1. Connecting Target with Wellness: Target’s Initiative to Capture the Wellness Market SpotOn Consulting Consulting@spoton.com December 9, 2009 SpotOn Consulting Consulting@spoton.com December 9, 2009

2. Agenda Target’s Wellness Market Opportunity A Plan of Action Recommendation 1 Recommendation 2 Questions Conclusion

3. Target Should Take Advantage of the Wellness Movement

4. Establish Target as a Wellness Provider to Capture a New Demographic o Being healthy o Making good choices o Exercising and eating well oTelevision advertisements oWellness Fair oWellness Wednesday Define Wellness Create Awareness

5. We want People to Know Target=Wellness HOW PEOPLE WILL KNOW: o Television Ad o Wellness Fair o Wellness Wednesday WHY IT’S EFFECTIVE: o The advertisement is an introduction o The fair generates excitement o Wellness Wednesday Creates constant interest and association WHAT WILL BE ACHIEVED: o People think Target when they hear wellness o People will begin to associate certain items with wellness, and know where they get those items: Target

6. We want People to Know Target=Wellness HOW PEOPLE WILL KNOW: o Television Ad o Wellness Fair o Wellness Wednesday WHY IT’S EFFECTIVE: o The advertisement is an introduction o The fair generates excitement o Wellness Wednesday Creates constant interest and association WHAT WILL BE ACHIEVED: o People think Target when they hear wellness o People will begin to associate certain items with wellness, and know where they get those items: Target

7. Wellness Fair- The Kickoff WHAT IT IS: o Involves Children With Wellness games o Prizes/Promotions/Info given throughout the entire Store and Parking Lot RESULTS: o Offers a fun environment and generates hype o Introduces key wellness products to potential guests o Gives Target’s wellness partners an opportunity for promotion o Announces the coming wellness sale- Wellness Wednesday

8. Why not Simply Start the Sale? WELLNESS FAIR: o Defines Wellness for the guest o The only event with free samples

9. People will Associate Target with Wellness THE SALE TARGET NEEDS: o Rotating Sale Mix o For all guests THE SALE TARGET WANTS: o Easy to Implement o The Name is Catchy

10. The Draw of the Water Cup- Coupon Potential Water Cooler Locations Potential Sale Areas

11. Create a Flow to and from Wellness Products REVITALIZE ITEM DISPLAYS: o Shelving o Wellness Identification Strip RENOVATE PHARMACY: o On-Floor Pharmacist o Waiting Area REVAMP FITNESS SECTION: o Reorganization o Seasonal Stock o Good, Better Best Pricing

12. Product Displays NEW SHELVING: o Cleanliness = Wellness o Update material to thick, white wood from thin, beige metal o Futuristic design is appealing NEW SIGNAGE: o Place wellness products on shelves with red background and white logos o Noticeable to those looking for wellness products o Wellness products are on shelves at eye-level “Expect More…”

13. Pharmacy Renovation o Location of Pharmacy already entices guests to shop o Waiting area eases congestion o May increase book sales o Assists guest with questions and concerns o Helps guest choose right product for their lifestyle o Shows guest Target’s commitment to personal wellness

14. Revamp Fitness Section to Ease Wellness Purchases For Guests oReorganize Fitness Section oSeasonal Isle oGood, Better, Best Pricing

15. Implementation of Wellness Recommendations Guarantee Results oPharmacists will aid guests in purchases oWellness Destination oWal-Mart initiative oSmall Retailers oWellness megatrend oOpportunity to be Wellness “discount retailer’