TargetMobile Strategy

Heather Anderson, Courtney Droege, Emily Krokstrom, Lauren Morris, Tierney Rodgers

Target Facts● Discount, Variety Stores, Home Goods● 347,000 team members worldwide● 1,795 stores across the US and Canada● Market Capital of $38.35 Billion● Target.com is the 6th most visited retail site in the US

Competitive Analysis

Best Buy● Competes with Target on

Technology products● Connects to a rewards program● Specialized product depth ● Exclusive offerings

Walgreens● Competes with Target in Pharmacy● Store maps● Balance rewards features ● Photo and pharmacy advantages

EBATES● Competes with Target on

Coupons and discounts● Maximize savings across all

retailers● Cash back shopping ● No market limitations

Amazon ● Online retailer● Quick search ● Millions of items available● One click checkout

Walmart● Everyday low prices● Savings Catcher● Photo and pharmacy advantages

Key Factors● Strong advertising and branding with a recognizable logo● Commitment to the community ● Multiple apps with different purposes● Red Card loyalty program● Modern products and design partnerships● Reputation for having higher end merchandise than competitors

The Consumer

Target Guest: In-Store● Median age of 40● Median income of $64,000● 43% have children at home● 57% have completed college● Time starved (busy life)● Cares about quality and design

Target Guest: Mobile● Has a smartphone ● Most likely to be female● 25 to 44 years old● Use the app to:

o Compare prices, find online coupons, purchase products

Strategic Roleof Website

Main Role of Target.com● Website offers more products and product details than

Target’s apps ● Website focuses on displaying and selling products

○ Instead of focusing on coupons, like the Cartwheel app

● Weekly Ad: Coupon feature on the website

Coupon Comparison

Weekly Ad on Target.com Interface of Cartwheel App

Mobile Marketing Tactics

Applications● Target Registry: create, manage

or share a Target Gift Registry● Target Wishlist: create, share,

and track holiday wish lists● Target Healthful: Target

Pharmacy now● at your fingertips

● Target App for your phone● Target App for your tablet● Cartwheel: save 5-30% on

hundreds of products● Target Ticket: stream movies & TV

shows at home or on the go● In a Snap: snap with the app to

shop instantly.

Attraction● Ease of Use ● Brings attention to Target specific brands, Private brands● Organization of Purchases● Increases Savings when shopping through multiple channels● TV and Movies on the go● Shopping for Friends and Family

Engagement● Suggestions based off of previous purchases● Daily updates● Rewards based on use benchmarks● Tracking and sharing of wishlists● Pharmacy rewards

Campaign Objectives ● Increase sales● increase traffic● increase customer satisfaction

Challenges ● Lack of Awareness● Lack of incentive for continued use● Technology issues

Opportunities ● Increase market share● Driving sales● Increased foot traffic● Gaining loyalty● New customer from use of app● Increase purchases in store● Grocery Pickup from app

Competitive Benchmarking

Competitive Benchmarking ● Greater increase in use of Target app compared to

Walmart app ● Leader in coupon clipping app● Most increase of Target online search comes from

mobile● 40% of all digital orders placed on mobile devices

Suggestions

Geolocation Coupons● We propose:

o Using geo-fencing to implement strategically timed ads ● Goal:

o Increase shopping at brick-and-mortar Target stores, top of mind awareness, and brand equity

Geolocation Coupons● Dovetails into successful Cartwheel campaign● Send out geographically relevant ads to increase

unplanned store visits● Tailor marketing efforts to individual Guest IDs; ultimate

customization● Coupons are timely

Personalization● We propose:

o Adding list-making functions and automatic coupon application to the existing Cartwheel app.

● Goal:o Make shopping at brick-and-mortar Target

stores more efficient and affordable for their guests.

Personalization● Add to the Cartwheel app so guests can make shopping

lists before a trip to the store. ● Cross-check their list with available coupons and

automatically apply them to 10 items in their list. ● Use existing mapping technology to show

guests the most efficient route around the store.

Tiered Loyalty Rewards

● We propose:o Adding a level between Cartwheel and RedCard

● Goal: o Turn occasional shoppers into frequent shoppers, by making their

shopping experience more personal

Tiered Loyalty Rewards

● This level would work with the Cartwheel app● Once Cartwheel barcode has been scanned a certain

amount of times, user becomes a middle-tier rewards member

● Bigger discounts, more coupons, special notifications

Summary● Geolocation Coupons:

o strategically timed adso increase unplanned store visits

● Personalization:o create and cross check shopping list o provide time efficient store map

● Tiered Loyalty Rewards:o add an additional levelo exclusive offerings

Questions