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Executive Summary
Target Corporation operates general merchandise stores in the United States and has just begun opening stores in Canada. The company offers a wide variety of goods ranging from household essentials and furnishings to hardlines comprising of various forms of personal entertainment and apparel and accessories. Target has opened more than 20 of its 124 locations already and has received mixed feedback from Canadian shoppers. Retail pricing is on average at least 10% higher in comparison to US prices which compromises Targets mission of Expect More. Pay Less. While the retail industry is less competitive in Canada, it does not guarantee success for Target despite their recognizable brand image. This report coves a comprehensive analysis of Target, Corp.s position and performance in Canada, thus far, relative to the United States. Several market and demographic factors (internal and external) were taken into account and closely evaluated to present a clear picture of this new environment and its current state of performance and competition. Evaluations of demographics and population statistics from the most recent Canadian census show that Targets ideal customer in America is well represented in Canada, too. Marketing strategies would need to still be primarily focused on women in their 40s to see optimal results but, there are segments not yet captured that can easily be marketed to in our proposed strategy. These untapped segments include men in age groups 18-35 as well as 65+ whose interests fall in line with mainstream Canadian sports and culture. A consumer profile has been generated around these similar yet unique groups to define this focus. Based on our findings, we have devised a multiple coinciding strategies built around a cultural staple of Canada. Our primary intent is to increase overall brand awareness in the Canadian market by showing that while Target may be from the US, they still strive to assimilate into Canadian culture through introduction of a previously unrepresented product assortment of general hockey goods and equipment. We want to convey an understanding and appreciation of the intricacies of a new market place and an overall commitment to becoming a staple in Canadian consumers shopping habits through genuine interactions and understanding the importance of Canadian brands and lifestyles. The inclusion of a hockey equipment product line and some officially licensed NHL products is aimed at creating additional value to the customer who is already familiar with Target with the overall goal of increasing total basket count(s) of those shopping in store. The strategies we outline in this report have been devised to meet specific objectives to improve Targets position in the Canadian retail scene. This marketing strategy aims to accomplish the following.
CORPORATE GOAL: Increase Target profits by 5% by end of Quarter 4 in 2014 MARKETING OBJECTIVE: Increase brand awareness in Canada POSITIONING STRATEGY: Continue to target women with children. Include specific segments of male consumers whose profiles fit in line with launch of hockey related merchandise and goods

We believe through our strategies and recommendations laid out in this report, that Target will see noticeable positive results in regards to consumer behaviors in stores as well as brand recognition throughout the country. We have set into place several monitors and controls to help measure the success of the programs throughout the projected completion time in case results do not meet forecasted expectations. 2|Page

Table of Contents
Executive Summary..Page 2 Five Cs Analysis..Pages 4-8 Context...Pages 4-5 Competition...Pages 5-6 Customers...Page 7 CompanyPages 7-8 Collaborators..Page 8 SWOT Analysis............Pages 8-9 Porters Five Forces...Pages 9-10 Survey Results..Pages 10-11 Objective Formulation...Page 11 Target Customer..Pages 12-13 Marketing Strategy..Pages 13-16 Product..Pages 13-14 Price..Page 14 Promotion..Pages 14-16 Place.Page 16 Marketing Programs...Pages 17-18 Financials..Pages 18-19 Monitors and ControlsPages 19-21 Appendix...Pages 22-30 Works Cited..Pages 31-33


Five Cs
Context Political The greatest threat to Targets success in Canada hinges largely on the current inflation of consumer prices. The goods primarily affected include various household items and furniture as well as select groceries. Prices over the last decade have been higher on average in Canada compared to the US and as a result, many Canadian consumers drive over the border for US prices and brands. According to Julian Beltrames article, summarizing the Canadian Federal Budget hearing in 2013, from The Canadian Press, The Canadian government is graduating 72 countries previously classified as developing to full developed status for the purpose of tariffs (Beltrame, Julian). The resulting price increases from this reclassification will, in effect, negate the savings from the price drop created from eliminating tariffs on hockey equipment and baby clothes. A less likely but looming threat to a significant portion of Targets success in Canada relies on the political and social status of Quebec. Quebec is the only territory in Canada that is predominantly French speaking. Separatist parties have attempted to pass reforms that would allow Quebec to secede from the rest of Canada and become an independent country on more than one occasion since 1970 (2013 Canadian Retail Outlook). Target is scheduled to open 24 of their 124 Canadian locations in Quebec and if they were to secede and establish their own government, Target could face heavy restrictions or bans due to their outsider status. Economic The discount department store industry as a whole is in the mature stage of its life cycle but sales remain relatively high for slowing growth. Canada's retail environment is less competitive than the U.S. with lower per capita square footage, but there are still many Canadian based options for shoppers to choose from as well as rival American competitors. Canadian economists predict a growth of 2.7% for the retail industry in 2013(2013 Canadian Retail Outlook). Sales are expected to be low at the beginning of the year but pick up fast towards the end of the year. Experts and government officials have also advised consumers to be cautious when buying on credit and to avoid when possible due to a relatively slow economic time that normally follows the holiday seasons. Social Results from Canadas last census in 2011 show a population of over 35 million people with the average age being about 41 years old and slightly more than 50% of the population is female. Of the roughly 9.4 million census families (2 people min., married), around 3.7 million have children (Canada Census Bureau). These statistics fall favorably in line with Targets ideal customer profile of a woman in her forties with at least one child. Canadas population is heavily concentrated in multiple Census Metropolitan Areas most of which are within 100 miles of the US border (Canada Census Bureau). It is important for Target to avoid placing US and 4|Page

