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. “ Target has guests, Wal-mart has customers” kanusha |lintukjohny | praveen das | sahithaks | sathyanaraynanc | surajbyndoorholla |vivekkapoor
- 2. Target – The Journey so far Industry Analysis Brand Identity Competitor Analysis Conclusion Agenda
- 3. The story so far……. Electronic scanning Present Department Store Discount stores New Bulls Eye logo 1980 1920 1960 2000 1940 1970 1990 1895 Shop within a shop Plan-o-grams Loyalty programs Online stores
- 5. 5th largest retailer in US after Wal-mart, Home depot, Kruger, Costco
- 6. No: of stores : 1803
- 8. FY08 Profit < $3bn
- 9. 96% people recall Bullseye logo
- 10. Channels : Traditional & Online
- 11. Expect more, pay less
- 12. Cheap chic
- 13. The discount store with attitudeTarget : Where it stands today Target Brands Target Financial Services Target Sourcing Services Target Commercial Interiors Target.com
- 15. Population
- 16. Employment
- 18. Individual debt
- 19. Department stores: large stores offering huge assortment of goods
- 20. Discounters: Compete mainly on price
- 21. Demographic: Aim at a particular segment; ex: wealthy individuals
- 22. Warehouse Club: low-cost, low ambience, low margin operations; Price leader
- 26. Retail Strategy
- 27. Retail Strategy Price based advertising for both Target and WalMart
- 28. Target – Advertising Campaigns Target Print Ads Ever since I was a teenager I'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
- 29. Retail Strategy “ Target has guests, Wal-mart has customers”
- 31. Mentions of Shopping at target being heavy on the wallet and leaving feelings of guilt
- 32. More mentions of complaints with Walmart
- 34. Target’s sales have fallen for 8 straight months while Walmart’s sales have increased Both firms have been recognized for managing inventories and costs efficiently Problem lies with the retail mix at Target 40% of shelf space devoted to home and apparel goods – Discretionary purchases in recessionary times 20% of shelf space devoted to consumables like food and beauty products while 45% of Walmart’s mix consists of consumables Wal-Mart is America’s largest food retailer, while target is largely as an apparel seller However as the economy revives, it is expected that sales at Target will pickup faster than at Wal-Mart Recession - Target and Walmart Shutdown Target store at Riverside, IL In the downturn, Wal-Mart's low prices have trumped Target's cheap chic in the battle of the ‘Fashionista’ versus ‘Frugalista’
- 35. Store front - Target
- 36. Store Front – Other stores
- 37. Store Interior layout TARGET WALMART
- 38. Increase share of consumables in the merchandise mix Rationalize private labels and build strong private labels through product innovation Push online retailing and the hypermarket format Retain ‘Up-Market’1 image – Increased emphasis on use of Exclusive Designers Aim towards going global to grow despite the maturing US Retail market Recommendations 1 as compared to Wal-mart
- 39. Thank You!
- 40. Retail market share in US
- 41. Walmart has always dwarfed Target $406 Bn Annual Revenue – Walmart $65 Bn Annual Revenue – Target Recently until recession hit, Target was winning the growth game Target’s Same Store Sales grew at 4.6% while Walmart grew at 2.9% Same period, Target’s annual profit growth averaged 16% against walmart’s 10.3% At the onset of recession things changed Target’s sales have fallen for 8 straight months Walmart’s sales have increased More important, Target'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's 2008 bottom line rose 5.9%, to $13.5 billion. Now Target is getting trounced. In the downturn, Wal-Mart's low prices have trumped Target's cheap chic
- 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 Both firms win kudos from analysts and investors for managing inventories and costs at a tough time Target Will Lead in a Recovery "People were shopping at Wal-Mart because it was the cheap place to shop," says Bernie McGinn, chief investment officer at McGinn, McKean & O'Neill. An owner of Target shares, he believes consumers will gradually return to "a sense of normalcy." First, it is reminding customers the chain offers good prices. Through its "Low Price Promise," Target now promises to match the advertised price on any product offered by a competitor in the same market boasting of better merchandise and a more pleasant store Recession
- 43. Target’s Retail “Double Whammy” Retailer’s product mix is not ideal for recessionary times Target devotes 40% of shelf space to home and apparel items Target – 20% of consumables like food, beauty products ; Walmart sets aside 45% of space for consumables Walmart sells more grocery items – It is America’s largest food retailer and its less expensive Target seen as an apparel seller
- 44. Target’s Credit Business Large of the major retailers to own a credit card portfolio Rising defaults and delinquencies 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. 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.
- 45. Target operates two criminal forensic laboratories Target diversity program – strength of many, Power of one Target Center, Minneapolis, Minnesota – Basketball Arena – home to the NBA – Minnesota Timberwolves Did you know?
- 47. Sponsored restoration of Washington Monument
- 48. Take care of education program
- 49. Partnership with Coca-cola in Color My World red line campaign
- 52. 19/7/09
- 55. Walmart
- 56. Walmart
- 57. Walmart – Fall Beauty Campaign
- 60. Rough work – might help in presenting
- 61. Rough work – might help in presenting
- 62. The End
Editor's Notes
- Target Center – Basket ball arena – Minnesota TimberwolvesNASCAR and Indycar sponsorships MuseumsMuseum of Modern Art, ManhattanMuseum of Contemporary Art in Chicago, ILBrooklyn Museum Walker Art CenterBoston Children’s museumMinnesota Children’s museum
- Target’s core mass merchandiser operations face an unpromising future in North America. With growth already constrained by maturity, the channel is seeing consumers increasingly drawn to the more wide-ranging offer of hypermarkets Private label thus helps to maintain the company’s upmarket image through the development of products that tap into trends such as the growing demand for health and wellness products. innovation has focused on the Archer Farm brand, introducing an organic range in 2006 and removing trans fats in 2007. The brand has also seen the introduction of upgraded packaging, such as a crisps/chips bag which is resealable with a zipper.
- Internet sales – 2.7%