Target Case Study

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Target Case Study:
SpotCare

Table of Contents__________________________________

Target’s Current Situation: An Introduction …………………………………………………………………………….. 3

SWOT Analysis: Target Corporation ………………………………………………………………………………………... 4

Accessibility Trends: SpotCare® …………………………………………………………………………………………………..………… 6

Health Savings Passes and Their Benefits ………………………………………………………………………………………………. 7

Medication Compounding: The Convenient Way Out ……………………………………………………………………………. 7

From On-Line to In-Store: Pharmaceutical and Home Health Care Supplies ………………………………………….. 8

Prescription Home Delivery Service: Bringing the What, Where and When Home ………………………………… 8

Mail Order Prescription and Health Care System: The Whole Delivery Package ………………………………….. 10

SWOT Analysis: Target SpotCare® ……………………………………………………………………………………………………….. 13

Financials: SpotCare’s® Cost of Implementation ………………………………………………………………………………….. 15

Works Cited/ Links Used for Financial Data …………………………………………………………………………………………. 18 Target’s Current Situation: An Introduction_____

According to research found by Target, "Today, 13 percent of the U.S. population is over 65. On average, people over the age of 60 use about three times as many medications as those under that age. By 2030, Americans over the age of 65 will represent about 20 percent (69 million) of the population." The average age of a Target customer is 42. One of Targets biggest threats is losing these customers to other competing pharmacies. Because of this, Target it looking into expanding their target market to better fit their current customers as they mature, as well as reaching out to those who have already matured. Target could achieve this by satisfying home health care and other over-the-counter needs of seniors.

SWOT Analysis: Target Corporation____________

Strengths| Weaknesses|
* One of the best known retail brands; they are perceived as innovative/fashion-forward and trendy, continually setting trends and is the second largest retailer; Target focuses on new ideas and exclusive products, such as Clear Rx. * Target offers a number of secondary services including: Target financial services, Target sourcing services, Target commercial interiors, Target brands, and Target online. * Carries a variety of products from clothing all the way through produce. * Top designer products (i.e. Isaac Mizrahi, Zac Posen); Perceived as providing quality products to customers. * Provides a family-friendly, good shopping environment by not selling firearms, tobacco, or toy guns. * Store layout from store to store is similar/ consistent. * Donates an immense amount of its profits to its surrounding communities and is associated with many community organizations. * ClearRx has grossed the company over 7% of total sales & contributes to about 33% of guestsConsistent execution, store layout and product range from one store to another * Credit card payment option helps business and profits * Target’s locations are accessible to their current/potential guests | * Not all stores offer the same services (produce section, photo center, optical center, pharmacy, Starbucks, etc.) * Pharmacy guests account for over 7% of their total sales. The turnover rate for Pharmacists (and employees at store level in general) is very high, since they are required to work 12-hour workday schedules.  * only operates in North America-- not enough diversification * food margins and sales lower than other merchandise sold—gives least profit * Stores vary little by region * Poor number of in-stock items

* Target Corp. Opportunities and Threats located on following page.| Opportunities| Threats|
* Need to meet their “Expect more. Pay Less,” brand promise and improve price perception; considered overpriced when compared to competitors. * Add produce section to more of their stores * Increase availability of in-store items * Emphasize more...
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