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- 1. TARGET CORPORATION Team Invictus Josie Clark Chris Hirschman Arlene Padilla Kathy Ring Esther Vittini
- 2. ON TARGET 350,000 Employees 65 Billion in Sales 301767 Stores Million Guest http://video.cnbc.com/gallery/? video=1735433226#eyJ2aWQiOiIzMDAwMDIxMDAyIiwiZW5jVmlkIjoiTG40ZCtTS0RYcGxYU2Ura2xWODcyQT09IiwidlRhYiI6ImluZm8iLCJ2UGFnZSI6IiIsImdOYX YiOlsiXHUwMGEwTGF0ZXN0IFZpZGVvIl0sImdTZWN0IjoiQUxMIiwiZ1BhZ2UiOiIxIiwic3ltIjoiIiwic2VhcmNoIjoiIn0=
- 3. ON TARGET Business Model Philosophy Marketing Experience Innovators Rowley, L. (2003). On Target: How the World's Hottest Retailer Hit a Bull's-Eye http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-030876
- 4. ON TARGET Guest Household income: $64K 43% Children at home 57% College graduates Median age: 43 http://pressroom.target.com/pr/news/target-unveils-new-design-partnership-221743.aspx http://video.today.msnbc.msn.com/today/44728925#44728925
- 5. ON TARGET Marketing Branding Experience Innovators http://hbswk.hbs.edu/archive/4319.html http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-030876
- 6. ON TARGET http://hbswk.hbs.edu/archive/4319.html
- 7. ON TARGET http://pressroom.target.com/pr/news/target-unveils-new-design-partnership-221743.aspx http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-030876
- 8. ON TARGET Target Mission Unique Competition http://sites.target.com/images/corporate/about/responsibility_report/2009/2009_full_report.pdf http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031697
- 9. ON TARGET Defining Target Great value Community Diversity Environment http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031697 http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031697
- 10. ON TARGET Money Maker Preferred shopping destination Continuous innovation Exceptional guest experience Brand promise http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031697 http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031697
- 11. ON TARGET Getting the Customers Pharmacy ClearRx Generic drugs Positive reputation Philanthropy Customer demand Apparel selection http://en.wikipedia.org/wiki/Target_Corporation http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-030876
- 12. ON TARGET Keeping the Customers Mix of stylish products Price Leadership Strong private label brands Keep in competition with Wal-Mart http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031697
- 13. ON TARGET Keeping the Customers Addressing demands of the customer Product and image One-stop shopping Technology http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031697 http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031697 http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-030876
- 14. ON TARGET Creating Value Shopping experience Community programs Products Store layouts http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031699
- 15. ON TARGET Value to Deliver Registries Club Wedd Target Baby Redcard Giftcard http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031699 http://redcard.target.com/redcard/content/rcw_benefits_tgt_rewards
- 16. ON TARGET Current Ratio http://business.library.wisc.edu/resources/kavajecz/10_Fall/Target_Presentation.pdf
- 17. ON TARGET Inventory Turnover Ratio http://business.library.wisc.edu/resources/kavajecz/10_Fall/Target_Presentation.pdf
- 18. ON TARGET Total Capital Expenditures http://business.library.wisc.edu/resources/kavajecz/10_Fall/Target_Presentation.pdf
- 19. ON TARGET Capital Expenditures http://business.library.wisc.edu/resources/kavajecz/10_Fall/Target_Presentation.pdf
- 20. ON TARGET Conclusion “Expect More; Pay less”
Notas del editor
- With 65 Billion in annual sales, Target earns more than Coca Cola, Dell or Microsoft. It has 1767 Stores in 49 States., they employee more than 350,000 workers and 30 million guests walk through their door weekly.
