Target Corporation Analysis

Value Proposition: What is the Target’s main business? What value does Target deliver to their customer?

Target Corp (TGT) is a general merchandise and food retailer. Targets offerings include food, apparel, home decor, electronics, household and beauty items to consumers in one location, established to create ease for consumers and to become a one stop shop for everything a consumer could need. Target’s mission is to bring joy back to shopping, making it fun, easy and putting joy at the center of every business decision they make (Target, 2021).

Profitability

Founded in 1902, Target currently operates 1,914 store locations and 46 distribution centers throughout all fifty states in the United States (Target, 2021). As well, as numerous additional offices all through the United States and through out the rest of the world (Target, 2021). Over the last 4 years Target Corp has an overall profit margin of 6.29% and has continuously seen increased total revenue, their 2020 income statement showing the year ending with 93 billion in total revenue, up from 2019’s 78 billion (Yahoo Finance, 2021). Target’s long history and cult like following has propelled their success, increasing their profits year after year.

Below is a current SWOT Analysis of Target Corp obtained from Marketline:

(Target SWOT Analysis, Marketline, 2021)

SWOT Strengths: What are the company’s main strengths to be leveraged to create a new product or service?

These strengths for establishing a new service to increase Target Corp’s profitability are all beneficial to the launching of this new service. Being able to purchase products through multiple channels for ease of shopping, as well as their largely established distribution networks will be large pieces of the puzzle. Their financial performance throughout the last few years, as well as through the COVID-19 pandemic give them credibility, as well as visibility to consumers.

Service Singularity: What is unique about the new service?

Due to Target’s increasing popularity often times consumers find themselves having to utlitize a series of ways to obtain the products they need from one of Targets many stores. Often when completing a “Target Run” through their drive up/pickup option consumers are met with uncertainty of product availability. This often leads to making multiple purchases, at multiple locations, whether they be in store or online. Providing a new service that links stores and distribution centers in a more harmonious manner contributes to their mission to provide joy and ease to consumers lives and shopping experiences. This service would allow for consumers to place their drive-up/pick up orders through the website or mobile app from multiple locations and then pick them up in one centralized locations. This service would be referred to as a “Rapid Run at a Target Hotspot”.

New service projections: How can the new service improve profitability?

This new service would improve profitability by allowing Target to truly be a one and done kind of location. Often times when consumers are placing pick-up/drive-up orders it is due to their need. These are typically products consumers need in that moment, and are left looking for other places to obtain them. This also runs the risk of Target missing out entirely of sales, as consumers may decide to go somewhere else entirely that has what they need in stock. The Covid Pandemic has cause many supply issues, leaving some stores without more than others. However, for example, in an area with multiple target locations utilizing the store stock in the area, as well as near by distribution centers consumers are more likely to be able to get all the products they need in one trip utilizing the hotspot services. These hotspot locations would act as a hub for products in the surrounding area to come together and truly create ease for consumers.

References

Marketline. (2021). Target Corporation SWOT Analysis, 1–8. Retrieved from https://search-ebscohost-com.ezproxy.snhu.edu/login.aspx?direct=true&db=bsu&AN=151288020&site=ehost-live&scope=site.

Target. (2021). Target.Com. Retrieved September 2, 2021, from https://corporate.target.com/about/purpose-history

Target. (2021). Target.Com. Retrieved September 2, 2021, from https://corporate.target.com/about/locations

Yahoo Finance. (2021). Yahoo.Com. https://finance.yahoo.com/quote/TGT/profile?p=TGT

Marketing Objectives

What are marketing objectives?

Marketing objectives are comprised of measurable goals set forth by a company. These objectives ensure that every action taken by each member and department are fulfilling the overall goals of the company. On a larger scale companies utilize S.M.A.R.T. goals to assist their objectives. S.M.A.R.T stands for specific, measurable, attainable, relevant and time. When completing actions towards the goal, its important to make sure they align with the goal.

Specific – What is it that I am trying to achieve, what do I need?

Measurable – What KPIs can be used to measure my results?

Attainable – How does this help to reach the overall goal?

Relevant – Does this support the strategy?

Time– What is the deadline? Is this the right time to be working on this piece?

For example, a company wishing to grow their social media following to increase their reach would determine how much they want to grow.

Specific- Grow following by 1,000 new followers to increase awareness

Measurable – Aside from the obvious KPI of follower count, they may also want to take into consideration the number of views on videos and stories, as well as their insights of accounts reached and content interactions. This gives a general idea that the growth they are seeing is also followers who are engaged with the content produced.

