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Freshipes

Target Strategic Analysis by Spirare
by

Katrina Persaud

on 22 April 2010

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Transcript of Freshipes

Tiffany Bell Katrina Persaud
Newell Colbath Kelvin Quarles
Sarah Fulton Frances Weintraub Target Strategic Analysis Mission To make their stores the preferred shopping destination for guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling Target's Expect More. Pay Less.® brand promise. Strategic Issues Overall Greatest Strength: Brand

- Strong Market Presence -
- Diverse Selection of Quality Products -
- Great Employees and Team Building -
- Research and Development - Sustainable Competitive Advantage Strategic Solution Celebrity Chef Endorsements
- Similar to Target's
"Designer Collaborations"

Small Kitchen Set-Up & Samples Grab and Go
Meal Ingredients Employee Cooking
Meals in Store Individual Ingredients
Available for Recipe Customization Questions? Thank you for your time 1. Intense Rivalry Among Competitors

2. Lack of Geographic Diversification

3. Retention of Guests Rationale Aligned with Target's Current Strategies
Appealing During Economic Downturn
Boost Grocery Sales
Increase Customer Retention
Low Start-Up Costs
Easy and Convenient for Guests
Celebrity Appeal Costs Financial Projections Cost Projections are Low
Profit Margins High
Payback Period Less Than One Year Even in Worst Case Scenario
IRR = 1,856.8%
NPV= 135 million
Key Corporate Facts Ranked #28 on 2009 Fortune 500
Second Largest Discount Retailer
1,740 Stores in 49 States
Largest Markets in CA, FL and TX
16% of Sales from Pet & Food Sector
Gross Revenue: $65.36 Billion Analysis Target Market:
41 Year Old Female
Primary Industry:
Retail Merchandising
Increased Sales Per Store Fallout Number of Stores with Groceries: 251
15% of Overall Projected Sales for 2011: $9,895,800,000 Incremental Sales Per Store in the First Year Worst Case
Moderate Case
Best Case 1%
2%
3% $394,254.98
$788,509.96
$1,182,764.94 Fixed Costs Variable Costs/Year TV: Samsung 22 inch
Stove Burner (Butane)
10 Piece Cookware Set
Refrigerator
Counter and Delivery Total Fixed Costs $249.00
$39.95
$34.99
$1,200.00
$6,300.00 $7,823.94 IT Technician for Website Management
Guest Chef
Food Samples (at cost)
Souffle Cups
Spoons $199.20
$796.81
$9,792.00
$408.00
$408.00 $11,604.02 Total Variable Costs Total Costs Per Store for First Year $19,427.96 A 2008 Survery found that 97% of Americans recognize Target's logo. Concept Design Private Brands:
Archer Farms
Market Pantry “This isn't about me. It should all be about the brand.”
- CEO Gregg Steinhafel Technology Television Display of Meal Preparation
Use of In-Store Kiosk Technology
Online Recipes and How-To Videos
Online Blogs for Guests to Interact Current Strategy Focus on Differentiation
Goal: To Become First National Upscale Grocery Chain
Full transcript