff Jones, Target’s Chief Marketing Officer, “Target is able to stay ahead of it’s time with brands partly because of their ability to tap designers when they are reaching one of the pinnacles of their career,” PriceNation’s second-largest general merchandise discount chain, marketer of “cheap chic”Price Match guarantee that ensures best price.REDcard holders receive extended returns and free shipping from 5% rewards and pharmacy rewards with REDcard.Owned brands: from Merona separates to Archer Farms’ high-quality foods to Threshold’s stylish home décor, exclusive brands offer affordable, national-brand quality. 10 brands topping $1 billion in annual sales each.PlaceTarget has a global presence with a headquarters location in India and sourcing offices around the world.Large focus on reliability for customers, meaning, Target focuses on having what customers want, when they want it, and where they expect to find it.New Target stores range in size from approximately 127,000 square feet to approximately 174,000 square feet. Additionally, Target operates 37 distribution facilities nationwide.Reaching guests in new ways: opening 124 Target Canada stores and new stores in the U.S. in 2013.Focused on providing amazing service in stores, testing new layouts and experiences by integrating digital capabilities with personalized service.Target has an emphasis on customer service by focusing on increasing customer visit frequency by creating a more convenient shopping experience that meets their active lifestyle needs.PromotionUse of social media: Pinterest, Facebook, Twitter, YouTube.Launch and success of Cartwheel and enhanced Target app.Cartwheel: first-of-its-kind social savings experience developed in partnership with Facebook. Allows for guests to save on thousands of items throughout stores. More than 4.9 million users save $36 million in first eight months.Weekly ad: reaches millions and evolves based on how and where consumers shop. Engage customer through interactive social sharing options so that customers can share favorite products and deals with friends and family.In 2013 integrated campaigns included the Everyday Collection, back-to-college and #MyKindOfHolidayRetail Industry OverviewThe retail industry has been growing steadily since 2009 at 1.9%Retail is currently valued at nearly 3 billion dollars annually.Currently the top three companies represent almost 20% of the market:Walmart:11%CVS Health Corp.: 3.3%Kroger Co.: 2.9%Online retail has seen a 42% increase in market size from 2009 to today.262413828575Environmental Trends - CDSTEPSocioculturalHouseholdsThe USA’s population is predominantly urban. In 2012, 82.6% of the population lived in urban areas and by 2030 approximately 86.0% of the population will be living in an urban setting. A recent study by the Pew Research Center revealed that 40% of all households with children under the age of 18 years-old include mothers who are either the sole or primary source of income for the family, up from 11% in 1960.Retail Shopping Values and BehaviorHundreds of fashion magazines, TV shows, and blogs have declared what they have identified as the latest fashion trends and many eager consumers continue to follow their lead.Over the 2008-2013 period, the best performing consumer spending categories were education and health goods and medical services while household goods and services and miscellaneous goods and services were categories with the weakest growth.Environment, Going Green, and Natural FoodDespite the recession, issues such as sustainability, health, world poverty, animal welfare and food safety have become increasingly important factors guiding shoppers’ purchasing decisions.From beauty products to household goods and groceries, terms such as “natural”, “organic”, “locally sourced”, and “fair trade”, have begun to feature increasingly on labels and ingredient lists, and many consumers are willing to pay a premium for them.In the case of “organic” products, 45% of college educated Americans were willing to pay extra, compared with 33% of those educated only to secondary school level.There was a large gap between men and women when it came to the importance attributed to “green/environmentally friendly”: 37% versus 44%, respectively.The USDA reports that in 2011, there were 7,175 farmers’ markets in operation, compared to just 2,863 in 2000. In the last four years alone, their number rose by 53% as a result of growing consumer demand.Fitness and Health“The fact of the matter is, America is obsessed with dieting and weight loss, but the majority of Americans aren’t eating healthier or getting thinner,” said Joe Redling, chairman and CEO of Nutrisystem, Inc.In 2012, 36% of American adults were deemed obese (up from 33% in 2005) while 33.1% were deemed overweight (down only slightly from 33.3% in 2005).American consumers are very comfortable buying and taking over-the-counter (OTC) drugs to treat their symptoms and maladies, OTC drug sales reaching more than US$21.6 billion in 2012.DemographicPopulationEstimated total US population in 2013 is 316,128,839.By 2050, the