1 “ A New Beginning” Threshold Re-Branding Amber Ravenscroft & Megan Woods

Brand Overview  Newest and single-largest private label program ever introduced  “Holy grail of American home”; targets metro/urban/casual/comfy/contempor ary customer  Strong personality, exceptional quality, outstanding design; functional and visually appealing  Reflects guest insights; durable dinnerware and chemical-resistant bath towels  Increased Target’s total revenue post their debut in 2012 from $69,865(000) to $73,301(000)

Target Audience  Target’s typical guest; 40 years of age, annual income of $64,000  Women; 85% of all consumer spending  Style-conscious, price-conscious and fashionable  Range from new homeowners to mothers  Home decors regard quality as highest evaluative criterion; search and conduct research online and through social media  Purchase home décor through online outlets

Competition Internal  Target’s impressive home décor section is already renowned  Threshold is competing with brands Target already carries:  Nate Berkus  Smith & Hawken  Compete with Threshold’s brand in-stores and on the shelf External  Bed, Bath & Beyond: “Every customer’s first choice” by offering everyday low prices, excellent customer service, and an extensive assortment of products  IKEA: Centered on good design and functionality at low price, “home furnishing solutions for every room in the home”  Kohl’s: Wide range of brands that match their mission to “offer quality exclusive and national brand merchandise”  Wal-Mart: Focus on affordability, products that aim to give the world a better life

S.W.O.T. (prior to launch) Strengths  Target has strong brand loyalty for private-labels  Threshold’s target audience is already shopping at Target  Target is infamous for product quality  Affordable and competitive prices  Target is well known for their home décor department Weaknesses  Little to no international presence  Limited space in-store for advertising campaigns  Social media presence lacks impact/interaction  Low brand awareness of Threshold private-label  Previous campaigns for Threshold brand do not correlate with in-store presence

S.W.O.T. (prior to launch) Opportunities  Target’s private-label brands already have strong impact on their consumer base  All Target locations provide free internet connection, allowing for seamless integration of digital campaigns  CityTarget provides a different take and format to traditional Target locations  Expansion into Canada Threats  Strong competition with other retail locations as well as other Target home décor brands  IKEA at forefront of room-staging advertising  Other retail options are very similar to Threshold’s products and fall into similar quality/price categories  Credit card scandal leaves consumers questioning Target’s credibility and security measures

Technology  Looks to the future versus trying to improve upon the past  Virtual reality and app integration  Social media as an accessory; Facebook contest in collaboration with in-store presence  Pinterest as a developing social media outlet  Used to plan/organize daily life  Driven by purchase intent  Solid foundation in targeting women (33% compared to 8% men)  21% of online users, vs. 18% of online users using Twitter

Challenge  Leverage a comprehensive omnichannel/multichannel strategy to support the Threshold brand, beyond what is being used today. Objective  Create a campaign that uses innovative omnichannel/multichannel strategies to encourage current and potential Target customers to react and interact with Target’s Threshold brand with a focus on augmented reality.

Strategy  “…the magnitude or intensity that must be exceeded for a certain reaction to occur.”  Three main components:  Virtual reality showroom  Traditional social media presence  Fully interactive and augmented reality incorporated mobile application

Virtual Reality Showroom  Three-dimensional projection mapping software  Target registry using QR codes of Threshold brand products through mobile app  Scan items into blank room, where products will be projected and purchasers have ability to design their “dream room” 

Social Media Presence  Virtual reality contest to create “buzz” about the brand  Newly created rooms will be entered on Target’s Facebook page  Users will vote on winner, granting them the physical room they digitally created  Integrates traditional advertising with digital techniques

Social Media Presence  Pinterest is a key social marketing platform to reach Threshold’s target audience  Threshold’s own Pinterest page, establishing the brand it’s own personal identity and differentiating it from similar Target home décor products  Reaches a specific, niche market in home decorating that directly reflects purchase intent

Augmented Reality Mobile App  Vuforia Smart Terrain technology  Responsive and interactive  Experience Threshold brand in-home translates to in-store purchase 

S.W.O.T. (after launch) Strengths  Omnichannel/multichannel implications that leverage the Threshold brand  Innovative strategies that encourage customers to interact with the Threshold brand  Affordable and competitive prices  Higher brand awareness of the Threshold private-label  Customers can experience Target products without visiting a physical store location  Campaign itself can serve as basis for development of interactive campaigns for other Target brands Weaknesses  Limited space in-store for advertising campaign  New technology is at higher risk for error  Social media presence with other Target brands are still very broad  Larger portion of the budget must be used for in-store displays

S.W.O.T. (after launch) Opportunities  All Target locations provide free internet connection, allowing for integration of digital campaigns directly into store locations  Technology is advancing every day, allowing for more innovative campaign ideas for other Target brands  Growing potential with social media participation on varying platforms  Expansion into Canada Threats  Strong competition with other retail locations as well as other Target home décor brands  Other retail options are very similar to Threshold’s products and fall into similar quality/price categories  Credit card scandal leaves consumers questioning Target’s credibility and security measures

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