Canadian locations too close to the border in order to prevent possible cannibalization. With the impending increase in tariffs for imported goods, Canadians will be even more willing to drive across the border to obtain cheaper US prices. This may not hurt Target, Corp. as a whole but could severely impact the success of Target Canada and its initiatives. Technological Targets cost structure and subsequent pricing structure in Canada will be different than its American stores due primarily to the tariffs mentioned previously as well as the significantly reduced economies of scale resulting from the highly dispersed yet concentrated population of Canada. Several American retailers have faced the same problems upon entering the Canadian market and have struggled as a result. Target will not be able to compete directly with EDLP (Every Day Low Price) strategies used by competitors. Canadian consumers are less likely to use coupons and more likely to seek out already discounted prices and lower costs (Beltrame, Julian). The growing usage of the Internet among Canadian consumers for purchases and the online retail market as a whole provides a segment worth dedicating more attention and effort to. Target can reduce overhead costs for themselves allowing prices to be lowered and these savings passed along to the consumer. While it may impact the sales of the physical locations, it may be a necessary sacrifice in order to minimize cross-border shopping until Target is able to establish a stronger foothold in the Canadian market and brand loyalty among new consumers. Competition The competitive rivalry among discount department stores is a lot less competitive in Canada than it is in the United States, but it is still competitive enough to sway consumer decisions. Wal-Mart, Sears, Canadian Tire, and Loblaw would be the key players in Targets expansion into Canada (Freeman, Sunny). Currently, Wal-Mart is the leading retailer in the industry due to their ability to offer the lowest prices and are preparing for Targets movement into the country by lower prices even more. Sears is also a main player within the industry because seventy percent of their merchandise overlaps with that of Targets. Sears plans on renovating current locations and slashing prices as well. Although Canadian Tire is an automotive based retail store, they also offer a wide variety of household items. Some of their sales in house ware, apparel, and seasonal merchandise should see a decline due to Targets entrance. Despite Loblaw being a supermarket, they have made their way into the industry with the unveiling of their new clothing line, Joe Fresh (Freeman, Sunny). They are looking to compete with Target in the discount chic clothing space. The competitive landscape in this Canadian industry is very unique in comparison to the United States, but the most unique thing about each and every one of the players within the industry is that they are all looking to find a niche to differentiate themselves. Wal-Mart strives to provide the lowest prices possible and that is how they are preparing for Targets movement. They plan on cutting prices even more. Target should not be affected by their transition because Wal-Marts brand image in not viewed as having the same quality. Target strives more on adding value to the customer by adding an exceptional shopping experience instead of offering a low price tactic. Although Sears is looking to restructure their image in Canada with renovations and price cuts, they are more focused on helping rebuild their stores located in the United States. With that being said, Sears is going to be putting more effort in the U.S. rather than in Canada. 5|Page

Canadian Tire is currently working on a new differentiation strategy which will feature an automotive-centric store format to improve customer experience. Automotive care is not in Targets current strategy and would probably not be in their best interest due to the fact that Canadian Tire has a very loyal customer base. Lastly, despite Loblaw being a supermarket, they are looking to fulfill a niche strategy based on a new clothing line called Joe Fresh. With all that being stated, the industry is capitalizing on a differentiation strategy, which is why we recommend Target do the same thing. We suggest Target capitalize on taping into the hearts of Canadians through Hockey.

This strategic group map shows the relative position of Target in comparison to some of the major competitors in the Canadian discount department store industry. Target is scheduled to open 124 stores, the fewest of the large retailers shown. Canadian Tire, boasts close to 500 locations throughout Canada but is still unable to match the economies of scale created by WalMart. Target will need to utilize its brand equity to try and create a level of loyalty among Canadian consumers in order to compete in this new market. Sears provides a primary example of an American company diving head on into a relatively misunderstood market with the expectations of immediate success. Sears has been unable to capture the necessary market share to operate a high volume of locations and has begun to reduce their efforts in Canada to shift focus back to their now failing American stores. Targets biggest competitor stands to be WalMart as it is in the US due to Canadian Tires relatively high pricing. However if Target is unable to overcompensate their pricing to consumers with the quality and selection of brands they carry, they may not be able to convince the consumers to abandon Canadian Tire.


Customers As unique as Target stores are, their customers are just a unique. These guests have a median age of 46 which ranks them as attracting the youngest among major retailers (Targets Unique Guests). Forty-three percent of Target guests have a college degree and have a median household income of $55,000. Over half of these guests are employed in professional or managerial positions (Targets Unique Guests ).This shows that Targets brand image among department store shoppers is seen in higher regard than their competitors. Another interesting fact about Target and their customers is that eighty to ninety percent of them are women, with thirty-eight percent of them having children (Targets Unique Guests). We believe this is a very valuable statistic when determining our strategic recommendation. Price sensitivity is another important aspect of Targets guests. With the competitive nature of the discount department store industry, customers have the purchasing power. They are able to hold off on purchases in search of a better price, but these customers understand the difference between price and value. Making best of their time and money is essential to these customers. It is important to have a variety of options for their customers because they like having options. Target does a very good job of offering a wide variety of options at competitive prices. Guests also like incentive programs, such as that of the Target REDCard. Knowing that they can donate one percent of their in-store or online purchase to organizations in need might influence purchasing. We believe adding Canadian Youth Hockey Leagues to the list of organizations would be a great way to appeal to the hearts of Canadians. There are currently over 500,000 children who play youth hockey in Canada, and another 500,000 cant play because of funding (Lund). As far as sports go, it doesnt get much more expensive that hockey. Being able to donate money to hockey leagues could help lower this number. Another key aspect of Target guests is that they value community outreach. Target currently gives back five percent of their revenue back to the community, equating to 3 million dollars each week (Corporate Responsibility). Despite the recent expansion across Canadian boarders, ninety-two percent of Canadians were already aware of the Target brand (The Globe and Mail). A significant number of them were willing to cross the border to shop in the U.S. Target stores. It goes to show how brand loyal Canadians are. Company Ranked as the second leading discount department store behind Wal-Mart, Target offers a wide variety of products at competitive prices (Target Corporation Company Profile).Target currently has 1,778 stores in the United States and will have 124 stores in Canada by the end of the year (Target Corporation Form 10-K). The company brought in $73.3 billion dollars in 2012 and has roughly 361,000 employees (Target Corporation Form 10-K). Target is known for its high quality stores that emphasize design, creativity, and great customer service. Target sells a wide variety of products such as household items, entertainment products, apparel and accessories, food and pet supplies, and home furnishings and dcor (Target Corporation Form 10-K). Giving back to the community has been a cornerstone of their business and has contributed to their current position within the industry. They currently give back five percent of their revenue to the community, which ultimately equates to around 3 million dollars each week (Corporate Responsibility). On top of giving money back to those in need, Target also offers volunteer opportunities for employees. Target believes that donating time, talent, and resources is equally important as the income that they give. This is not only a great way for Target to show 7|Page

