Case competition winner from Target Corporation/Marketing Strategy at Fisher College of Business.

1. Elevating The In-
Store Experience
Tim Jessberger, Christian Klimkiewicz, Emily Kluener, Vlad
Necovski, Wes Sherrer, Nathan Tumblin

2. Today’s Roadmap
● Competitive Landscape
● Our Research
● Plan Objectives
● Proposed Tactics
o Overview
o Costs of Strategies
o Benefits of Strategies

3. Competitive Offerings: Similar Product
and Selection Offerings
o Compete on price
o In-Store service is
improving; usually
understaffed
o Excellent in-store
service
o Competitive pricing
o Good quality
products

4. Competitive Offerings: Similar Product
Offerings, Less Selection
o Reduced pricing
o Typically one product
choice in each
category
o Little to no service
o Reduced pricing on
select products
o Some choices in
certain categories
o Little to no service

5. Competitive Offerings: Different Focus,
but Growing Offerings
o Draw customers on
weekly and fill in grocery
trips
o Decent service,
competitive pricing
o Secondary sales in
clothing and home good
items
o Draw customers on
weekly and fill in
grocery trips
o Excellent service, fair
pricing
o Some options in home
good items

6. Our Research
● Primary Research
o Observed guest shopping habits at Lennox, Easton,
Polaris, Graceland, Blacklick, and Cincinnati
o Experimented on Target team members using
situational tests
o Interviewed Target team members while on the job
● Secondary Research
o Acquired data on trends in the industry
o Looked for innovation amongst competitors

7. Research “a ha”s
● Perceived slightly higher quality,
slightly higher cost than Walmart
o Not the least expensive, very good cost to quality
ratio
o Mom’s seemed to prefer Target
● In-store experience is higher than
competitors, but there are many
opportunities for improvement

8. The Problem Defined:
● The in-store experience is good, but continuous
improvement can be leveraged to differentiate
and capture a competitive advantage.
● How can Target modify the in-store experience
to benefit all stakeholders and provide a
competitive advantage?

9. Ideal Solutions
● Optimal recommendations
will:
o Elevate Target’s in-store
experience
o Reinforce existing in-store
efforts
o Be cost cognizant
o Support Target’s brand
positioning/differentiation
strategy
o Increase brand image

10. Key Pillars
● Guest Service: be 100% available to the guest when
they need service
● Convenience: provide guests with increased
convenience while maintaining time spent in-store
● Casual Incentives: reward existing guest behavior
● Embrace Differentiating Factors: Target has higher
quality goods, friendly staff, and a better in-store
atmosphere

11. Strategy #1: Improve In-Store Service
● Improve service with easier
access to team members in
given departments
o Cross-train team members
to assist guests in high
volume departments
● Better trained and incentivized
pharmacists more eager to
assist and fulfill guest needs
● Implement better communication
technology

12. Improving In-Store Service
● Cross-train team
members
o This can be completed for a
nominal cost through on-
the-job training
o Have current team members
spend time each day in
other departments
o Focus training on guest
touch points to ensure high
return on guest satisfaction

13. Improving In-Store Service
● Improve selection process
o Spend more time interviewing prospects
o Ensure prospect is interested in industry and Target
o $2,000/position filled (time and opportunity costs)
● Better incentives for pharmacists
o This can be in the way of higher salaries but can be
as simple as stock options or bonuses based on
customer satisfaction feedback

14. Improving In-Store Service
● Remove phones red in-store
phones (outdated)
o Utilize Cartwheel or other
smartphone-based app to
ping customer service when
help is needed.
o Hardware: Key managers
use current hardware to
receive alerts and respond
or delegate response

15. ● Happier Guests->ROI
o Better guest retention
o Increased guest time in-store
o Larger revenue per visit
o Higher perceived brand value
o More app awareness and use
per guest
Improving In-Store Service: ROI
● Happier Team->ROI
o Greater team member
satisfaction
o Improved team member
retention
o Increased Team Net Promoter
Score

16. Strategy #2: Bundling Deals
● Bundle items to capitalize
on convenience
● Increase basket size without
detracting time in-store
● Be clear about the value
added and benefits the
consumer will receive from
buying items together

17. Bundle Deal Examples

18. Costs of Bundling Deals
● Bundling results in smaller margins
o Larger basket size
● Strategy relies on consumers to take
advantage of the deal and purchase
items together

19. Benefits of Bundling Deals
● For Target: guests are inclined to purchase
more items in order to get the discount
o More potential for revenue
● For Guests: rewarded with a discount for
items they may already buy together
o Like bread, peanut butter, and jelly
o Positive reinforcement
o “Little win”

20. Strategy #3: Segmented Store
Atmospherics
● Personalize the atmospherics of each department based on its character
and employee suggestions
● Decentralize the corporate overhead just enough to enhance the customer
experience
● It’s all about authenticity

21. Segmented Atmospherics Tactics
● Delegate a portion of the budget to marketing efforts directed
towards increasing authenticity in each department
○ Market department: Increase signage, 5 senses, market
“personality”
○ Softlines: personable, quality, value
● Team member selection, training, and floor execution.
○ Hire highly motivated team members
○ Develop strategic training programs that entice them to deliver
phenomenal guest service
● Focus team members on delivering excellent guest service
○ Avoiding stocking shelves during peak hours

22. Benefit of Elevated Atmospherics

23. Thank You
What questions do you have?