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Target Corporation - Brand Management


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A brand management project presentation on Target corporations positioning and communication vis-a-vis its competitors Walmart, Kmart etc.

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Target Corporation - Brand Management

  1. 1. “ Target has guests, Wal-mart has customers”<br />kanusha |lintukjohny | praveen das | sahithaks | sathyanaraynanc | surajbyndoorholla |vivekkapoor<br />
  2. 2. Target – The Journey so far<br />Industry Analysis<br />Brand Identity<br />Competitor Analysis<br />Conclusion<br />Agenda<br />
  3. 3. The story so far…….<br />Electronic scanning<br />Present<br />Department Store<br />Discount stores<br />New Bulls Eye logo<br />1980<br />1920<br />1960<br />2000<br />1940<br />1970<br />1990<br />1895<br />Shop within a shop<br />Plan-o-grams<br />Loyalty programs<br />Online stores<br />
  4. 4. <ul><li>Exclusive US Retailer
  5. 5. 5th largest retailer in US after Wal-mart, Home depot, Kruger, Costco
  6. 6. No: of stores : 1803
  7. 7. FY08 Revenues $65bn
  8. 8. FY08 Profit < $3bn
  9. 9. 96% people recall Bullseye logo
  10. 10. Channels : Traditional & Online
  11. 11. Expect more, pay less
  12. 12. Cheap chic
  13. 13. The discount store with attitude</li></ul>Target : Where it stands today<br />Target Brands<br />Target Financial Services<br />Target Sourcing Services<br />Target Commercial Interiors<br /><br />
  14. 14. Second largest industry in the United States <br />Generates in excess of $ 4.5 trillion in sales<br />Employs more than 23 million Americans (11% of all employment in the United States)<br />12.4 percent of all business establishments<br />Retail Industry Analysis<br />Demand Drivers<br /><ul><li>Interest rates
  15. 15. Population
  16. 16. Employment
  17. 17. Personal disposable Income
  18. 18. Individual debt
  19. 19. Department stores: large stores offering huge assortment of goods
  20. 20. Discounters: Compete mainly on price
  21. 21. Demographic: Aim at a particular segment; ex: wealthy individuals
  22. 22. Warehouse Club: low-cost, low ambience, low margin operations; Price leader
  23. 23. Supercentres: focused on food retailing, large supermarkets with full-line discount stores – fastest growing format in the U.S</li></ul>Cost Drivers<br /><ul><li>Competition
  24. 24. Cost of factors of production</li></li></ul><li>Brand Identity Prism<br />Personality: 25-30, Upper Middle Class, Trendy, Innovative, Urban<br />Personality: 40, Aggressive, Suburban, Unsophisticated<br />Physique: Red Logo, Target dog<br />Physique: Mammoth, Logo<br />Target<br />Walmart<br />Culture: American, Socially Sensitive, high on CSR Initiaves<br />Culture:<br />American, No-Nonsense, Workshop culture,Ruthless<br />Relationship -<br />Next door stylist<br />Relationship: - Handy Man<br />Self Image: Value Shopper, Forward thinking<br />Reflection: smart Spender <br />Reflection: Discerning, Stylish<br />Price conscious<br />Self Image: <br />Value Conscious, lively, <br />
  25. 25. Customer Analysis<br />
  26. 26. Retail Strategy<br />
  27. 27. Retail Strategy<br />Price based advertising for both Target and WalMart<br />
  28. 28. Target – Advertising Campaigns<br />Target Print Ads <br />Ever since I was a teenager I&apos;ve had a very odd habit every Sunday. As soon as I open the paper, I flip not to the comics, not to the sports, but to the Target Ad.To me, the Target Ad is everything an advertisement should be. An eye catching, attactive layout. Items and colors appropriate with the theme<br />
  29. 29. Retail Strategy<br />“ Target has guests, Wal-mart has customers”<br />
  30. 30. Voice of the Customer…<br /><ul><li>More mention of clothes and fashion related products with Target
  31. 31. Mentions of Shopping at target being heavy on the wallet and leaving feelings of guilt
  32. 32. More mentions of complaints with Walmart
  33. 33. Mentions of walmart and Target bring along the fact that the same product is relatively cheaper at Walmart</li></li></ul><li>Financial Performance<br />Product mix is hitting Target hard in current economy(20% Food, 40% Apparel & Household)<br />Walmart<br />Target<br />Home Depot<br />
  34. 34. Target’s sales have fallen for 8 straight months while Walmart’s sales have increased<br />Both firms have been recognized for managing inventories and costs efficiently<br />Problem lies with the retail mix at Target<br />40% of shelf space devoted to home and apparel goods – Discretionary purchases in recessionary times<br />20% of shelf space devoted to consumables like food and beauty products while 45% of Walmart’s mix consists of consumables<br />Wal-Mart is America’s largest food retailer, while target is largely as an apparel seller<br />However as the economy revives, it is expected that sales at Target will pickup faster than at Wal-Mart <br />Recession - Target and Walmart<br />Shutdown Target store at Riverside, IL<br />In the downturn, Wal-Mart&apos;s low prices have trumped Target&apos;s cheap chic in the battle of the ‘Fashionista’ versus ‘Frugalista’<br />