Attainable – Is 1,000 new followers too bold of a goal, does it need to be scaled down?

Relevant – Is growing the social reach important for the business right now? Does the content provided align with the consumers wants and needs?

Time – Growing 1,000 followers takes time. Setting a goal of a week is unrealistic, what time frame aligns with the work being put in?

By following S.M.A.R.T goals to determine the marketing objects of a campaign a company can ensure they are growing in a positive manner. This not only saves a company time, but money as well.

Of course, with actions come legal and ethical considerations a company must consider when achieving their desired goals. Following the example above, some companies might just opt to purchase followers, or join in on follower loops to reach their number in the desired time frame. Unfortunately, those actions are not the most ethical. They often deliver as far as results, but they do not create a thriving social community that is vital to the engagement success of the company’s social channels. So, in the long run, that time, money and energy spent to purchase or entice follows does not benefit the company at all. This falsification can also damage the company’s credibility with its genuine followers. This makes the company seem like they are willing to cut corners. Acting in an ethical genuine matter will benefit the company in the long run.

Tools for Market Segmentation

Defining your target market is vital to any businesses success. Ensuring your reaching the right consumers saves not only time, but money as well. This requires a company to use market segmentation when determining who makes up their market. Market segmentation is broken down into 4 different categories, geographic, demographic, psychographic and behavior. Each of these sections offers a different piece to what makes up a consumer. This is important because Understanding how and why your target market operates allows you to understand what their wants and needs are. Breaking down your target market can seem like a daunting task. However, there are many tools available at the disposal of businesses worldwide to help them understand who their target market is and why. 

Two of these different tools that a business can use to define these markets are Google Analytics and my personal favorite, Statista. While they both compile their information in different ways, they can both benefit a company when it comes the learning about their markets. With Google analytics businesses have access to understanding who your audience is. It can tell you who your consumers are, from their age, location, gender and even their interests (Kaplan, 2021). This information can tell you about a consumers lifestyle, and what their other interests may be through affinity and in-market segmentation (Kaplan, 2021). Google Analytics can also offer information on where these consumers came from to reach your site, this allows you to understand where your consumers hang out to focus your marketing efforts and find more potential consumers for your product. 

Statista is essentially a large warehouse of statistical data on a plethora of topics and offers their users a collection of market research data on not only consumers but market and competitor information as well (Statista, 2021). Not only do they take into account market information, they also dive into consumer behavior through the use of surveys, as well as, understanding their media usage. All information that is useful when a business is creating a campaign to target consumers in their desired markets. Each of these tools offer different pieces of the consumer puzzle. While there are many additional resources companies can take advantage of, these two together can complete the picture of their while desired consumer and market quickly and easily. 

References

Kaplan, A. (2021). 6 online tools anyone can use to identify your target audience. Retrieved from Heynowmedia.com website: https://info.heynowmedia.com/tools-to-identify-your-target-audience

Statista. (2021). About us – the company behind the successful product. Retrieved from Statista.com website: https://www.statista.com/aboutus/

Data Trends in 2021

The article I have chosen to write about was a compilation of trends in data analytics for 2021. The article, Gartner Identifies Top 10 Data and Analytics Technology Trends for 2021, focuses on the 10 current trends in data the companies can expect to start seeing. This article was written by Garner INC., a data research and advisory company (Gartner INC, 2021). While this article covered many Interesting trend topics, the one that stood out the most to me was “The Rise of the Augmented Consumer”, something I had not come across until this article. The article described this trend as follows: 

“Most business users are today using predefined dashboards and manual data exploration, which can lead to incorrect conclusions and flawed decisions and actions. Time spent in predefined dashboards will progressively be replaced with automated, conversational, mobile, and dynamically generated insights customized to a user’s needs and delivered to their point of consumption.

“This will shift the analytical power to the information consumer — the augmented consumer — giving them capabilities previously only available to analysts and citizen data scientists,” said Ms. Sallam.” (Gartner INC, 2021).

Having this level of consumer insights can allow businesses to customize the user experience. In a time when many companies are aiming to form a more personal connection and relationship to their consumers this can help many of those companies reach consumer needs in ways they only dreamed of. This will allow for more companies to offer personalized experiences, and reach beyond their target market with ease. 

I personally think this is a rather interesting trend that can be beneficial but is also worrisome. In a time when consumers are concerned about their available information and the ways in which businesses are using it, many consumers may turn away from businesses utilizing this technology out of concern for information safety. Along with these consumer concerns, this also means that businesses will have to employ additional safeguards surrounding obtained data. I think as this concept advances we will begin to see real legislation come forward safeguarding consumers. Currently there is more protecting businesses than consumers.

