Strategic Marketing PlanTarget’s Entry Into Canada

BMKT 161-81April 2, 2012

Presented by:Zhang ZhiyeErik GrananderSteve KamyszekLeah Scheitel

Mission Statement:

“Our mission is to deliver outstanding value, continuous innovation, and an exceptional shopping experience to make Target your preferred shopping destination. Most of all, we want to always fulfill our Expect More – Pay

Less brand promise.”

Marketing Objectives:

• Contribute to the communities and maintain a high standard of Corporate Social Responsibility

• Partner with Canadian designers and products that Canadians are already familiar with and are loyal to

• Use the entry into Canada as a blueprint on how to enter in to a larger global market

SWOT Analysis:

Strengths

• Familiarity• Design• Marketing Techniques

Weaknesses• Litigations• Employee Service

Opportunities • Entry into Canada• Private Labels

Threats• Canadian Competition• Canadian Economy

Marketing Objectives & Target Market

Demographic segmentation

•Over 80% are women•The median age is 40•A median annual income is$64,000•57% have completed college •43% have children at home

Psychographic and Behavioral

•A pleasant shopping environment•A complete range of goods•A convenient location•Discount

Geographic

•Main cities of each province•Nearby isolated and rural regions

Positioning

•Local brand•Women’s fashion brand•Chasing fashion•Innovation•"Expect More. Pay Less."

Marketing Objectives & Target Market

•Develops the Target online shopping software for Table PC and mobile phone.•Change the Target commodity structure: 2010 2012 Household Essentials 24% 25% Hardlines 20% 18% Apparel & Accessories 20% 21% Home Furnishings & Décor 19% 17% Food & Pet Supplies 17% 20% •Partnered with CBC to sponsor a TV shopping programs.•Create billboard and advertising in sky train and bus stations.•Create a Target shopping magazine name “Red Target”.•Launch a support activity for Canada education.

Strategic Marketing Plan

Product strategy • Fashionable and cheap

apparel• Addition of food and

produce

Pricing strategy• Match or beat competition • Must adjust for new market

Distribution strategy • Purchased over 200 Zellers

locations• Be in effective locations

that will bring profit• Be convenient for target

market

Promotional strategy • Opened “pop-up” store in

Toronto• Target website • 2% of revenue goes to

advertising • Commercials and videos

with celebrities Sponsorships

Type of advertizing

Initall cost Cost per unit Number of units Toal unit cost

National television

$500,000 $100,000 per spot

1,500 spots 150 M

National magazine

$60,000 $10,000 perpage

150 pages $1,500,000

Youtube advertising

$10,000 $2 per thousand views

20 million $40,000,000

Search engines $10,000 $500 per month 12 months $6,000

Nationn wide emails

$20,000 $500 per month 12 months $6,000

Total costs $600,000 191.512 million

Budget for Promotions

Grand total:$192,112,000

Evaluation and Control

Profitability control1. Identify functional expenses: the expenses made to

sell, advertise, pack and deliver the product2. Assigning functional expenses to market products3. Preparing a profit and loss statement

Annual Control Plan 1. Setting monthly or quarterly goals in the annual plan 2. Monitoring the actual performance in th background

of the planned goals3. Determination of cause’s exceptional or serious

deviations4. Taking necessary corrective action to plug the goals

and performance.