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Target Corporation

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This presentation is about Target's position within the retail industry. Our recommendation for Target's next step in expanding is stated in the presentation.

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Target Corporation

  1. 1. Target Corporation By: Antonia Carter-Redding, Nadia Herrera Fernandez, Tom Liuzzo
  2. 2. Agenda Situation Analysis By: Antonia Carter-Redding Internal Analysis By: Thomas Liuzzo Plan of Action & Recommendation By: Nadia Herrera Fernandez
  3. 3. Situation Analysis
  4. 4. Business Case ⊚ Target Corporation is the the second-largest discount retailer in the United States. ⊚ Target offers everyday low prices for designer clothing and other merchandise
  5. 5. Industry and Structure ⊚Industry: Retail Discount Store ⊚Structure: Oligopoly is defined as a state of limited competition, which the market is shared by small number of sellers
  6. 6. Target’s SWOT
  7. 7. Wal-Mart’s SWOT
  8. 8. Costco's SWOT
  9. 9. Demographic ⊚The Target customer has a median age of 40 ⊚Median household income of $64,000 ⊚43 percent have children in their home ⊚57 percent have completed college
  10. 10. Internal Analysis
  11. 11. Mission Mission Statement: “ We fulfill and fuel the potential of our guests. That means making Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional experiences consistently fulfilling our Expect More, Pay Less. brand promise.”
  12. 12. Target Service Offers ⊚Target RedCard, gives 5% off purchases, free shipping online, 30 extra days to return ⊚Price Match Guarantee ⊚Mobile App ⊚Everyday priced designer clothing
  13. 13. Financial Performance
  14. 14. Target Advertising
  15. 15. 1st and 2nd Issue ⊚ Target shopping experience is not as fun as it is in its promotional efforts. ⊚ Though target has the youngest consumers amongst their competitors, it has yet to attract millennials.
  16. 16. 3rd Issue: Canadian Failed Expansion ⊚In March of 2013, Target expanded into Canada 1st Mistake: Bought store leases of Canadian discount store Zellers 2nd Mistake: Open 133 in a short period of time, caused inventory havoc, early stock outs, and bare shelves 3rd Mistake: Aggressive pricing by Wal-Mart ⊚In April 2015, all of Target’s stores were closed in Canada “Anything you could have gotten wrong in the playbook, they got wrong," said Antony Karabus, CEO of retail consultant firm HRC Advisory.
  17. 17. Financial Loss ⊚Profit would not begin until 2021 ⊚Suffered a 5.4 billion pre-tax loss ⊚Closed all 133 stores ⊚17,600 employees lost their job
  18. 18. Plan of Action
  19. 19. Plan of Action # 1 ⊚Addressing Issue #1 ⊚Target should engage more with customers by establishing an incubator based in ecommerce, social media, and creating a valuable customer experience Advantages ⊚ Easily accessible by the consumer which can lead to higher sales ⊚ Customers can create their own experience Disadvantage ⊚ Start-up can be costly
  20. 20. Plan of Action #2 ⊚Addressing issue #3 ⊚Target should expand globally at a smaller scale Advantages ⊚ Diversify their revenue stream ⊚ Create a good local and global image of supporting communities Disadvantage ⊚ Research and Development can be costly, but necessary ⊚ Economic and political risk
  21. 21. Recommendation ⊚We feel that Plan of Action #2 should be taken. Reasons: ⊚The biggest issue for Target is its failed expansion. ⊚Global expansion is more profitable ⊚Improving customer experience is a factor that can be implemented at anytime ⊚Establishing and growing the Target brand is essential to longevity
  22. 22. Opinion
  23. 23. References Kerin, R. A., Hartley, S. W., & Rudelius, W. (n.d.). Marketing (8th ed.). http://smallbusiness.chron.com/oligopoly-retail-market-structures-33437.html http://pestleanalysis.com/swot-analysis-of-target/ http://www.marketing91.com/swot-walmart/ http://www.valueline.com/Stocks/Highlights/SWOT_Analysis__Costco_Wholesale_Corporation.aspx#.Vw0GsvkrKUk http://panmore.com/costco-wholesale-swot-analysis http://www.businessinsider.com/meet-the-average-wal-mart-shopper-2014-9 http://fortune.com/2015/01/15/target-canada-fail/ http://fortune.com/2015/04/02/target-canada-store-closing/ http://investors.target.com/phoenix.zhtml?c=65828&p=irol-newsArticle&ID=2007911 http://allthingsd.com/20110418/exclusive-wal-mart-paid-300-million-plus-for-kosmix/

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