Another thing about this trend that might be an issue for some businesses is how they intend to analyze this data once it’s presented to them. While it would be great to arrive to a website and have everything I want or need, or could be interested in, presented to me, does that come with additional storage or bandwidth concerns for these companies utilizing this technology. 

While I don’t believe this is the last that we will hear of this concept, I do believe there are many more kinks that need to be worked out before it can be fully implemented. This is one I will continue to watch, and will be eager to see how the data and business industries adapt to the furthering development of this technology. 

References 

Gartner INC. (2021). Gartner Identifies Top 10 Data and Analytics Technology Trends for 2021. Retrieved from Gartner.com website: https://www.gartner.com/en/newsroom/press-releases/2021-03-16-gartner-identifies-top-10-data-and-analytics-technologies-trends-for-2021

Defining Key Performance Indicators

Key performance indicators are used by all businesses to measure the efficacy of their efforts. Whether it is to determine sales, marketing or their overall impact that they are making on the market. Businesses use a variety of KPI (Key Performance Indicator) metrics unique to them to determine if their efforts are working or need to change. Even further, KPI’s can be broken down into two categories: visionary and tactical (Jackson, 2016). While they both support the company’s goals, the way they do so is a bit different.

Visionary KPI’s work towards the company’s big overall goal (Jackson, 2016). Meaning that these metrics focus more on what the business is trying to achieve as a whole. These metrics are differing per company, but overall help build the culture of the company (Jackson, 2016). Similarly, Tactical KPI’s focus on the goals and objectives of the supporting departments within the business (Jackson, 2016).

KPI’s should always meet the four following attributes to be determined as a KPI:

1. Metric uses a timescale (Ie. Weekly, monthly)
2. Metric has a benchmark
3. Metric has a reason to be reported
4. And has an associated action if a problem occurs (Jackson, 2016).

A few examples of the kinds of KPI’s a business may use when monitoring their efforts are items such a bounce rate, shares and returning visitors. Each of these metrics work together to support the companies visionary plans as well as their tactical plans. With Bounce rate, this metric can be measured hourly, daily, weekly and monthly. Each measurement tells the company if the content listed on the company’s website is information the consumer wants or needs. Bounce rate is the number of visits that resulted only a front page landing before the consumer left without exploring anything else (Jackson, 2016).

Shares are important both for visionary and tactical efforts as they can be working towards many things. Shares is the number of times someone visiting shared a link directing back to the company with someone. This can be from the website, or across social platforms where sharing is not only easily done, but encouraged. This metric also has the potential to impact page ranking through search results, and enables content to travel further (DeMers, 2020).

Finally, returning visitors is another important metric for a business to determine their success. This is the amount of people who return to your site, and if the company’s efforts are effective then they should see that number increase (DeMers, 2020). This metric can be further investigated to see what the common denominator is, are they coming from a specific place such as email or click-thru rates. Each of these metrics align with a business’s goals, whether its to reach new consumers or increase revenue.

References

DeMers, J. (2020, March 3). Meltwater. Retrieved from Meltwater.com website: https://www.meltwater.com/en/blog/50-metrics-to-measure-your-content-marketing-campaign

Jackson, S. (2016). Cult of Analytics: Data Analytics for Marketing. 2^nd Edition. Routledge.

The Importance of Considering the Needs of Multiple Departments

Across many companies, large and small, there is often a challenge of working across multiple departments seamlessly. Methods such as the hub and spoke method, where one core idea is the basis of all the operations and each supporting piece is making that idea possibility encourages cross-departmental sharing of data, information, or ideas. Having each department working toward a common goal or idea is important for many reasons. Departments working together allows for the data or information a company is using to be accurate, and ensuring it being regularly checked by many different members of a company. For instance, if one department focuses solely on one set of information, and another department focuses on another, when they come together there is no complete confidence that the information is correct. However, if there are multiple employees across multiple departments checking the information, and ensuring it is working towards a common goal, then it is easier for a company to correct any errors. Much like the story of the fictious ACME company, that Steve Jackson shares in the book Cult of Analytics, when a company has departments acting in an independent manner that can cause issues for the company.

