Recommended Strategic Plan for Target
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This was the final deliverable for Professor Andrew MacDowell as a part of our semester-long assignment for the Critical Business Skills course requirement for NYU-SPS's PR & Corporate Communications Masters program..
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Recommended Strategic Plan for Target
- 2. smart communications | 1 SWOT Analysis Strengths ● Second largest U.S. Retailer with 1800 stores ● Partnerships with fashion and lifestyle brands ● Most recognizable logo in U.S. ● New leadership (CEO & CMO) ● Staff of 300,000+ known for great customer service ● Top gift card seller in the US due to strong customer loyalty ● Strong revenue performance due to desirability and perceived quality of products ● Target-branded and Target-exclusive products Weaknesses ● Products often out of stock, supply chain issues ● Pricing differences/mismatched expectations ● Data breach/vulnerabilities in technology ● Litigation and poor perception from data breach ● Negative perception from failed launch ● Poor communication & lack of employee training ● Lack of proper communication channels between stores and corporate ● Website not able to handle spikes in traffic during large sales Opportunities ● Success of City Target/Target Express ● Building up offerings of grocery products ● Build up more partnerships ● Partnering with local communities ● Building out e-commerce offering/new sales channels ● Better targeting millennial and Hispanic audiences ● Opportunity to grow globally with relaunch in Canada Threats ● Increasing retail segment competition ● Local competitors in Canada ● Established global online retailers with competitive prices ● Continuing bad press from data breach ● Possibility another data breach could occur ● Frugal customers and declining customer base ● Poor international exchange rates Competitor Analysis Mission Saving people’s money so they can live better. Mission To be customer-centric, to ensure customers can find anything they want to buy at the lowest price Mission To bring members the best possible prices on quality brand-name merchandise. Revenue $486 Billion Dollars Revenue $88.99 Billion Dollars Revenue $116.2 Billion Dollars Market Share 16.9% of retail sales Market Share 23% share of online retail sales Market Share 50% share among warehouse stores Products Groceries, Entertainment, Health and Wellness, Hardlines, Home and Apparel Products Groceries, Electronics, Clothing, Books, General Merchandise, Instant Video, Amazon Prime Products Groceries, Electronics, Bulk Items, Books, Clothing, Home Goods Size 11,100 stores 1.4 million employees in the U.S. 2.2 million worldwide Size No stores; 55 fulfillment centers 222,400 employees worldwide 100,000 seasonal workers Size 448 stores in the US 622 stores worldwide Locations International (28 countries) Locations International (16 countries) Locations International (8 countries) Strengths Established in Canada Strong product performance analytics Competitive, low prices due to supply chain management Largest grocery retailer Strengths Large-Scale Infrastructure Strong mix of Products, Price Strong Customer Service Ease of purchase cross-platform 200 million credit cards on file Strengths Low prices due to supply chain Brand loyalty and strong customer base High operating efficiency Rapid inventory turnover Weaknesses Due to vast variety of products, lack in focused marketing strategy Weaknesses No physical stores High revenue but no profit Weaknesses N. American business reliant Older customer base Limited product, service offering Opportunities Future expansion of stores globally Relevant mergers that include small retailers Opportunities High barrier to entry for competitors Mobile sales are growing Entry into digital media/video space Opportunities Attract younger consumers Expand internationally Increase product, service offering Threats Being a global retailer - political problem from various countries Competition from smaller retailers Threats Increased competition from retailers entering e-commerce Competitor price-matching Threats High competition in the warehouse industry Competition from online retailers