US population is projected to reach almost 440 million. IncomeThe median household income in the US was $51,371 in 2012. High income inequality has an impact on consumer spending patterns; the wealthiest decile accounts for 32.3% of the country’s total consumer expenditure. The poorest decile allocated 34.4% of total spending to cover basic needs of food, non-alcoholic beverages and housing in the same year. Changing Trends in Non-Hispanic WhitesDemographic trends in the U.S. are making white households older and smaller than they used to be. The non-Hispanic white population is projected to peak in 2024, at 199.6 million, up from 197.8 million in 2012. Unlike other race or ethnic groups, however, its population is projected to slowly decrease, falling by nearly 20.6 million from 2024 to 2060. Hispanics Population and Geographic Distribution The Hispanic population is expected to more than double, from 53.3 million in 2012 (13% of population) to 128.8 million in 2060 (31%). By then, nearly one in three US residents will be Hispanic. In 2012, 64% Mexican, 9.4% Puerto Rican, 3.8% Salvadoran, 3.7% Cuban, 3.1% Dominican, and 2.3% Guatemalan. 10 million Hispanics live in Texas as of July 1, 2013.55% of all Hispanics live in California, Florida and Texas as of July 1, 2013.14.7 million Hispanic population in California; the highest population of any state.Shopping Behavior and ValuesHispanics exhibit a 43% higher level of name brand buying than general population. They also shop more often and typically shop as a family.Upscale “Latinos” (household with $50,000 to $100,000 annual income) boast 40% Hispanic spending power. Hispanics were found to be more likely than non-Hispanics to be buying family- related items such as children’s clothing, household furniture, and accessories. Hispanic segment has high propensity to use cash.A study by Lapiz revealed that for Latinos, “shopping is not a process or a chore; it's a multi-source, multi-sensorial and multi-generational experience.”Due to high number of remittances and their love for status brands, oftentimes corners are cut in costs in the area of home care and hygiene. Young Hispanic women tend to spend disproportionate amounts on beauty products, more likely to equate more expensive brands with higher quality.FamilyResearch on Hispanics consistently identifies family as the most important cultural value and institution in the Hispanic culture.There exists a strong identification and attachment to family members, both nuclear and extended, along with a deep awareness and pride in family.Language and CultureLanguage is important; 60% of Hispanic-Americans prefer to communicate in Spanish; just 21% prefer English.Hispanics are divided into four clusters based on low or high American and Hispanic identification. The largest cluster is Biculturals (36.1%) who identify to some degree with both American and Hispanic culture.Specific cultural attitudes and behaviors that differentiate Latinos of diverse levels tend to be more strongly endorsed by those in the lower 40% economic class.There’s a tendency for better-off Hispanics to endorse US values more.95% of Latino adults who speak Spanish say it is important for future generations to continue to do so.Going ‘Green’Over half of Hispanic respondents globally considered the factors “fair-trade”, “green/environmentally- friendly” and “sustainably produced” to be important when considering a purchase. Using and Sharing Online Discounts84% of Hispanics have searched for and used a digital coupon vs. 71% overall US population.80% have used discounts from a mobile device or downloaded them to a loyalty card vs. 66% overall.70% have used coupons found on social media sites vs. 54% overall.61% said they have shared coupons via social media vs. 39% overall. MillennialsPopulationIn 2012, the number of young adult Millennials (born between 1977 and 2000) reached 80 million.Shopping Behaviors“84% of Millennials shopped online during the previous three months, slightly above the roughly eight in 10 Gen Xers who did so. But, Gen Xers spent about 15% more online (US$561) than Millennials (US$489).” Similar to Hispanics, Millennials have a high propensity to use cash.Engaging with InternetMillennials comfort level with technology has them engaging online, while other generations lag behind in adjustment. Millennials like to handle their finance themselves, and do so primarily online. ThriftAn article in Forbes magazine summed up young US consumers: “Lack of cash, skepticism about big business, a preference for customized products and heuristic purchasing experiences and possibly a lifelong tendency toward scrimping? Retailers have a right to be nervous about the Millennial market.”Millennials are price conscious and deal savvy, using apps to seek out the best deals and promotions. Deals actually account for 31 percent of shopping dollars. EducationDespite increasing tuition costs, more students are prioritizing higher education as they face an increasingly competitive job market. Millennial college graduates 25-32 who are working full time earn