Target Case Competition KATIE HOLDEN, ALLIE HUNSBERGER, RYAN REVIA, AND TIEN TRAN

Pre-SWOT Analysis Strengths High quality of service Price matching Target REDcard Logo recognition Reliable workforce Weaknesses Closing of Canada stores Limited locations Higher priced items than competitors Data breach Opportunities International markets Expand grocery department Increase number of CityTarget and TargetExpress locations Further development of Target mobile applications Threats Cheaper competitors US economy Increased development of multichannel retailing by competitors

Opportunities 1. Further development of Target mobile applications 2. Expand grocery department 3. Increase number of CityTarget and TargetExpress locations 4. International markets

Acquisition Acquire the mobile application and website Grocery iQ, owned by Coupons.com Features: o Create grocery lists o Organize items by isle o View weekly ad o Print, view, and share coupons o Add loyalty card o Save favorite purchases

The Future Integration of current programs: o Cartwheel o REDPerks o Location finder of nearest Target Develop to incorporate: o Nutritional information o Pre-order for delivery or in-store pickup

Corporate Culture Implications Target believes in o Leading today’s competitive retail market o Challenging themselves to be more efficient and intelligent o Providing guests with the best shopping experience o The innovation of new ideas and solutions

Customer Implications Target becomes the lone provider of Grocery iQ features Enhancement of the Target experience o Expect More. Pay Less. brand promise o Coupons, information, and service all in one place o Added convenience o New technologies Differentiation from the traditional shopping experience o Pre-order for pickup/delivery o Addition of nutritional information

Against the competition Abilities through their Mobile Application TargetWalmartAmazon CouponsYes No Pre-order for Pick up/Delivery YesBeta Testing Pick UpDelivery Only Integrated Loyalty Programs YesNo List CreationYes No Tracks Purchased ItemsYes Nutritional Information for Food Yes No

New Implementations New employees dedicated to pre-packaging pickup/delivery orders o Training employees to use the ordering program Creation of an in-store pick up counter as well as pick up drive thru Delivery teams at each Target New equipment Added inventory

Summary Financials Grocery iQ is valued at about $206.6M USD* Relevant costs have averaged $22.8M from * Revenues from digital promotion have increased 32% ( ) and 49% ( )* Income from digital promotion has increased 17% ( ) and 64% ( )* *See Figure 1

Estimates

Benefits of the Acquisition Target Most popular shopping list app Increase grocery revenue Improvement of omnichannel presence Customer satisfaction Convenience for customers Contending with competition Coupons.com Coupons.com had 15 years of operating loss Needed Working Capital for acquisitions and product development Increased publicity Relationship development with Target

Post-SWOT Analysis Strengths High quality of service Price matching Target REDcard Logo recognition Reliable workforce Wide range of mobile applications Excellent grocery department Variety of goods and services Weaknesses Closing of Canada stores Limited locations Higher priced items than competitors Data breach Opportunities International markets Increase number of CityTarget and TargetExpress locations Add pick up and delivery features to applications Threats Cheaper competitors US economy Increased development of multichannel retailing by competitors