Post on 09-Jul-2015
Katie Geiger│ Rachel Weiss │Samantha Tranfa │ Evelyn Ramirez │ Michael Abney
BULLS EYE SOLUTIONS PRESENTS: CITY TARGET
CITY TARGET ISSUES
Urban Trends
Congestion of urban store
Urban consumer mentality
Availability of Space
Shelf Space
Floor Size
SUSTAINABLE COMPETITIVE
ADVANTAGE
Shopping Atmosphere
Trendiness
Clothes
Other Products
STRATEGY│CITY TARGET
DEPARTMENTS
Implement: Department/Product
Category
Implementation Details
Clothing Maintain trendy clothing lines
Food Scale down; focus on items that can be used for quick
meals/snacks Pet Supplies Limited selection
Home Goods Eliminate storage items & shelving units
Small electronics Including electronic accessories
Toy Department Limited to small scale items
Arts & Crafts Limited Selection with a focus on office supplies
Skin Care/Makeup Maintain current selection while eliminating least
profitable product lines.
STRATEGY│CITY TARGET
DEPARTMENTS
Eliminate: Department/Product
Category
Elimination Reasoning
Amenities such as: Not directly correlated to the root
of Target’s brandThe Pharmacy
Optical Center
Starbucks Store
Large electronics Not cohesive with target customers
lifestyle Gardening
Furniture: Home Furniture, Patio
Furniture, Shelving Units
Storage Units
STRATEGY│TARGET TO-GO
What is the Program Online Service/Phone App to order groceries off site
$9.99 a month
Gather Groceries from In-Store Pick-Up Window
STRATEGY│TARGET TO-GO
How Does it Work
Reserved Scheduling from 4:00pm-8:00pm
Target Personal Shoppers
$15.00 Minimum Order
Strategic Placement
OPERATING INCOME
FINANCIAL BREAKDOWN
TARGET-TO-GO PROGRAM
FINANCIAL BENEFITS
TARGET-TO-GO PROGRAM
$3,600,000
$3,750,000
$3,900,000
$4,050,000
$4,200,000
$4,350,000
$4,500,000
2012 2013 2014 2015 2016
Effect on Operating Income
Operating Income Income from Target-to-go
VALUATION
$355,055.97
$(50,000)
$305,055.97
($100,000.00)
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
PV of cash flows Less costs NPV
PAYBACK PERIOD
(50,000)
60,471
183,055
138,061
86,815
96,967
0 1 2 3 4 5
RETURN ON INVESTMENT
OVER THE YEARS
21%
74%94%
176%
266%
0%
50%
100%
150%
200%
250%
300%
2012 2013 2014 2015 2016
RO
I
PHASES
Phase 1
• Preliminary Marketing Tactics (Ex. Email blasts to build anticipation)
• Tech Design
• Layout Design
Phase 2
• Marketing Development :Release of External Advertising & Promotional Material
• Interior Development
• Employee Training
Phase 3
• Utilize Marketing Strategies: Release Internal Promotional Material (In-Store Signs, Brochures)
• Implementation of Target To-Go program
Phase 4
• Evaluation
• Amendment (if needed)
FALL-OUT
Low guest response
Higher than expected turnout
Poor customer service
Allergies
Application failure and technological glitches
Poor inventory tracking
CONCLUSION
Reduce In-Store Foot Traffic
Reduce Stocking Time
Pertains to Target's SCA
Utilizes urban shopping trends