about $17,500 more annually than employed adults holding only a high school diploma.In 2010, a record 36% of women ages 25-29 had attained a bachelor’s degree. This compares with 28% of men in the same age group.LifestyleAmerican Millennials, are typically attending university, undertaking job training or starting new jobs. They are mainly seeking to advance their career status and/or establish their lives; marriage, children, and homebuying.Celebrities are held in great esteem to general public, especially among teenagers, and can have powerful influences on marketing strategies. Millennials are a very progressive group of consumer, promoting self-worth, often at the front of social and environmental change campaigns. TechnologyTechnology Trends in United StatesThe US shows significant penetration of internet user; over 80% of the population uses the internet. Over 92 million US residents have access to broadband internet in their homes. By 2012 over 50% of households had smart phones. That number rose to over 60% in 2013. Tablets and other mobile computers showed similar growth and penetrated 49% of households. Smartphone apps have been developed allowing consumers to take pictures of barcodes and find and order the same product online at a cheaper price.In the wake of Target’s data breach in December 2013, many consumers are expected to increase their use of cash for purchases. This makes online shopping with cash more appealing even to consumers with credit and debit cardsInternet RetailingBy 2012, 72% of US consumers considered themselves either ‘confident’ or ‘experts’ in researching and purchasing products online.Mobile internet retailing is one of the fastest growing areas of US commerce. In 2013, the channel accounted for 12% value share of overall internet retailing up from 8% in 2011. E-commerce retailers are developing mobile shopping apps that allow consumers to find items online even if they are in a physical store location.US internet sales in 2013 totaled $208 billion; a 127% growth since 2008. Indoor positioning systems (eg iBeacon) offer the potential for retailers to enhance the shopping experience with location-specific messages, augmented reality apps, instant couponing and even self-scanning facilitiesDevelopment of more secure payment methods, simplified checkout processes, expert advice, free shipping and returns, click-and-collect options and consumer reviews will attract more consumers to online shopping. Internet Retailing Outlook and Competitive remained the largest e-commerce retailer in the country with 17% value share of all online shopping. The company is looking to expand its share in categories that have not seen widespread e-commerce adoption; luxury beauty products, online grocery shopping with AmazonFresh.Internet retailing is predicted to grow by 11% in 2013. Growth will be driven by a variety of products ranging from consumers appliances to packaged foods.By 2016, mobile internet retailing is expected to comprise 18% value share of overall internet retailing. Social MediaAs of January 2014, 74% of all internet users use social networking sites.Internet users ages 18-29 lead social media usage at 90% (2005-2013).40% of cell phone owners use social networking on their phones, 28% do so everyday. Hispanics use social networking sites on their phone at the highest rate of any ethnicity; 49%.38% of those who use social networking sites (SNS) or Twitter use those social media to “like” or promote material related to politics or social issues that others have posted.EconomicDebt and UnemploymentAccording to the Federal Bank of New York, student loan debt totalled US $966 billion, resulting in educational debt being the largest source of debt in the country behind mortgages.Unemployment rate for 18-to-34-year-olds has fallen from 13% in 2010. Millennials face 8.6%unemployment, higher than the national average of 5.9%.Student loan debt surpassed $1 trillion in the second quarter of 2014.Post-RecessionRecession has affected Millennials in their consumer behavior and attitudes. With the pressure to repay debt from student loans, consumers of this age group are forced to live more frugally than anticipated.Due to recession, many US consumers postponed expensive purchases or completely avoided them. With the improving economy consumer demand for items like new cars, furniture, and appliances has increased.In 2013, the emphasis on finding the best price has been reduced and broadened to now include such criteria as high quality, store cleanliness, neatness, and accuracy in shelf labels.Recession has affected Millennials in their consumer behavior and attitudes. With repayments to cover student loan debt they’re forced to live more frugally than anticipated.Influence of Hispanic MarketHispanic consumer spending is growing at a faster rate than Non-Hispanics +74% increase in Hispanic consumer spending over the next 10 years vs. +36% among Non-Hispanics.Consumer research firm Nielsen estimated the buying power of the U.S. Hispanic market at $1.1 trillion for 2011 with expected growth to $1.5 trillion