Location Infused Insights for Effective Customer Relationships
Target Case Competition 2016.pptx
1. Kids Holiday Gifting Strategy
Preparing for Target Corporation
May 13th, 2016
DePaul University
2. Hello!
We are Team ChicagoWind!
Qianyu Liu
M.S.
Marketing
Analysis
Li Peng
M.S.
Marketing
Analysis
Meng Zhang
M.S.
Marketing
Analysis
Yanqin Yang
MBA:
Entrepreneurship
& Management
Information
Systems
4. 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
10. 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.
11. 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.
13. 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
14. 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
15. Strategy
Retail store:
❏ In-store Event
Digital Marketing:
❏ Social media platforms
❏ Target Mobile App
Supply Chain:
❏ Predict model for sales
16. In-store Event Strategy
Goal: 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
17. The process is easy
Target
Playground
Check
Out
Check
Out
With
Mobile
App
Shopping
18. 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.
19. Mobile App Strategy
Goal: 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
20. Social Media Strategy
YouTube Kid’s word-of-mouth effect
Goal: 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
21. YouTube Channel
Target “A Free Digital
Storybook” views: 5M
views
Most popular Toys & Games Videos:
FunToyzCollector: 466M views
CookieSwirlC: 33M views
BubblePop Kids: 5M views
Top Apps Mentioned
(Free Response, % times listed in top 5 apps)
22. Supply Chain Plan
Target Need to Be-stock
Product availability comes
PRIORITY!
Source: SCM World Survey
23. Supply Chain Plan
Big influential factor
❏ Dramatic ecommerce (digital and mobile)
growth
❏ Omnichannel provides seamless shopping
experience
24. 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
25. 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
26. 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.