Group Members
M. Ali RazaKamil FarooqFatima Akram
Group #2
‘Target has Guest,Walmart has Customers’
Company case
TARGET
Agenda
• The Journey So far• Where it stand today?• Industry Analysis• Brand Identity Prism• Customer Thinking• Recession• Recovery• Conclusion
Journey So Far
1895
1920
1940
1960
1970
1980
1990
2000
Department store
Discount store bull’s eye logo
Electronic scanning Present
Shop within a shop Plano grams
Loyalty program online stores
Where it stand Today
Exclusive US retailer
Target is 5th largest retailer after Wal-Mart
No of stores 1803
Revenue FY08 $65bn
Profit Fy08 <$3bn
96% people recall Bulls eye logo
Expect more payless
Cheap Chick
Brand identity prism
Physique: red targeted logo
Physique: Mammoth logo
Personality: upper middle class, innovative, urban
Personality: 40, aggressive, unsophisticated
Relationship: Next door stylist
Relationship: Handy man
Reflection: stylish, price conscious
Reflection: Intelligent spender
Self image: conscious, lively
Self image: value, forward thinking
Culture: American, high on csr initiative.
Culture: American, workshop, Ruth less
Customer Analysis
Target WalMart
Target Customer Young, educated, sophisticated, fashionable
Middle age cost conscious customer
Customer Value Cheap Chic Best value for money
Retail strategytarget Wal-Mart
Product Home items – 40%.Consumable items like food, health items-20%.
Consumable items like food etc-45%.
Place Mostly In urban areas. Mostly in small town and cities.
Price Little high 1-2% then Wal-Mart.
Prices are very low.
Promotion Spend 2.3% on on advertisement.
Spend only0.3% on advertisement.
Presentation Attractive promotions. Larger then life products pictures.
Congested budget presentation.
People Highly trained and motivated workers.
Low trained, motivated contract workers.
Recession
Recession of 2008 sales of Target was falling for 8 months.
Sales Wal-Mart was increasing.
Problem lied in mix of the Target 40% shelf space was given to home and apparel goods. 20% shelf space was given to consumable goods like food45% of Wal-Mart's retail mix consist of consumable products.
Wal-Mart has always undersized targetWal-Mart annual revenue was 406 billion$.Target annual revenue was 65 billion$.
During Recession
• But in recession Wal-Mart bottom line increased to 5.9%. target profit Drooped down to22.3% which is 2.2billion$.
• They faced loss of 155 million $.• Out of which135million$ per credit loss in forth
quarter.
• Target also 47% of its receivable to Jp Morgan chase.
Recovery
• IN 2010 Target sales rose to 5%.• Profit up was whopping 54%.• Perception of target’s value was increased.• They study micro and macro environmental factors.• They made it better and followed it.• Targets “Pay less” strategy continued without wavering.• Some wall street analyst expressed that target will loose its distinctive feature if continued like this.
• Target also made mark on customers heart “ Target is a nice place to go. Wal-Mart may have good prices, but I rather tell my
friends that I came back from shopping at target”.
Conclusion• changing direction of large corporation is an up hill task
•It like reversing a freight train.•Company has to be determined.
•It must have patience •By better planning