Target Case Essays

Target Case Essays Target Case Essay Target Case Essay This type of consumer is labeled as Targets core guest for whom Target advertises the slogan of expect more. Pay less. Target guarantees a shopping experience that features a store dcord and pleasing ambiance that provides the core guest with a satisfactory shopping experience. Discussion Gopher Place- this store is a $23 Million investment to build a POP store that has a positive NP of and IR of 12. 3%. The area Gopher place is located in is considered to be an important market. The population growth rate of 27% coupled with a median family income of $56,400 and expected competition from its competitors makes this a vital area for potential growth. Consequently, of the adults living in the surrounding area of Gopher Place only 12% meet Targets core guest criteria of having four or more years of college education. Whalen Court- is a $119. 3 million investment to build a unique store to help capture the metropolitan area that is populated by 632,000 people where 45% of adults have obtained four or more years of college education. Advantages of this area include Targets largest NP of $25,900,000. Unfortunately, Target will have to lease this property instead of purchasing the land on which to build the store. The Barn- the cheapest of all capital expenditure requests, The Barn was a $13 Million investment that has the opportunity to have a large ROI because of the small initial investment. This store will not share a market with other Target customers as the closest Target stores are 80 to 90 miles away. Consequently, due to the rural area there is a low median income of $38,200 accompanied by a small 17% of college educated adults. Soldiers Square- Constantly Soldiers Square was to be a Supermarket store costing $23. 9 Million. Target will share this square with other retail stores that share the same target audience, which includes an affluent, educated crowd that is growing rapidly. The $300,000 NP is the lowest of all five project requests and also has the lowest IR of 8. 1 % which requires a larger sales volume in order to reach the prototype NP. Stadium Remodel- A store that has been vital to Target since 1 972, the stadium remodel is a $17 million request to upgrade a Supermarket. There has been a decline of $7,854,000 in sales, but this could be attributed to the deteriorating facilities. This area has the highest median income of $65,931 compared to the other options and has NP of project Rankings 1. Stadium Remodel- With the second cheapest investment, this would be an important store to remodel due to its deteriorating facilities. This is a stop that is surrounded by Targets core guest due to the high median income AR percentage of educated adults.