- 3. smart communications | 2 Value Proposition Expect more. Pay Less. Target strives to provide well-designed, quality products at a great price. It takes a two-pronged approach to deliver value to its customers through fashionable and differentiated merchandise at affordable prices to its guests, while also delivering a shopping experience that is expected by its guests. Target ensures accessibility and convenience for its customers, such as an expanded grocery and fresh food sections. And as a part of its commitment to the local community, 5% of each guest’s purchase with a Target REDcard is donated to the local community, which adds additional value to the guests that choose to shop at Target. Audience Segmentation External Audiences Internal Audiences ● U.S. Consumers ● Canadian consumers ● U.S. media ● Canadian media ● Shareholders ● Suppliers ● U.S. Store Employees ● U.S. Corporate Employees ● Canadian Store Employees ● Canadian Corporate Employees Consumers Employees U.S. Consumer Demographics: ● Age: Median age of 40 ● Gender: 76% women, 24% men ● Education: About 57% have completed college ● Family Size : Approximately 43% have children ● Income: Median Household income : $64,000 U.S. Consumer Psychographics: ● Want one stop shop for all personal and household needs ● Expect and desire quality products and the most value their dollar will buy ● Comfort shoppers: want shopping for their grocery and household products to not consume too much time Store Employee Demographics: ● Age: Median age of 34 ● Gender: 65% women, 35% men ● Education: ○ 48% have less than a high school education or are high school graduates; ○ 52% have some college experience or a college degree (associate’s or higher) ● Income: Median household income: $42,000 Psychographics ● Friendly individuals with varying degrees of communication skills ● Energetic, adventurous and outspoken ● Committed to their local communities Canadian Consumer Demographics: ● Age: Median age of 45 ● Gender: 80% women, 20% men ● Education: About 52% have completed college ● Family Size : Approximately 53% have children ● Income: Median Household income : $60,000 Canadian Consumer Psychographics ● Not use to the concept of “one-stop shop” ● View Target as low price competitor of Walmart ● Look for smaller product sizes and online shopping ● Desire low prices and similar spirit of U.S. stores ● 83%-92% are aware of Target Corporate Employee Demographics: ● Age: Median age of 40 ● Education: ○ 87% have completed college ○ 35% MBA graduates ● Gender: 55% men, 45% women ● Income: Median household income: $75,000 Psychographics ● Friendly with varying levels of communication skills ● Energetic, adventurous and outspoken ● Committed to their local communities
- 4. smart communications | 3 Social Media Audit Show, Don’t Sell Target currently has a massive social audience of over 138,000,000, including Twitter, Facebook, Instagram, YouTube, Pinterest, Vine, and LinkedIn. Target maintains a different handle for each customer need on Twitter. This allows for Target to cater news to segmented audiences and avoid inundating follower with content that is irrelevant to their needs. Target relies heavily on Twitter (specifically @Target, @TargetDeals and @TargetStyle) to drive sales, utilizing #Cartwheel to promote to promote their app that allows consumers to add discounts to checkout. Target actively engages and replies across social media channels, responding to 64% of comments within the hour and 99% in 24 hours. Target is active on every channel and often cross-promotes in order to increase engagement--for example, Target shared a YouTube video of its partnership with its Top Pinners from Pinterest. Target is not afraid to let top Instagram influencers take over their account and bring a new perspective and dimension to their feed. Their posts on Instagram are often interactive, reciprocate social media love, and tease upcoming partnerships, events, and promotions. Target uses LinkedIn to handle and address crisis. Jeff Jones, EVP and CMO of Target is currently a LinkedIn influencer and shared a post in response to the former CEO of Target stepping down and the data breach. This post allowed Target to get ahead of the issue and shape the conversation around the issues and crisis it was facing, as well as reassure investors, clients, and partners that Target was acknowledging its issues and moving forward. Channel Name Tone of Content Channel Name Tone of Content Target Aggregator of photo and multimedia content from other channels. Target Promotion of items, often holiday themed. Content is often engaging. Target Baby Posts multimedia content targeting parents and moms. Target Careers Sporadically active. Features employees and recruiting events. Target Style Highly-stylized content that focuses on fashion, design and how-to. Target Style Content heavily focused on design and fashion. Target Temporal promotions around Music offerings Target Inactive. Aggregates YouTube content. Similar content to Facebook. Target Career openings, company news, and posts from executives Target No post since Aug. 2015. Promotions of