appreciation to those that have built the company to who they are today, it also is a way to market themselves. Knowing that their customers value community outreach, having volunteers go out into the community representing Target will go a long way with customers. On top of giving back to the community in the form of funding, Target really strives to better the community in regards to the environment. They center their commitment around sustainable living, sustainable products, smart development, and efficient operations. Target puts a lot of pride into using resources responsibly, eliminating waste and minimizing their carbon footprint. With their renovations of Zellers in Canada, they are looking to seeking Leadership in Energy and Environmental Design (LEED) certification for each of its 124 stores (Abma). Collaborators Currently, Target Canada has a social media presence consisting of Facebook, Twitter, and YouTube (Target Corporation). These channels have been used to advertise up and coming product lines as well as promotional campaigns. An example of this would be a picture of a hand holding a Starbucks coffee cup and the other hand pushing a Target shopping cart telling customers to Practice the one-handed cart push (Target Corporation).. Here they are sending a message to guests that their Target stores will feature Starbucks coffee shops inside. Target also has a YouTube account designated specifically for the Canadian demographic. Commercials were made before Targets actually movement into the country to create a buzz about the brand in unfamiliar territories. This tactic worked out very well because Target sent a message that they love Canada and that they are happy to be their New Neighbour (Target Corporation).. Target is also working closely with Canadian retailers that have established themselves as popular brands among the community. Canadians are very loyal to their country and offering Canadian based products will entice more shoppers. Ottawa gave Target the green light to open stores after the chain promised to sell Canadian books and other cultural items (Shaw). Target is proving their dedication to the Canadian culture while trying to tap into the hearts of the locals.

In order to effectively evaluate Target Corporation, an analysis of the company externally and internally was conducted to find out what makes the company so successful and what the company could possibly capitalize on. This analysis revealed some opportunities Target can take advantage of that they currently are not pursuing. In this analysis two frameworks were utilized, SWOT analysis and Porters Five Forces. Starting out with SWOT analysis, an analysis of Target as a company, internally and externally, can be revealed. Target has many strengths as a company, which include high customer loyalty and brand awareness. Including in this are their logo and colors that are easily identified and heavily known. Consumers know a target employee by how they are dressed and can easily pick out a target commercial based on its colors and modern look. When a consumer see the logo, there is no confusion as to its meaning. Target also places their stores in numerous cities that are in favorable locations. Their stores provide customers with a one stop shopping experience where the customers can buy a large variety of products. Targets merchandise and store layout is always consistent at each location which makes it easier for customers to find what they are looking for. Most importantly, Target already has Canadian shoppers that cross the 8|Page

border in order to shop at Target stores. If consumers are already willing to cross the border, then clearly Target has a strong and favorable position when locating in Canada. Unfortunately, with strengths also come weaknesses. Targets employee turnover rate has been high the past couple of years due to wage rates and the amount of part-time employees they hire. When a company hires mostly part-time employees, they will experience a high employee turnover rate. Another weakness is their price compared to Wal-Mart, their biggest competitor. Target is priced slightly higher than Wal-Mart and this does lead to some loss of sales, especially in tough economic times. Lastly, their more specialized segments do not have the brand awareness that their main products do. Specifically, their grocery, pharmacy, and cosmetic segments, which do not receive as much awareness as their counterparts do. Some consumers did not even know Target had a pharmacy or a grocery section in Target (Shaw). The company as a whole does not advertise these segments enough to get the attention they deserve. As strengths and weaknesses are internal to the company, opportunities and threats are external. Target has an abundance of opportunities they could be reaching for, however, there are threats that get in the way. Some of their biggest opportunities lie within private labels. If Target expanded their private label across all departments they could reach a far larger customer base. Target also needs to capitalize on new store layouts and concepts. Not every Target store is a Super Target where consumers can get fresh groceries and products. If Target really wants to compete as a one-stop shop, they need to introduce grocery sections into all stores. They should also target new trends and markets that they are currently not pursuing. A huge market would be the Green Programs initiated in Canada. This is a huge segment Target has not tapped into yet, and it is a very profitable segment if approached correctly. Target also has huge opportunities with expanding internationally since the company has only be located in the United States until this year. Moving into Canada does come with large threats though. Costs being higher in Canada could lead to increases in prices to make up for the cost differences in labor, taxes, and operating costs. This would then make American stores more appealing and could lead to consumers crossing borders to shop at American Target stores instead. Other threats to Target are the intense competition within the industry they are in. Every company has competition within its industry but Target is competing with the largest retailer in the nation, Wal-Mart. Any move Wal-Mart makes to differentiate themselves in the market is a threat to Target. One last threat that Target could face is switching costs due to low customer income due to a downward turn in the economy. If customers have low disposable income then they will spend less in general. This may also cause customers to switch to even lower priced retailers like Wal-Mart, thus effecting Targets sales.

Porters Five Forces

The second tool used, Porters Five Forces, looks at the external environment in the industry as a whole. This tool determines whether or not the industry is attractive. In the analysis it was discovered that for those competitors already in the industry it is attractive, but for those who are trying to enter it is unattractive. One force, Competitive Rivalry is considered very high. There are many competitors in the industry, which offer a similar array of products and services. Companies in the discount department store industry have to compete within their general category as well as with specialty stores and super centers. There are countless retailers, which sell similar products that Target sells. Due to this intense competition Target has had to really 9|Page

