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“A New Beginning” Threshold Re-Branding

Amber Ravenscroft & Megan Woods

Brand Overview Newest and single-largest private

label program ever introduced

“Holy grail of American home”; targets metro/urban/casual/comfy/contemporary customer

Strong personality, exceptional quality, outstanding design; functional and visually appealing

Reflects guest insights; durable dinnerware and chemical-resistant bath towels

Increased Target’s total revenue post their debut in 2012 from $69,865(000) to $73,301(000)

Target Audience Target’s typical guest; 40 years

of age, annual income of $64,000

Women; 85% of all consumer spending

Style-conscious, price-conscious and fashionable

Range from new homeowners to mothers

Home decors regard quality as highest evaluative criterion; search and conduct research online and through social media

Purchase home décor through online outlets

Competition

Internal

Target’s impressive home décor section is already renowned

Threshold is competing with brands Target already carries:

Nate Berkus

Smith & Hawken

Compete with Threshold’s brand in-stores and on the shelf

External

Bed, Bath & Beyond: “Every customer’s first choice” by offering everyday low prices, excellent customer service, and an extensive assortment of products

IKEA: Centered on good design and functionality at low price, “home furnishing solutions for every room in the home”

Kohl’s: Wide range of brands that match their mission to “offer quality exclusive and national brand merchandise”

Wal-Mart: Focus on affordability, products that aim to give the world a better life

S.W.O.T. (prior to launch) Strengths

Target has strong brand loyalty for private-labels

Threshold’s target audience is already shopping at Target

Target is infamous for product quality

Affordable and competitive prices

Target is well known for their home décor department

Weaknesses

Little to no international presence

Limited space in-store for advertising campaigns

Social media presence lacks impact/interaction

Low brand awareness of Threshold private-label

Previous campaigns for Threshold brand do not correlate with in-store presence

S.W.O.T. (prior to launch) Opportunities

Target’s private-label brands already have strong impact on their consumer base

All Target locations provide free internet connection, allowing for seamless integration of digital campaigns

CityTarget provides a different take and format to traditional Target locations

Expansion into Canada

Threats

Strong competition with other retail locations as well as other Target home décor brands

IKEA at forefront of room-staging advertising

Other retail options are very similar to Threshold’s products and fall into similar quality/price categories

Credit card scandal leaves consumers questioning Target’s credibility and security measures

Technology Looks to the future versus trying

to improve upon the past

Virtual reality and app integration

Social media as an accessory; Facebook contest in collaboration with in-store presence

Pinterest as a developing social media outlet

Used to plan/organize daily life

Driven by purchase intent

Solid foundation in targeting women (33% compared to 8% men)

21% of online users, vs. 18% of online users using Twitter

Challenge Leverage a comprehensive

omnichannel/multichannel strategy to support the Threshold brand, beyond what is being used today.

Objective Create a campaign that uses innovative

omnichannel/multichannel strategies to encourage current and potential Target customers to react and interact with Target’s Threshold brand with a focus on augmented reality.

Strategy “…the magnitude or

intensity that must be exceeded for a certain reaction to occur.”

Three main components:

Virtual reality showroom

Traditional social media presence

Fully interactive and augmented reality incorporated mobile application

Virtual Reality Showroom Three-dimensional projection mapping software

Target registry using QR codes of Threshold brand products through mobile app

Scan items into blank room, where products will be projected and purchasers have ability to design their “dream room”

http://youtu.be/lX6JcybgDFo

Social Media Presence Virtual reality contest to create “buzz” about the brand

Newly created rooms will be entered on Target’s Facebook page

Users will vote on winner, granting them the physical room they digitally created

Integrates traditional advertising with digital techniques

Social Media Presence Pinterest is a key social marketing platform to reach

Threshold’s target audience

Threshold’s own Pinterest page, establishing the brand it’s own personal identity and differentiating it from similar Target home décor products

Reaches a specific, niche market in home decorating that directly reflects purchase intent

Augmented Reality Mobile App Vuforia Smart Terrain technology

Responsive and interactive

Experience Threshold brand in-home translates to in-store purchase

http://youtu.be/UOfN1plW_Hw

S.W.O.T. (after launch) Strengths

Omnichannel/multichannel implications that leverage the Threshold brand

Innovative strategies that encourage customers to interact with the Threshold brand

Affordable and competitive prices

Higher brand awareness of the Threshold private-label

Customers can experience Target products without visiting a physical store location

Campaign itself can serve as basis for development of interactive campaigns for other Target brands

Weaknesses

Limited space in-store for advertising campaign

New technology is at higher risk for error

Social media presence with other Target brands are still very broad

Larger portion of the budget must be used for in-store displays

S.W.O.T. (after launch) Opportunities

All Target locations provide free internet connection, allowing for integration of digital campaigns directly into store locations

Technology is advancing every day, allowing for more innovative campaign ideas for other Target brands

Growing potential with social media participation on varying platforms

Expansion into Canada

Threats

Strong competition with other retail locations as well as other Target home décor brands

Other retail options are very similar to Threshold’s products and fall into similar quality/price categories

Credit card scandal leaves consumers questioning Target’s credibility and security measures

16Thank you