Danny SeaveyBlake TeasleyTaylor Young

Introduction• Approximately 1800 retail locations across 49

states.• General Merchandise stores and SuperTargets• “Expect More. Pay Less”

• E-Commerce is on the Rise– 2013 Projection: $262 billion (+13.4%) – 2012 Sales: $231 billion – Projections from Forrester Research Inc. 10%

compound annual growth rate from 2012.

The Situation

Competition

Strategic Group Map

SWOT AnalysisStrengths

• Strong brand recognition • Large market share • Increased revenue every year• Great customer service • Gift card sales• Target sourcing services

Weaknesses• Geographic concentration• Lack of internet sales• Lawsuits

Opportunities • International expansion into

untapped markets/territories• Grow internet sales through the use

of new innovative technologies

Threats• Poor economic conditions • Industry giants (Wal-Mart, Amazon)• Dependence on outside vendors

• Increase E-Commerce Sales• Expand Globally to increase retail coverage

and sales

Proposal Goals

• How? – Implementation of Vee24 Software

Increase in Online Sales

Develop Greater Customer Loyalty

Reduce Shopping Cart Abandonment

Generate More Sales Opportunities

(Upselling)

Increase E-Sales

https://www.youtube.com/watch?v=T3Ln_khNULY

• Average shopping cart abandonment rate: 65.23%

• Average value of an online order is $116.58• Average online conversion rate is 2.31%– Increase conversion rate by 2%, this will result in

an additional $230 per every 100 customers that visit the website

Expansion United States market continues to reach saturation Our target demographics (middle class) continue to grow abroad

o China, India, Brazil, Mexico Focus on destination cities of American’s travel

o Mexico receives nearly 25 million travelers from US (US Department of Commerce Office of Travel and Tourism Industries)

Cancun (#1 US travel destination), Mexico City, Cabo San Lucas o According to The Values Institute American’s are more likely to buy from brands they recognize and

trust (brand recognition at 97% ahead of Nike, rated the 5th most trusted company by TVI) Focus on international destination cities

o London: 17 million international visitors; $21.1 billion in international receipts (#1 visited city in the world, #2 by American’s)

o Paris: 16 million visitors; $17.8 billion (#2 world; #4 by Americans)o Madrid: 9.7 million; $11.5 billion (#7 world)o Frankfurt: 8.1 million; $11 billion (#9 world)o Rome: 7.8 million; $8.3 billion (#12 world; #6 Americans) (Forbes)

Global Expansion

• Much Potential Available as seen in Wal-Mart's expansion– Over $100 billion in sales– International revenues increased 15% annually over the last several

years. Domestic growth is 1% over the same period– International sales account for less than 30% revenue, yet 40% of its

stock value– Q3 2013 Wal-Mart reported 7.6% revenue growth from international

business.• Largely from Brazil, Mexico, and China

– Last 2 quarters; Brazil: 10% and 5% increase in sales. Mexico: 10% and 4%

Global Expansion Cont.

• Vee24– Approximately $5,000 per unit. – @ 10,000 units: Investment of $50 million– Increase conversion rate to 4% resulting in

approximately an additional $230 per every 100 customer interactions

– @ 26,000,000 hits per month at Target.com this would generate an additional $600,000,000 in retail sales each month.

Vee24 Cost

Proposal Based SWOT Analysis

Strengths• Strong brand recognition• Larger market share • Great customer service via Vee24

software• Increased e-commerce presence

Weaknesses• Lawsuits • Differing cultures

Opportunities• Growth through internet sales• Continued Expansion into untapped

geographic areas

Threats• Poor economic conditions• Dependence on third party vendors• New global competitors • Different government regulations • Exchange rates, tariffs

Questions?