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“Bullseye Buyers” Target Frequent Buyer Program TM.

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Presentation on theme: "“Bullseye Buyers” Target Frequent Buyer Program TM."— Presentation transcript:

1 “Bullseye Buyers” Target Frequent Buyer Program TM

2 Sarah Ely Senior Marketing St. Louis (Hazelwood) Retail Experience: Interned at Hallmark headquarters and worked on a Target product reset.

3 Taylor Monaco Senior Marketing Kansas City (Lee’s Summit) Retail Experience: Interned at advertising agency where produced ads for local retail companies

4 Jessica Jennings Junior Marketing Columbia Retail Experience: Interned with Honda to design and develop a marketing campaign

5 Ryan Williams Senior General Studies St. Louis (Manchester)

6 Frequent Buyer Programs “Recurring Goals and Learning: The Impact of Successful Reward Attainment on Purchase Behavior” ◦ Journal of Marketing Research April 1, : 1.8 Billion Memberships Household Participation: 6.2 Programs “In general, research supports a positive connection between loyalty programs built on rewards and customer retention.” ◦ Ex. Frequent Flier, Starbucks, Panera

7 Survey 93 Responses Age Range of Male and Female Fielded from April 13 th - April 17 th Columbia

8 Survey Results 56% are currently enrolled in at least one frequent buyer rewards program ◦ 68.1% Retail ◦ 29.8% Grocery ◦ 23.4% Department ◦ 14.9% Convenience/Drug Store

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10 Target REDcard Debit Card, Credit Card, or Visa Credit Card 5% Off Your Purchase Free Online Shipping Help Education with 1% of Purchases Pharmacy Rewards, Extra 5% Off

11 Current SWOT Analysis Target REDcard Weaknesses Opportunities Threats Build Consumer Loyalty Consumer Data Cross-Channel Online Management Interest Rates and Penalty Fees Target National Bank Complaints Cannibalization Remain Competitive Corporate Responsibility Competitive Programs Consumer Limit on Credit Cards Strengths

12 Target REDcard Strengths Build Consumer Loyalty ◦ Discounts on Every Purchase Consumer Data Cross Channel Online ManagementWeaknesses Interest Rates and Penalty Fees Target National Bank Complaints Narrow Target Market ◦ Cannibalization

13 Target REDcard Opportunities Remain Competitive Corporate ResponsibilityThreats Competitive Programs Consumer Limit on Credit Cards ◦ New Program

14 Survey Results “Do you prefer credit card rewards programs or frequent buyer rewards programs?” Credit Card Rewards Programs 25.6% Frequent Buyer Rewards Programs 74.4%

15 Survey Results Retailer Credit Card Concerns “I don’t like having many credit cards.” “Overspending; not being responsible with purchases in an attempt to gain more rewards” “High interest rates on most retail credit cards” “Hidden fees and online glitches with payments” “Privacy”

16 Credit Card Rewards Program vs. Frequent Buyer Rewards Program

17 Our Proposal As proven by the success of its current REDcard rewards program, we suggest that Target adds a frequent buyers program, “Bullseye Buyers,” for its secondary consumers and those primary consumers who are credit card averse. “Bullseye Buyers” will expand Target’s database of consumer information and in effect, increase store traffic.

18 “Bullseye Buyers” TM

19 Bullseye Buyers Registration In-Store and Online Activation ◦ Register Card TM

20 bullseye buyers

21 Account Activation New Member Card Activation Code Returning Member Login Password Need a Card? Link with REDcard

22 Card and Key Chain Tag

23

24 Manage Your Account Account for Tracking Rewards ◦ my Rewards ◦ Link with Target REDcard, TargetLists, and Registries TargetLists Registries

25 Best Buy Reward Zone Reward Certificates ◦ Earn 1 Point for Every $1 You Spend ◦ Accumulate 250 Points and Receive a $5 Reward Certificate Member-Only Promotions Special Events

26 Safeway Savings Club Plastic Card Issued to Frequent Shoppers ◦ Members-Only Discounts ◦ Product Manufacturers Primary Shoppers ◦ $1 off in Cookie Department Secondary Shoppers ◦ $1 off in Meat or Produce Department Personal Recognition

27 Target Bullseye Buyers Automatic Reward Coupon Price Points ◦ $100 – Coupon 1 ◦ $300 – Coupon 2 ◦ $500 – Coupon 3 ◦ $700 – Coupon 4 Awarded Bi-Weekly ◦ Middle and End of Month Monthly Renewal ◦ Bullseye Bonus TM

28 Bullseye Bonus Birthday Rewards Product Releases Seasonal ◦ Back to School ◦ Summer TM

29 Carla’s Target List Diapers Goldfish Soda Granola Bars Baby Wipes Tide detergent Toilet Paper Paper Towels Cookies Cheerios Disinfectant

30 Primary Buyer: Carla Frequent Shopper (at least once per week) Three Children Stay-at-Home Mom Mostly Shops In: Grocery, Home Goods First Coupon: $2 Off Diapers Subsequent Coupons: Retail and Electronics

31 Carla’s Target List Diapers Goldfish Soda Granola Bars Baby Wipes Tide Detergent Toilet Paper Paper Towels Cookies Cheerios Disinfectant Total: $120 $2 20% Purchase of select Merona products

32 Andy’s Target List Video Games Running Shorts DVD School Supplies Granola Bars Deodorant Pet Food USB Drive Socks

33 Secondary Consumer: Andy College Student Athletic Occasional Shopper (Twice Per Month) Mostly Shops In: Electronics, Active Wear First Coupon: $1Off Headphones Subsequent Coupons: Food, Personal Care

34 Andy’s Target List Video Games Running Shorts DVD School Supplies Granola Bars Deodorant Pet Food USB Drive Socks Total: $50 Purchase of JVS headphones $1 Purchase of select Coca-Cola products Buy 1, Get 1 Free

35 Registries TargetLists

36 Registries TargetLists

37 Coupons

38 Promotion: Website Banner Ads Buyers

39 Promotion: Social Media

40

41 SWOT Analysis Frequent Shopper Reward Weaknesses Opportunities Threats Broader Consumer Market Increase Consumer Data Online Account Target Costs Competition with Target REDcard Cannibalization of Target Shoppers Leveraging Cross-Department Reward Leader in Discount Retailer Frequent Buyer Program Competitor Reward Programs Market Saturation of Reward Programs Strengths

42 Strengths Broader Consumer Market ◦ Primary and Secondary ◦ Compliment REDcard Increase Consumer Data ◦ Tailor Special Deals Online Account ◦ Check Rewards, Annual Deals ◦ Link with TargetLists and Registries

43 Weaknesses Target Costs Competition with Target REDcard Cannibalization of Target Shoppers

44 Opportunities Leveraging Cross-Department Rewards ◦ Convenience Leader in Discount Retailer Frequent Buyer Programs

45 Threats Grocery Reward Programs ◦ Safeway, Kroger Retail Rewards Programs ◦ Best Buy, American Eagle Outfitters ◦ Credit Card: Walmart, Kmart Department Stores Rewards ◦ Sears ◦ Credit Card: Macys, JCPennys, Sears Market Saturation of Reward Programs

46 Bullseye Buyers Summary Industry Success Unique Program ◦ Discount Retailer ◦ Product Variety Broad Target Market ◦ Target REDcard Consumer Data Online Account TM

47 The End


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