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Published byAlisha Nelson Modified over 8 years ago
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Danny Seavey Blake Teasley Taylor Young
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Approximately 1800 retail locations across 49 states. General Merchandise stores and SuperTargets “Expect More. Pay Less”
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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.
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Strengths 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
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Increase E-Commerce Sales Expand Globally to increase retail coverage and sales
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How? – Implementation of Vee24 Software Increase in Online Sales Develop Greater Customer Loyalty Reduce Shopping Cart Abandonment Generate More Sales Opportunities (Upselling) https://www.youtube.com/watch?v=T3Ln_khNULY
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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
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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 5 th 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)
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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%
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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.
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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
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