Presentation Transcript

1. “Bullseye Buyers” Target Frequent Buyer Program TM
2. Sarah Ely Senior Marketing St. Louis (Hazelwood) Retail Experience: Interned at Hallmark headquarters and worked on a Target product reset.
3. Taylor Monaco Senior Marketing Kansas City (Lee’s Summit) Retail Experience: Interned at advertising agency where produced ads for local retail companies
4. Jessica Jennings Junior Marketing Columbia Retail Experience: Interned with Honda to design and develop a marketing campaign
5. Ryan Williams Senior General Studies St. Louis (Manchester)
6. Frequent Buyer Programs “Recurring Goals and Learning: The Impact of Successful Reward Attainment on Purchase Behavior” Journal of Marketing Research April 1, 2011 2009: 1.8 Billion Memberships Household Participation: 6.2 Programs “In general, research supports a positive connection between loyalty programs built on rewards and customer retention.” Ex. Frequent Flier, Starbucks, Panera
7. Survey 93 Responses Age Range of 19-22 Male and Female Fielded from April 13th - April 17th Columbia
8. Survey Results 56% are currently enrolled in at least one frequent buyer rewards program 68.1% Retail 29.8% Grocery 23.4% Department 14.9% Convenience/Drug Store
9. Target REDcard Debit Card, Credit Card, or Visa Credit Card 5% Off Your Purchase Free Online Shipping Help Education with 1% of Purchases Pharmacy Rewards, Extra 5% Off
10. Current SWOT Analysis Strengths Weaknesses Build Consumer Loyalty Consumer Data Cross-Channel Online Management Interest Rates and Penalty Fees Target National Bank Complaints Cannibalization Opportunities Threats Remain Competitive Corporate Responsibility Competitive Programs Consumer Limit on Credit Cards
11. Target REDcardStrengths Build Consumer Loyalty Discounts on Every Purchase Consumer Data Cross Channel Online Management Weaknesses Interest Rates and Penalty Fees Target National Bank Complaints Narrow Target Market Cannibalization
12. Target REDcardOpportunities Remain Competitive Corporate Responsibility Threats Competitive Programs Consumer Limit on Credit Cards New Program
13. Survey Results “Do you prefer credit card rewards programs or frequent buyer rewards programs?” Credit Card Rewards Programs 25.6% Frequent Buyer Rewards Programs 74.4%
14. Survey ResultsRetailer Credit Card Concerns “I don’t like having many credit cards.” “High interest rates on most retail credit cards” “Privacy” “Hidden fees and online glitches with payments” “Overspending; not being responsible with purchases in an attempt to gain more rewards”
15. Credit Card Rewards Program vs. Frequent Buyer Rewards Program
16. Our Proposal As proven by the success of its current REDcard rewards program, we suggest that Target adds a frequent buyers program, “Bullseye Buyers,” for its secondary consumers and those primary consumers who are credit card averse. “Bullseye Buyers” will expand Target’s database of consumer information and in effect, increase store traffic.
17. “Bullseye Buyers” TM
18. Bullseye Buyers Registration TM In-Store and Online Activation Register Card
19. bullseye buyers
20. Account Activation Returning Member Login New Member Email Card Activation Code Password Need a Card? Link with REDcard
21. Card and Key Chain Tag
22. Card and Key Chain Tag
23. Manage Your Account Account for Tracking Rewards my Rewards Link with Target REDcard, TargetLists, and Registries TargetLists Registries
24. Best Buy Reward Zone Reward Certificates Earn 1 Point for Every $1 You Spend Accumulate 250 Points and Receive a $5 Reward Certificate Member-Only Promotions Special Events
25. Safeway Savings Club Plastic Card Issued to Frequent Shoppers Members-Only Discounts Product Manufacturers Primary Shoppers $1 off in Cookie Department Secondary Shoppers $1 off in Meat or Produce Department Personal Recognition
26. Target Bullseye Buyers TM Automatic Reward Coupon Price Points $100 – Coupon 1 $300 – Coupon 2 $500 – Coupon 3 $700 – Coupon 4 Awarded Bi-Weekly Middle and End of Month Monthly Renewal Bullseye Bonus TM
27. Bullseye Bonus TM Birthday Rewards Product Releases Seasonal Back to School Summer
28. Carla’s Target List Diapers Goldfish Soda Granola Bars Baby Wipes Tide detergent Toilet Paper Paper Towels Cookies Cheerios Disinfectant
29. Primary Buyer: Carla Frequent Shopper (at least once per week) Three Children Stay-at-Home Mom Mostly Shops In: Grocery, Home Goods First Coupon: $2 Off Diapers Subsequent Coupons: Retail and Electronics
30. Carla’s Target List Diapers Goldfish Soda Granola Bars Baby Wipes Tide Detergent Toilet Paper Paper Towels Cookies Cheerios Disinfectant Total: $120 $2 20% Purchase of select Merona products
31. Andy’s Target List Video Games Running Shorts DVD School Supplies Granola Bars Deodorant Pet Food USB Drive Socks
32. Secondary Consumer: Andy College Student Athletic Occasional Shopper (Twice Per Month) Mostly Shops In: Electronics, Active Wear First Coupon: $1Off Headphones Subsequent Coupons: Food, Personal Care
33. Andy’s Target List Video Games Running Shorts DVD School Supplies Granola Bars Deodorant Pet Food USB Drive Socks Total: $50 Buy 1, Get 1 Free Purchase of select Coca-Cola products $1 Purchase of JVS headphones
34. TargetLists Registries
35. TargetLists Registries
36. Coupons
37. Promotion: Website Banner Ads Buyers Buyers
38. Promotion: Social Media
39. Promotion: Social Media
40. SWOT Analysis Strengths Weaknesses Broader Consumer Market Increase Consumer Data Online Account Target Costs Competition with Target REDcard Cannibalization of Target Shoppers Opportunities Threats Leveraging Cross-Department Reward Leader in Discount Retailer Frequent Buyer Program Competitor Reward Programs Market Saturation of Reward Programs
41. Strengths Broader Consumer Market Primary and Secondary Compliment REDcard Increase Consumer Data Tailor Special Deals Online Account Check Rewards, Annual Deals Link with TargetLists and Registries
42. Weaknesses Target Costs Competition with Target REDcard Cannibalization of Target Shoppers
43. Opportunities Leveraging Cross-Department Rewards Convenience Leader in Discount Retailer Frequent Buyer Programs
44. Threats Grocery Reward Programs Safeway, Kroger Retail Rewards Programs Best Buy, American Eagle Outfitters Credit Card: Walmart, Kmart Department Stores Rewards Sears Credit Card: Macys, JCPennys, Sears Market Saturation of Reward Programs
45. Bullseye Buyers Summary TM Industry Success Unique Program Discount Retailer Product Variety Broad Target Market Target REDcard Consumer Data Online Account
46. The End