Target Corp Strategic Recommendation Essay

9714 Words Apr 5th, 2013 39 Pages
Target Corp. Strategic Analysis

MAN4720 Section 22 -Wednesdays 7:30pm
Team: Risky Business
Christine Majewski
Jake Morgan
Kristin Stearker
Cory Verez Executive Summary
The purpose of this analysis is to inform the board of team Risky Business’ strategic proposal related to Target Corporation’s Health & Wellness category. Target is already a multi-million dollar company, but after analyzing the company, our team has come up with a few strategic recommendations to aid in the continued success of Target. We have found that Target strives to combine top of the line innovation, excellent customer service, and unparallel value at attractive prices to customers using their Expect More. Pay Less® brand promise. The Target Corporation
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Two branded credit cards, the Target Card and the Target Visa, and one Target branded debit card, offer credit to customers through the US Credit Card segment (Reuters, 2013). In 2012, the total REDCard penetration was 13.6%, up from 9.3% the prior year. Although more people are signing up for credit, the total revenue generated from this segment has been declining since 2010 (Target Corporation, 2013). See Exhibit 1 for US Credit Card segment details. The Canadian segment includes the recently acquired Zeller’s, Inc. store locations in Canada. Start-up costs for this segment were $272 million in 2011 and $74 million in 2012 (Target Corporation, 2013).
The US Retail segment includes Target’s online business, its general merchandise stores, and SuperTargets (Reuters, 2013). is designed to allow guests to purchase products directly from online and/or to assist them in locating the product in a store near them. To aid in differentiating themselves, Target uses the web platform to sell not only its general merchandise, but also to introduce six brands sold exclusively through this medium (Target Brands, Inc., 2013c). The online presence aids in the vision of the company by offering multiple channels through which a customer can interact with Target. The brick and mortar stores of the US Retail segment offer general merchandise and groceries through the discount chain. Target and SuperTargets differ in that SuperTargets offer a

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