When it comes to digital analytics, operating in a hub and spoke manner is important to running a successful campaign. Sharing results and information across departments ensures each person working on the campaign has pertinent information and data, to not waste time or money. When developing a campaign its important to understand what product is trying to be promoted, do they want this promoted to current customers, new customers or even both. Aside from basic information, needing to know how much product is on hand, will more be expected to need to be ordered, will this be in stores, online or both. Each of these pieces of information impacts different departments. Creating a campaign that a manufacturer or distributor cannot keep up with can create negative repercussions for a company. When a company has a central unit that functions to process information free from each department, it can then break down information (Jackson, 20).

This method also allows for fresh ideas for a struggling company, or even just one trying to target new audiences. In order to do that, information needs to move freely through departments and there needs to be communication between them. Making sure all aspects of the company work smoothly from the website, to the marketing departments to sales all ensure a company can focus on their consumers and meet their needs.

References

Jackson, S. (2016). Cult of Analytics: Data analytics for marketing (2nd ed.). London, England: Routledge.

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Preliminary Findings and Limitations

PepsiCo’s organization objectives are clear. To be the best choice for their consumers, customers, associates, shareholders and their communities (PepsiCo, 2021). Focusing on bringing nourishing products, unique experiences, innovation, and meaningful opportunities the launch of a Doritos Flavored seasoning checks a lot of those boxes. As well as focusing on the demands of consumers wanting healthier product options. This product allows for consumers to be innovative and add unique flavor profiles they know and love, while being able to pay special attention to their own wants and needs when it comes to their health. The launch of a specialized seasoning is a new way for PepsiCo to branch out their product line and reach consumers who love their products but avoid them due to dietary reasons.

Industry trends that are important to consider with launching a Doritos Flavored ready to use seasoning is the projected spice market growth over the next few years (Grandview Research, 2020) . North America alone is projected to see an immense amount of growth in the sales of spices and flavorings (Grandview Research, 2020). Many grocery store competitors are beginning to branch into ready to use seasonings that mimic consumer favorites at a successful rate, since the idea of these kinds of seasonings are still newer now would be the time for PepsiCo to jump on the market as well and expand into more food product areas. Along with the impact of the Covid-19 pandemic consumers are looking for more unique accessible products to step up their at home meals.

The proposed marketing strategy for the launch of this seasoning product is primarily through social media channels, this is concept PepsiCo is currently using to promote their other offerings as well. Aside from ensuring that all marketing content contains clear and factual information as to not mislead a consumer, other things PepsiCo needs to consider are meeting the requirements of each channel they promote through, and properly crediting any user created content. As long as they abide by these standards they should be able to avoid any legal and ethical challenges, while maintaining fairness in the industry.

One limitation discovered during research for PepsiCo to consider when introducing their product to the market is the saturation of spice and flavoring options that are currently available to consumers. However, due to the projected growth of the global spice and seasonings industry this should not be much of a hinderance for such a unique product. Many of the available options to consumers allow then to make their own flavor profiles, however ready to use mixes allow for more consistency for consumers.

References

PepsiCo. (2021). Mission. Retrieved from https://www.pepsico.com/about/mission-and-vision

Grandview Research. (2020). Global seasonings & spices market size report, 2020-2027. Retrieved from Grandviewresearch.com website: https://www.grandviewresearch.com/industry-analysis/seasonings-spices-market

Marketing Research: Pepsi-Co

In 1965 Pepsi and Frito lay joined forces to create one company to fulfill all of their consumers snacking needs. Today Pepsi-Co is a global competitor in more than 200 countries with 23 brands that generate more that $1 billion each annually (Pepsico, 2021). Pepsi-Co is made up of 7 divisions located all across the world, each bringing different and unique products to their markets. These divisions are PepsiCo Beverages North America; Frito-Lay North America; Quaker Foods North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia/New Zealand and China (Pepsico, 2021).  Each of these brands offer something different to Pepsi-Co’s portfolio and offer a broader range of brand recognition.

Pepsi-co strives to be a brand that offers consumers choices for their lifestyles. Their aim to have a product for everyone has created an impressive product line up. Well known flavors of sodas, chips and cereals leaves even more potential for the brand to end up in the homes of everyday consumers across the U.S. and globally. For a market research project, the product proposal I have curated for Pepsi-Co is a line of seasonings, sauces and flavorings inspired by their popular items. The current state of the world in the Covid-19 pandemic has led consumers to get creative in the kitchen as many restaurants have shut down or greatly limited their operations out of an abundance of safety. A variety of seasonings sold either singularly or in a pack inspired by famous chip flavors such as Cool Ranch Doritos, French Onion Sun Chips and Honey BBQ Fritos can bring consumers old favorites a new life in their at home cooking adventures. As well as sauces such as Cherry Pepsi inspired BBQ sauce and flavorings inspired by Life cereal and the many flavors of the Quaker Chewy Bar line for their baking needs.

