Target Corporation

Marketing Plan

Team Members: Coleman Foley, Hannah Hall, Lisa Misch, Tamas Peterson,
Emily Tani-Winegarden and Leonard Vibbi

Table of Contents

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Executive Summary - 3

Target Specification and Assessment of Current Marketing Strategy - 5

Environmental Trends- CDSTEP - 8

Competitive Analysis - 17

Target SWOT Analysis - 19

Segmentation of Viable Markets - 20

Targeting - 23

Positioning Marketing Mix - 24

Implementation, Timeline, ROI - 28

Appendices - 31

Target Corporation
Strategic Marketing Plan -Meeting the Needs of a Changing Demographic

Executive Summary
Situational Analysis

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In an environment where fresh and locally grown produce have become increasingly important
to the American people, a farmers market fits well with Target guests. Another rising trend
involves utilizing various retail channels, such as online, mobile devices, open- air, or in-person
to appeal to guests, rather than simply traditional brick and mortar stores.

Demographic Changes
As the American population is growing and changing, the increase in Hispanics, specifically the
36 % of Hispanics who consider themselves bicultural - identifying both with their Hispanic
roots and American traditions - offer a new market segment to infiltrate with the Target “Expect
More. Pay Less.” mentality.

Additionally, technology has experienced a shift becoming more prevalent in its use in the
market place. Buying, viewing, and sharing products across online social media channels has
become the norm, which greatly influences how guests interact with a store while there.

TargetMarket Market Profile

We work to appeal to a variety of guests, with a heavier influence upon women, particularly,
young Hispanic women. Our guests are at a transient point in life, the median age being 30 and
typically being a young professional or entering the stage of starting a family. The typical guest
connects to her Hispanic roots, values family, technology and authentic food,and also identifies
with younger American culture, finding value in ease, accessibility and local goods.

What is TargetMarket?
The mission of the TargetMarket is to offer a monthly local farmers and artisans market in the
parking lots of Target, instigating community involvement while also drawing new guests to
Target. At the TargetMarket guests will have access to local and authentic foods and products,
helping the local community while also offering brand awareness for Target. Through the use of
a ‘Target stand’ that has a family-centered theme each month, Target will interact directly with
new guests, providing them with promotional deals in order to draw the guest back, not only to
the next TargetMarket, but also to the Target store. The Target stand will provide people with
connections to Target online and Cartwheel; incentives that will drive guests to shop at the
Target store. Finally, TargetMarket entices the guest to come inside Target stores through
promotions for grocery goods not sold at the farmers market and highlighting recipe cards
featuring a product from the market as the main ingredient, but also with other ingredients
found in Target.

The promotion of TargetMarket comes through various channels in order to reach the guest. A
typical ad would focus on internet ads: e-mail, flyer, ad over CartWheel, or an invitation to an
event on Facebook. With utilizing social media, TargetMarket would have a weekly spotlight on
a vendor and their products through Twitter and Facebook. There would also be an interactive
component by having guests post their ‘best find’ picture on Facebook or Instagram at
TargetMarket. Target would then pick the best weekly photo and post it to Target’s Facebook
and Instagram with the hashtag #bestfind and #TargetMarket. The winner of the selected best
photo would receive a small promotional gift, such as a farmer’s market tote bag with the Target

3
Bullseye design. Other ad possibilities include radio advertisements or word of mouth through
the use of flyers.

Why is TargetMarket Appealing to New Markets?

Our target market typically prefers a retail shopping experience that promotes fresh local food,
family and community atmosphere. We believe that our research supports that TargetMarket
will appeal to this new influential market as Hispanics spend more money on food related items
such as groceries and are likely to buy more organic food because they value the organic food
production. Generally this includes fresh fruits and vegetables, poultry, eggs, and dairy
products. Overall, Hispanics advocate a retail product assortment that supports a family-
friendly focus.

How Will TargetMarket Fit into Target’s Existing Market?

TargetMarket offers existing guests exactly what they need: great value at a great price with no
hassle. Meaning, TargetMarket stays true to “Expect More. Pay Less.” but also promotes a sense
of community while providing new opportunities for guests to visit Target.

TargetMarket will cater to the shopping needs of Target’s existing market due to the
compatibility of farmers markets to current Target guests. An AgEcon study conducted in
California displayed that 56% of farmers market shoppers were females and 61% married. Other
research shows that the mean age of shoppers is 46, with a mean income of $56,000 and with a
mid to high level of education. Promoting TargetMarket to existing guests would be easy for
Target because of the already existing marketing channels, such as CartWheel.

Competitive Advantage
Target Market is a novel and innovative opportunity to offer guests a new shopping experience
that cultivates a sense of community through a family-centered gathering space that offers fresh
produce ‘locally grown and straight to your home’. Additionally, by providing various amounts
of new products at a minimum cost to Target, Target can analyze the products that each
TargetMarket always sells, contemplate partnering with that company, and incorporate their
product into Target’s arsenal.

Target Specification and Assessment of Current

Marketing Strategy
Target Corporation Mission

● Target’s mission is to make Target stores the preferred shopping destination in

all channels by delivering outstanding value, continuous innovation and

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 exceptional guest experiences by consistently fulfilling their “Expect More. Pay
Less.” brand promise.1
● Target aims to surprise customers with deals, high-quality owned-brand
products, innovative partnerships and exciting marketing efforts that speak to the
way guests live.2
● As America’s largest corporate philanthropists, volunteerism is at the heart of
Target.”3

Case Study Objectives

● To identify potentially influential new markets in American retail due to changing
demographics.
● Develop marketing strategy to appeal to growing target market.

Target’s Current and Future Goals 4

● Reaching guests in recently opened stores in Canada.
● Developing Ship from Store option for online customers for same day or next day
rush delivery.
● Build up an urban core of customers through smaller format stores in
Metropolitan areas with CityTarget and TargetExpress.
● Include fresh groceries into existing stores as a sales driver.
● Omnichannel retailing: continue to develop connections between in-store, online,
and mobile experiences through various programs
○ Cartwheel, BabyCenter, Target Ticket, Pinterest Rich Pins

Target Market5

● Target appeals to a range of customer segments, including women, kids, teens,

young singles and families. Typically, customers are well-educated, moderate-to-
better income families who live active lifestyles.
● Median age is 40.
● Median annual income of $64,000.
● 57% have completed college.
● 43% have children at home.

Marketing Mix

Product

1 "Target Mission, Values & Stories Behind Them | Target Corporate." Target Mission, Values & Stories
Behind Them | Target Corporate. N.p., n.d. Web. 20 Oct. 2014.
2 "2013 Annual Report | Target Corporate."
3 "Meeting the Needs of Changing Demographics." Target Campus Grants (2012): n. pag. Web.
4 "2013 Annual Report | Target Corporate."
5 "2013 Annual Report | Target Corporate."