- Target is Hip..Chic. The Company philosophies date back to the founding forefathers from 1902 who owned the Dayton Company….Sell dependable merchandise, have a fair business practice and a generous spirit of giving. These core business ideals have helped Target leap to iconic status. They have been innovators in their field which has helped to build their brand. Chic ad campaigns, partnering with designers who offer their names to exclusive products has carved a niche of shoppers who value quality products at reasonable prices, but more so, Target sells the experience. The stores are clean with inviting wide aisles, Store lighting is bright, colors are bold, Staff are personable and friendly. Customers are guests, based on the practices of Walt Disney. Target has branded the experience as one that is exciting and fun. Add good quality products at fair prices and attention to customer detail.….Expect more, pay less
- Behind the Fosters is Michelle Obama in September shopping at Target On her shopping list…treats for Bo
- Target's business objective was to create an alternative to Wal-Mart's price leadership. It planned do so through upscale discounting, a concept associating style, quality of products, and price competitiveness. This "cheap-chic" strategy enabled Target to become a major brand and consumer-shopping destination, articulated around two main interrelated branding activities: designer partnerships and clever, creative advertising. Target entered high-profile design partnerships across merchandise lines, from apparel to kitchenware to food. Although many retailers have design partnerships, each partnership is unique. With a few exceptions, what matters is not that you have some exclusives with specific designers, but rather how you exploit them. For Target, its design partnerships provided a theme for its advertising, and creating synergy between the two main strands of its branding: design and advertising. Through consistent marketing and communication, Target has transformed its signature bull's-eye logo into a lifestyle symbol. The bull's-eye is recognized by 97percent of American consumers and considered a brand icon in a class with Nike's swoosh and McDonald's arches
- Since opening its first stores in 1962, Target has set itself apart from other retailers by offering great design at affordable prices. Target introduced its first design partnership in 1999, through an ongoing collaboration with renowned architect Michael Graves. In 2006, Target put a twist on its successful model with the introduction of GO International, bringing affordable, cutting-edge fashion from high-end runway designers to the masses for a limited-time only. In 2010, Target changed the model yet again by partnering with Liberty of London to create its first limited-edition designer collection spanning multiple departments. To date, the retailer has worked with more than 80 design partners and has developed it own line of products including up and up and archer farms.
- 2012Target Corporation (NYSE:TGT) is introducing a new design program, The Shops at Target Through this ongoing program, Target will partner directly with the shop owners of specialty stores and boutiques to co-create affordable, limited-edition collections for its guests. The first flight of The Shops at Target, which debuts on May 6 at all Target stores and Target.com, features five exclusive collections across five different product categories. Targets design partnership is one of the reasons the guest love shopping. It keeps them coming back. Target creates excitement and leaves guest wondering what we’ll do next. The Shops at Target is an example of their constant change of their business model, on their branding and marketing strategy building on that sense of discovery by offering our guests a chance to experience one-of-a-kind specialty stores and boutiques through collections that have been specifically tailored to their wants and needs.
- Question #10 Mission – Target’s mission is to be the preferred shopping destination for their guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling their brand promise. Unique – there are one-of-a-kind. Contributions Commitment Product safety standards and environmental responsibilities Economic Responsibility Competition – Target’s continuous goal is to be an employer of choice for talented, high-potential team members. They offer a variety of pay and benefit plans and programs for different stages of life, as well as tools and resources to help team members manage their physical, emotional and financial well-being. Their compensation is governed by a clear pay-for-performance philosophy that differentiates them from their competitors; because Target leaders have a direct impact on their employees financial results, they are rewarded both for their personal performance and the company’s financial performance.
- Question #8 They are guided by their commitments to great value, the community, diversity and the environment. Great value – offering great value means offering designs that not only look good but offer innovative solutions. Its also the innovation packaging that differentiates their own brand from competitors. Community – Target has pledge to give $1B through 2015 for education to support reading and learning. Volunteer – team members donate countless hours to community projects across the nation. They support Arts and Culture – by sponsoring programs that make artistic and cultural experiences come to life for families that cannot afford it. Social Services – Target helps provide the basic needs we take for granted. They are dedicated to supporting families in disaster, emergency preparedness and recovery efforts. The relief they offer provides comfort to many and the community has come to trust them not only for their promise but for the reputation they have built and relationship they have created throughout their years of service. Diversity – it’s a CORE value that has been integrated into every part of their business. According to their CEO, Gregg Steinhafel, it’s important to build a team of different backgrounds, experiences, skills, knowledge, tools so that everyone’s point of view is respected and understood. This builds strength, commitment and a partnership that’s committed to the community and the cooperation. Environment – Target is conscious of the environment from the recycling bins they offer in the stores, creating a carbon footprint, the products they stock to the way they build their buildings. Their buildings are created to use space more efficiently. They deferred 117 million plastic bags from landfills They were ranked second on Greenpeace’s seafood score card. Their pilot weather-controlled irrigation system reduced store water use by 40%. New light bulbs save more than 110 million kilowatts for efficient operations. They also created 324 acres of retention ponds to capture runoff.
