target presentation
TRANSCRIPT
Target is #OnPointTarget is #OnPoint
Target & The Hispanic Consumer
Femi BrinsonChris Lewitzke
Krystal LoMarissa Pulido
Target is #OnPoint
Things To Consider As We Forge A Relationship Between The Hispanic Guest and Target
What competencies and infrastructure does Target possess to properly address this diverse customer segment?
What are key facts that Target should leverage involving the Hispanic market?
What challenges do retailers face in addressing the Hispanic market?
Target is #OnPoint
Brief Target & Cartwheel Overview
2nd largest retailer with nearly 50% of stores in states of high Hispanic buying power 6
2nd largest social media presence10
6th most visited retailer online 12
A digital platform that allows Target guests to handpick sales
Application can be linked to Facebook profile or email address, sales can be redeemed online or in-store
Guests have saved $32 million dollars using Cartwheel1
Target is #OnPoint
Demographic Analysis
• The top 10 states of Hispanic buying power represent $770B 6
• Target has 880 stores in these 10 states 8
• With nearly 50% of Target’s stores located in this area, our solution will target these markets6
Target is #OnPoint
KMART•Mock telenovela “Madres y Comadres” 5
•Latina Smart Scholarsip 2
Competitive Landscape
Target is #OnPoint
WALMART
•Advertising•Average income: $42,000 3
•“Always Low Prices”•Partnership with Univision 13
Competitive Landscape
Target is #OnPoint
Our Solution: The #OnPoint Campaign
• Honors and supports Hispanic Heroes who are #OnPoint in their communities
• Target Corp. will sponsor 3 #OnPoint projects per month and provide coupons & cash to those that donate time or money at the event
• #OnPoint honorees will have project and daily lives filmed and shared via Facebook and various social media
• Those that share Facebook photos will receive introductory Cartwheel coupons and Cartwheel Cash
Target is #OnPoint
Why Target Should Embrace Our Solution
• Our solution focuses on community values and will add value as opposed to extracting value 7
• Engages and re-engages guests through social media 4
• Drives people to Cartwheel application and increases internet and in-store traffic
• Utilizes existing infrastructure through Target Foundation and social media teams
• Provides tax breaks and a direct platform for corporate social responsibility in the Hispanic community
Target is #OnPoint
Annual Recruitment & Project Expenses
Project & Grant Cost ($60,000 per market) $720,000
Cartwheel Dollars ($10,000 per project) $360,000
Facebook & Twitter Advertising $200,000
Brand Ambassadors $250,000
Total $1,530,000
Retention Strategy
Engagement Survey $250,000
Mailing $200,000
Total $450,000
#OnPoint Expenses
Total Expense: $1,980,000
Target is #OnPoint
Financial Impact—Current Guests
• Target currently has 22,711,212 likes on Facebook 10
• 783,536 Hispanics share post on Facebook‒15% of Hispanics exposed to post
• 274,237 will redeem coupon in Cartwheel‒35% of those given the coupon
• Total Revenue increase of $131,633,760‒Additional spending of $40/month
• Total Income increase of 36,067,650‒Net profit margin of 27.4% 9
Target is #OnPoint
Financial Impact—New Guests
• 180,000 new potential guests engaged‒5,000/charity
• 54,000 new Cartwheel downloads‒30% of engaged Hispanics
• $32.4 million additional revenue‒Spending $50/month
• Net income increase: $8,877,600‒27.4% net profit margin 9
• Total ROI: 22.7‒Average Target ROI: 9.8
Target is #OnPoint
Financial Forecasts
Year 1 Year 2 Year 3
Costs $ 1,980,000 $ 2,970,000 $ 3,861,000
Income $ 44,945,250 $ 71,912,400 $ 100,677,360
Target is #OnPoint
Things To Consider As We Forge A Relationship Between The Hispanic Guest and Target
What competencies and infrastructure does Target possess to properly address this diverse customer segment?
•Diverse workforce (Ranked 20th, highest retailer) 11
•Strong social media footprint
What are key facts that Target should leverage involving the Hispanic market?
•Core values•Above average social media consumption•Increase in coupon usage
What challenges do retailers face in addressing the Hispanic market?
•Heterogeneous population•Effectively marketing to multiple generations and cultures
Target is #OnPoint
"1 Million Cartwheel Users and Counting." A Bullseye View. Target Corp, 8 Aug 2013. Web. 10 Jan 2014. <http://www.abullseyeview.com/2013/08/target-celebrates-one-million-cartwheel-users/>. 1
"Answer this: "I am LatinaSmart because..."." tiki tiki. WordPress, 18 Aug 2011. Web. 15 Jan 2014. <http://www.tikitikiblog.com/answer-this-i-am-latinasmart-because/ 2
D'Innocenzio, Anne. "Retail:The great consumer divide; Rich spend, others scrimp, retail reports show."Detroit Legal News. Detroit Legal News Publishing LLC, 20 May 2011. Web. 15 Jan 2014. <http://www.legalnews.com/detroit/950203>. 3
Gonzalez-Barrera, Ana. "Social Networking." Pew Research. Pew Research Center, 7 Mar 2013. Web. 15 Jan 2014. <http://www.pewhispanic.org/2013/03/07/vi-social-networking/>. 4
Kmart, dir. Trailer de Madres y Comadres. Youtube, Film. 10 Jan 2014. <http://www.youtube.com/watch?v=crSeODh6-F0&feature=c4-overview-vl&list=PLD8F252C5DCE9B2D3>. 5
"Multicultural Economy 2013." Selig Center for Economic Growth. University of Georgia, n.d. Web. 9 Jan 2014. 6
Target is #OnPoint
Mueller, MP. "Marketing Tips for Reaching Hispanic Americans." Business Day: Small Business. The New York Times, 1 Feb 2013. Web. 10 Jan 2014. <http://boss.blogs.nytimes.com/2013/02/01/marketing-tips-for-reaching-hispanic-americans/?_r=1>. 7
N.p.. Web. 15 Jan 2014. <http://investors.target.com/phoenix.zhtml?c=65828&p=irol-homeProfile>. 8
N.p.. Web. 15 Jan 2014. <http://www.marketwatch.com/investing/stock/tgt/profile>. 9
"Target Profile." Facebook. Facebook, 15 Jan 2014. Web. 15 Jan 2014. <https://www.facebook.com/target>.
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"The DiversityInc Top 50 Companies for Diversity."DiversityInc. N.p., n.d. Web. 15 Jan 2014. <http://www.diversityinc.com/the-diversityinc-top-50-companies-for-diversity-2013/>. 11
"Top 50 Most Popular Online Shopping Websites." My App Magazine. MyAppMag, 8 Jan 2013. Web. 15 Jan 2014. <http://myappmag.com/online-shopping-websites/>. 12
"Walmart and Univision: Winning with Hispanics."Univision Communications INC. Univision Communications INC, n.d. Web. 15 Jan 2014. <http://corporate.univision.com/walmart2013/ 13