elevating the in-store experience - target corportation
TRANSCRIPT
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Elevating The In-Store Experience
Tim Jessberger, Christian Klimkiewicz, Emily Kluener, Vlad Necovski, Wes Sherrer, Nathan Tumblin
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Today’s Roadmap
● Competitive Landscape● Our Research● Plan Objectives● Proposed Tactics
o Overviewo Costs of Strategieso Benefits of Strategies
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Competitive Offerings: Similar Product and Selection Offerings
o Compete on priceo In-Store service is
improving; usually understaffed
o Excellent in-store service
o Competitive pricingo Good quality
products
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Competitive Offerings: Similar Product Offerings, Less Selection
o Reduced pricingo Typically one product
choice in each category
o Little to no service
o Reduced pricing on select products
o Some choices in certain categories
o Little to no service
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Competitive Offerings: Different Focus, but Growing Offerings
o Draw customers on weekly and fill in grocery trips
o Decent service, competitive pricing
o Secondary sales in clothing and home good items
o Draw customers on weekly and fill in grocery trips
o Excellent service, fair pricing
o Some options in home good items
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Our Research
● Primary Researcho Observed guest shopping habits at Lennox, Easton,
Polaris, Graceland, Blacklick, and Cincinnatio Experimented on Target team members using
situational testso Interviewed Target team members while on the job
● Secondary Researcho Acquired data on trends in the industryo Looked for innovation amongst competitors
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Research “a ha”s
● Perceived slightly higher quality,
slightly higher cost than Walmarto Not the least expensive, very good cost to quality
ratioo Mom’s seemed to prefer Target
● In-store experience is higher than competitors, but there are many opportunities for improvement
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The Problem Defined:
● The in-store experience is good, but continuous improvement can be leveraged to differentiate and capture a competitive advantage.
● How can Target modify the in-store experience to benefit all stakeholders and provide a competitive advantage?
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Ideal Solutions
● Optimal recommendations will:o Elevate Target’s in-store
experienceo Reinforce existing in-store
effortso Be cost cognizant o Support Target’s brand
positioning/differentiation strategy
o Increase brand image
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Key Pillars
● Guest Service: be 100% available to the guest when they need service
● Convenience: provide guests with increased convenience while maintaining time spent in-store
● Casual Incentives: reward existing guest behavior● Embrace Differentiating Factors: Target has higher
quality goods, friendly staff, and a better in-store atmosphere
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Strategy #1: Improve In-Store Service
● Improve service with easier access to team members in given departmentso Cross-train team members
to assist guests in high volume departments
● Better trained and incentivized pharmacists more eager to assist and fulfill guest needs
● Implement better communication technology
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Improving In-Store Service
● Cross-train team memberso This can be completed for a
nominal cost through on-the-job training
o Have current team members spend time each day in other departments
o Focus training on guest touch points to ensure high return on guest satisfaction
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Improving In-Store Service
● Improve selection processo Spend more time interviewing prospectso Ensure prospect is interested in industry and Targeto $2,000/position filled (time and opportunity costs)
● Better incentives for pharmacistso This can be in the way of higher salaries but can be
as simple as stock options or bonuses based on customer satisfaction feedback
o Cost will vary based on option and implementation
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Improving In-Store Service
● Remove phones red in-store phones (outdated)o Utilize Cartwheel or other
smartphone-based app to ping customer service when help is needed.
o Hardware: Key managers use current hardware to receive alerts and respond or delegate response
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● Happier Guests->ROIo Better guest retentiono Increased guest time in-storeo Larger revenue per visito Higher perceived brand valueo More app awareness and use
per guest
Improving In-Store Service: ROI
● Happier Team->ROIo Greater team member
satisfactiono Improved team member
retentiono Increased Team Net Promoter
Score
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Strategy #2: Bundling Deals
● Bundle items to capitalize on convenience
● Increase basket size without detracting time in-store
● Be clear about the value added and benefits the consumer will receive from buying items together
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Bundle Deal Examples
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Costs of Bundling Deals
● Bundling results in smaller marginso Larger basket size
● Strategy relies on consumers to take advantage of the deal and purchase items together
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Benefits of Bundling Deals
● For Target: guests are inclined to purchase more items in order to get the discounto More potential for revenue
● For Guests: rewarded with a discount for items they may already buy togethero Like bread, peanut butter, and jellyo Positive reinforcemento “Little win”
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Strategy #3: Segmented Store Atmospherics● Personalize the atmospherics of each department based on its character
and employee suggestions● Decentralize the corporate overhead just enough to enhance the customer
experience
● It’s all about authenticity
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Segmented Atmospherics Tactics
● Delegate a portion of the budget to marketing efforts directed towards increasing authenticity in each department○ Market department: Increase signage, 5 senses, market
“personality”○ Softlines: personable, quality, value
● Team member selection, training, and floor execution. ○ Hire highly motivated team members ○ Develop strategic training programs that entice them to deliver
phenomenal guest service ● Focus team members on delivering excellent guest service
○ Avoiding stocking shelves during peak hours
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Benefit of Elevated Atmospherics
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Thank You
What questions do you have?