capitalize on their value rather than their price. Their strong position lies in their ability to communicate value to their customers through positive customer service and a quality assortment of goods. A second force, threat of new entrants, is considered low. Some of the factors that contribute to this low threat are the large amount of capital needed to enter, high startup costs, and few favorable locations available. If a company cannot obtain the capital needed and the funds needed to cover startup costs, they will not be able to succeed or be profitable in the industry. More importantly, location is key when deciding where to place a store. In general, there are not a lot of convenient, easily accessible locations available. Competition then ensues in trying to find suitable locations to construct stores. Third, the threat of substitute products is considered high in this category. This threat is high because of the large amount of products that these stores sell. Having a wide variety of products allows you to have a bigger market share but also makes you susceptible to more competition. Stores like Kohls, Best Buy, and Payless are considered specialty stores and discount retailers so they have products that Target sells. Any customer could go to these stores over Target in order to purchase products. Wal-Mart and Costco are considered Targets two largest competitors within regards to a super store. They offer almost everything that Target does and again customers could choose these stores over Target. The fourth force, power of suppliers, is considered low, as target does not allow any one supplier to provide majority of the products. Target also sells their own private label brands, which are very successful and provide a large number of sales. These two strategies make sure no one supplier can control the price of the goods that are purchased. There are also a large number of suppliers that are competing for Targets business so it gives them little room to haggle for price since Target could easily pick another supplier. Target also purchases large quantities of products, which is another reason suppliers are competing to get Target's business. Lastly, the power of buyers is also low. Consumer spending is strongly correlated with disposable income so depending on the amount consumers have to spend they can either shop for luxuries or necessities. Target covers both of these areas and allows the consumers to be able to spend more when they can afford luxuries and less when they can only buy necessities. Target also offers store brand and name brand so customers have their preference when it comes to tastes and disposable income. When the economy is bad, consumers can buy cheaper store brands and when the economy is better the customers can buy more expensive name brands. Buyers also have low power considering most purchases are small compared to the companys sales as a whole. There will always be a large supply of potential buyers, which makes purchasing power small for them. Target has taken great advantage of this making sure to market to a variety of consumers.

Survey Results
To better understand the Canadian audience, a survey was created and submitted to current Canadian residents to complete (see exhibit G). Thirteen questions were asked to gather information about demographics, geographics, shopping habits, knowledge about Target, and their opinions on hockey. Sixty consumers responded to the survey. The respondents were predominantly male, making up 90% of the total. Their age ranged between 17 and 44, with the majority falling between 18-24 and 25-34 year olds. The respondents largely live in the province of Ontario, in the cities of Toronto and Ottawa. 10 | P a g e

Almost all of the respondents have heard of Target, with a single person having not heard of the store. This is attributed to word of mouth and visits, advertising on American channels in Canada, and visits to the United States. However, because Target has not been in Canada up to this year, only about half have ever actually been in a store. Most have shopped at an American retail store. The most popular American chain was Wal-Mart, which presents a problem as they are Targets biggest competition. When asked about their preferred brands, most respondents said they did not have one, yet the majority of them would not travel more than 10 kilometers if they did. And when asked about hockey, more than half said they like hockey, that their favorite team is the Toronto Maple Leafs, and their favorite player is Ryan Kessler. Charts of the survey results can be found in Exhibit H.

Objective Formulation
Corporate Implement hockey products program Create/maintain supply channels Collaborate with NHL to obtain hockey clothes Create connections with sports suppliers from famous brands Price the hockey products competitive with specialty stores Divisional Handle additional merchandise Maintain quality customer service Create/maintain supply channels Stock merchandise appropriately and timely Develop packet to have Target employees more knowledgeable about new products Maintain excellent customer service in all stores Include youth hockey leagues age 15 & under as part of REDcard giveback program

SMART GOALS Primary To increase Target stores Canadian segment profits by 5% by quarter 4 of 2014, 2% in hardline, 3% in clothing and apparel. To stock Canadian Target stores with hockey products by end of summer 2013. To make Target Canadian gain and maintain a 15% market share of Canadian market by quarter 4 of 2014. Secondary Increase customer retention for Target Canada stores by 10% by quarter 4, 2014

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Target Customers
To fulfill the strategic recommendation, a target customer must be identified in order for the hockey program to reach a customer who would be willing to purchase the products being offered. Demographic and psychographic information of consumers in Canada was collected to find the perfect customer group to segment and focus the marketing efforts towards. From the information gathered, the list was narrowed down to four separate target groups to focus on: the Sports minded jocks, Armchair athletes, Health enthusiasts, and women with children have been chosen. Each of these groups is believed to be most willing to purchase the hockey products that are being recommended because it will meet their current needs. Firstly, the sports minded jocks will benefit from the hockey equipment because they will offer the consumers a way to play hockey for fun without breaking the bank. This segment makes up ten percent of the Canadian population and enjoy keeping fit through fun activities such as sports and working out. This segment focuses on the fun relating around engaging in sports, and less about the health benefits. The sports minded jock is between the ages of twelve and twenty-four years old and is concentrated in British Columbia, Montreal, Ottawa-Gatineau, and Vancouver ("PMB Psychographic Clusters ). These consumers live an active lifestyle and play team sports with other fun seeking consumers. The sports minded jock is always looking for a new way to enjoy the fresh air of the outdoors. This consumer segment has a personal income of under $10,000 and a household income of about $75,000 ("PMB Psychographic Clusters ). This is most likely because this segment is mostly too young to have a full time job and is living at home with their family so their own income is low from either not working or working part time. This segment is mostly single individuals, students, and/or adults living alone ("PMB Psychographic Clusters ). The second consumer segment that is being focused on is the armchair athletes. The armchair athletes differ from the sports minded jock in how each segment enjoys sports. While the sports minded jock enjoys playing sports, the armchair athletes enjoy sports by watching and not participating (best described as a couch potato). The armchair athlete enjoys watching sporting events on the television, live at a sporting event, or through the internet. This segment will benefit from the hockey accessories because Target will supply the consumer with the hockey apparel they are looking for during hockey season. The armchair athlete like to wear shirts, jerseys, and other items with their favorite teams logo on them to show support, so stocking the Target stores with such items will please this segment. This segment is between the ages of eighteen to twenty-four and sixty-five onward and is mostly made up of males who live in the Atlantic, Ontario, Ottawa-Gatineau, and Calgary markets ("PMB Psychographic Clusters ). These consumers have a personal income of $20,000 and a household income of around $40,000 and are mostly couples with children ("PMB Psychographic Clusters ). This segment also attends sporting events such as hockey games, football games, wrestling, and car racing and buys sporting goods at Zellers, Wal-Mart, and Sears ("PMB Psychographic Clusters ). These consumers are accustomed to purchasing sporting supplies from existing discount department stores so it would not be a far cry in getting this consumer to consider Target for a purchase. Also, Target took over all the Zellers stores in Canada, so these consumers are aware of the location, which will make it easier to convince a visit to the new Target store. Since these consumers are parents, they would be more willing to purchase matching hockey accessories as well as hockey equipment as a cheap way to get their children active. This segment makes up around twenty percent of the Canadian market ("PMB Psychographic Clusters ). 12 | P a g e

