Kids Holiday Gifting StrategyPreparing for Target Corporation

May 13th, 2016DePaul University

Hello!We are Team ChicagoWind!

Qianyu LiuM.S.

Marketing Analysis

Li PengM.S.

Marketing Analysis

Meng Zhang

M.S. Marketing Analysis

Yanqin YangMBA:

Entrepreneurship & Management

Information Systems

Agenda

Case Analysis

Findings

Strategies

Conclusion

Case Analysis

Who: Expect more. Pay less. What: Toys and games industry

Where: Omni-channel shopping- Mobile app matters

To grow kids’ engagement and omni-channel shopping experiences during holiday season

Prime Target Market

Secondary Target Market

E-Commerce Competitor

SWOT Analysis of Target

Findings

Brand Preference

22%

22%

14%

Primary market is respondent who consider Target offer the best Kids’ gift buying experience.

GENDER

RELATIONSHIP

AGE

INCOME

Target Market Female millennials have kids/kids in family earning ranges from $60K to $75K.

PRODUCT

Kid’s preference is the most important factor as for buying kids’ gift contained safety, educational, and entertainment features.

PRICE PLACE

$65-$100151%

81%

0%

Average budget of a kid gift combo is between $65 and $100

Purchasing in Target store is the main shopping method

Mobile App Functions:

68% - Web rooming

50% - Show rooming

0% - BOPUS

PLACE

Digital shopping experiences:

More than half of respondents prefer using mobile app can pay with app, compare price and check reviews. And 68% of respondents have web rooming digital connected shopping experience.

75%

33%

44%

55%

44% 44%

Price checker Self-checkout payment lanes

Information kiosks

Appropriate Gift Recommendation Read Reviews Find Discounts

Top three self-help technologies

Top three purchase stimulators

PROMOTION

• Majority target respondents desire price checker, self-checkout payment lanes and information available during in-store holiday shopping this year.

• Half of target respondents consider appropriating gift recommendation, finding discounts coupons and reading reviews stimulate them make a purchasing decisions.

Secondary Target Market

Show rooming

0%

Target Marcy

35%

Showrooming

Secondary target market is respondent who prefer shopping kids’ gift on Macy. 2x more Marcy’s respondents prefer Show rooming to web rooming , 3x more prefer Mobile app shopping.

Mobile app Shopping

Digital Shopping experience

Direct Competitor

65% of Amazon respondents purchase between 2 and 5

100% of Amazon respondents purchase online only

70% of Amazon love free shipping

Strength of Amazon : • Compare Price• Check Products Rating& Reviews • Free Shipping for Prime Member• Improve Kids Engagement

Opportunities• The trend of SAAS

( software as service) • Increase of early –age Social

Media user.

Weaknesses• Lack step of

developing Mobile App market.

• Supply chain issues

Strengths• Product Quality• Kid wish list app• Customer Service• Price matching• Location Available • Advertisement

Threat• Mature Market

Strategy

Retail store: ❏ In-store Event

Digital Marketing:❏ Social media platforms❏ Target Mobile App

Supply Chain:❏ Predict model for sales

In-store Event StrategyGoal: Boost sales

Target Age group: 4-8 years old kids

Target kids characters: Toy preference affected by current cartoon

Time period: Pre Black Friday, and November to December

The process is easy

Target

Playground

Check Out

Check OutWith

Mobile App

Shopping

Survey insights

Responses choose to purchase kids toy and games in retail store.

Responses purchase toy and games based on kids preference.

Responses purchase kids toy and games on Target mobile app.

Mobile App StrategyGoal: Increase guest’s engagement on Target apps

Target Age group: 8-13 years old kids

Target kids characters: Have wish lists, know what they want, follow the fashion trend

Time period: Focused on Pre-holiday season till holiday season❏ Time limited discount for app shopping❏ Provided customized advertisements for users

Social Media Strategy

YouTube Kid’s word-of-mouth effectGoal: Gain tractions for online shopping, start early and go viral

Target Age group: 8-13 years old kids

Target kids characters: have wish lists, know what they want, follow the fashion trend

Time period: focused on Pre-holiday season till holiday season

YouTube Channel

Target “A Free Digital Storybook” views: 5M views

Most popular Toys & Games Videos:

FunToyzCollector: 466M viewsCookieSwirlC: 33M viewsBubblePop Kids: 5M views

Top Apps Mentioned(Free Response, % times listed in top 5 apps)

Supply Chain Plan

Target Need to Be-stock

Product availability comes PRIORITY！

Source: SCM World Survey

Supply Chain Plan

Big influential factor❏ Dramatic ecommerce (digital and

mobile) growth

❏ Omnichannel provides seamless shopping experience

Supply Chain Plan

Out-of-stock issue: Complexity of accuracy of predicting performance❏ Push model: Driven by In-store event ❏ Pull Model: Driven by Mobile Apps promotion

Build reliable sales forecast model:❏ Recruit a speciality team to take the responsibility for the seasonal

sales prediction for the toys & games products❏ Update and revamp the predict model for a more precise number

of product flow from vendors through distribution centers to the stores

Supply Chain Plan

Improve inventory accuracy：Update and revamp the predict model for a more precise number of product flow from vendors through distribution centers to the stores

❏ Constant replenish to out-of-stock in store

❏ Encourage the store manager to make prediction about seasonal sales and communicate with supply chain department

Conclusion

The critical elements in strategic plan for 2016 kids holiday gifting are selling toys and games through Target omni-channel shopping methods. The strategy plan can direct the endeavor to Target’s continuous innovation and exceptional experiences—consistently fulfilling the brand promise Expect More. Pay Less. After walking through the case analysis and analytical research findings sections, there are four coordinate strategies created including: establishing in-store event, endorsing social media platforms, gaining Target mobile app tractions and benefiting from a reliable sales prediction number to release the pressure of out-of-stock issue.

Thanks!

Any questions?