1. Target Case Study Group B: Nawal Harris, Megan Osborne & Cristina Villarreal

2. Target’s Origin  From the Dayton Dry Goods Company which was founded in 1902 by George Draper Dayton. First Target store  Roseville, Minnesota Original Business Goals  Excel in terms of price, product offerings, customer service, community involvement, value and the consumer shopping experience. Target is leader in strategically creating methods to grow their business  In 1988, Target redeveloped technological efforts of their UPC bar codes.  The company became the first mass merchandiser to introduce UPC scanning at Target stores and distribution centers. Target has continuously a leader in cultivating community efforts  Has began to capture its latest target demographic, the Hispanic female.  Target has expanded its Hispanic grocery assortment, healthcare and entertainment departments in the Houston, Dallas, San Antonio, San Diego and New York markets. Introduction

3. By 2050, 1/3 of Americans will be from Latin American descent Increase in Hispanics, highest purchasing power nationwide Improving education levels, technological skill and a narrowing average household income gap Median age: 28 years old In the range of new homebuyers In the next decade Latinos will represent a large portion of residential purchasing, as well as groceries, clothing and electronics The Millenial Generation Born between 1980 and 2000 Largest generation in history Extreme buying power Texting, social media and all things internet Changing Demographics

4. Economic Power Is Shifting Hispanic women pursuing independence and personal achievement Challenging household dynamic 86% are making purchasing decisions Needs reflect those of large families and include products such as many food categories, oral hygiene products, bottled water, laundry detergent and paper products More connected to technology Use to stay connected and maintain culture

5. Current SWOT Analysis STRENGTHSWEAKNESSES 1.Strong existing presence within the community. 2.Continuously remain relevant to consumers by providing a unique merchandising mix. 3.Bright-spot mobile service, Cartwheel App and increasing mobile presence. 4.More prestigious than other discount retailers. 5.Expanded Hispanic grocery store assortment, health care, and entertainment. 6.Spanish store navigation boards. 7.Spanish language Coupons. 1.Store operating hours. 2.Perceived value vs. benefits. 3.Higher price-points than other discount retailers. OPPORTUNITIESTHREATS 1.Increased marketing efforts to attract the affluent Hispanic female. 2.Social media connections thru mobile APP for Cartwheel. 3.Customer Service experience. 1.Number of profitable channels. 2.Lower profits than Wal-Mart. 3.International Presence.

6. 2012 Sales Growth By Department

7. What’s Missing? Increase in usage of technology within Hispanic Demographic Smartphones 28% of Hispanics are more likely to own a smartphone than non-Hispanics Deficiency in mobile marketing U.S. companies are not doing enough to make mobile apps accessible

8. Age 18-2537 responses36% 26-3530 responses29% 36-4517 responses17% 46-5514 responses14% 56-over5 responses5% Gender Male 22 respondents21% Female81 respondents79% Ethnicity White23 responses22% African American24 responses23% Hispanic/ Latino46 responses45% Asian/Pacific Islander7 responses7% Other3 responses3% Education High School/ GED9 responses9% Some College33 responses32% 2-year College19 responses18% 4-year college29 responses28% Masters13 responses13% Employment Status Student26 responses25% Unemployed7 responses7% Employed71 responses69% Other5 responses5% Annual Income Under $25,00035 responses34% $25,001 - $49,99929 responses28% $50,000 -$74,99923 responses22% $75,000 - $99,0007 responses7% $100,000 and over9 responses9% Marital Status Single51 responses50% Married39 responses38% Divorced11 responses11% Widowed2 response2% Number of Children None54 responses52% One25 responses24% Two11 responses11% Three4 responses4% Four or more9 responses9% Basic Demographics for Primary Data Total number of responses: 103

9. What do you find most attractive about Target? Price15 responses15% Product Selection59 responses58% Customer Service5 response5% Location5 response5% Atmosphere18 responses18% How may times a month do you shop online? Once a day13 responses13% Once a week31 responses30% Once a month45 responses44% Never14 responses14% How many times a month do you use your smartphone to shop online? Once a day17 responses17% Once a week16 responses16% Once a month35 responses34% Never34 responses33% How do you compare the value Target provides against their competitors? Competitors are better23 responses23% Same as competitors29 responses28% Provide better value50 responses49% Do you follow Target on social media websites such as Facebook or Twitter? Yes23 responses22% No80 responses78% As a consumer, what compels you to follow a retailer on social media? Contests8 responses8% New product announcements19 responses19% Fashion tips & trends28 responses27% Deals & Discounts66 responses65% Don’t follow any24 responses24% Would you consider using a bilingual mobile app? Yes47 responses46% No56 responses54% Were you aware Target had a mobile app? Yes46 responses67% No23 responses33% Target Social media Online shopping App awareness Survey Questions If your preferred language is not English, would you be more interested in using an app that was in your preferred language? Yes29responses42% No2 responses3% Prefer English38 responses55% Approximately how many game apps have you downloaded on your mobile phone in the past year? 010 responses14% 1-541 responses59% 6-1012 responses17% 10+6 responses9% Would you be more interested in a company’s mobile app if there was a game that allowed you to earn discounts? Yes47 responses66% No24 responses34% Total number of responses: 103

10. Making Target’s App Multilingual Focus on Spanish Increase brand recognition and loyalty among Hispanic market

11. Inclusion of a Game 2012 Hispanic Mobile Consumer Trends Study 504 respondents stated that 48.3% of apps purchased were games Ipsos Public Affairs Survey 76% of 10,000 surveyed said saving money was at least somewhat important Almost half though saving money was very important and actively searched for discounts daily Game will be included in existing app for mobile coupons, Cartwheel by Target Option of connecting to Facebook

13. Game Format Name: Archer, reminiscent of private label brand Archer Farms Object: Shoot arrows through produce and household items to conquer levels Levels include 5-10 individual games

14. Game Format After each game: choice of 3 coupons, coupon goes to Cartwheel list Assures discount is relative to shopper preferences

15. Game Format After each level: shoppers gain a badge and another spot on their Cartwheel Game will be modelled after popular games among female Millennial generation: Angry Birds, Candy Crush Saga, Plants vs. Zombies

16. Promotion Social networking & in-store promotions Promoted on Facebook Catalina promotions Coupons are highly sought after, ensures shoppers will see the promotion Contests among sales associates Motivation for employees to market

17. Post Solution SWOT Analysis STRENGTHSWEAKNESSES 1.24 hour information source 2.More prestigious than other discount retailers 3.Easier access to information 4.More bilingual options for customers 5.Fun way to interact with Target 6.Faster way to connect and receive information 1.Not all customers enjoy gaming applications 2.Amount of time spent trying to earn discounts rather than exploring the rest of Target’s app 3.Less time spent in store OPPORTUNITIESTHREATS 1.Bilingual app that allows a variety of consumers to shop comfortably and relate culturally 2.Broader demographic 3.Customer service experience 4.Special rewards and discounts 1.Competitors’ innovations and ideas 2.Possibility of customers disinterest in the app 3.Lack of smartphone usage 4.Confusion on how to change the language option