The third segment to be targeted is the Health Enthusiasts. This segment is a group of consumers who enjoy keeping fit for health reasons and are constantly searching for new ways to get healthier. These consumers focus on exercising regularly and eating healthily to keep their bodies and minds strong. This segment is between the ages of twelve to seventeen and fifty to sixty-four years old and has a personal income and household income of $40,000 and $75,000 respectively ("PMB Psychographic Clusters ). These individuals are either single (mostly for the younger age) and couples without children ("PMB Psychographic Clusters ). These white collared consumers are concentrated in British Columbia, Quebec, Montreal, and Edmonton ("PMB Psychographic Clusters ). This segment enjoys the outside, exercising, and doing activities that will benefit their health. The hockey equipment products will benefit this segment because the cheap hockey products will help the consumers find a new way to get fit while not spending too much. These consumers are not experts on sports and how they should be played, so the hockey equipment that will be sold in Target matches the needs for consumers who are trying to find a cheap way to play hockey to have fun and get healthy in the process. Targeting this segment will mean showing the health effects of playing hockey for fun and will entice the consumers to participate. This segment takes up around twenty-seven percent of the Canadian market ("PMB Psychographic Clusters ). Lastly, the final segment to be targeted is the women with children segment. Currently, Target is accustomed to serving middle-aged women in their American stores (since women make up more of Targets customers than men do). With this in mind, targeting women with children in Canada should be easily transferable from the American stores. Women with children will benefit from the Hockey equipment because the women will want to purchase the equipment for their children who start to learn about the sport, but are not willing to spend all the money for professional equipment. Target will give these consumers an opportunity to purchase hockey equipment to promote health in their children as well as give the children a chance to be introduced to or just enjoy hockey itself for fun.

Marketing Strategy
The Four Ps- Product, Price, Promotion and Place 1) Product Target could use this marketing campaign to both raise awareness of Targets growing presence in Canada while adding a new category of merchandise available to customers shopping in Targets stores. The new product categories will be targeted towards two segments of Target Canadas customers, the hockey fan and the hockey enthusiast. Currently, Target locations in Canada do not feature a sporting goods department. This creates the challenge of making room for new products and displays in the store, but also creates the opportunity for Target to tap into the Canadian sporting goods market.

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Hockey Equipment: Featured in this section would be items such as: Hockey sticks Ice skates Hockey pucks Mouth guards Hockey Bags Helmets/Masks Goals/Nets

This category of merchandise will focus more so to the hockey player rather than just to the typical fan. This section will feature both equipment a beginner would need to start playing in his local hockey league or a replacement item for a more intermediate players pick-up game. The primary brand featured in this new section will be Easton due not only to its economic/low price point line of equipment, but also for logistic reasons, as Easton has a distribution warehouse located in Kirkland, Canada. Hockey accessories and apparel: This section highlights items targeted toward the hockey fan such as: Shirts Hoodies Long Sleeves Water bottles NHL Blankets

Most of the items in this section will be Official NHL Licensed products featuring teams logos, names, mascots and players who are popular in that stores region. 2) Price The price point of Targets new hockey equipment and apparel will remain congruent with the rest of the retailers pricing policies. Target will offer the highest quality product available at the lowest affordable price. This means that the available merchandise will be targeted towards that of a beginner or intermediate hockey player rather than the more advanced enthusiast who typically desires more expensive and specialized equipment. Due to licensing fees required for most of the apparel, the NHL licensed merchandise will fall onto the more expensive end of Targets pricing spectrum, but will still be priced lower than online retailers and merchandise venders at events. 3) Promotion Promotions from the campaign will take place over several different channels of communication; primarily through digital advertising, grassroots sponsorships, and special events. Promotions communicated over each channel will be targeted toward different demographics. 14 | P a g e

Digital Advertising Television: Television advertisements focused around hockey and Targets presence in Canada will air for 225 days from May to December on Canadian television and specifically the channels ESPN, NHL Network and TSN due to the nature of their broadcasted content. These ads would be targeted towards the armchair athletes and the sports minded jocks. Online Banner Ads: Online webpage banner advertisements will be featured on six different web pages targeted towards 2 different demographics, the armchair athletes and the sports minded jock. For the armchair athlete, Target will feature ads on For the sports minded jock, Target will run banner ads on several sites dedicated to hockey and even more specific Canadian hockey. These sites are,,, and

Banner Ad for Websites

Social Media: With an existing 962,612 likes on Target Canadas Facebook page, and 44,000 followers on twitter; Target will use the existing Target Canada social media accounts to spread awareness of the campaign to customers. Other platforms of social media used by Target include YouTube, tumblr, and Pinterest.

Grassroots programs Minor League Sponsorships: Target could plan to sponsor three local minor league hockey teams. The sponsorship will give the local teams the money to purchase new equipment, jerseys, and anything else that the teams may need. These team sponsorships will cost around one thousand dollars per team for a year. The sponsorships will benefit Target Corporation by the company being shown as a sponsor in all the pamphlets (or game programs) that will be handed out at each hockey game and potentially banners with the Target logo being placed at each arena. 15 | P a g e

Special Events Event Give Away: Target will have a special team of representative hired to go to several hockey events over the course of the season and hand out special Target branded hockey merchandise such as jerseys and shirts featuring the Target brand logo or pucks with the Target logo printed on them.

