1. Group #2
Group Members
M. Ali Raza
Kamil Farooq
Fatima Akram

2. Company case
TARGET
‘Target has Guest,Walmart has Customers’

3. Agenda
• The Journey So far
• Where it stand today?
• Industry Analysis
• Brand Identity Prism
• Customer Thinking
• Recession
• Recovery
• Conclusion

4. Journey So Far
Discount store Electronic
bull’s eye logo scanning Present
Department store
1920 1960 1980 2000
1895 1940 1970 1990
Shop within a shop Plano grams
Loyalty program online stores

5. Where it stand Today
 Exclusive US retailer
Target is 5th largest retailer after Wal-Mart
No of stores 1803
Revenue FY08 $65bn
Profit Fy08 <$3bn
96% people recall Bulls eye logo
Expect more payless
Cheap Chick

6. Brand identity prism
Self image:
Self image:
value, forward
conscious, lively
thinking
Physique: red Physique: Culture:
targeted logo Culture:
Mammoth logo American,
American, high
workshop, Ruth
on csr initiative.
less
Relationship: Reflection: Reflection:
Relationship:
Next door stylish, price Intelligent
Handy man
stylist conscious spender
Personality: upper Personality:
middle 40, aggressive,
class, innovative, ur unsophisticated
ban

7. Customer Analysis
Target WalMart
Target Customer Young, educated, Middle age cost
sophisticated, conscious customer
fashionable
Customer Value Cheap Chic Best value for money

8. Retail strategy
target Wal-Mart
Product Home items – 40%. Consumable items like
Consumable items like food etc-45%.
food, health items-20%.
Place Mostly In urban areas. Mostly in small town and
cities.
Price Little high 1-2% then Prices are very low.
Wal-Mart.
Promotion Spend 2.3% on on Spend only0.3% on
advertisement. advertisement.
Presentation Attractive promotions. Congested budget
Larger then life products presentation.
pictures.
People Highly trained and Low trained, motivated
motivated workers. contract workers.

9. Recession
Recession of 2008 sales of Target was falling for 8 months.
Sales Wal-Mart was increasing.
Problem lied in mix of the Target
 40% shelf space was given to home and apparel goods.
 20% shelf space was given to consumable goods like food
45% of Wal-Mart's retail mix consist of consumable products.
Wal-Mart has always undersized target
Wal-Mart annual revenue was 406 billion$.
Target annual revenue was 65 billion$.

10. During Recession
• But in recession
 Wal-Mart bottom line increased to 5.9%.
 target profit Drooped down to22.3% which is 2.2billion$.
• They faced loss of 155 million $.
• Out of which135million$ per credit loss in forth
quarter.
• Target also
 47% of its receivable to Jp Morgan chase.

11. Recovery
• IN 2010 Target sales rose to 5%.
• Profit up was whopping 54%.
• Perception of target’s value was increased.
• They study micro and macro environmental factors.
• They made it better and followed it.
• Targets “Pay less” strategy continued without wavering.
• Some wall street analyst expressed
 that target will loose its distinctive feature if continued like this.
• Target also made mark on customers heart
 “ Target is a nice place to go. Wal-Mart may have good prices, but I rather tell my
friends that I came back from shopping at target”.

12. Conclusion
• changing direction of large corporation is an up hill task
•It like reversing a freight train.
•Company has to be determined.
•It must have patience
•By better planning