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

2. Agenda Target’s current position Identify Target with wellness Define wellness Generate awareness Improve wellness components Revitalize item displays Renovate pharmacy Revamp fitness section Target’s potential position Question and answer session Conclusion

3. Target Should Take Advantage of the Wellness Movement

4. Establish Target as a Wellness Provider to Capture a New Demographic Physically, mentally, and spiritually sound. Define Wellness Identify Product Offering Create Awareness Being healthy Making good choices Exercising Eating well Reposition these items as wellness-oriented. Fitness equipment Athletic apparel and footwear Health-oriented foods Hygiene products Etc. Generate awareness of Target wellness initiative. Television advertisements Wellness Fair Wellness Wednesday

5. Television Commercials will Identify Target as Wellness Destination Create awareness of Target wellness initiative Emphasize breadth of wellness-oriented products Generate business from new demographic Incorporate Target’s new wellness logo

6. Television advertisement Wellness Fair Wellness Wednesday People will associate Target with wellness. Individuals will identify certain items with wellness. Target will be established as one-stop shop for wellness., What will be Achieved: How People will Know: Consumers will Associate Target with Wellness Why it will Work: Advertisement introduces initiative Fair generates excitement Wellness Wednesday maintains interest

7. Wellness Fair will Kickoff Wellness Initiative Information stands on wellness products and services Wellness product samples Flyers for weekly wellness sale Wellness-themed games for kids Offers fun environment Generates hype Introduces key wellness products Launches Wellness Wednesday Wellness Fair Results

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 o Easy to Implement o The Name is Catchy o Rotating Sale Mix o For all guests The sale Target needs The sale Target wants

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

11. Create a Flow to and from Wellness Products o On-Floor Pharmacist o Waiting Area o Reorganization o Seasonal Stock o Good, Better Best Pricing o Shelving o Wellness Identification Strip Renovate Pharmacy Revitalize Item Displays Revamp Fitness Section

12. Revitalization of Product Displays will Highlight Wellness Cleanliness = Wellness. New shelving enhances display. Futuristic design is appealing Highlights wellness-oriented products using a red strip with white Target logos Noticeable to those looking for wellness products. Does not detract from non-wellness oriented products. Wellness Identification Strip New Shelving “Expect More…”

13. Pharmacy Renovation Enhances Ease of Shopping Location of pharmacy already entices guests to shop. Waiting area will ease congestion. Book and magazine sales will increase.

14. On-Floor Pharmacist Shows Dedication to Personal Wellness Assists guest with questions and concerns Helps guest choose right product for their lifestyle Shows guest Target’s commitment to personal wellness

15. Revamp Fitness Section to Ease Wellness Purchases For Guests o Reorganize fitness section o Seasonal aisle o Good, better, best pricing

16. Wellness Recommendations Guarantee Results Differentiates Target from Wal-mart and small wellness- oriented retailers Establishes Target as wellness destination Pharmacists will aid guests in purchase decisions Wellness destination Wal-Mart initiative Small retailers Wellness megatrend Opportunity to be wellness “discount retailer’

17. According to Roger Deromedi, Chief Executive Officer of Kraft Foods, ”The growing importance of health and wellness has altered buying patterns to a degree that he has [I have] never seen before in the food business.” Consumers are taking interest in products that are sustainable, provide purpose, and give real value. The majority of consumers consider themselves to be wellness-conscious. Consumers are seeking multiple ways to provide themselves with a wellness- oriented lifestyle. The wellness industry will continue to grow as consumers seek and purchase items that are specific to their health and fitness needs. The nation’s largest health-oriented segment is comprised of one-fourth of the population. Individuals in this growing segment are choosing brands and retailers based on corporate values. Wellness- oriented individuals want to be able to relate to their supplier. Individuals define wellness as being physically, mentally, and spiritually sound. People identify wellness-oriented products as exercise equipment, healthy food, vitamins, and personal hygiene products. American society is at the door of a new era. One- third of U.S. adults are obese, and healthcare spending for this group has grown 80 percent in the last eight years. However, a new social trend is surfacing as more individuals take the initiative to lead healthier lifestyles. People recognize that if they practice wellness, they will spend less on future medical care. Consumers are seeking multiple ways to provide themselves with a wellness-oriented lifestyle.