Target branded pucks to be handed out at events

4) Place The products being offered in this hockey program will be implemented in all one hundred and twenty-four stores that Target will have opened in Canada by the end of 2013. Each of the store locations will have a section designated for the hockey equipment near the toy sections and the different types of hockey accessories will be spread across the store. The hockey shirts, hoodies, long sleeves, and other clothing will be placed in an area in the mens, womens, and childrens clothing sections. The hockey blankets will be placed in the household section with other blankets and the water bottles will be sold in the fitness aisle with other fitness products. These accessories will also be place in the same location in store as the hockey equipment to make the accessories purchases easier while the customers have hockey on the mind. These products are placed strategically in these locations to allow consumers to easily find the products they are searching for. If a consumer were to look for a hockey t-shirt, the best place to put them would be with other t-shirts for easy access or with the hockey equipment to reach the customers who is already purchasing hockey supplies, but are not looking to purchase shirts or other items in the store. Different hockey team accessories will be emphasized in certain areas in Canada. For example, a Target store in Toronto will have a larger stock of Toronto Maple Leaves t-shirts to meet demand in that region as opposed to other regions having their own region-specific emphasized products.

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Marketing Programs
To promote the plan for Target in Canada, a multi-pronged marketing blitz has been developed that will utilize several channels and attempt to reach as much of our target audience as possible. In choosing the mediums and promotion methods for the campaign, promotions have selected that will achieve maximum visibility, promote large scale recognition of Target in Canada, and craft a positive face for the company. The focus will be on Television, Internet, grassroots, and ads inside the hockey arenas. For TV advertising, Target will be focusing on three networks for a 225 day ad buy that will run from May to December. This May to December timeframe is the ideal to run our ads, with it being perfectly timed with the beginning of the NHL playoffs and the Stanley cup Finals, running through opening day in the fall, and ending just around the halfway point of the season in December in time for the Winter Classic. The three networks selected, ESPN, TSN, and the NHL Network, are the biggest sports channels in Canada and are an obvious platform for this campaign. The television ad in question is a distinct yet simple spot that fits perfectly with Targets aesthetic in its advertising. It opens with the O Canada, the Canadian National Anthem, playing with the specialized logo for the Target hockey campaign slowly growing bigger on screen. Within the logo itself is video of hockey being played (Exhibit C). Then, there is a cut to a white screen with the words Hello Canada and the Target logo below it. The ad is simple, yet visually striking and continues Targets tradition of slick and stylish advertising. Along with the TV advertisements, the power of the internet will be used to reach the consumer through online advertising and personalized social media pages dedicated to the Target hockey campaign. Sites like Facebook, Twitter, and YouTube give a cost effective way to directly speak to consumers and for them to sound off on what they like and dislike about the promotion. Targets YouTube page will host exclusive video content from or pertaining to the NHL, while the Facebook and Twitter page will provide updates and humorous content to Target fans and serves as one of the monitors of the job being done. By connecting with fans on this level, Target engenders a sense of accessibility and friendliness, giving a positive online presence to the campaign. As for the online advertising, ad space will be purchased on six major websites that heavily cover hockey. They will be simple banner style advertisements focusing on the Target Hockey logo on a simple background, once again using the trademark look and feel of Target. The banner ads will go up on the official NHL page, the main sites of ESPN and TSN, and 3 small but popular sites,, and These sites were selected for their popularity, their audience demographics, and their relevance to hockey in general. These ads are designed to catch the eye of consumers visiting the site while not being so intrusive that the visitor becomes annoyed and develops a disdain for Target because of the ad. On a local level, Target will sponsor minor league hockey teams in the Toronto area. Target will provide equipment and funds to little league teams around the area, giving back to the community and building up Target as a place to purchase hockey supplies for the kids as well as anything else consumers might need for the home. It is a back door way of getting parents in the store and see everything Target stores have to offer. As for minor league teams, the sponsorships promote Targets name to the older, male demographic and grows Targets ties to

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the sport. It is also another means to get Targets name and logo out there and informs consumers that Target has expanded into Canada. Another part of the local advertising is promotional items. Along with promotional tshirts, hockey pucks emblazoned with the Target logo will be made for the fans (Exhibit D). These items will be handed out during NHL games as well as Minor League games after a period ends and during our Chuck-a-Puck competitions. Promotional items like these are beloved by fans, have a long history in marketing, and play into the idea that people love free stuff (Mueller). Finally, for our arena marketing program, Target will take part in a dasher board sponsorship. Dasher boards are the physical boards that align the perimeter of an ice rink. More importantly, companies compete to have their logos and brands displayed on these boards. Target will be partnering with the Toronto Maple Leafs for a dasher board sponsorship. Target will also be partnering with three local rinks in the Toronto, Vancouver, and Montreal areas to get our logo on their dasher boards too. The sponsorship will last a full season (1 year) even though half season sponsorships are available. Target will want its brand recognized and want to increase awareness so a full season sponsorship will satisfy that criteria. The most important part of this sponsorship is that on average dasher board logos are seen 3.4 billion times per year in the NHL. This gives Target a huge reach when it comes to the amount of people that will be seeing the Target logo at NHL games alone. The second piece of this program is our Chuck-A-Puck contest at NHL games. Chuck-APuck is an intermission game contest where contestants purchase foam pucks in the rinks and have a chance to throw them on the ice into buckets. If a contestant gets a puck in the bucket they can win prizes, like Target gift cards. We would be partnering with local NHL teams in order to participate in the contest. This would bring Target extra revenue as well as create more awareness. This is a cheap, easy way for Target to increase its awareness and to create some fun positive buzz about the stores and company.