products using popular memes. Target On the Dot Official style blog for fashion apparel at Target. Links back to Target. Visually and multimedia-driven. Target Videos of commercials and partnerships with popular YouTubers Target Careers Inactive. Used to promote Target culture and share employee stories Target Product promotion and engagement with fans Target Pulse Blog Used to promote Target culture and share employee stories Target Careers Curates corporate information, culture, careers information A Bullseye View Stories behind Target’s products, events, other company happenings @Target Aggregator of content from other channels @TargetCareers Promotes culture, employee stories and careers information @TargetNews Company-wide news, partnerships and events, Bullseye View Stories @AskTarget Guest service-centric, responds to any customer inquiries or complaints @TargetStyle Promoting designer collaboration and apparel offerings @TargetDeals Promote sales and holiday promotions on app and in-store
- 5. smart communications | 4 Objectives & Audience Engagement OBJECTIVE 1: Reposition Target as a technology leader in the retail industry by gaining customer’s trust in purchasing process. BUSINESS OBJECTIVE: Increase adoption and purchasing via mobile app by 1000% over the course one year. AUDIENCE: Current and potential Target “guests” via consumer and technology media outlets. STRATEGY: Launch the mobile application to the target audiences through extensive marketing and promotional campaign via various media platforms. TACTICS: ● Promotional Events: To promote the Target app, Target can have “showrooms” in key markets (Los Angeles, San Francisco, New York, Texas, Chicago, Miami, and Canada) with items from each of its past designer partnerships (Phillip Lim, Lilly Pulitzer, Toms, Altuzarra, and more), that guests can “shop” using their app. ● App-only Promotions & Exclusives: Merge cartwheel with the main app to allow coupon-cutting within the app, which can be applied at the register. Make certain products from high-profile partnerships with brands such as Altuzzara, Lilly Pulitzer, and Phillip Lim, app-only exclusives. ● App Mobile Payment Function: Similar to the Starbucks in-app mobile payment feature, promote this feature as a safer and more convenient way to pay. Incentivize usage of payment through app by offering additional discounts. ● Marketing: Incorporate visual usage of app into current marketing campaigns, focusing on convenience and exclusive product availability on the app. ● Newsletter: Educate current Target customers--particularly REDcard users on new application through a newsletter campaign that outlines the features of the app, focusing on increased security, exclusive sales, and ease of purchase. ● Social Media: Use current owned social media channels to point to app, create editorial educational campaign on different features of the app with a focus on security and convenience. ● Website: Leverage cookie technology to determine whether user is accessing site from a mobile browser or mobile device to encourage usage and adoption of app. Also, enable the website with special discounts if accessed through the app. ● Media Relations: Target mid to top-tier technology outlets to cover new feature. Provide fact sheet and demo for them to test, potentially at a junket or other press event. OBJECTIVE 2: Successfully relaunch Target Canada to build Target’s international brand and gain market share from local competitors. BUSINESS OBJECTIVE: Increase market share in Canada by 5% each next year. AUDIENCE: Local community organizations and leaders; Target Canada current, former, and potential “guests” STRATEGY: Aim to replicate Target’s brand internationally by launching a robust corporate social responsibility. program in Canada in order to regain consumer trust and establish the brand within the community. TACTICS: ● Sale Contributions: Contribute 5% of the REDcard sales to educational nonprofit initiatives in Canada. ● Sponsorships: Sponsor nonprofit organizational events and initiatives in Canada. ● Media Relations: Communicate Target’s initiative via event promotions, press conferences in Canada and via his newly established social media accounts. ● App Promotions: Include a function on the Target application to allow consumers to choose the organization they’d like the 5% of their purchase to be donated to ● Employment Opportunities: Promote the increase of job opportunities in Canada with the increase in the number of stores and hence reducing the unemployment rates in Canada. ● Social Media: Encourage customers to participate in Target’s initiatives to boost Canadian communities through donations.