5
 ● Target is dedicated to providing guests with the right merchandise mix, from
everyday commodities and grocery offerings to trend-right home and apparel
lines.6
● Target markets merchandise in five categories: consumable and commodities;
toys, electronics, entertainment and sporting goods; apparel and accessories;
home furnishings and décor; and food and beverages.7
● Target Corporation is well-known for its highly successful formula of offering
discounted general merchandise but also stocking inexpensive designer products
to attract relatively affluent customers.8
● According to Jeff Jones, Target’s Chief Marketing Officer, “Target is able to stay
ahead of it’s time with brands partly because of their ability to tap designers when
they are reaching one of the pinnacles of their career,”9

Price10
● Nation’s second-largest general merchandise discount chain, marketer of “cheap
chic”
● Price Match guarantee that ensures best price.
● REDcard holders receive extended returns and free shipping from Target.com
● 5% rewards and pharmacy rewards with REDcard.
● Owned brands: from Merona separates to Archer Farms’ high-quality foods to
Threshold’s stylish home décor, exclusive brands offer affordable, national-brand
quality. 10 brands topping $1 billion in annual sales each.

Place
● Target has a global presence with a headquarters location in India and sourcing
offices around the world.11
● Large focus on reliability for customers, meaning, Target focuses on having what
customers want, when they want it, and where they expect to find it. 12
● New Target stores range in size from approximately 127,000 square feet to
approximately 174,000 square feet. Additionally, Target operates 37 distribution
facilities nationwide.13
● Reaching guests in new ways: opening 124 Target Canada stores and new stores
in the U.S. in 2013.14

6 "Meeting the Needs of Changing Demographics." Target Campus Grants (2012): n. pag. Web.
7 Lamiman, Kevin. "Target Corporation." Better Investing Aug. 2006: 37-38. Bridge Squared. Web. 18
Oct. 2014.
8 Ibid.
9 Ibid.
10 "2013 Annual Report | Target Corporate."
11 Lamiman, Kevin. "Target Corporation."
12 "Meeting the Needs of Changing Demographics." Target Campus Grants (2012): n. pag. Web.
13 "Ibid.
14 "2013 Annual Report | Target Corporate."

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 ● Focused on providing amazing service in stores, testing new layouts and
experiences by integrating digital capabilities with personalized service.15
● Target has an emphasis on customer service by focusing on increasing customer
visit frequency by creating a more convenient shopping experience that meets
their active lifestyle needs.16

Promotion17
● Use of social media: Pinterest, Facebook, Twitter, YouTube.
● Launch and success of Cartwheel and enhanced Target app.
○ Cartwheel: first-of-its-kind social savings experience developed in
partnership with Facebook. Allows for guests to save on thousands of
items throughout stores. More than 4.9 million users save $36 million in
first eight months.
● Weekly ad: reaches millions and evolves based on how and where consumers
shop. Engage customer through interactive social sharing options so that
customers can share favorite products and deals with friends and family.
● In 2013 integrated campaigns included the Everyday Collection, back-to-college
and #MyKindOfHoliday

Retail Industry Overview18

● The retail industry has been growing steadily since 2009 at 1.9%
● Retail is currently valued at nearly 3 billion dollars annually.
● Currently the top three companies represent almost 20% of the market:
○ Walmart: 11%
○ CVS Health Corp.: 3.3%
○ Kroger Co.: 2.9%
● Online retail has seen a 42% increase in market size from 2009 to today.

Environmental Trends - CDSTEP

Sociocultural
Households

15 Ibid.
16 Ibid.
17 Ibid.
18 "United States Retailing Summary"Passport. Euromonitor International, 1 Sept. 2014. Web. 9 Nov.
2014.

7
 ● The USA’s population is predominantly urban. In 2012, 82.6% of the population
lived in urban areas and by 2030 approximately 86.0% of the population will be
living in an urban setting. 19
● A recent study by the Pew Research Center revealed that 40% of all households
with children under the age of 18 years-old include mothers who are either the
sole or primary source of income for the family, up from 11% in 1960. 20

Retail Shopping Values and Behavior

● Hundreds of fashion magazines, TV shows, and blogs have declared what they
have identified as the latest fashion trends and many eager consumers continue
to follow their lead.21
● Over the 2008-2013 period, the best performing consumer spending categories
were education and health goods and medical services while household goods
and services and miscellaneous goods and services were categories with the
weakest growth.22

Environment, Going Green, and Natural Food23

● Despite the recession, issues such as sustainability, health, world poverty, animal
welfare and food safety have become increasingly important factors guiding
shoppers’ purchasing decisions.
● From beauty products to household goods and groceries, terms such as “natural”,
“organic”, “locally sourced”, and “fair trade”, have begun to feature increasingly
on labels and ingredient lists, and many consumers are willing to pay a premium
for them.
● In the case of “organic” products, 45% of college educated Americans were willing
to pay extra, compared with 33% of those educated only to secondary school
level.
● There was a large gap between men and women when it came to the importance
attributed to “green/environmentally friendly”: 37% versus 44%, respectively.
● The USDA reports that in 2011, there were 7,175 farmers’ markets in operation,
compared to just 2,863 in 2000. In the last four years alone, their number rose by
53% as a result of growing consumer demand.

Fitness and Health

● “The fact of the matter is, America is obsessed with dieting and weight loss, but
the majority of Americans aren’t eating healthier or getting thinner,” said Joe
Redling, chairman and CEO of Nutrisystem, Inc.
● In 2012, 36% of American adults were deemed obese (up from 33% in 2005)
while 33.1% were deemed overweight (down only slightly from 33.3% in 2005). 24

19 "United States of America in 2030: The Future Demographic." Passport. Euromonitor International,
16 Dec. 2013. Web. 22 Oct. 2014.
20"Ibid.
21Ibid.
22 Ibid.
23 Ibid.
24 "United States of America in 2030: The Future Demographic."

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 ● American consumers are very comfortable buying and taking over-the-counter
(OTC) drugs to treat their symptoms and maladies, OTC drug sales reaching
more than US$21.6 billion in 2012.25

Demographic
Population
● Estimated total US population in 2013 is 316,128,839.
● By 2050, the US population is projected to reach almost 440 million. 26

Income
● The median household income in the US was $51,371 in 2012.27
● High income inequality has an impact on consumer spending patterns; the
wealthiest decile accounts for 32.3% of the country’s total consumer expenditure.
The poorest decile allocated 34.4% of total spending to cover basic needs of food,
non-alcoholic beverages and housing in the same year. 28

Changing Trends in Non-Hispanic Whites

● Demographic trends in the U.S. are making white households older and smaller
than they used to be.29
● The non-Hispanic white population is projected to peak in 2024, at 199.6 million,
up from 197.8 million in 2012. Unlike other race or ethnic groups, however, its
population is projected to slowly decrease, falling by nearly 20.6 million from
2024 to 2060.30

Hispanics
Population and Geographic Distribution31
● The Hispanic population is expected to more than double, from 53.3 million in
2012 (13% of population) to 128.8 million in 2060 (31%). By then, nearly one in
three US residents will be Hispanic.
● In 2012, 64% Mexican, 9.4% Puerto Rican, 3.8% Salvadoran, 3.7% Cuban, 3.1%
Dominican, and 2.3% Guatemalan.
● 10 million Hispanics live in Texas as of July 1, 2013.
● 55% of all Hispanics live in California, Florida and Texas as of July 1, 2013.