In order to implement the hockey program, many costs must be incurred in an attempt to create a successful implementation. Promotional costs will be the majority of the costs taken on by the Target Corporation. The costs will include $15,000 for a freelance graphic designer to design banners, pictures, advertisements, reminders, backgrounds, cover photos, and anything else needed for the social media platforms. The Target logo hockey pucks will cost $215,760 to manufacture at a price of 0.87 each (2,000 pucks per store and additional events)( "PRINTED PUCK"). The t-shirts with the Target Canada logo to be distributed at hockey events and other promotional events will cost $1,140,800 (at $4.60 each for 2,000 per store) ("ComfortSoft Heavyweight 100% Cotton T-Shirt). The production costs to produce the commercials for television will be approximately $5,000 ("How Much Does It Cost ") and the cost to air on three different channels will be $1,386,450 to air for 225 days from May to December (Gloria, Boone). The cost for a graphic designer to create four banner advertisements for the websites chosen to advertise on would approximately $2,000 for four hours of labor and the advertising costs will be around $360,000 a year for the six websites ("Online Banner Advertising & Other Advertising Methods."). Ten thousand dollars will be allocated to the Target Gift Card give-aways that will be distributed at promotional events for winning chuck-a-puck or other contests being held. Sponsoring a little league hockey team will cost around $3,080 for a whole year to 18 | P a g e

sponsor three teams ("Sponsors"). This will include have the Target logo in the programs distributed at the little league games as well as the target logo on the jerseys of the players. The dasher boards will cost around $640 to produce ("Hockey Bucks NHL..."). To place the dasher boards in the Toronto NHL arena for a full year will cost $150,000 and $1,200 to advertise in three local rinks ("Hockey Bucks NHL). There will be two dasher boards per arena to be placed at opposite sides of the rink. These promotional costs will total $3,289,930. In order to calculate the costs and revenues to implement the actual products in the stores, Target would have to price the products to be sold in the stores as well as look at the cost of the merchandise to be bought to be placed on shelves in stores. The prices that have been suggested are based upon researching the current competitors (Canadian Tire, Wal-Mart, Costco, etc.) who sell similar products in Canada, and then set the price slightly lower than the competition. As long as the cost will not cause a loss, the prices can be set lower than the competition. The retail prices are as follows: hockey stick sold for $50, hockey skates for $50, hockey pucks for $3, mouth guards for $5, hockey bags for $35, hockey helmets for $45, goal for $35, hockey team shirts for $15, hoodies for $30, long sleeve shirts for $25, team water bottles for $15, and a team throw fleece blanket will be priced at $30. The costs for the products were taken from a manufacturer website that can directly sell through Easton and the NHL ( The total price for the merchandise for a year was calculated to be $4,604,368. The revenues if all merchandise was sold will be $15,884,400 for a full year. The prices and costs were multiplied by the quantity forecasted and will be needed for a full quarter before needing to reorder any more inventory for each store. If all the merchandise was sold, then the revenue minus the cost would equal $11,280,032. The total cost of inventory plus promotional costs will approximately cost $7,894,298. With that in mind, the return on investment has been calculated to be 42.89% and the return on marketing investment has been calculated to be 2.44. For a full breakdown of the financials, the worksheet can be seen in exhibit A.

Monitors and Controls

In order to track that this program is being implemented correctly as well as react if something goes wrong, special monitors must be put into place. Firstly there must be a system of seeing if the program has attracted customers into stores as well as making purchases. Also there must be a system in place to track if the promotional programs are effective, as well. A way to track if the promotions have a positive effect on accomplishing the goals is through Targets social media. Since the hockey program will be utilizing Target Canadas current social media platforms (Facebook, Twitter, Youtube, Tumblr, Pinterest, etc.) then tracking the amount of additional likes (Facebook), followers (Twitter/Tumblr), subscribers (Youtube), and any others that come from the promotional activities can help gauge if the promotional efforts are working or not. If there is an increase in consumers interested in Target Canadas social media sites after promoting Target at the sponsored hockey games, airing of commercials, giving away of the branded pucks, or any of the other promotions, that could mean that the efforts were effective. The more consumers who subscribe to the social media sites means that there is an easier access directly to the consumer to get feedback as well as inform the consumers of upcoming deals, events, or sales. Another monitor of effectiveness would be in the weekly sales reports of the Target Canada stores. Each store in Canada will have implemented the hockey program and will be selling the hockey products. This is the most fundamental way to tell if the hockey program is 19 | P a g e

performing well or not. Looking at the weekly sales in all the Canadian regions will shed a light onto how much of the product is being purchased, at what time, by whom (if the customer has a red card), and other valuable information. If the sales are low for a certain week, then Target will have to see what external factors, as well as internal factors, that could be negatively affecting the sales. If the sales are above the forecast, then Target will still want to check and see what it was that made consumers want to purchase more products. Using this information, the managers can figure out if their supply chain needs adjustments, if the forecasts need to be altered, or if promotional activities need to be increased or decreased. If the entire inventory of a specific teams hockey shirt is sold out after a few weeks because of a big game coming up, then Target will use this information to make sure to have extra stock of that product when the next trend comes around. Also, the weekly sales reports will tell how well the store did in general. The goal of the hockey program is not mainly to sell hockey products, but to influence customers to feel comfortable to come into the stores to purchase other products. The sales reports could be compared before the program is initiated and after to the effectiveness of the program. Comparing Canada and the United States retail financial reports could also help to show how effective the program is. If the retail stores in Canada are performing better than the same amount of retail stores in the U.S., then that means that the hockey program may be effective. Comparing these two segments together can help shed light as to what the Canadian stores may have to do to make sure the program is a success. Since Target is well established in the United States that means that the U.S. retail stores have had failures and, for the most part, successes for the Canadian segments to learn from. If the American stores has implemented a similar program to the hockey program in the U.S., then research into the American stores financial data can show what was done during that time to ensure that the American program was a success, and thus the Canadian stores can perform similar functions to try and duplicate the result. The activity on the Target Canada website as well as advertisements on other sites can also be a way to measure how effective the program is. If the Target Canada website was to receive more viewers as well as an increase in click rate of the website, then that could be a sign of the programs effectiveness. Comparing the click rate of the Target Canada before and after the implementation of the program would show if the program would create excitement and curiosity in Canadian consumers. The amount of clicks the banner ads received would also show effectiveness of the hockey program. If the banner advertisements that were placed on six sites were effective enough to have consumers actually click them to lead to the Target Canada website, then that suggests an incredibly consideration amongst the amount of consumers that actually click to follow the advertisement. Lastly, the most specific monitor to track the effectiveness of the program is to ask the customers directly how they feel about the hockey program and its implementation. This can be done through consumer surveys directly to the customer. A link to the survey will be attached on the back of the customers receipt after a purchase and the cashier can instruct the customer to fill out the survey if they wanted to. The consumer would log onto a specific survey site and fill out questions that directly relate to the customers satisfaction or dissatisfaction levels. This monitor can be incredibly useful because the management is getting information directly from the consumers who have already made a purchase. These consumers are the best people to ask opinions about the stores because they dictate what they will tell about the store to others or if they themselves will come back for a repeat purchase. With all of these monitors in place, there must be an effective action plan set to help control the program. After looking at the data that will be gathered from the monitors stated 20 | P a g e