- Question #3 Target plans on making its money by offering itself as the preferred shopping destination – what exactly does this mean? More great design, more choices and more designer-created items that you won't find anywhere else. And pay less. Continuous innovation – Target is constantly looking at change. In 1999 they moved on-line. Target supports education. They were recognized for being a “Good Neighbor”. The highest national honor given for corporate volunteer efforts. They were also one of the first mass-market retailers to offer a comprehensive gift registry service. They also created the SuperTarget which includes a grocery department. Let’s not forget technology. Target became the first merchandiser to use UPC scanning at all Target and Distribution centers. The UPC scanning label made it easier for checkout-fast, pleasurable experience. The idea is to give the consumer the ultimate guest experience. By keeping its brand promise – Expect more. Pay less. How do they meet this brand promise challenge? It’s through their commitment to meet the needs of their consumers. Target stores are easy to shop, attractive and always clean.
- Question # 5 Pharmacy Recent addition of pharmacies reflects this recognition of changing demands of consumers. ClearRX In 2005, Target introduced a major revision of prescription bottles, which it calls the ClearRx system. The redesigned bottles are color coded, flattened-out and turned upside down providing more room for the label. This system was based on the patent [86] by student Deborah Adler and was named one of TIME' s "Most Amazing Inventions of 2005". [ Generic Drugs . With the ending of patent protection on many prescription drugs, the generic market for such drugs will be growing. The profit margin for such drugs is very high making them an attractive opportunity. Target has already found success with the $4 generic prescription. Target has already established itself in the pharmacy market. This creates an excellent opportunity for the company to capitalize on the high profit margins of the generic drugs industry Positive Reputation Unlike Wal-Mart who often experiences great backlash when opening new stores, communities welcome Target stores with open arms. Furthermore, the social network Facebook.com has user created groups dedicated to declaring members’ love of the company. Philanthropic Efforts The company donates 5% of all pretax profits to the community, schools, or the arts .This translates into over $3 million given per week. This giving totaled 6.5 million meals, 1,700 free days at museums and theatres, and thousands of dollars every week to schools. Compared to the negative image of Wal-Mart, Target’s positive reputation is a very valuable resource. Customer Demand Target has embraced the consumer demand for natural care products. With the introduction of nine new product lines, the company seeks to capture this growing market segment .A growing concern among consumers, especially females, is the harmful chemicals in everyday products. Apparel Selection The “expect more, pay less” slogan exemplifies Target’s marketing message. Consumers, according to Target’s marketers, should find joy in the purchase of everyday items. These items should not look cheap even if purchased for discounted prices. To adapt to the ever changing market, Target constantly searches for new innovative designs. In the apparel section, a new designer creates a collection every 90 days. This gives merchandising strategy follows Target’s “expect more, pay less” mantra; consumers can find designer styles at reasonable prices
- Question #7 Mix Stylish Products Target understands consumer needs and desires allow the company to modify the product mix to cater to the changing demands of consumers Price Leadership According to pricing studies conducted by Customer Growth Partners, a consumer research firm, in 2009 January, February and March all revealed Target's prices were lower than Wal-Mart's Private Labels Target Brands owns and oversees the company's private label products, including the grocery brands Archer Farms and Market Pantry, Sutton & Dodge, their premium meat line, and the electronics brand Trutech. Target issued a re-launch of the Target brand as up & up to include an expanded product selection and a new design. The up & up brand offers essential commodities including household, health care, beauty, baby, and personal care products. The brand claims to offer products of equal quality to national brands at a fraction of the cost, averaging a savings of 30 percent. [45] As of September 2009, up & up carries over 800 product offerings across 40 categories. [46] In addition, Bullseye Dog is a trademark, and the Bullseye Design and 'Target' are registered trademarks of Target Brands Competition Wal-Mart Stores (WMT) is Target's main competitor. The average Wal-Mart customer's income is below the national average whereas the average Target customer's income is above the national average. Target's reputation as "cheap chic" has boosted its cache with relatively affluent "selective" shoppers who purchase consumable household goods at Wal-Mart due to low prices but are not interested in Wal-Mart's apparel or home accessories offerings. These customers frequent Target for their more trendy home furnishings and clothing selection.