25 Consumer Lifestyles in US." Passport. Euromonitor International, 5 Aug. 2013. Web. 22 Oct. 2014.
26 Shrestha, Laura B. The Changing Demographic Profile of the United States. Washington, D.C.:
Congressional Research Service, Library of Congress, 2006. Congressional Research Service, 31 Mar.
2011. Web. 15 Oct. 2014.
27 Noss, Amanda. Household Income & Expenditure Survey, 2009-2010. N.p.: n.p., n.d.Household
Income: 2012. Sept. 2013. Web. 19 Oct. 2014.
28 "Tomorrow’s Big Spenders: The Global Student Market – Executive Briefing."
29 Dolliver, Mark. “Tracking the ethnic shift in household spending” Adweek Wester Edition 48 (1998):
26.
30 "United States Census Bureau." U.S. Census Bureau Projections Show a Slower Growing, Older,
More Diverse Nation a Half Century from Now.
31 “Hispanic Heritage Month 2014” U.S. Census Bureau Newsroom. U.S. Department of Commerce. Sept.
8, 2014.

9
 ● 14.7 million Hispanic population in California; the highest population of any
state.

Shopping Behavior and Values

● Hispanics exhibit a 43% higher level of name brand buying than general
population. They also shop more often and typically shop as a family. 32
● Upscale “Latinos” (household with $50,000 to $100,000 annual income) boast
40% Hispanic spending power. 33
● Hispanics were found to be more likely than non-Hispanics to be buying family-
related items such as children’s clothing, household furniture, and accessories. 34
● Hispanic segment has high propensity to use cash. 35
● A study by Lapiz revealed that for Latinos, “shopping is not a process or a chore;
it's a multi-source, multi-sensorial and multi-generational experience.” 36
● Due to high number of remittances and their love for status brands, oftentimes
corners are cut in costs in the area of home care and hygiene. 37
● Young Hispanic women tend to spend disproportionate amounts on beauty
products, more likely to equate more expensive brands with higher quality. 38

Family39
● Research on Hispanics consistently identifies family as the most important
cultural value and institution in the Hispanic culture.
● There exists a strong identification and attachment to family members, both
nuclear and extended, along with a deep awareness and pride in family.

Language and Culture

● Language is important; 60% of Hispanic-Americans prefer to communicate in
Spanish; just 21% prefer English.40
● Hispanics are divided into four clusters based on low or high American and
Hispanic identification. The largest cluster is Biculturals (36.1%) who identify to
some degree with both American and Hispanic culture.41

32 Evans Jr. R, Rocco R. “Where are We In The Evolution Of Sales and Marketing to Hispanics? A
Consumer Packaged Goods (CPG) Perspective. Proceedings Of The Marketing Management Association
[serial online]. Spring 2014 2014;:53-54. Available from: Business Source Premier, Ipswich, MA. Accessed
October 23, 2014.
33 Consumer Lifestyles in US." Passport. Euromonitor International, 5 Aug. 2013. Web. 22 Oct. 2014.
34 Ibid.
35 Ibid.
36 Consumer Lifestyles in US." Passport. Euromonitor International, 5 Aug. 2013. Web. 22 Oct. 2014.
37 Walker, Rob. "The Burgeoning Consumption Power of US Hispanics."Passport. Euromonitor
International, 29 Sept. 2014. Web. 22 Oct. 2014.
38Ibid.
39 Alvarez, Cecilia, Peter R. Dickson, and Gary K. Hunter. “The four faces of the Hispanic consumer: An
acculturation-based segmentation” Journal of Business Research 67 (2014): 108-115.
40 Glover, Hannah. "Baby Boomer Successor: Hispanic Investors?." American Banker 171.97 (2006): 7.
Business Source Premier. Web. 23 Oct. 2014.

10
 ● Specific cultural attitudes and behaviors that differentiate Latinos of diverse
levels tend to be more strongly endorsed by those in the lower 40% economic
class.42
● There’s a tendency for better-off Hispanics to endorse US values more. 43
● 95% of Latino adults who speak Spanish say it is important for future generations
to continue to do so.44

Going ‘Green’
● Over half of Hispanic respondents globally considered the factors “fair-trade”,
“green/environmentally- friendly” and “sustainably produced” to be important
when considering a purchase. 45

Using and Sharing Online Discounts46

● 84% of Hispanics have searched for and used a digital coupon vs. 71% overall US
population.
● 80% have used discounts from a mobile device or downloaded them to a loyalty
card vs. 66% overall.
● 70% have used coupons found on social media sites vs. 54% overall.
● 61% said they have shared coupons via social media vs. 39% overall.

Millennials
Population
● In 2012, the number of young adult Millennials (born between 1977 and 2000)
reached 80 million.47

Shopping Behaviors
● “84% of Millennials shopped online during the previous three months, slightly
above the roughly eight in 10 Gen Xers who did so. But, Gen Xers spent about
15% more online (US$561) than Millennials (US$489).”48
● Similar to Hispanics, Millennials have a high propensity to use cash. 49

41 Alvarez, Cecilia et al. “The four faces of the Hispanic consumer: An acculturation-based segmentation”
Journal of Business Research 67 (2014): 108-115.
42 “Simmons National Consumer Survey (2012)”. Simmons National Hispanic Consumer Study. June
2012. Web. 23 Oct. 2014 http://www.experian.com/blogs/.
43 Korzenny, Felipe. "Hispanic Attitudes and Behaviors by Socioeconomic Level - Marketing Forward."
Marketing Forward RSS. Experian, 1 Nov. 2012. Web. 23 Oct. 2014.
44 “Hispanic Heritage Month 2014” U.S. Census Bureau Newsroom. U.S. Department of Commerce. Sept.
2014.
45 "Green Buying Behavior: Global Online Survey Strategic Analysis."
46 Sass, Erik. "Hispanics More Likely to Use Digital Coupons." Passport. Euromonitor International N.p.,
25 Nov. 2013. Web. 23 Oct. 2014.
47 "Who Are Millennials | Millennial Marketing." Millennial Marketing. N.p., n.d. Web. 09 Nov. 2014.
48 Consumer Lifestyles in US." Passport. Euromonitor International, 5 Aug. 2013. Web. 22 Oct. 2014..
49 Ibid.

11
 Engaging with Internet50
● Millennials comfort level with technology has them engaging online, while other
generations lag behind in adjustment.
● Millennials like to handle their finance themselves, and do so primarily online.

