• Main problem • Similarities of

Objectives
Conversation Structure

Main Problem
• Objective product line • Target revises its
• Situation between Kmart and brand value
• Solution Target • Create a strong
• • An aggressive market
Time Frame
• internal capitalisation
Contingency plan competition
• Pay back • Stop loss,
• Target lost its brand increase market
value share by 3% and
• Decline by $100m sale by 2%
• Reduction of
competitive
advantage
 • Target: brand fashion
Situation product for men and women
with a cheaper price
• Kmart: low-price segments
with the core customers in
home and kids
• Target misled it strategy,
making its customers
confused about the
importance and relevance of
Target
• SWOT analysis shows that
wrong strategy of Target is
also affected by external
threats
 Criteria Evaluation
Business Canvas Model
Main Partners (Main
Suppliers)
Kmart and Target do business in the same low-end market
•According to the research of with high similar of product

Boehnke
Business Activities
•46% for quality
•16% for price Main Resources The cooperation with foreign suppliers, especially those where
•15% for quality of post purchasing labor costs is low

services
=> it would not be correct to Valuation provided to Both Kmart and Target intended pricing strategy, providing
consider pricing element as the only customers products at cheap price
factor for purchasing decision of
customer
Distributtion Channels Kmart and Target focus on providing a great shopping
experience for customers at their stores.
Solution

• Differentiation strategy is identified as the

most practical solution
• Differentiation is considered based on 3 key
elements
distinct vision and core value
distinct customer segment
distinct product
Differentiation Strategy
Different vision and core value
• Delivering strategic advantage in the competitive market
• Guiding Kmart and Target towards the right direction
• Protecting the future sustainability

Different customer segment

• Identifying potential customer
• Creating a target market base for Kmart and Target

Different product
• Delivering brand identity for Kmart and Target
• Dropping the administrative cost, leading to reduction of selling price
 Time Frame
KPI for research
analyst
Identify target
1. Different vision and customer, market 3. Different product
2. Different customer
core value trend and brans segments
that are attractive
to target
customers
Annual Meeting Customer Survey Advertising campaign Repositioning Target product

KPI for Target’s CEO
Stop the losses
Increase market share by 3%
Increase sale by 2%
KPI for supervisor KPI for marketing department KPI for procurement department
Report progress Growth rate of sale: 2% Cooperating with 800 premium
Make sure the Customer cover ratio: 20% for brands
survey completed
physical store and 2.5% for online Management costs reduced by
on time
store 10%
Selling costs reduced by 5%
 Contingency Plan
1. Different vision and 2. Different customer 3. Different product
core value segments

Annual Meeting Customer Survey Advertising campaign Repositioning Target product

1 2 3
Objective factors: such as New entrants are willing
epidemics, customers avoid Failure in advertising strategy.
to cut selling price in
crowded areas. order to attract customers
 Pay back
Year 2024F 2023F 2022F 2021F 2020F

Revenue ($m) 8,558.13 8,070.03 7,582.94 7,113.52 6,596.92

Growth rate of REV 6.05% 6.42% 6.60% 7.83% 7.89%
KMART
Earning Bf int and Tax ($m) (EBIT) 797.67 748.96 711.76 663.78 617.30

Operating Expense 7,760.46 7,321.07 6,871.18 6,449.74 5,979.62

Revenue ($m) 3,013.95 2,954.85 2,896.91 2,840.11 2,784.42

Growth rate of REV 2.00% 2.00% 2.00% 2.00% 0.50%
Target

Earning Bf int and Tax ($m) (EBIT) 150.70 147.74 144.85 142.01 26.54
Operating Expense 2,863.25 2,807.11 2,752.07 2,698.10 2,757.88
Total revenue 11,572.08 11,024.88 10,479.85 9,953.63 9,381.34

Total EBIT 948.36 896.70 856.60 805.78 643.84

Thank you for
listening