target case competition 2016.pptx
TRANSCRIPT
Kids Holiday Gifting StrategyPreparing for Target Corporation
May 13th, 2016DePaul University
Hello!We are Team ChicagoWind!
Qianyu LiuM.S.
Marketing Analysis
Li PengM.S.
Marketing Analysis
Meng Zhang
M.S. Marketing Analysis
Yanqin YangMBA:
Entrepreneurship & Management
Information Systems
Agenda
Case Analysis
Findings
Strategies
Conclusion
Case Analysis
Who: Expect more. Pay less. What: Toys and games industry
Where: Omni-channel shopping- Mobile app matters
To grow kids’ engagement and omni-channel shopping experiences during holiday season
Prime Target Market
Secondary Target Market
E-Commerce Competitor
SWOT Analysis of Target
Findings
Brand Preference
22%
22%
14%
Primary market is respondent who consider Target offer the best Kids’ gift buying experience.
GENDER
RELATIONSHIP
AGE
INCOME
Target Market Female millennials have kids/kids in family earning ranges from $60K to $75K.
PRODUCT
Kid’s preference is the most important factor as for buying kids’ gift contained safety, educational, and entertainment features.
PRICE PLACE
$65-$100151%
81%
0%
Average budget of a kid gift combo is between $65 and $100
Purchasing in Target store is the main shopping method
Mobile App Functions:
68% - Web rooming
50% - Show rooming
0% - BOPUS
PLACE
Digital shopping experiences:
More than half of respondents prefer using mobile app can pay with app, compare price and check reviews. And 68% of respondents have web rooming digital connected shopping experience.
75%
33%
44%
55%
44% 44%
Price checker Self-checkout payment lanes
Information kiosks
Appropriate Gift Recommendation Read Reviews Find Discounts
Top three self-help technologies
Top three purchase stimulators
PROMOTION
• Majority target respondents desire price checker, self-checkout payment lanes and information available during in-store holiday shopping this year.
• Half of target respondents consider appropriating gift recommendation, finding discounts coupons and reading reviews stimulate them make a purchasing decisions.
Secondary Target Market
Show rooming
0%
Target Marcy
35%
Showrooming
Secondary target market is respondent who prefer shopping kids’ gift on Macy. 2x more Marcy’s respondents prefer Show rooming to web rooming , 3x more prefer Mobile app shopping.
Mobile app Shopping
Digital Shopping experience
Direct Competitor
65% of Amazon respondents purchase between 2 and 5
100% of Amazon respondents purchase online only
70% of Amazon love free shipping
Strength of Amazon : • Compare Price• Check Products Rating& Reviews • Free Shipping for Prime Member• Improve Kids Engagement
Opportunities• The trend of SAAS
( software as service) • Increase of early –age Social
Media user.
Weaknesses• Lack step of
developing Mobile App market.
• Supply chain issues
Strengths• Product Quality• Kid wish list app• Customer Service• Price matching• Location Available • Advertisement
Threat• Mature Market
Strategy
Retail store: ❏ In-store Event
Digital Marketing:❏ Social media platforms❏ Target Mobile App
Supply Chain:❏ Predict model for sales
In-store Event StrategyGoal: Boost sales
Target Age group: 4-8 years old kids
Target kids characters: Toy preference affected by current cartoon
Time period: Pre Black Friday, and November to December
The process is easy
Target
Playground
Check Out
Check OutWith
Mobile App
Shopping
Survey insights
Responses choose to purchase kids toy and games in retail store.
Responses purchase toy and games based on kids preference.
Responses purchase kids toy and games on Target mobile app.
Mobile App StrategyGoal: Increase guest’s engagement on Target apps
Target Age group: 8-13 years old kids
Target kids characters: Have wish lists, know what they want, follow the fashion trend
Time period: Focused on Pre-holiday season till holiday season❏ Time limited discount for app shopping❏ Provided customized advertisements for users
Social Media Strategy
YouTube Kid’s word-of-mouth effectGoal: Gain tractions for online shopping, start early and go viral
Target Age group: 8-13 years old kids
Target kids characters: have wish lists, know what they want, follow the fashion trend
Time period: focused on Pre-holiday season till holiday season
YouTube Channel
Target “A Free Digital Storybook” views: 5M views
Most popular Toys & Games Videos:
FunToyzCollector: 466M viewsCookieSwirlC: 33M viewsBubblePop Kids: 5M views
Top Apps Mentioned(Free Response, % times listed in top 5 apps)
Supply Chain Plan
Target Need to Be-stock
Product availability comes PRIORITY!
Source: SCM World Survey
Supply Chain Plan
Big influential factor❏ Dramatic ecommerce (digital and
mobile) growth
❏ Omnichannel provides seamless shopping experience
Supply Chain Plan
Out-of-stock issue: Complexity of accuracy of predicting performance❏ Push model: Driven by In-store event ❏ Pull Model: Driven by Mobile Apps promotion
Build reliable sales forecast model:❏ Recruit a speciality team to take the responsibility for the seasonal
sales prediction for the toys & games products❏ Update and revamp the predict model for a more precise number
of product flow from vendors through distribution centers to the stores
Supply Chain Plan
Improve inventory accuracy:Update and revamp the predict model for a more precise number of product flow from vendors through distribution centers to the stores
❏ Constant replenish to out-of-stock in store
❏ Encourage the store manager to make prediction about seasonal sales and communicate with supply chain department
Conclusion
The critical elements in strategic plan for 2016 kids holiday gifting are selling toys and games through Target omni-channel shopping methods. The strategy plan can direct the endeavor to Target’s continuous innovation and exceptional experiences—consistently fulfilling the brand promise Expect More. Pay Less. After walking through the case analysis and analytical research findings sections, there are four coordinate strategies created including: establishing in-store event, endorsing social media platforms, gaining Target mobile app tractions and benefiting from a reliable sales prediction number to release the pressure of out-of-stock issue.
Thanks!
Any questions?