by 2015.PoliticsThe federal government influences employers’ decisions about whether to offer benefits like pensions and health insurance through direct legislation, such as ERISA and the Age Discrimination Act and through social insurance programs, such as Social Security and Medicare. As the U.S. population ages, the social and economic demands on individuals, families, communities, and the government will grow, with a substantial impact on the formal and informal health and social care systems and on the financing of medical services in general. With an ageing population, questions remain about the best health system organization, delivery of and access to services, administration, and financing. The Patient Protection and Affordable Care Act (P.L. 111-148) recently enacted health reform legislation, may address some of these concerns, but could also exacerbate provider shortages and do little to control growing healthcare costs or reduce inefficiency. 2624138114300Competitive AnalysisAmazonOnline Grocery $299 per year subscription for a single household Implemented in West Coast test areas to 20 urban centers across the U.S., order groceries online and have same-day or next-morning deliveryFree delivery on orders over $35 delivered when orderedShop from local merchants and enjoy delivery alongside other AmazonFresh groceriesAll benefits of Prime: free two-day shipping, access to movies and television shows, and the kindle library E-commerce sales from : $68 has confirmed plans to enter brick-and-mortar business this holiday season, with kiosks in San Francisco and Sacramento to show off tech gadgets.A poll of 1,762 consumers by Bizrate Insights found that 66.7% didn't know about Amazon Pantry, while fewer than 3% had tried out the service. 7.5% said they planned to try the service, though only 23% totally ruled it out, the poll found.About 25% of the respondents were Amazon Prime members. Allows for non-corporate sellers and unlimited products.Target’s StrategyUnlike Amazon, Target has extensive brick-and-mortar store presence.Both companies have strong customer loyalty. Target has a developed food market for customers, supplying a variety of organic and non-organic food brands in-store compared with online Amazon service.WalmartCustomer option to buy online, go to store, and pay in cash.Currently 156,800 U.S. stores. E-commerce makes up just 2% of Wal-Mart's sales.By February 2015, Wal-Mart expects to report $12.5 billion in e-commerce sales; expected e-commerce growth of 25%.E-commerce and digital initiatives will cost between $1.2 billion and $1.5 billion next year, up from $1 billion this year.Emphasis on providing lowest prices in retailing; Low Price GuaranteeTarget’s StrategyTarget focuses on quality of products over low prices to keep up perceived valueTarget has larger online presence: Cartwheel offers online and on the go deals for busy shoppers‘Find your Target’ allows for easy location of stores and productsTarget focuses on higher income, urban/suburban targets while Wal-Mart focuses on lower income, rural targets.26289000Target SWOT AnalysisStrengthsLoyalty from customersExclusive, private brands Recognizable and helpful staffRecognizable brandInstant Price CheckAdjusted Store Layout – CityTarget, TargetExpress, SuperTargetPrice Positioning, reinforced through value marketingOpportunitiesInternational ExpansionE-commerce groceriesGrowing Hispanic populationGrowing influence of Millennials onlineExpanding exclusive brandsExpanding online reviewsAll-natural, local foodsOnline price matchingGrowing demand for socially responsible and green productsWeaknessesLanguage Diversity- no Spanish option on websiteComparatively higher pricesCredit Card Scandal ThreatsOnline marketingLower prices from competitorsOnline product diversity Paying options onlineTarget’s Sustainable Competitive AdvantageTarget gains its strengths from a focus on quality and reliability with exclusive brands and partnerships; ‘cheap chic.’ Always clean and similarly laid-out stores offer a consistent shopping experience for any guest. 26241380SegmentationMarketing Segments:Millennials:In the industrial analysis, research showed that Millennials are crucial to defining the retailing landscape in so many ways. Apart from being the largest of the generational cohorts in the United States, their buying preferences and how the utilize money will resonate with Target’s value proposition and marketing mix.Value Proposition AttractivenessMany of Millennials’ purchasing behaviors include preferences that Target already offers as well include opportunities for Target to build upon. Target is the nation’s second-largest general merchandise discount chain, appealing to Millennial’s financial savviness. Options like Price Match and Cartwheel combine this market’s propensity for thrift and mobile device use into their shopping experience. Since 73% of Millennials report making purchases on their smartphones, omnichannel retailing that Target offers is especially important. Finally, Millennials are interested in staying at the forefront of popular