Thrift
● An article in Forbes magazine summed up young US consumers: “Lack of cash,
skepticism about big business, a preference for customized products and
heuristic purchasing experiences and possibly a lifelong tendency toward
scrimping? Retailers have a right to be nervous about the Millennial market.” 51
● Millennials are price conscious and deal savvy, using apps to seek out the best
deals and promotions. Deals actually account for 31 percent of shopping dollars. 52

Education
● Despite increasing tuition costs, more students are prioritizing higher education
as they face an increasingly competitive job market. 53
● Millennial college graduates 25-32 who are working full time earn about $17,500
more annually than employed adults holding only a high school diploma. 54
● In 2010, a record 36% of women ages 25-29 had attained a bachelor’s degree.
This compares with 28% of men in the same age group.55

Lifestyle
● American Millennials, are typically attending university, undertaking job training
or starting new jobs. They are mainly seeking to advance their career status
and/or establish their lives; marriage, children, and homebuying. 56
● Celebrities are held in great esteem to general public, especially among teenagers,
and can have powerful influences on marketing strategies.57
● Millennials are a very progressive group of consumer, promoting self-worth,
often at the front of social and environmental change campaigns. 58

50 “Millennials: Technology = Social Connection.” Nielsen Company, 26 Feb. 2014. Web. 22 Oct. 2014.
51“Millennials: Technology = Social Connection.” Nielsen Company, 26 Feb. 2014. Web. 22 Oct. 2014.
52 Ibid.
53 "Tomorrow’s Big Spenders: The Global Student Market – Executive Briefing."Passport. Euromonitor
International, 1 Feb. 2013. Web. 22 Oct. 2014.
54 "The Rising Cost of Not Going to College." Pew Research Centers Social Demographic Trends Project
RSS. N.p., 11 Feb. 2014. Web. 21 Oct. 2014.
55 Woo, Wendy. "Women See Value and Benefits of College; Men Lag on Both Fronts, Survey Finds."
Pew Research Centers Social Demographic Trends Project RSS. Pew Research Center, n.d. Web. 15 Oct.
2014.
56 Consumer Lifestyles in US." Passport. Euromonitor International, 5 Aug. 2013. Web. 22 Oct. 2014.
57 "Celebrity Power and Its Influence on Global Consumer Behavior." Passport. Euromonitor
International, 17 Mar. 2014. Web. 22 Oct. 2014.
58 “Consumer Lifestyles in US".

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Technology
Technology Trends in United States59
● The US shows significant penetration of internet user; over 80% of the
population uses the internet. Over 92 million US residents have access to
broadband internet in their homes.
● By 2012 over 50% of households had smart phones. That number rose to over
60% in 2013. Tablets and other mobile computers showed similar growth and
penetrated 49% of households.
● Smartphone apps have been developed allowing consumers to take pictures of
barcodes and find and order the same product online at a cheaper price.
● In the wake of Target’s data breach in December 2013, many consumers are
expected to increase their use of cash for purchases. This makes online shopping
with cash more appealing even to consumers with credit and debit cards

Internet Retailing
● By 2012, 72% of US consumers considered themselves either ‘confident’ or
‘experts’ in researching and purchasing products online.60
● Mobile internet retailing is one of the fastest growing areas of US commerce. In
2013, the channel accounted for 12% value share of overall internet retailing up
from 8% in 2011.
● E-commerce retailers are developing mobile shopping apps that allow consumers
to find items online even if they are in a physical store location.
● US internet sales in 2013 totaled $208 billion; a 127% growth since 2008.61
● Indoor positioning systems (eg iBeacon) offer the potential for retailers to
enhance the shopping experience with location-specific messages, augmented
reality apps, instant couponing and even self-scanning facilities 62
● Development of more secure payment methods, simplified checkout processes,
expert advice, free shipping and returns, click-and-collect options and consumer
reviews will attract more consumers to online shopping. 63

Internet Retailing Outlook and Competitive Landscape

● Amazon.com remained the largest e-commerce retailer in the country with 17%
value share of all online shopping. The company is looking to expand its share in

59“Internet retailing in the U.S Category briefing”. Passport. Euromonitor International, 19 May 2009.
Web. 19 Oct. 2014.
60 Consumer Lifestyles in US." Passport. Euromonitor International, 5 Aug. 2013. Web. 22 Oct. 2014.
61 Westbrook, Gina. "Strategy Briefing: Internet vs Store-based Shopping: The Global Move Towards
Omnichannel Retailing."
62 Westbrook, Gina. "Strategy Briefing: Internet vs Store-based Shopping: The Global Move Towards
Omnichannel Retailing."
63 Ibid.

13
 categories that have not seen widespread e-commerce adoption; luxury beauty
products, online grocery shopping with AmazonFresh.64
● Internet retailing is predicted to grow by 11% in 2013. Growth will be driven by a
variety of products ranging from consumers appliances to packaged foods.65
● By 2016, mobile internet retailing is expected to comprise 18% value share of
overall internet retailing. 66

Social Media
● As of January 2014, 74% of all internet users use social networking sites.67
● Internet users ages 18-29 lead social media usage at 90% (2005-2013). 68
● 40% of cell phone owners use social networking on their phones, 28% do so
everyday.69
● Hispanics use social networking sites on their phone at the highest rate of any
ethnicity; 49%.70
● 38% of those who use social networking sites (SNS) or Twitter use those social
media to “like” or promote material related to politics or social issues that others
have posted.71

Economic
Debt and Unemployment
● According to the Federal Bank of New York, student loan debt totalled US $966
billion, resulting in educational debt being the largest source of debt in the
country behind mortgages.72
● Unemployment rate for 18-to-34-year-olds has fallen from 13% in 2010. 73
● Millennials face 8.6%unemployment, higher than the national average of 5.9%.
● Student loan debt surpassed $1 trillion in the second quarter of 2014. 74

64 “Internet retailing in the U.S Category briefing”. Passport. Euromonitor International, 19 May 2009.
Web. 19 Oct. 2014.
65“Internet retailing in the U.S Category briefing”. Passport. Euromonitor International, 19 May 2009.
Web. 19 Oct. 2014.
66 Ibid.
67 Rainie, Lee. "Social Media and Political Engagement." Pew Research Centers Internet American Life
Project RSS. N.p., 19 Oct. 2012. Web. 23 Oct. 2014.
68 Ibid.
69 Ibid.
70 Ibid.
71 Ibid.
72 Consumer Lifestyles in US." Passport. Euromonitor International, 5 Aug. 2013. Web. 22 Oct. 2014.
73 Ibid.
74 Wentz, Laurel. "Powered By Millennials." Advertising Age 85.16 (2014): S003. Business Source
Premier. Web. 23 Oct. 2014.

