Target 2004 Annual Report Download - page 15

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Telling our Story
Innovation and continuous improvement are the essence
of Target’s marketing campaigns — energetic, whimsical,
unexpected, and distinctive. Each campaign — whether
“Wants and Needs,” “Raining Bullseyes” or “See. Spot.
Save.” — conveys Target’s brand in a unique, engaging
style, and balances our focus on great merchandise design
with outstanding value. During 2004, our innovation in
marketing produced several new programs to delight our
guests and strengthen our communities:
• In May, Target set up shop for a five-week stay in The
Hamptons at the Bullseye Inn. The shop offered a com-
plete assortment of merchandise for summer fun and
entertaining, and the Bridgehampton Historical Society
benefited from our generous donation.
• Last summer, our “Deliver the Shiver” trucks — filled with
hundreds of air conditioners — cruised New York City
for three sweltering days. Air conditioners were sold on
the spot and wheeled home by guests on a cool, Target-
branded cart.
• In October, a pop-up store in Times Square offered an
exclusive line of pink items in honor of Breast Cancer
Awareness Month with all of the profits donated to the
Breast Cancer Research Foundation.
• And in November, we offered wake-up calls to nearly
300,000 guests for our two-day after-Thanksgiving
sale. Guests registered at Target.com to have their
favorite voice, including Heidi Klum, Ice-T, Darth Vader
or Heartbreaker, wake them up.
For 2005, we have designed a new creative platform to
share real-life stories about people who are benefiting from
our involvement in their local communities. Our marketing
campaign will utilize a storytelling approach that reaches
across all categories of giving and connects with our guests
on a personal level.
Innovation is Part of our Culture
In order to stay ahead of the competition and continue to
meet our guests’ increasing expectations for speed,
in-stock reliability and merchandise differentiation, Target
continues to pioneer new ideas and new solutions in
technology and logistics. For example,
• To reduce merchandise lead times and increase pro-
duction flexibility, Target is developing an infrastructure
that allows us to quickly adapt to emerging trends, eco-
nomic or political developments throughout the world,
and global shifts in production capability. By integrating
our merchandise team, our product design and devel-
opment network, our global sourcing organization and
our logistics operations, we are able to deliver the latest
fashions to Target stores in record time.
The Bullseye Inn Offering a one-stop resource for all things
summer, including creations from design partners Rachel Ashwell,
Sean Conway and David Kirk.
• Target has introduced a new technology tool to help our
stores set merchandise presentations in accordance
with guidelines from headquarters. This wireless, hand-
held device allows our in-store teams to view instructions
and images of the merchandise presentation, while
standing directly in front of the shelves being set. This
capability not only increases the accuracy and consis-
tency of our execution throughout Target, it makes it
easier to customize presentations in certain markets to
reflect local guest preferences.
• To improve inventory planning and in-stock levels of
advertised merchandise, Target has refined the process
for expediting replenishment of items that are featured
in our weekly circular. The benefits of this initiative include
increased guest satisfaction, as guests are able to find
advertised items on the shelves when they want them,
and better sales and financial results for the company.
Power of One
With the sale of Mervyn’s and Marshall Field’s and our clear
vision for Target Stores, we have a renewed opportunity
to foster collaboration within Target and further leverage
our corporation’s resources to achieve increased efficiency
and profitability.
During 2004, this Power of One effort focused on
initiatives that optimized total results, balancing increased
expense or investment in one area of the company against
the potential for greater speed, productivity and profit
overall. For example:
• We continued to convert indirect imports to direct
imports during 2004, which helped to remove sourcing
inefficiencies and to drive higher merchandise margins
and shorter product lead-times. While this multi-year
effort increases our costs as we develop product design
expertise and invest in supply chain infrastructure, it also
yields tangible benefits for our guests and has a net
positive impact on our business results.