trends. As described by Target’s chief marketing officer, “Target is able to stay ahead of it’s time with brands partly because of their ability to tap designers when they are reaching one of the pinnacles — one of the first pinnacles in some cases — of their career.” Therefore, Target is able to supply Millennials with affordable products they want through various retailing channels that appeal to their technological engagement.Evaluative Criteria:SubstantialThe 80 million members of the Millennial generation (born 1977 to 2000) represent 25% of the U.S. population . About 3 million more than the Baby Boomer generation.Millennial population may grow to 88.5 million by 2020, due to immigration.ProfitableMillennials have more than $200 billion in annual buying power. And by 2017, Millennials will have more buying power than any other generation.Currently, Millennials have 21% of consumer discretionary purchases, which is estimated over a trillion dollars in direct buying power and a huge influence on older generations.IdentifiableMillennials have taken the lead in seizing on the new platforms of the digital era—the internet, mobile technology, social media—to construct personalized networks of friends, colleagues and affinity groups.At the same time, fully a third of older Millennial (ages 26 to 33) have a four-year college degree or more—making them the best-educated cohort of young adults in American history.Millennial are also somewhat less likely than older adults to describe themselves as environmentalists—just 32% say this describes them very well, compared with at least four-in-ten among all older generations.ResponsiveSeventy-three percent of Millennials report that they make purchases directly on their smartphones : Eighty-four percent of Millennials report that user-generated content has at least some influence on what they buy.Sixty-four percent of Millennials say companies should offer more ways to share their opinions onlineHispanics:The Industry Analysis shows a strong presence of Hispanics in the new retail market. With a population that makes up 17% of the total population in the U.S., and consumer spending that is growing at a faster pace than Non-Hispanics, this segment offers plentiful opportunities for Target to secure a new market to have under their “Expect More. Pay Less.” mentality that is sure to provide growing profits in the future. Value Proposition AttractivenessTarget offers value for the Hispanic population through providing online purchasing. Hispanics tend to rely upon electronic purchasing and marketing campaigns, both areas of focus for Target. Target also offers value since Hispanics’ best performing consumer spending categories are education, health goods, and medical services; all of which Target stores provide with school supplies, pharmacies, and Target clinics. Additionally, Hispanics tend to appreciate name brands and seeking out bargains, both of which Target offers through their exclusive partnerships and consistently offered deals, that consciously keep prices at competitive levels while not losing any value. Evaluative Criteria: SubstantialIn 2013 there were an estimated 54 million Hispanics; 17% of total population. By 2060 this number is projected to rise to 129 million; 31% of total population. This dramatic increase warrants serious attention by retailers. The Hispanic population accounts for about 15% of the U.S. labor force and is projected to reach almost 20% by the year 2020. In addition, higher-paying management and professional occupations are the fastest-growing job categories for Hispanics, propelled by growing educational attainment. Educational gains will play a key role in today’s global economy as Hispanics boost their influence and burgeoning purchasing power.Identifiable55% of Hispanics live in the top 10 urban areas.55% of all Hispanics live in California, Florida and Texas as of July 1, 2013.47.3% of New Mexico’s population is Hispanic; the highest of any state.86% of Latinas say a woman is the primary shopper in their households14.7 million Hispanic population in California; the highest of any state.Responsive84% have searched for and used a digital coupon vs. 71% overall.ProfitableConsumer research firm Nielsen estimated the buying power of the U.S. Hispanic market at $1.1 trillion for 2011 with expected growth to $1.5 trillion by 2015.Hispanic consumer spending is projected to grow at a faster rate (74%) than Non-Hispanics (36%) over the next 10 years.26241380TargetingProfile The target of this campaign will encompass recently graduated bicultural middle class Hispanic females living life as a young professional or newly-wed with growing families. The target unites an American Millennial identity with a Hispanic one. She has grown up accustomed to, with a preference for, using technology, has an affinity for going green, speaks English and Spanish, has a love for ‘American’ goods, but also has ties to her Hispanic heritage, such as the community, traditional foods and viewing shopping as a social excursion to be committed in pairs. Target JustificationThis