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Post-Recession
● Recession has affected Millennials in their consumer behavior and attitudes.
With the pressure to repay debt from student loans, consumers of this age group
are forced to live more frugally than anticipated. 75
● Due to recession, many US consumers postponed expensive purchases or
completely avoided them. With the improving economy consumer demand for
items like new cars, furniture, and appliances has increased. 76
● In 2013, the emphasis on finding the best price has been reduced and broadened
to now include such criteria as high quality, store cleanliness, neatness, and
accuracy in shelf labels.77
● Recession has affected Millennials in their consumer behavior and attitudes.
With repayments to cover student loan debt they’re forced to live more frugally
than anticipated.78

Influence of Hispanic Market

● Hispanic consumer spending is growing at a faster rate than Non-Hispanics
+74% increase in Hispanic consumer spending over the next 10 years vs. +36%
among Non-Hispanics.79
● Consumer research firm Nielsen estimated the buying power of the U.S. Hispanic
market at $1.1 trillion for 2011 with expected growth to $1.5 trillion by 2015. 80

Politics
● The federal government influences employers’ decisions about whether to offer
benefits like pensions and health insurance through direct legislation, such as
ERISA and the Age Discrimination Act and through social insurance programs,
such as Social Security and Medicare.
● As the U.S. population ages, the social and economic demands on individuals,
families, communities, and the government will grow, with a substantial impact
on the formal and informal health and social care systems and on the financing of
medical services in general.
● With an ageing population, questions remain about the best health system
organization, delivery of and access to services, administration, and financing.
The Patient Protection and Affordable Care Act (P.L. 111-148) recently enacted
health reform legislation, may address some of these concerns, but could also
exacerbate provider shortages and do little to control growing healthcare costs or
reduce inefficiency.

75 “Consumer Lifestyles in US."

76 Ibid.
77 Ibid.
78 Ibid.
79 "AHAA | Hispanic Fast Facts." AHAA | Hispanic Fast Facts. AHAA, Sept. 2013. Web. 23 Oct. 2014.
80 Nickell, Stephanie. "Hispanic Buying Power To Reach $1.5 Trillion In 2015." Furniture/Today 37.26
(2013): 44. Business Source Premier. Web. 23 Oct. 2014.

15
 Competitive Analysis
Amazon
● Online Grocery
○ $299 per year subscription for a single household81
○ Implemented in West Coast test areas to 20 urban centers across the U.S.,
order groceries online and have same-day or next-morning delivery 82
○ Free delivery on orders over $35 delivered when ordered
○ Shop from local merchants and enjoy delivery alongside other
AmazonFresh groceries83
○ All benefits of Prime: free two-day shipping, access to movies and
television shows, and the kindle library 84
● E-commerce sales from Amazon.com: $68 billion 85
● Amazon.com has confirmed plans to enter brick-and-mortar business this
holiday season, with kiosks in San Francisco and Sacramento to show off tech
gadgets.86
● A poll of 1,762 consumers by Bizrate Insights found that 66.7% didn't know about
Amazon Pantry, while fewer than 3% had tried out the service. 7.5% said they
planned to try the service, though only 23% totally ruled it out, the poll found. 87
● About 25% of the respondents were Amazon Prime members. 88
● Allows for non-corporate sellers and unlimited products.

Target’s Strategy
● Unlike Amazon, Target has extensive brick-and-mortar store presence.
● Both companies have strong customer loyalty.
● Target has a developed food market for customers, supplying a variety of organic
and non-organic food brands in-store compared with online Amazon service.

Walmart89

81 Donna, Howell. "AmazonFresh Stealth Delivery A Winner." Investors Business Daily 02 June 2014:
A05. Business Source Premier. Web. 23 Oct. 2014.
82 Ibid.
83Donna, Howell. "AmazonFresh Stealth Delivery A Winner." Investors Business Daily 02 June 2014:
A05. Business Source Premier. Web. 23 Oct. 2014.
84 Ibid.
85 Derousseau, Ryan. "X-Ray: Wal-Mart." Money 43.9 (2014): 48. Business Source Premier. Web. 23
Oct. 2014.
86 Kell, John. "Amazon Dips Its Toes Into Brick-And-Mortar Retailing." Fortune.Com (2014): 1. Business
Source Premier. Web. 23 Oct. 2014.
87 Ibid.
88 Doug, Tsuruoka. "Amazon Pantry Service Fails To Resonate: Survey." Investors Business Daily 11
June 2014: A05. Business Source Premier. Web. 23 Oct. 2014.

16
 ● Customer option to buy online, go to store, and pay in cash.
● Currently 156,800 U.S. stores.
● E-commerce makes up just 2% of Wal-Mart's sales.
● By February 2015, Wal-Mart expects to report $12.5 billion in e-commerce sales;
expected e-commerce growth of 25%.
● E-commerce and digital initiatives will cost between $1.2 billion and $1.5 billion
next year, up from $1 billion this year.
● Emphasis on providing lowest prices in retailing; Low Price Guarantee

Target’s Strategy
● Target focuses on quality of products over low prices to keep up perceived value
● Target has larger online presence:
○ Cartwheel offers online and on the go deals for busy shoppers
○ ‘Find your Target’ allows for easy location of stores and products
● Target focuses on higher income, urban/suburban targets while Wal-Mart
focuses on lower income, rural targets.

Target SWOT Analysis

89 "United States Retailing Summary"Passport. Euromonitor International, 1 Sept. 2014. Web. 9 Nov.
2014.

17
 Strengths
● Loyalty from customers
● Exclusive, private brands
● Recognizable and helpful staff
● Recognizable brand
● Instant Price Check
● Adjusted Store Layout –
CityTarget, TargetExpress,
SuperTarget
● Price Positioning, reinforced
through value marketing
Weaknesses
● Language Diversity- no Spanish
option on website
● Comparatively higher prices
● Credit Card Scandal
Target’s Sustainable Competitive Advantage
Target gains its strengths from a focus on quality and reliability with exclusive brands
and partnerships; ‘cheap chic.’ Always clean and similarly laid-out stores offer a
consistent shopping experience for any guest.
Segmentation
Marketing Segments:
Opportunities
● International Expansion
● E-commerce groceries
● Growing Hispanic population
● Growing influence of Millennials
online
● Expanding exclusive brands
● Expanding online reviews
● All-natural, local foods
● Online price matching
● Growing demand for socially
responsible and green products
Threats
● Online marketing
● Lower prices from competitors
● Online product diversity
● Paying options online
18
Millennials:
In the industrial analysis, research showed that Millennials are crucial to defining the
retailing landscape in so many ways. Apart from being the largest of the generational
cohorts in the United States, their buying preferences and how the utilize money will
resonate with Target’s value proposition and marketing mix.

Value Proposition Attractiveness

Many of Millennials’ purchasing behaviors include preferences that Target already
offers as well include opportunities for Target to build upon. Target is the nation’s
second-largest general merchandise discount chain, appealing to Millennial’s financial
savviness. Options like Price Match and Cartwheel combine this market’s propensity for
thrift and mobile device use into their shopping experience. Since 73% of Millennials
report making purchases on their smartphones, omnichannel retailing that Target offers
is especially important. Finally, Millennials are interested in staying at the forefront of
popular trends. As described by Target’s chief marketing officer, “Target is able to stay
ahead of it’s time with brands partly because of their ability to tap designers when they
are reaching one of the pinnacles — one of the first pinnacles in some cases — of their
career.” Therefore, Target is able to supply Millennials with affordable products they
want through various retailing channels that appeal to their technological engagement.