  35. 35. Store front - Target<br />
  36. 36. Store Front – Other stores<br />
  37. 37. Store Interior layout<br />TARGET<br />WALMART<br />
  38. 38. Increase share of consumables in the merchandise mix<br />Rationalize private labels and build strong private labels through product innovation<br />Push online retailing and the hypermarket format<br />Retain ‘Up-Market’1 image – Increased emphasis on use of Exclusive Designers<br />Aim towards going global to grow despite the maturing US Retail market<br />Recommendations<br />1 as compared to Wal-mart<br />
  39. 39. Thank You!<br />
  40. 40. Retail market share in US<br />
  41. 41. Walmart has always dwarfed Target<br />$406 Bn Annual Revenue – Walmart<br />$65 Bn Annual Revenue – Target<br />Recently until recession hit, Target was winning the growth game<br />Target’s Same Store Sales grew at 4.6% while Walmart grew at 2.9%<br />Same period, Target’s annual profit growth averaged 16% against walmart’s 10.3%<br />At the onset of recession things changed<br />Target’s sales have fallen for 8 straight months<br />Walmart’s sales have increased<br />More important, Target&apos;s profits last year dropped a stunning 22.3%, to $2.2 billion. That figure includes a 40.7% earnings collapse in the fourth quarter. Wal-Mart&apos;s 2008 bottom line rose 5.9%, to $13.5 billion. Now Target is getting trounced.<br />In the downturn, Wal-Mart&apos;s low prices have trumped Target&apos;s cheap chic<br />
  42. 42. Amid millions of job losses and plunging stock and housing markets, new customers flocked to Wal-Mart, at the expense of almost every other U.S. retailer except ultralow-price dollar stores<br />Both firms win kudos from analysts and investors for managing inventories and costs at a tough time<br />Target Will Lead in a Recovery<br />&quot;People were shopping at Wal-Mart because it was the cheap place to shop,&quot; says Bernie McGinn, chief investment officer at McGinn, McKean & O&apos;Neill. An owner of Target shares, he believes consumers will gradually return to &quot;a sense of normalcy.&quot; <br />First, it is reminding customers the chain offers good prices. Through its &quot;Low Price Promise,&quot; Target now promises to match the advertised price on any product offered by a competitor in the same market<br />boasting of better merchandise and a more pleasant store<br />Recession<br />
  43. 43. Target’s Retail “Double Whammy” <br />Retailer’s product mix is not ideal for recessionary times<br />Target devotes 40% of shelf space to home and apparel items<br />Target – 20% of consumables like food, beauty products ; Walmart sets aside 45% of space for consumables<br />Walmart sells more grocery items – It is America’s largest food retailer and its less expensive<br />Target seen as an apparel seller<br />
  44. 44. Target’s Credit Business<br />Large of the major retailers to own a credit card portfolio<br />Rising defaults and delinquencies<br />In 2008 credit-card profits dropped 80.5%, to $155 million, and the company incurred a $135 million pre-tax loss on its credit segment in the fourth quarter. <br />In May, the company sold 47% of its receivables to JPMorgan Chase for $3.6 billion. Without that move, the devastation would be much worse.<br />
  45. 45. Target operates two criminal forensic laboratories<br />Target diversity program – strength of many, Power of one<br />Target Center, Minneapolis, Minnesota – Basketball Arena – home to the NBA – Minnesota Timberwolves<br />Did you know?<br />
  46. 46. Sponsorships<br />Target Center - Basket Ball Arena , Home to the Minnesota Timberwolves<br />NASCAR and IndyCar racing team sponsorships<br />Sponsoring museums <br />Museum of Modern Art, Manhattan<br />Museum of Contemporary Art in Chicago, IL<br />Brooklyn Museum <br />Walker Art Center<br />Boston Children’s museum<br />Minnesota Children’s museum<br />Brand Building Efforts<br />Unconventional Means of Advertising<br />2.3% of revenue as comp to 0.3% for Walmart<br /><ul><li>Bridal Registry
  47. 47. Sponsored restoration of Washington Monument
  48. 48. Take care of education program
  49. 49. Partnership with Coca-cola in Color My World red line campaign
  50. 50. Sponsored Survivor
  51. 51. Minnesota Timberwolves home stadium called “Target Center” </li></li></ul><li>21/12/08<br />
  52. 52. 19/7/09<br />
  53. 53.
  54. 54.
  55. 55. Walmart<br />
  56. 56. Walmart<br />
  57. 57. Walmart – Fall Beauty Campaign<br />
  58. 58.
  59. 59.
  60. 60. Rough work – might help in presenting<br />
  61. 61. Rough work – might help in presenting<br />
  62. 62. The End<br />