target market will provide the best outcome due to it’s ability to be identified, its substantiality, and profitability. This Target market is identifiable since 55% of all Hispanics live in California, Florida and Texas as of July 1, 2013, California with the highest population of 14.1 million. There are eight states in the U.S. that have a population of 1 million or more Hispanic residents: Arizona, California, Colorado, Florida, Illinois, New Jersey, New York and Texas. Finally within these states, the majority of Hispanics tend to center themselves in the top 10 urban areas. Furthermore, with Target’s use of online marketing, it will pair perfectly with the Hispanics since many Hispanics show tendencies to shop online and use social media in their shopping experiences. 61% said they have shared coupons via social media vs. 39% overall. Additionally, electronic advertising for Hispanics is growing 4 times faster than other sectors.As far as profitability goes, Hispanic purchasing power increased 45% in the last five years, and has reached $1.38 trillion. The Hispanic consumer is spending more dollars at retailers offering brand names with the fashion footwear styles they want. Finally, with Target being a ‘family-store’ it coincides perfectly with the Hispanic norm of seeing shopping as a family event, which they typically undertake in groups or pairs. 2624138114300PositioningOverview:The goal of our positioning strategy, the TargetMarket, is to create a venue to entice locally minded guests to come to Target. The TargetMarket would be a monthly ‘farmers market’ for small local business and vendors. Target would offer a location and marketing for the event while local vendors would provide the products. By supplementing purchases of TargetMarket goods with in-store discounts and promotions guests of the market and guests of Target would become interchangeable. Target would screen vendors who apply to ensure they meet the quality Targets guests expect. Target would also be in charge of supplying tables and designing format so their reputation for uniformity and cleanliness would extend to the market. Additionally, the TargetMarket could create a ‘Target Stand’ where if market goers sign-up for Cartwheel, ‘like’ Target on Facebook, or sign up for Target e-mails, they will then be entered into a Target Gift Card/Local Vendor Gift Basket raffle. This will then provide Target a way to directly connect with this demographic through social media. ProductTargetMarket: A monthly farmer’s market that offers produce and goods made locally. The TargetMarket will provide an opportunity for authentic, local goods to be sold to the guests, varying a little in each area, depending on the demographics that surround Target store and the difference in local vendors.Target currently offers some organic and local goods, but with the TargetMarket there will be more options for organic and local goods which is something that people of the age-group of the target market seek. Exclusive partnerships with authentic Hispanics goods (i.e. traditional salsas, tortillas).In-store, a greater emphasis on showrooming certain products (furniture, kitchen supplies, home furnishings, etc.) will enhance multi-sensory shopping, a common characteristic of this target market.PriceCurrent Target pricing fits well with target market’s needs and desires of good value at a reasonable price.Everyday low pricing on household goods along with premium pricing on electronics, exclusive brand apparel, beauty products, etc; which are areas that Hispanics are willing to spend money on and are constantly seeking. The quality associated with Target goods also means guests will expect similar pricing and value of food at TargetMarket. Place TargetMarket testing would start in the SouthWest, where Hispanic populations tend to be dense.Individual locations of the TargetMarkets would be on Target premises, typically in the parking lots. This is beneficial for Hispanics seeing as once they are done shopping at the TargetMarket they would most likely finish their shopping trip at Target for any goods still needed, seeing as Hispanics tend to stop and shop in one location. PromotionTarget currently utilizes online coupon via social media, such as Cartwheel. At the TargetMarket, have a station where people can sign-up for e-mails, ‘like’ Target on Facebook, or download Cartwheel. In return for this, they will be entered into a drawing for a Target giftcard, free give-aways or other daily discounts. Regardless, Target will then have the capability of reaching the market-goers through social media. Weekly Spotlight on a vendor and their products through twitter and facebookWith a purchase at a TargetMarket each customer would get either a coupon booklet or a Cartwheel code offering a one-per day deal for that week at Target. This would encourage guests to return to Target more than one time in a week.