Transcript Italy and Target

Italy and Target
Gill Small, Heather Kaye, Megan
Daugherty, Brianna Decarmine
Company History
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Founded by George Dalton
Incorporated in 1902 in Minnesota
First store was named Goodfellows
Dalton Corporation opened the first two
level in door shopping mall in 1910.
Company History Cont.
• Dalton Corporation opened the first
target store in 1962.
• Target went public in 1967
• First SuperTarget, opened 1995
• www.target.com was launched , 1998
Business Description
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Target is a US based company.
1,395 Target stores
218 SuperTarget stores.
International and domestic Vendors.
30% of merchandise is imported.
Softline and Hardline merchandise.
Private Label Brands
Licensed Brands
Services
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Target.com
Target Commercial Interiors
Target Financial Services
Target brand Credit Cards
– Target Visa
– Target Check Card
– Target Card
Services Continued
• Associated Merchandising Corporation
– Target Sourcing Services
• Pharmacy
– 1,300 currently operating
• Target Clinic
– Fully licensed staff of a Physicians Assistant and
Nurse Practitioners.
– Located in metro areas
– Opened in 2006
SWOT Analysis
• Strengths
– Strong brand Identity and market presence
– Wide Variety of products
– Strong Brand Mix
• Weaknesses
– Lack of Quality Control
• Opportunities
– Moving Overseas
• Threats
– Decline in consumer confidence
Italy the Basics
• Located in southern Europe, borders 5
countries
• Slightly larger then Arizona
• Main climate: Mediterranean
• Official Language: Italian
• Population: 58,145,320
• Main religion: Roman Catholic
Brief History
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1st century BC: Romans
6th century: Lombard's
1796:1813: Napoleon & French Rule
1882: Triple Alliance was formed
1914:WWI begins
1925-1946: Mussolini and the Fascist Party
1946: Republic formed
1955: Joined the United Nations
Government
• 3 branches: executive, legislative,
judicial
• President is elected by the electoral
college
• 7year terms with no limit on terms
served
Education
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Divided into three parts
Infant cycle: ages three to six
First cycle: 8 years, mandatory
Mandatory training cycle
– Continuing school
– Vocational training
– apprenticeship
Social Event Norms
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Always dress formally even if non-formula
Lateness acceptable
Always take a 2nd helping
Bring a gift
– Do not send Chrysanthemums or red or yellow
flowers
– When gift wrapping stay away from black and
purple
Business Norms
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“Bella Figure” or good image
Acceptable dress
Calling Cards
Trust is important
Northern Italy: time is money
Southern Italy: Laidback
Economy Statistics
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GDP: $1.8 Trillion
GDP Per Capita: $30,900
Composition of GDP:
• 70.9% Services
• 27% Industry
• 2% Agriculture
Inflation of Consumer Prices: 1.8%
Separation between the northern and southern parts of Italy
• North: Industrialized
• South: Agriculture
Labor force: 24.74 Million Workers
• Services: 63%
• Industry: 32%
• Agriculture: 5%
• Unemployment: 6.2%
Economy Statistics
• Population: 58,145,320
• Growth Rate: -0.019%
• Birth Rate: 8.36 births per 1,000
• United States: 14.16 births per 1,000
• Median Age: 42.9 years
• 0-14 years: 14.6%
• 15-64 years: 66.3%
• Over 65 years: 20%
Agriculture
• Employs roughly 1.4 million workers.
• North produces grains, sugar beets, soybeans, meat and
dairy products.
• South produces fruits, vegetables, olive oil, wine and
durum wheat.
• Farms are small, usually only around 17 acres in size.
• Main economic strength lies in processing and
manufacturing.
• 80% of country’s energy sources are imported.
Trade Unions
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Make up about 40% of work force.
The four confederations are the General Italian Confederation of Labor
(CGIL), the Italian Confederation of the Workers' Unions (CISL), the Italian
Union of Labor (UIL) and the General Union of Labor (UGL).
– Strongest being the CGIL
These confederations were all originally affiliated with major political parties
but they have now shifted to becoming fully independent and professional
organizations.
Helped to achieve a wage indexing system, common job classification, paid
maternity leave, more paid holidays, guaranteed severance pay and a
shorter work week (37 hours).
Trade
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Trades closely with other members of the European Union.
– Makes up 54.4% of country’s trade
Largest trade partner is Germany, at 15.5%
– Next is France at 11.6%
– UK at 5.9%
Italy is the United State’s 11th biggest trade partner
– Totaling $42.5 billion
– $11.5 billion exports
– $31.0 billion imports
Trade Deficit with US: $19.5 Billion
Media
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Television: RAI and Mediaset
– Control 85% of audience and 90% of advertising revenues
Mediaset owned by Mr. Marina Berlusconi
– Two Ad Agencies: Publitalia '80 and Digitalia '80
Digital broadcasting shift by 2011
Written press is very sectionalized.
– Local papers prevalent
Low readership
– Due to the fact that the written press only controls a small portion of the
advertising market.
Radio is gaining popularity.
Dominated by two public stations, which are two divisions of RAI RadioUno
and RadioDue.
Internet users numbering 32 million.
Cell phone users numbering over 78.571 million.
Retailers
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Conad (Consorizio Nazionale Dettaglianti) is a large Italian based retail
brand which operates one of the largest supermarket chains in Italy.
– 2,850 stores
Auchan is a retail group and multinational corporation based out of France,
though it has branches operating in Italy.
– 47 hypermarkets, 275 supermarkets
– SMA Supermercati is a division of Auchan and operates three
supermarket chains, SMA, Cityper and Punto SMA.
Carrefour, also a French based international hypermarket chain, first
opened it's doors in Italy in 1993.
– 59 hypermarkets, 485 supermarkets, 1,015 convienence stores and 20
cash and carry stores.
Ebay Italia
Strengths
• Italy over the past few decades has slowly become more
industrialized,
• If Target were to enter the Italian market it is evident that
there will be plenty of money to be spent by consumers.
• Since the Italian market is relatively similar to the American
market advertising of our stores could be similar, for
example we would be allowed to advertise on television
(where in most countries it is government regulated) similarly
to the way we advertise in the United States.
• Target can also take advantage of the Italian internet. Italy
has over 32 million internet users, and this is a great way to
get products to customers who are not available to travel to
the stores, or who would rather shop from home.
Weaknesses of Target as perceived
by intended consumers
• Target is an American brand, and with the
name Target comes the American label.
• Unemployment remains a constant problem in
Italy, It is important that if we do establish our
brand in Italy that we do demographic research
and pinpoint the locations where
unemployment rates are at their highest, and
steer clear of basing our retailer there.
• Italy is clearly divided into two sections,
Northern Italy which is more industrial based,
and Southern Italy which is more agricultural
based.
Opportunities of Target as perceived
by intended consumers
• With such a rapidly growing economy Target
should enter the market to try to gain a piece
of Italian retailing wealth.
• The average age in Italy is between fifteen
and sixty five
• Like stated in the Strengths the Italian society
has a great opportunity with the media to
advertise, from magazines to television
getting the Target name out to the consumer
will not be a problem
• Italian culture the work week can be up to a
seven day work week
Threats of Target as perceived by the
Italian consumer
• To the Italian consumer the introduction of an
American retailing chain may be a direct threat
to the culture that so many worked so hard to
build.
• Italian-based competitors
• Conad
• Auchan
• Carrefour
Advertising
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TV
Magazines
Urban Areas
Where we want to put our locations
– Urban/Suburban
Pricing
• Low pricing
• Under market pricing
Competitor
• Carrefour
• European Market Saturation
• Similarities/Differences