- 6. smart communications | 5 OBJECTIVE 3: Establish trust in new leadership by tying new executives to strategic changes for Target in response to the data breach and failed Canada expansion. BUSINESS OBJECTIVE: Leverage social media platforms to increase visibility by sharing links and stories in the media and from Target’s blog to reshape the conversation around and perception of the company. AUDIENCE: Current & Potential Customers, particularly millennials and power social media users STRATEGY 1: Establish new leadership as influencers and thought leaders in the industry in order to foster trust and increase visibility. TACTICS: ● Social Media: Create a verified Twitter account and LinkedIn Influencer account for Target’s CEO share business insights and establish him as a thought leader in retail and technology ● Investor Relations: Provide vision for strategic change and objectives for new leadership through the release of material and other financial documents, holding annual investor meetings, quarterly earnings calls, and reports. ● Media Relations: Have new executive leadership do press or media tours around the release of the annual report, Q1 Earnings, and annual shareholders meeting to maintain shareholder trust in the company and its leadership. STRATEGY 2: Leverage internal communications channels to introduce new leadership and changes in strategic vision to store and corporate employees TACTICS: ● Internal Communications Campaign: Create a video campaign introducing the new CEO and Target executive leadership to employees at a corporate and store-level. ● Store Tour: Have new leadership visit key stores across the nation at high-sales times (e.g. Black Friday, Holiday season, etc.) and sit down with them to discuss specific needs, concerns, and ideas they may have for the company. ● Employee Relations: Create internal memos, newsletters, and in-store meetings and announcements on monthly basis OBJECTIVE 4: Ensure Target’s delivery on its value proposition and brand promise by establishing stronger employee internal communications channels and properly training corporate and store staff. BUSINESS OBJECTIVE: Position Target as an industry leader when it comes to training employees for potential crises AUDIENCE: Current and potential Target employees at both the retail and corporate level STRATEGY: To create a comprehensive crisis communication plan, which will explicitly detail how Target’s employees should react during and after a crisis. TACTICS: ● Formulation of Crisis Plan: Develop and implement an internal safety and security educational program for employees. ● Town Halls: Increase the level of engagement of employees through internal campaigns, face to face communications and mobilization events (town halls). ● Internal Communications Channels Audit: Reevaluate and revamp current internal communications channels (intranet, newsletter and roadshows) to increase transparency, communication, and employee engagement. ● Crisis Communications Workshops & Training: Work with senior leadership and store leadership to create a crisis communication plan and educational curriculum; provide workshops and run through multiple scenarios and drills at corporate and store-level. ● Internal Communications Campaign: Create short clips that communicating specific changes employees can expect to see over the coming months including the launch of the new Target app, new data security initiatives, and crisis communications training for all employees.
- 7. smart communications | 6 RACI Chart SOCIAL MEDIA PLAN Phase One: Audit, Research & Create Social Media Audience Portfolio Phase Two: Craft Social Media Content & Engagement Strategy for existing & new platforms* Phase Three: Launch new platforms. Monitor conversation, analyze daily and monthly to measure sentiment & behavior change. Thought Leadership Target Canada Trust-Building Customer Service Platform @BrianCornell* @TargetCanada* @Target @TargetHelp Purpose Establish trust in new leadership and communicate vision to stakeholders. Relaunch Target Canada and provide open forum for guests Promote cybersecurity and technology. Promote app usage. Add customer support for app to current service. Content Share strategic vision for Target Selectively engage with followers Retweet corporate or industry news Share multimedia of tours, events Continue product promotion strategy Holiday/Seasonal content Activations, Events & Partnerships Customer retention management Promotional content for the app Continue product promotion strategy Holiday/Seasonal content Activations and Partnerships @Replies to customer feedback Relevant announcements Product warnings & recalls Tools Tweetdeck, Hootsuite & Social Mention Hootsuite, Sysomos, Social Mention Sysomos, Hootsuite Ubervu, Hootsuite Ownership Corporate Comms & Social Social Media & Canada Group Social Media Customer Support & Social Platform LinkedIn Influencer Blog* facebook.com/targetcanada* facebook.com/Target Help Tab on Target FB* Purpose Establish trust in new leadership and communicate vision to stakeholders. Relaunch Target Canada and provide open forum for guests Promote cybersecurity and technology. Promote app usage. Add customer support for app to current service. Content Share strategic vision for Target Address issues and crises Share company or industry news Share tidbits from corporate documents Continue product promotion strategy Activations, Events & Partnerships Canada-specific content Customer retention management Promotional content for the app Continue product promotion strategy Holiday/Seasonal content Activations and Partnerships Replies to customer feedback Relevant announcements Product warnings & recalls Ownership Corporate Communications Social Media & Canada Social Media Customer Support & Social Tools Social Mention, Sysomos Hootsuite, Facebook Insights Hootsuite, Facebook Insights Hootsuite, Facebook Insights CAMPAIGN CALENDAR (next two pages)
- 11. smart communications | 10 Next Steps ● Budget Review & Approval ● Briefing Meeting & Brainstorm ● Finalization of GAIST ● Team Assembly ● Project Plan & Team Final Approval