#bestfind & #TargetMarket:Weekly pictures of the best find at a TargetMarket posted to twitter or instagram with the #bestfind tag from the TargetMarketSmall promotion gift for the winner to promote social media shareingFacebook:Promotions linked to guests who like a TargetMarket on facebookDeals linked to Cartwheel for guests who share the local TargetMarket information on facebookCartwheel:Promoting adds through the app, displaying that local farmer and artisan will be selling their fresh produce and products at your local target.Target Stand: At each TargetMarket a single stand would be dedicated to target promotions and marketing. Family centered activities with different themes each month, promoting some part of the store.Calendars with further TargetMarket dates, deals, and upcoming local produce feature farmers.Promotions inside the store.In store deals on Complementary products provided by local vendorsPromotions for produce and grocery goods not sold at the farmers marketPromotions highlighting a recipe with a farmers market good and produce from inside Target. Provide sign up for emailing lists and online promotions, and exclusive deals Radio Ads: Campaign focused on raising awareness of the Local Vendors at the event In areas with hispanic radio stations, it is a good idea to do the TargetMarket advertising specifically through Hispanic radio stations.With the current offering of online purchasing, Target can add the option of looking at the Target webpage in Spanish.To reach new customers who already rely on local vendors, Target can work with vendors online to create brand association. Flyers around town, which have been the most successful in promoting farmers markets. TargetMarket and Existing BrandOne of the most important parts of the TargetMarket would be an extension of the in-store Target experience. Target would have full control of layout and product variety to maintain their standards of clean, streamlined shopping experience.is that it maintain the view Target guests have of the Target Experience. Focus on well laid out markets with very clean stands and quality local goods.Target’s current focus on middle age women holds true to farmers markets as well as intersecting with hispanics.Current GuestsIn a study of farmers markets in Utah, 70% of consumers were female.In a sample study done in California, 56% of farmers market shoppers we female, and 61% were married.74.9% of women identified themselves as the primary shoppers for their householdsA large portion of farmer market enthusiasts comprised of individuals who were older, highly educated, higher income, professional, white, and female.TargetMarket Guests86% of Latinas say a woman is the primary shopper in their householdsHispanics spend more proportionate money on food related to items such as groceries or dining outHispanics advocate a retail product assortment that supports a family-friendly focusHispanics were found to buy more organics than non-Hispanics and evaluate organic food production as more importantHispanic consumers are more likely to purchase fresh fruits and vegetables, poultry, eggs, and dairy 26241389525ImplementationRoll-Out/TimelineFocus on the Targets that are in urban Southwestern cities with heavy Hispanic populations.Start in May, when people are beginning to have more free time due to the beginning of summer and there is more options for produce and goods from local vendors and farms. Plan a one-year program, where each month the TargetMarket occurs. After the first year, the TargetMarket could occur bi-weekly in high seasons for fresh farmers markets. However, the monthly TargetMarket will offer exclusivity and novelty in the beginning, something for the guests to look forward to, also allowing Target to plan and coordinate with local vendors. ImpactExcellent community service, helping raise awareness of local farmers and vendors, and creating more of a local connection with the community. Stellar word-of-mouth reputation, which is another thing that Hispanics tend to rely on in decision making.With TargetMarket occurring in the Target parking lot, people will associate the TargetMarket with Target, creating a sense of appreciation for a company that gives back to the community, but also as a location for authentic and local food and products. Additionally, there will be the rollover customers who will move to shop at Target after having shopped at the TargetMarket due to the proximity and convenience. The opportunity to connect with consumers via social media with coupons, these consumers are highly active on social media and mostly likely to share adds/articles/and discounts on social media spreading and providing Target with free advertising. Breaking into the Hispanic Millennial market, which seeing as Hispanics tend to share purchasing information through technology, this would also then connect the information to other Millennials via social media. The information and promotions would trickle down through the sharing done in social media and the conversations had on social media, to both other Hispanics and Millennials. Future PlansOffer monthly promotions of ‘winning’ or most popular vendor’s goods in select Targets.Expand the TargetMarket to other regions.TargetMarket could be held more