previously, Target stores will have to adjust their strategy if need be. For instance, if there is a consistent result of surveys saying that consumers are demanding a specific teams apparel at the stores, then Target management should focus on getting that product available for the consumer to purchase. Or if the result of a sales report suggests that there is not enough stock of a certain type of equipment, then Target better find a way to get more inventory of that equipment. If there is a decrease or no increase in site visits as well as social media metrics, than Target may have to alter the promotional plan by placing more commercials on air or on different channels, sponsor more arenas, or adjust any current promotional plans. Monitoring the current and potential future environments is key to obtaining success in this plan.

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Exhibit A- Financial Spreadsheet-This spreadsheet analyzes how much each store will need in merchandise for each of the 124 stores and the revenues and costs associated with it. Also return on investment and return on marketing investments have been calculated.

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Exhibit B- Canadian Household Expenditures-This is a table showing total expenditures in Canadian households. Notice that recreation is what Canadians spend the most on in a year.

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Exhibt C-Sample Video Advertisement- A sample of the advertisement that will be placed on all social media outlets as well as on television. Here is the commercial on youtube.

Exhibit D- Target Hockey Program Logo-This will be used in many promotional items such as shirts, banners advertisements, commercials, water bottles, etc.

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Exhibit E- Sample dasher board advertisements-These dasher boards will be placed in the hockey arena in Toronto and in the smaller, local arenas.

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Exhibit F- Hierarchy Chart-This chart shows the categorical breakdown of retail stores in Canada.

Budget: retail channels available in Canada Generic: Big box retailers Category: Discount stores in Canada Sub-Category: American discount department located in Canada

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Exhibit G-Survey Form-This is the survey that was submitted to consumers to receive primary research.

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Exhibit H- Survey Results. These are charts expressing the results of the survey we conducted of Canadian consumers.

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Works Cited
"2013 Canadian Retail Outlook." Slideshare. Fusion Retail Analytics, 5 Feb. 2013. Web. 22 Apr. 2013. <>. Abma, Derek. "Canadian Commercial, Residential, Green Real Estate, Infrastructure, REITs, REOCs ... The Canadian Built Environment." : Target Seeks LEED Certification for All Canadian Stores. Property Biz Canada, 20 Nov. 2012. Web. 16 Apr. 2013. < nadian_stores_33254.html > Hong Kong Limited and licensors, n.d. Web. 21 Apr. 2013. <>. Beltrame, Julian. "Canada-U.S. Price Gap: Budget's Tariff Changes Could Mean Higher Prices For Consumers." Huffington Post Canada: Business. The Huffington Post, 20 Mar. 2013. Web. 22 Apr. 2013. <>. Canada Census Bureau. The Canadian Population 2011: Age and Sex." 13 Jan. 2013. Web. 20 Mar. 2013. "ComfortSoft Heavyweight 100% Cotton T-Shirt." Kustom Imprints. Kustom Imprints, n.d. Web. 21 Apr. 2013. <>. "Corporate Responsibility." Corporate Responsibility: Here for Good. N.p., n.d. Web. 16 Apr. 2013. <> Freeman, Sunny. "Target Canada To Take Sales From Other Retailers: Barclays." The Full. Canadian Press, 1 Oct. 2012. Web. 13 Apr. 2013. < Canadian Press, 1 Oct. 2012. Web. 13 Apr. 2013.> Gloria, Boone. "Average CPM (cost per thousand) for 2009." N.p., n.d. Web. 21 Apr. 2013. <>. "Hockey Bucks Nhl Clubs Are Raking It In With Rink Ads." N.p., 20 Jan. 1990. Web. 21 Apr. 2013. < 20/sports/25906064_1_adagency-handling-dasher-board-commercials>. "How Much Does It Cost to Make A TV Commercial? " Maus Media Group . Maus Media Group, n.d. Web. 21 Apr. 2013. <>.

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Lund, Chris. "Money Is Diminishing Hockey Enrollment above All Else | Backhand Shelf | Blogs |" Backhand Shelf. N.p., 8 Oct. 2012. Web. 21 Apr. 2013. <> Mueller, M.. N.p.. Web. 21 Apr 2013. <>. "Online Banner Advertising & Other Advertising Methods." Benchmark Communications: Advertising on the Internet. Prudens Consulting Ltd, n.d. Web. 21 Apr. 2013. <>. "PMB Psychographic Clusters ." PMB, n.d. Web. 21 Apr. 2013. <>. "PRINTED PUCK." OGP Enterprises Inc., n.d. Web. 21 Apr. 2013. <>. Shaw, Hollie. "Target Announces Full List of Canadian Store Openings For 2013." Financial Post Business Target Announces Full List of Canadian Store Openings For2013 Comments. N.p., 7 Dec. 2012. Web. 21 Apr. 2013. SGUIN, RHAL. "The Globe and Mail." The Globe and Mail. The Globe and Mail, 12 Apr. 2012. Web. 8 Apr. 2013. "Sponsors." Brampton Hockey Inc., n.d. Web. 21 Apr. 2013. <>. Strauss, Marina, and Susan Krashinsky. "The Target invasion: How pricing will be key to Canadian success ." The Globe and Mail. Thomson Reuters Limited, 19 Jan. 2013. Web. 22 Apr. 2013. <>. "Target Corporation." Target Canada. N.p., n.d. Web. 17 Apr. 2013. <> "Target Corporation Company Profile - Yahoo! Finance." Target Corporation Company Profile Yahoo! Finance. N.p., n.d. Web. 15 Apr. 2013. <> Target Corporation Form 10-K. Rep. Securities and Exchange Commision, 20 Mar. 2013. <>. "Target's Unique Guests." News Releases: Hot Off the Press & Archives. N.p., n.d. Web. 20 Apr. 2013. 32 | P a g e

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