Research for product development follows 6 steps (Babin, 2019):

1. Define an objective
2. Plan a research design
3. Plan a sample
4. Collect data
5. Analyze data
6. Report of conclusions

Research design for this product launch can be experimental and allow for consumers to get involved in the process. Piggybacking off the success of past campaigns from Pepsi-co, such as the “Lay’s Choose your Flavor” contest in 2019, Pepsi can run a contest for consumers to show how their products are used in consumers home recipes. This is a way for Pepsi to gauge not only their consumer interest in cooking, but their preferred flavor profiles. Pepsi can feature consumer recipes on their site, as well as survey participants interest in the popular flavor line potential. Running a contest is a good way to gauge interest and collect data on the types of offering and flavor profiles consumers may be interested in.

References:

Babin, B. (2019) The Role of Marketing Research. Retrieved from Essentials of Marketing Research Seventh Edition

Pepsico. (2021). Retrieved from Pepsico.com website: https://www.pepsico.com/about/about-the-company

Digital Advertising Predictions

Everyday digital marketing efforts adapt to consumer changes. In 2020, consumers were left to look for new ways to shop in an already increasing digital world thanks to the Covid-19 pandemic. Already facing a decrease in brick and mortar locations, consumers were propelled to make changes and make many of their purchases digitally through websites, social media, and mobile applications. This is a trend that is likely to continue as the pandemic rages on. 

However, when consumers can return to some normal semblance of previous life digital commerce will be even more of the standard as consumers make up for time lost stuck inside. Many more companies will turn to utilizing social platforms to sell their products to consumers, as well as utilize more direct targeting efforts. Increased consumer data information will be able to offer businesses a clearer picture of their consumers wants and needs, and how they can make their lives even easier. The covid pandemic has made consumers aware that they no longer need to shop for their own products. This action will force other companies to offer more delivery options to consumers similar to prime, shipt and doordash. 

This is a good time for businesses to focus on increasing their local reach, as well. With consumers being at home, they are paying more and more attention to what is happening within their communities locally (Shearer, 2020). Ensuring that companies continue to deliver content and messages that are relevant to the consumer is important more than ever. 

References 

Shearer. (2020, July 2). Local news is playing an important role for Americans during COVID-19 outbreak. Retrieved February 15, 2021, from Pewresearch.org website: https://www.pewresearch.org/fact-tank/2020/07/02/local-news-is-playing-an-important-role-for-americans-during-covid-19-outbreak/

How Legal and Ethical issues effect Consumer Engagement

Subway was once a brand that offered consumers healthy options among the sea of fast food offerings. After numerous run ins with ethical and legal issues surrounding the quality of their food the once struggling brand may finally see the end. In 2018, subways was already seen as a failing brand among the franchise owners, with many being placed up for sale (Taylor, 2018). 

Subway’s brand promotes food transparency and building up their communities as some of their polices (Subway, 2020). However, Subway has often come under fire regarding the quality of their offerings. Issues such as exaggerating the length of their sandwiches, the content of the ingredients in their bread, and if the tuna in their tuna is actually tuna at all. These claims are harmful for a consumers perception of a brand deemed the healthy alternative. 

With the increase of more clean, fast takeout options, Subway’s issues are becoming the businesses shortcomings. Consumers have more options for better quality foods. The many issues surrounding the quality of their food offerings push’s away consumers and gives them the perception that the food was not fresh like the brand claims (Taylor, 2018) 

If the brands desires to focus on food transparencies and their communities, as stated on their website, then the best solution for subway would be to overhaul their operations. Subway has consistently glazed over their scandals, often vehemently denying the claims, but does nothing to encourage consumers to continue to utilize their options. Current operations place profits on a higher level then quality. However without the quality, fresh ingredients, there are no consumer purchases to produce profits. 

References 

Subway. (2020). Our Commitment. Retrieved from Subway.com website: https://www.subway.com/en-US/AboutUs/SocialResponsibility/OurOverallCommitment

Taylor, K. (2018, January 1). Subway’s “mystery meat” and “mushy and rotten vegetables” destroyed the “Eat Fresh” advantage it spent years building. Business Insider. Retrieved from https://www.businessinsider.com/subway-food-hurts-reputation-fails-to-keep-up-with-trends-2018-1