or less frequently depending on the area to optimize the effectiveness of the event. In high popularity areas it could be held more frequently.ROICosts:Facilities: Tables, stands, additional time for employees to plan the marketEmployees hourly wage farmers market workers typically make $14 an hour. It usually cost about $15 for product liability insurance, and $12 for a state and county permits. A 10 x 20 tent is $180, folding tables range from $60-120 Marketing: Radio, social media, and in-store adsDepending on the size of the city radio ads can cost from $500-$8,000 a week.Twitter: $2000-4000 per monthFacebook: $2500-5000 per monthBenefits:Increased local traffic to stores. In a poll of customers at a downtown farmers market in Waukesha, WI, 81% of customers were more likely to visit at least one other store after shopping for food.Increase Target store traffic on Market days by 80%.Improved customer loyalty by providing food that is local and freshStrengthens Target Brand nameIncreased online presence due to sharing on social mediaWith the low costs of the facilities required, TargetMarket implementation costs would be very low. Marketing for the event could be folded into already existing channels. Using existing marketing tools such as Cartwheel guests could be informed of upcoming TargetMarkets. New guests could be reached through a new campaign focused on gaining awareness for the event. Focus should be put on local channels: RadioNewspaperWord of MouthFocus on having TargetMarket attendees share experience on social media This will keep costs low while creating good awarenessPositioning Strategy SummaryWith the exception of a few additions to product selection, Target stores already possess many of the values and characteristics that are target market finds appealing. Therefore, the focus of the marketing strategy is to encourage people who are currently not loyal customers to attend TargetMarket. With the connection between TargetMarket deals and in-store deals via mobile apps and social media, target customers will interact more with Target in-store and online and share their experiences with family and friends. Our target market’s ability to disseminate retailing information via online channels will result in greater name recognition, brand loyalty, and patronage of Hispanics in existing store areas. AppendicesObservational ResearchObservation of Target’s various stores affirms that Target Corporation currently implements marketing strategies in order to reach its desired markets and their needs. MarketThe majority of shoppers in suburban and more rural Targets were women.City Target had more variety in regards to gender and age range.Many women appeared to be mid-age and often had two children with them.College-age shoppers can be spotted at Targets in college towns and city Target.Marketing MixProductSuper Targets have more produce options than typical Targets.Minute Clinics are available in some SuperTargets in Suburban areas.Some suburban Targets and SuperTargets have an Optometrist. Target has exclusive flavors for products unavailable at other stores (Ben & Jerry’s) Each Target had an electronics area, home area, food and beverage area, gift area, toy area, pharmacy area, and apparel sections. The City Target had a café attached to the side, to provide customers with ready-to-eat meals as they are on the go. Target has their own brand in the food area offering competitive prices: Market Pantry and the more gourmet line, Archer Farm.PriceEach Target visited had an area at the front offering deals for $1, $2 or $3. Some prices seem to be a little higher than in other stores. Comparatively cheap apparel for the quality provided. PlaceThe organization of Targets varied; having the products valued the most by the different markets located at the front. Targets and SuperTargets are typically located in high traffic areas.PromotionRed and White Target colors were easily distinguishable in each store.Advertisements around store to draw attention to the Red Card deals.Sign when customers walk in acknowledging that Target accepts price match.Advertisements in the store highlighting the Target app, Cartwheel. Appears to be a lack of promotion outside of store to help bring awareness. Sustainable Comparative AdvantageLocational ExcellenceThe City Target appears to have a certain amount of value because it is not easily duplicated in a populated city. Customer ExcellenceWarm greeting by cashier.Easily identifiable employees.Product ExcellenceArcher Farms is a Target-store brand that offers higher-end, gourmet style food at a competitive price compared to other high-end manufacturers. People seem to trust that goods they buy from Target will last. Exclusive partnerships give consumers products they couldn’t purchase elsewhere.Operational ExcellencePartnering exclusively with certain brands for specific products, such as Ben and Jerry’s or Campbell’s Disney Princess soup. Target’s ability to provide customers with Minute Clinics and Optometrists. ................
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