Evaluative Criteria:
Substantial
● The 80 million members of the Millennial generation (born 1977 to 2000)
represent 25% of the U.S. population90 . About 3 million more than the Baby
Boomer generation.91
● Millennial population may grow to 88.5 million by 2020, due to immigration. 92

Profitable
● Millennials have more than $200 billion in annual buying power. 93 And by 2017,
Millennials will have more buying power than any other generation. 94
● Currently, Millennials have 21% of consumer discretionary purchases, which is
estimated over a trillion dollars in direct buying power and a huge influence on
older generations.95

90 "Who Are Millennials | Millennial Marketing." Millennial Marketing. N.p., n.d. Web. 09 Nov. 2014.
91 “A Millennial Market” Hill + Knowlton Strategies. Sept., 2014. Web. Nov. 2014.
92 Doherty, Jacqueline. “On the Rise” Barron. Apr. 2013. Web. Nov. 2014.
93“Millennials” Barkley. Web. Nov. 2014
94 Davidson, Jacob. “10 Things Millennials Won’t Spend Money On” Time. Jul. 2014, Web. Nov. 2014
95 Ibid.

19
 Identifiable96
● Millennials have taken the lead in seizing on the new platforms of the digital era
—the internet, mobile technology, social media—to construct personalized
networks of friends, colleagues and affinity groups.
● At the same time, fully a third of older Millennial (ages 26 to 33) have a four-year
college degree or more—making them the best-educated cohort of young adults in
American history.
● Millennial are also somewhat less likely than older adults to describe themselves
as environmentalists—just 32% say this describes them very well, compared with
at least four-in-ten among all older generations.

Responsive
● Seventy-three percent of Millennials report that they make purchases directly on
their smartphones97 :
● Eighty-four percent of Millennials report that user-generated content has at least
some influence on what they buy.98
● Sixty-four percent of Millennials say companies should offer more ways to share
their opinions online99

Hispanics:
The Industry Analysis shows a strong presence of Hispanics in the new retail market.
With a population that makes up 17% of the total population in the U.S., and consumer
spending that is growing at a faster pace than Non-Hispanics, this segment offers
plentiful opportunities for Target to secure a new market to have under their “Expect
More. Pay Less.” mentality that is sure to provide growing profits in the future.

Value Proposition Attractiveness

Target offers value for the Hispanic population through providing online purchasing.
Hispanics tend to rely upon electronic purchasing and marketing campaigns, both areas
of focus for Target. Target also offers value since Hispanics’ best performing consumer
spending categories are education, health goods, and medical services; all of which
Target stores provide with school supplies, pharmacies, and Target clinics. Additionally,
Hispanics tend to appreciate name brands and seeking out bargains, both of which
Target offers through their exclusive partnerships and consistently offered deals, that
consciously keep prices at competitive levels while not losing any value.

96 “Millennials in Adulthood” Pew Research. Mar. 2014. Web. Nov. 2014

97 “Talking to Strangers: Millennials Trust People over Brands” Bazaar Voice. Jan. 2012. Web. Nov.
2014.
98 Idid.
99 “Talking to Strangers: Millennials Trust People over Brands” Bazaar Voice. Jan. 2012. Web. Nov.
2014.

20
Evaluative Criteria:
Substantial
● In 2013 there were an estimated 54 million Hispanics; 17% of total population.
By 2060 this number is projected to rise to 129 million; 31% of total population.
This dramatic increase warrants serious attention by retailers. 100
● The Hispanic population accounts for about 15% of the U.S. labor force and is
projected to reach almost 20% by the year 2020. In addition, higher-paying
management and professional occupations are the fastest-growing job categories
for Hispanics, propelled by growing educational attainment.
● Educational gains will play a key role in today’s global economy as Hispanics
boost their influence and burgeoning purchasing power.101

Identifiable
● 55% of Hispanics live in the top 10 urban areas.102
● 55% of all Hispanics live in California, Florida and Texas as of July 1, 2013.
● 47.3% of New Mexico’s population is Hispanic; the highest of any state.
● 86% of Latinas say a woman is the primary shopper in their households 103
● 14.7 million Hispanic population in California; the highest of any state. 104

Responsive
● 84% have searched for and used a digital coupon vs. 71% overall.

Profitable105
● Consumer research firm Nielsen estimated the buying power of the U.S. Hispanic
market at $1.1 trillion for 2011 with expected growth to $1.5 trillion by 2015.
● Hispanic consumer spending is projected to grow at a faster rate (74%) than
Non-Hispanics (36%) over the next 10 years.

Targeting
100 United States Census Bureau. "U.S. Census Bureau Projections Show a Slower Growing, Older,
More Diverse Nation a Half Century from Now” 2012.
101 U.S. Bureau of Labor Statistics ”The U.S. Hispanic Economy in Transition: Facts, Figures, and
Trends introduction.” Juan B. Solana, U.S. Bureau of Labor.
102 Hispanic/Latino Market Profile. MediaMark Research Inc.
103http://www.fronterasdesk.org/sites/default/files/field/docs/2013/08/Nielsen_Latina_Report_2013
_.pdf
104 “U.S. Census Bureau Projections Show a Slower Growing, Older, More Diverse Nation a Half
Century from Now”
105 “The U.S. Hispanic Economy in Transition: Facts, Figures, and Trends introduction.”

21
Profile
The target of this campaign will encompass recently graduated bicultural middle class
Hispanic females living life as a young professional or newly-wed with growing families.
The target unites an American Millennial identity with a Hispanic one. She has grown
up accustomed to, with a preference for, using technology, has an affinity for going
green, speaks English and Spanish, has a love for ‘American’ goods, but also has ties to
her Hispanic heritage, such as the community, traditional foods and viewing shopping
as a social excursion to be committed in pairs.

Target Justification
This target market will provide the best outcome due to it’s ability to be identified, its
substantiality, and profitability.

This Target market is identifiable since 55% of all Hispanics live in California, Florida
and Texas as of July 1, 2013, California with the highest population of 14.1 million. There
are eight states in the U.S. that have a population of 1 million or more Hispanic
residents: Arizona, California, Colorado, Florida, Illinois, New Jersey, New York and
Texas.106 Finally within these states, the majority of Hispanics tend to center themselves
in the top 10 urban areas.107

Furthermore, with Target’s use of online marketing, it will pair perfectly with the
Hispanics since many Hispanics show tendencies to shop online and use social media in
their shopping experiences. 61% said they have shared coupons via social media vs. 39%
overall. Additionally, electronic advertising for Hispanics is growing 4 times faster than
other sectors.

As far as profitability goes, Hispanic purchasing power increased 45% in the last five
years, and has reached $1.38 trillion. 108 The Hispanic consumer is spending more dollars
at retailers offering brand names with the fashion footwear styles they want. 109 Finally,
with Target being a ‘family-store’ it coincides perfectly with the Hispanic norm of seeing
shopping as a family event, which they typically undertake in groups or pairs.