- Addressing demands Understanding the consumer’s needs and desires is necessary for success in the general merchandise store sector. Failing to identify current Wal-Mart and Target are the two giants in the general merchandise retailing. Wal-Mart operates on an international scale; Target remains solely a domestic firm. Wal-Mart is nearly 6 times the size of Target social trends could potentially leave a company’s market share vulnerable to another firm addressing the demands of the customer. Product and Image Target Corporation competes directly against other discount retailers, mainly Walmart and Kmart. Since its founding, it has intended to differentiate its stores from its competitors by offering what it believes is more upscale, trend-forward merchandise at lower costs, rather than the traditional concept of focusing on low-priced goods One-Stop Shopping SuperTarget serves guests at 251 store locations in 22 states. Most SuperTarget stores conveniently include a bakery, deli, fresh produce department, Food Avenue ® restaurant, one-hour photo center, optical center, pharmacy and Starbucks ® . SuperTarget guests can easily transition from the grocery to the general merchandise aisles and can grab a delicious cappuccino from the coffee bar or visit any of the services for their lifestyle needs. Technology Technology has become a major driving force in the retail industry. Research has shown consumers in developed nations prefer a relaxed, uncomplicated shopping experience. In 1999 Target moves online with Target.com allow guest to shop a wide assortment of fashionable affordable merchandise from the comfort of their home
- In 1974 Target introduces uniform Planograms to plan the layout and placement of store interior and products. Target stores use a planograms as a way to provide a visual representation of the store's products or services, considered a creation of an optimal visual product placement. The bright white lights in the stores are part of what makes the Target shopping experience unique. We’ve found a new way to save energy and money, while maintaining the bright appeal of our stores. Target is able to bring its successful image, employees are friendly, quickly, able to assist and guide customers to the right product, all the stores are attractive and always clean. Target knows that smart store designs can help minimize theft and fraud risks and ensure guest and team member safety. Many of the store designs guide customers to a great shopping experience. Today, Target operates more than 1,600 stores in 47 states, ( in PA are 64 stores) including more than 200 Super Target® stores that include an upscale grocery shopping experience. In addition to the photo processing centers, pharmacies and Food Avenue® restaurants found in almost every Target, Super Target stores include in-store bakery, deli, meat and produce sections. Target has committed 5% of its income to support local communities
- Redcard In 1995 Target introduces their store credit card known as Redcard. When customers use REDcard at Target.com, all the purchases are ship for free. No minimum purchase. No membership fee. And that's on top of the 5% savings they already receive just for shopping with the REDcard. With the Redcard customers are able to help their favorite K-12 school; Customer can choose their kids' elementary school, the neighborhood middle school or any other eligible school. Target’ll donate 1% of your REDcard purchases at Target and Target.com. Customers can enroll in Pharmacy Rewards and use their REDcard to fill five prescriptions at Target Pharmacy to earn 5% off a day of Target shopping, add that to the 5% off you already get with your REDcard purchases. . US-based Target stores were the first to introduce an electronic self services gift registry in 1993, using a service provided by The Gift Certificate Center, Minneapolis, Minnesota. A bridal registry is a service (online or stores) that help engaged couples in the communication of gift preferences to wedding guests. [ Registration allows guests to shop on-line or one of the local stores. Return and exchange are benefits of this service: Couples often have up to 90 days to return an item that is unopened and/or unused. When a gift receipt was not included, the Gift Purchase Log can serve as a gift receipt. Brides and grooms may start using the tools available online wedding gift registry at Target.com to get everything they need and want. Helpful tools include: Jumpstart My Registry: Target will suggest registry items that fit your lifestyle and budget needs. Registry Favorites: Look at the most popular registry items available Add by Category: Pick out everything needed for the home, kitchen and garden by adding gifts to the registry through each category Another benefits at target is the Gift cards: mobile gift card can be use to buy products. Customers can send a Gift Card from their phone to family and friends, gift cards has no fees, never expires, can be reloaded, can be activated online. https://redcard.target.com/redcard/content/rcw_benefits_tgt_rewards
