IntroductionTargeting a millennial is targeting a customer for life that grows with the

company and has a family that will do the same. We will discuss the simple key factors Kohl’s needs to focus on such as products, customer experience and online presence.

 Mission Statement: To be the leading family-focused, value-oriented, specialty department store offering quality, exclusive, and national brand merchandise to the customer in an environment that is convenient, friendly, and exciting. Vision Statement: We not only offer the best merchandise at the best prices, but we are always looking to make your shopping experience more enjoyable. Purpose: To inspire and empower families to lead fulfilled lives.

 

Challenge            Kohl’s needs to increase their relevancy as a retailer in the 18-24 year-old age range. In doing so, they will need to reevaluate their resources and capabilities in order to better suit their target audience. They have branded themselves as family-oriented and as a result millennials have fallen between the cracks. The values of society have shifted in the sense that families are no longer starting between the ages of 18-24, it is now more common for families to start later in life at the ages of 24-28 years old.  With that being said, millennials do not fall into the “Family Oriented Category” and in order for them to include millennials, Kohl’s will need to branch outside of their comfort zone.

Competitor AuditKohl’s has been a stable competitor in the department store chain industry for

many years. Among their competitors are JcPenney’s, Macy’s, and Nordstrom. Due to the competitive industry that Kohl’s is in, the company as a whole needs to begin thinking ahead of the game to keep their competitive edge on their rivals. Currently, their competitor’s are more accurately targeting millennials and Kohl’s needs to not only follow this trend, but begin leading it to draw customers to choose them over rivals. 

Here are the three brands we will audit:

                   

JcPenney and Sephora 

JcPenney has teamed up with Sephora for the past six years. Sephora is a popular make-up retail store that has aided JcPenney in targeting millennials. Sephora has reimaged JcPenney’s brand while JcPenney helps Sephora with providing a customer base that Sephora would not have had otherwise. JcPenney has also been known to be a family-oriented company, however the company decided to take a step out of their comfort zone back in 2010 in an effort to increase sales through the targeting of a newer audience while still maintaining their family-oriented values. This one small change gave JcPenney an edge up within their competitors.

Macy’s Specialty Products and PartnershipsWhen Macy’s is compared to Kohl’s, typically Macy’s products are of higher

quality. Macy’s carries name brand items such as Michael Kors, Coach, Nike, Under Armour, as well as an “only at Macy’s” section. To further their product line, they have partnered with companies such as Starbucks, MAC Cosmetics, and Finish Line. Macy’s and Bloomingdale’s became widely recognized as the industry leader for our omni-channel approach to fashion retailing and we moved fast to adjust our operations to serve the evolving shopping preferences of customers. 

Nordstrom’s Website & ServiceNordstrom offers free shipping and free returns online, as well as operating a

website that is user friendly and easy to navigate. The Nordstrom website is clean and organized to provide an easy shopping experience to its customers. When shopping online or in stores through Nordstrom, you can feel the security of knowing any returns will be simple and hassle free.  

Internal AuditThe current beauty section at Kohl’s is plentiful, but it doesn’t showcase very

many appealing brands that are carried at local Sephora or Ulta stores, which are where many millennials spend their money on beauty. At first thought, I can think of only a couple of appealing beauty brands carried by Kohl’s.

The current product line at Kohl’s is adequate, but could use appealing external forces in order to improve upon their customer draw. They currently carry brands such as Nike, Fitbit and Columbia to name a few, but need to add other iconic brands to give themselves more of a competitive edge.

Kohl’s currently runs an Instagram account showcasing trendy clothing that would attract millennials. Upon entering the Kohl’s website, you are immediately greeted with coupons and offers to aid your online shopping experience. Being that many millennials often turn to the online outlet for their shopping needs, this is an attractive feature, but also an overwhelming one. The website is so busy that it is tough to find what you are looking for. Often times, if web purchases are too difficult, the customer will just shop in stores.

SolutionTo provide the most positive shopping experience for millennials, Kohl’s

needs to partner with relevant beauty brands such as Kylie Jenner Cosmetics, improve their online shopping image and overall online presence, and finally improve on customer experience.

In order to improve in the beauty section, Kohl’s needs to reach out to up and coming makeup brands such as Colourpop, Morphe and Kylie Jenner Cosmetics. This will provide a comfort to millennials knowing that some of their favorite online makeup brands are now easily accessible to them. No one else has done this yet, and Kohl’s could be the first to carry these brands in store.

Their website needs to be simplified and organized so that customers are not overwhelmed. They also need to provide free shipping and returns around the clock to attract everyone. This will increase sales and also provide convenience to Kohl’s shoppers, and give them an incentive to shop online.

Their customer experience could be more positive if the dressing rooms were better attended to. The disorganization repels millennials from wanting to try on clothes. A help button could also be added for customers to be able to speak with a sales associate about finding items in a different color or size.