106 “Hispanic Heritage Month 2014” U.S. Census Bureau Newsroom. U.S. Department of Commerce.
Sept. 2014.
107 Hispanic/Latino Market Profile. MediaMark Research Inc.
108 U.S. Bureau of Labor Statistics ”The U.S. Hispanic Economy in Transition: Facts, Figures, and
Trends introduction.” Juan B. Solana, U.S. Bureau of Labor.
109 U.S. Bureau of Labor Statistics ”The U.S. Hispanic Economy in Transition: Facts, Figures, and
Trends introduction.” Juan B. Solana, U.S. Bureau of Labor.

22
 Positioning
Overview:
The goal of our positioning strategy, the TargetMarket, is to create a venue to
entice locally minded guests to come to Target. The TargetMarket would be a monthly
‘farmers market’ for small local business and vendors. Target would offer a location and
marketing for the event while local vendors would provide the products. By
supplementing purchases of TargetMarket goods with in-store discounts and
promotions guests of the market and guests of Target would become interchangeable.
Target would screen vendors who apply to ensure they meet the quality Targets guests
expect. Target would also be in charge of supplying tables and designing format so their
reputation for uniformity and cleanliness would extend to the market. Additionally, the
TargetMarket could create a ‘Target Stand’ where if market goers sign-up for Cartwheel,
‘like’ Target on Facebook, or sign up for Target e-mails, they will then be entered into a
Target Gift Card/Local Vendor Gift Basket raffle. This will then provide Target a way to
directly connect with this demographic through social media.

Product
● TargetMarket: A monthly farmer’s market that offers produce and goods made
locally.
● The TargetMarket will provide an opportunity for authentic, local goods to be
sold to the guests, varying a little in each area, depending on the demographics
that surround Target store and the difference in local vendors.
● Target currently offers some organic and local goods, but with the TargetMarket
there will be more options for organic and local goods which is something that
people of the age-group of the target market seek.
● Exclusive partnerships with authentic Hispanics goods (i.e. traditional salsas,
tortillas).
● In-store, a greater emphasis on showrooming certain products (furniture, kitchen
supplies, home furnishings, etc.) will enhance multi-sensory shopping, a common
characteristic of this target market.

Price
● Current Target pricing fits well with target market’s needs and desires of good
value at a reasonable price.
● Everyday low pricing on household goods along with premium pricing on
electronics, exclusive brand apparel, beauty products, etc; which are areas that
Hispanics are willing to spend money on and are constantly seeking.

23
 ● The quality associated with Target goods also means guests will expect similar
pricing and value of food at TargetMarket.

Place
● TargetMarket testing would start in the SouthWest, where Hispanic populations
tend to be dense.
● Individual locations of the TargetMarkets would be on Target premises, typically
in the parking lots. This is beneficial for Hispanics seeing as once they are done
shopping at the TargetMarket they would most likely finish their shopping trip at
Target for any goods still needed, seeing as Hispanics tend to stop and shop in
one location.

Promotion
● Target currently utilizes online coupon via social media, such as Cartwheel. At
the TargetMarket, have a station where people can sign-up for e-mails, ‘like’
Target on Facebook, or download Cartwheel. In return for this, they will be
entered into a drawing for a Target giftcard, free give-aways or other daily
discounts. Regardless, Target will then have the capability of reaching the
market-goers through social media.
● Weekly Spotlight on a vendor and their products through twitter and facebook
● With a purchase at a TargetMarket each customer would get either a coupon
booklet or a Cartwheel code offering a one-per day deal for that week at Target.
This would encourage guests to return to Target more than one time in a week.
● #bestfind & #TargetMarket:
○ Weekly pictures of the best find at a TargetMarket posted to twitter or
instagram with the #bestfind tag from the TargetMarket
○ Small promotion gift for the winner to promote social media shareing
● Facebook:
○ Promotions linked to guests who like a TargetMarket on facebook
○ Deals linked to Cartwheel for guests who share the local TargetMarket
information on facebook
● Cartwheel:
○ Promoting adds through the app, displaying that local farmer and artisan
will be selling their fresh produce and products at your local target.
● Target Stand:
○ At each TargetMarket a single stand would be dedicated to target
promotions and marketing.
■ Family centered activities with different themes each month,
promoting some part of the store.
○ Calendars with further TargetMarket dates, deals, and upcoming local
produce feature farmers.

24
 ○ Promotions inside the store.
■ In store deals on Complementary products provided by local
vendors
■ Promotions for produce and grocery goods not sold at the farmers
market
■ Promotions highlighting a recipe with a farmers market good and
produce from inside Target.
○ Provide sign up for emailing lists and online promotions, and exclusive
deals
● Radio Ads:
○ Campaign focused on raising awareness of the Local Vendors at the event
○ In areas with hispanic radio stations, it is a good idea to do the
TargetMarket advertising specifically through Hispanic radio stations.
● With the current offering of online purchasing, Target can add the option of
looking at the Target webpage in Spanish.
● To reach new customers who already rely on local vendors, Target can work with
vendors online to create brand association.
● Flyers around town, which have been the most successful in promoting farmers
markets.

TargetMarket and Existing Brand

● One of the most important parts of the TargetMarket would be an extension of
the in-store Target experience. Target would have full control of layout and
product variety to maintain their standards of clean, streamlined shopping
experience.is that it maintain the view Target guests have of the Target
Experience. Focus on well laid out markets with very clean stands and quality
local goods.
● Target’s current focus on middle age women holds true to farmers markets as
well as intersecting with hispanics.
● Current Guests
○ In a study of farmers markets in Utah, 70% of consumers were female. 110
○ In a sample study done in California, 56% of farmers market shoppers we
female, and 61% were married.111
○ 74.9% of women identified themselves as the primary shoppers for their
households112

110 Gumirakiza et al 2014

111 Wolf, Marianne McGarry. "AgEcon Search: Item 26768." AgEcon Search: Item 26768. Journal of
Food Distribution ResearchVolume 36, Number 01, March 2005, May 2005. Web. 23 Nov. 2014.
112 MRI’s Survey of the American Consumer in Fall 2011(GfK MRI, Survey of the American Consumer
(2011)

25
 ○ A large portion of farmer market enthusiasts comprised of individuals who
were older, highly educated, higher income, professional, white, and
female.113
● TargetMarket Guests
○ 86% of Latinas say a woman is the primary shopper in their households 114
○ Hispanics spend more proportionate money on food related to items such
as groceries or dining out115
○ Hispanics advocate a retail product assortment that supports a family-
friendly focus
○ Hispanics were found to buy more organics than non-Hispanics and
evaluate organic food production as more important 116
○ Hispanic consumers are more likely to purchase fresh fruits and
vegetables, poultry, eggs, and dairy

Implementation

Roll-Out/Timeline
● Focus on the Targets that are in urban Southwestern cities with heavy Hispanic
populations.
● Start in May, when people are beginning to have more free time due to the
beginning of summer and there is more options for produce and goods from local
vendors and farms.
● Plan a one-year program, where each month the TargetMarket occurs. After the
first year, the TargetMarket could occur bi-weekly in high seasons for fresh
farmers markets. However, the monthly TargetMarket will offer exclusivity and
novelty in the beginning, something for the guests to look forward to, also
allowing Target to plan and coordinate with local vendors.

