Target Credit Card Swot

Memo

To:

From:

Date: February 15, 2011

Re: Target Red Card case project suggestions

The Red Card case project at Target Corporation is an important step in improving guest loyalty at Target nationwide. It is time to take Target credit card usage to the next level. This is achieved through offering Target customers with the enticing 5% automatic discount on most Target purchases with Target Red Card usage. The Red Card will provide Target with increased advertisement, differentiation, frequency, reliability and value and decreased consumer anxiety. Its increased revenue will provide Target Corporation with the ability to continue at its current expansion rate. There are several ways Target Corporation can improve the Red Card case project. I will briefly provide suggestions for improving this market segment.

Product

Targets Red Card project is compelling to young, well-educated, moderate to better income families. The new automatic 5% discount strategy on most purchases appeals to this customer base. These consumers will have the opportunity to utilize their money saving card at over 1,800 Target stores nationwide. Target can provide consumers with additional incentives for using their Target Red Card. Target can tempt customers with the following opportunities.

• Target can offer a one time 10% off discount on a purchase of up to $1,000 if a consumer uses their Red Card at five separate Target locations.

• Target can offer a one time 10% off discount on a purchase of up to $1,000 if a consumer uses their Red Card on twenty-five separate purchases at Target.

• Lower fixed interest rate on Red Card purchases for the first six months for approved customers.

• Minimal over the limit fee for approved new customers.

Shopping Experience

It is important that Target provides customers with an exceptional core shopping experience. Whether in-store or online, Target customers deserve a fun and convenient shopping experience. The Red Card provides...