- Target is consistently showing a Current ratio higher than other competitors for example Walmart & Costco: The current ratio shows how liquid a company is or how well a company can pay its short-term obligations. It is the ratio of current assets over current liabilities. This is one of the easiest ways to determine if a company is stable. If the ratio is less than one this means the company has more liabilities than assets which can signal a company could be in trouble. Because Target has a ratio higher than 1 we can see that they are a stable company and as this ratio increases it means their asset are growing faster than their debt. Currently Target is 1.3 according to Forbes, so it has dropped off a bit but they are still above one. References: http://www.investopedia.com/terms/c/currentratio.asp#axzz1kiXDcWlA http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=TGT http://plagiastop.hubpages.com/hub/Taerget-Corp-Financial-Report--Crap-Essay
- The Inventory Turnover ratio will show how many times the inventory of a company is sold/replaced over a specific time. It is calculated by the sales of a company cost of goods sold over the Inventory of a company. This ratio helps you to figure out how well a company is using what it has. The higher the turnover the faster it can be turned into cash because a lot of capital can be tied up in inventory. Target is not doing as well as the competitors in this area and currently it is at 4.9 according to Forbes. This is one area they need improvement. References: http://www.investopedia.com/terms/i/inventoryturnover.asp#axzz1kiXDcWlA http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=TGT http://plagiastop.hubpages.com/hub/Taerget-Corp-Financial-Report--Crap-Essay.
- Capital expenditures are costs that will create future benefits. This happens when a company buys or upgrades a physical fixed asset. This can be in the form of equipment, property or buildings. Capital expenditures are found on the cash flow (Investing) Although Target has not done well in the past with Capital expenditures, which may be in part due to the economic downturn. In 2013, Target will be opening its first store in Canada by purchasing Zellers Inc for 1.825 Billion dollars. They expect to open up to 100 to 150 sites in Canada with an expected financial return similar to those seen in the United States. Although earnings will slip prior to the opening of the store, it is expected to rebound after the opening. In class we talked about taking risks, and Target is no exception. Some of these risks that have been identified are the risk of not meeting the projected timeline, It may be more expensive to integrate than initially expected and, the risk of moving into a new market (and in this case a new country). They are hopeful that this will be a successful venture which will add uniqueness as other stores like Walmart do not do business in this market. References: http://pressroom.target.com/pr/news/target-corporation-to-acquire-real-estate.aspx http://en.wikipedia.org/wiki/Capital_expenditure
- I this graph you can see breakdown of those expenditures and you can see that Target’s capital expenditures are the highest in New Store Openings. This will increase even higher with the expansion into Canada.
- Target’s main mission is to serve their “guests” with outstanding service, which is done through continued innovation and value that is exceptional. In keeping with this philosophy, Target keeps the merchandise in-stock, quick check outs and keeps its stores clean and attractive. Their upscale and dependable products has increased their brand recognition . This dependable service has led to them having one of the most recognized symbols in the world. They are a stable company that is continuing to expand. They have 1767 stores in 49 states and soon to be expanding into Canada. They set them selves apart through their commitment to the consumer, contributions to the community, environmental and economic responsibilities. This Business Model, that has done almost everything right, is one that other stores in the industry would surely love to copy.