Value to Bottom Line
RMG925: Leading in Retail Service Organizations
- Increased positive word of mouth marketing
- Ensure reliable sales and increase traffic
Conclusion
- Overall, the problem facing the Adler Company is their unclear company strategy.
- Vital to implement a strategy that will market, cater, and advertise to the bronze consumer segment.
- Move forward and implement our new and enhancing competitive strategy to benefit Target Solutions.
Proposed Solution 3
Financial Impact
Costs for Loyalty Program
- $30,000 to $100,000 to build app
- $0.50 to $1.00 per loyalty card
- $300 to $400 for gift card software per location
Potential Risks
- App technical difficulties
- Additional costs
- Lack of smartphones owned/used within our bronze market
- Coupons/Reward Program: T POINTS
- Customer Loyalty Program
- Focus: most value at lowest price
- Responds well to traditional advertising methods
- Send out monthly flyers that contain coupons
Submitted To:
Dr. Frances Gunn
Proposed Solution 1
Proposed Solution 2
- Alter Prices:
- Current pricing is confusing
- Need competitive pricing
- Price = Key Differentiation
Proposed Solution 1
- Alter Prices:
- Risk = Lowered Gross Margin
- Goal = Produce higher returns and sustainability in long term
- Removal of Trendy Merchandise:
- Utilitarian individual seeking low cost basic items
- Not interested in high fashion or "new" styles
- Fashion forward inventory does not resonate with our bronze customer
Proposed Solution 2
- Silver and Gold purchase Core/Cosmetics at our store
- Concentrate budget towards high performing items
- Reduction of trendy merchandise will decrease costs, increase traffic, and overall increase revenue
Current Situation
Rational for Change
- Capture the bronze segment and more proactively cater to their needs.
- Bronze Consumer = 50% of our consumer segment
- Composed of 2 groups:
- Lower income individuals and financially stressed families.
- Basic utilitarian customer
- Take on more promotions such as white sales
- Focus on more basic apparel and reduce trendy merchandise
Rationale for Change
Current Situation
- 49% market share for Target Solutions
Reduction in Trendy Merchandise
Competitive Prices
Bronze Consumer
White Sales
Promotions
Business Case - Target Solutions - Group C3
By: Ashley Kim, Lauren Pearson, Daria Pienkowska, Michelle Quaranta & Andrew Yee