Impact
● Excellent community service, helping raise awareness of local farmers and
vendors, and creating more of a local connection with the community.

113 International Food And Agribusiness Management Review, and Volume 13 Issue 2 2010. Consumer
Segments in Urban and Suburban Farmers Markets (n.d.): n. pag. International Food and Agribusiness
Management Association. 2010. Web. 23 Nov. 2014.
114http://www.fronterasdesk.org/sites/default/files/field/docs/2013/08/Nielsen_Latina_Report_2013
_.pdf
115 The Shelby Report.com 2011 in Muy Local, Jeffrey Campbell
116 Bellows et al 2008 in Campbell 2013

26
 ● Stellar word-of-mouth reputation, which is another thing that Hispanics tend to
rely on in decision making.
● With TargetMarket occurring in the Target parking lot, people will associate the
TargetMarket with Target, creating a sense of appreciation for a company that
gives back to the community, but also as a location for authentic and local food
and products. Additionally, there will be the rollover customers who will move to
shop at Target after having shopped at the TargetMarket due to the proximity
and convenience.
● The opportunity to connect with consumers via social media with coupons, these
consumers are highly active on social media and mostly likely to share
adds/articles/and discounts on social media spreading and providing Target with
free advertising.
● Breaking into the Hispanic Millennial market, which seeing as Hispanics tend to
share purchasing information through technology, this would also then connect
the information to other Millennials via social media. The information and
promotions would trickle down through the sharing done in social media and the
conversations had on social media, to both other Hispanics and Millennials.

Future Plans
● Offer monthly promotions of ‘winning’ or most popular vendor’s goods in select
Targets.
● Expand the TargetMarket to other regions.
● TargetMarket could be held more or less frequently depending on the area to
optimize the effectiveness of the event. In high popularity areas it could be held
more frequently.

ROI
● Costs:
○ Facilities: Tables, stands, additional time for employees to plan the market
■ Employees hourly wage farmers market workers typically make $14
an hour. It usually cost about $15 for product liability insurance,
and $12 for a state and county permits.117
■ A 10 x 20 tent is $180, folding tables range from $60-120118
○ Marketing: Radio, social media, and in-store ads
■ Depending on the size of the city radio ads can cost from $500-
$8,000 a week.119

117 Myers, Ginger S. "A Booth at the Farmers' Market: Profit or Loss | University of Maryland
Extension." A Booth at the Farmers' Market: Profit or Loss | University of Maryland Extension. N.p.,
n.d. Web. 09 Nov. 2014.
118 Google shopping search event tents and folding chairs
119 Prosser, Marc. "Radio Advertising Costs & How To Negotiate Lower Rates - Fit Small Business." Fit
Small Business. N.p., 4 Sept. 2013. Web. 09 Nov. 2014.

27
 ■ Twitter: $2000-4000 per month120
■ Facebook: $2500-5000 per month121
● Benefits:
○ Increased local traffic to stores. In a poll of customers at a downtown
farmers market in Waukesha, WI, 81% of customers were more likely to
visit at least one other store after shopping for food. 122
■ Increase Target store traffic on Market days by 80%.
○ Improved customer loyalty by providing food that is local and fresh
○ Strengthens Target Brand name
○ Increased online presence due to sharing on social media

With the low costs of the facilities required, TargetMarket implementation costs would
be very low. Marketing for the event could be folded into already existing channels.
Using existing marketing tools such as Cartwheel guests could be informed of upcoming
TargetMarkets. New guests could be reached through a new campaign focused on
gaining awareness for the event.
● Focus should be put on local channels:
○ Radio
○ Newspaper
○ Word of Mouth
○ Focus on having TargetMarket attendees share experience on social media
● This will keep costs low while creating good awareness

Positioning Strategy Summary

With the exception of a few additions to product selection, Target stores already possess
many of the values and characteristics that are target market finds appealing.
Therefore, the focus of the marketing strategy is to encourage people who are currently
not loyal customers to attend TargetMarket. With the connection between
TargetMarket deals and in-store deals via mobile apps and social media, target
customers will interact more with Target in-store and online and share their experiences
with family and friends. Our target market’s ability to disseminate retailing information
via online channels will result in greater name recognition, brand loyalty, and patronage
of Hispanics in existing store areas.

120 Smith, Brittney. “What are the hidden costs of running a social media campaign?” 60 Second
Marketer. 2011.
121 Idib.
122 Bubinas, Kathleen. 2011. "Farmers Markets in the Post-Industrial City." City and Society 23.2: 154-
72.

28
 Appendices
Observational Research

Observation of Target’s various stores affirms that Target Corporation currently

implements marketing strategies in order to reach its desired markets and their needs.

Market
● The majority of shoppers in suburban and more rural Targets were women.
● City Target had more variety in regards to gender and age range.
● Many women appeared to be mid-age and often had two children with them.
● College-age shoppers can be spotted at Targets in college towns and city Target.

Marketing Mix

Product
● Super Targets have more produce options than typical Targets.
● Minute Clinics are available in some SuperTargets in Suburban areas.
● Some suburban Targets and SuperTargets have an Optometrist.
● Target has exclusive flavors for products unavailable at other stores (Ben &
Jerry’s)
● Each Target had an electronics area, home area, food and beverage area, gift area,
toy area, pharmacy area, and apparel sections.
● The City Target had a café attached to the side, to provide customers with ready-
to-eat meals as they are on the go.
● Target has their own brand in the food area offering competitive prices: Market
Pantry and the more gourmet line, Archer Farm.

29
Price
● Each Target visited had an area at the front offering deals for $1, $2 or $3.
● Some prices seem to be a little higher than in other stores.
● Comparatively cheap apparel for the quality provided.

Place
● The organization of Targets varied; having the products valued the most by the
different markets located at the front.
● Targets and SuperTargets are typically located in high traffic areas.

Promotion
● Red and White Target colors were easily distinguishable in each store.
● Advertisements around store to draw attention to the Red Card deals.
● Sign when customers walk in acknowledging that Target accepts price match.
● Advertisements in the store highlighting the Target app, Cartwheel.
● Appears to be a lack of promotion outside of store to help bring awareness.

Sustainable Comparative Advantage

Locational Excellence
● The City Target appears to have a certain amount of value because it is not easily
duplicated in a populated city.

Customer Excellence
● Warm greeting by cashier.
● Easily identifiable employees.

Product Excellence
● Archer Farms is a Target-store brand that offers higher-end, gourmet style food
at a competitive price compared to other high-end manufacturers.
● People seem to trust that goods they buy from Target will last.
● Exclusive partnerships give consumers products they couldn’t purchase
elsewhere.

Operational Excellence
● Partnering exclusively with certain brands for specific products, such as Ben and
Jerry’s or Campbell’s Disney Princess soup.
● Target’s ability to provide customers with Minute Clinics and Optometrists.

30
31