I lead a team in the intense 2015 Target Case Competition. The objective of the Target Case was to find a way to enhance Target Corporation’s grocery offerings using technology. Upon further research, we were able to identify that Target’s offerings were not perceived as fresh by their consumers. The company was interested in enticing millennials with focused product assortments but they had yet to push these offerings in a way that was compelling for their desired target market. Knowing that Target often creates special experiences within each section of their stores, it is important they carry this within their grocery sections, too. Therefore, we recommend that Target Corp. install interactive digital signage within its grocery sections. We offered them uses of the digital screens and methods to calculate ROI. We also took it a step further to calculate that the expected cost of installing such technology would be roughly $2000 per store. We projected that implementing our recommendation would highlight the freshness and sustainability of Target’s grocery offerings and its value chain. We won the first place grand prize, here is our presentation.
2. What’s the BIG ISSUE?
I think that Target offers
fresh produce
I think that Target offers fresh dairy
products
I think that Target offers
fresh meat
3. S
AGENDA
• The Grocery Industry
• Where Does Target Corp. Stand?
• Our Objective
• Key Insights
• Implementation
• Additional Recommendations
• Recommendation in action
4. GROCERY industry
McKitterick, Will. Supermarkets & Grocery Stores in the US. Rep. no. 44511. N.p.: IBISWorld
Industry Report, January 2015. IBISWorld. Web.
Key External Driver
Healthy eating
index
8. TARGET’S desires
• Differentiate from
Wal-Mart
• Attract young
shoppers
• Attract “urban
dwellers, younger
families, and
Hispanics”
*http://www.wsj.com/articles/target-to-focus-on-seven-food-categories-in-grocery-revamp-1425327752
• Add more
organic/natural foods
• Less packaged foods
•Desire for “localized
assortment” of foods
9. OBJECTIVE
How can we enhance
Target’s product display
and increase consumer
engagement using
technology?
11. SURVEY: Change in Course
of the respondents do not
use any of Target’s mobile
applications
of the respondents do not
follow Target on any social
media channels
12. SURVEY: Change in Course
65%
More than half of the
respondents
would not like
to see their photos and
recipes displayed in
Target stores
13. SURVEY: How do you shop?
61%
5%
29%
4%
in-store mobile online other
14. SURVEY: Shopping at Target
Only 30% of respondents buy
Grocery items at Target
Only 32% of respondents buy
Health & Wellness products at Target
23. STEP 4: Evaluation for ROI
http://www.ravepubs.com/wp-content/uploads/2013/10/Metrics-and-Analytics-for-ROI-in-Digital-Signage-10-3-
13.pptx
• 1 in 3 consumers
bought product after
seeing on digital
signage
• Dynamic digital
signs receive 10 times
more eye contact
24. STEP 5: Measure ROI
http://www.ravepubs.com/wp-content/uploads/2013/10/Metrics-and-Analytics-for-ROI-in-Digital-Signage-10-3-
13.pptx
• Did you meet objectives?
• Call to action
•Divide screen:
• Time spent on parts of screen
• Types of people who noticed screen
• Interactive survey responses
• Prompt results w/coupon
29. USE #3: Recipe Search
There is a gap
between
searching for
a recipe at
home and
visiting Target
to purchase
groceries.
Rid the gap
with digital
signage.
Walnut Banana Bread Pudding
GROCERY LIST
30. RECOMMENDATION in action
Install one 42” touch
screen monitor in
Target stores to
increase awareness
of Target’s fresh
produce through
increased
engagement
32. RECOMMENDATION in action
How much would it cost?
One 42” display = about $1650
Annual energy costs = $288 per display
• Startup costs/energy consumption – low
• Maintenance and repair costs – high
33. RECOMMENDATION in action
How can this increase sales?
• Buy from screen
• CityTarget
• Target Express
• Non-perishables
• Decrease space for
packaged goods
• Increase space for
fresh produce
When there is an over supply of goods, or a new shipment is coming in, last minute in-store discounts are offered.
Not everyone picks up the coupon booklet as you enter, so the digital display can reflect that information.
Conveniently show all the info.
Search a recipe on the digital display.
Find which items are sold at Target.
Locate the aisle the items are placed.
2 cases for how they increase sales
Main aim = generate more revenue; acts as digital salesperson
Adidas Digital Signage Boosts Sales by 40%
partnering with Intel to create the 3D interactive virtual footwear wall
Showing their complete line of footwear (stores couldn’t fit it all – 200 vs. 4000 products)
View product, features, rotate 360, social media commentary about product, MAKE DIRECT PURCHASE
Increase in footwear sales by 40%
