SpotOn Consulting Consulting@spoton December 9, 2009

1. Connecting Target with Wellness: Target’s Initiative to Capture the Wellness Market Health • Happiness • Wellness • SpotOn Consulting Consulting@spoton.com December 9, 2009

2. Agenda Health • Happiness • Wellness • • Target’s current position • Identify Target with wellness • Define wellness • Generate awareness • Improve wellness components • Revitalize item displays • Renovate pharmacy • Revamp fitness section • Target’s potential position • Question and answer session • Conclusion

3. Target Should Take Advantage of the Wellness Movement Health • Happiness • Wellness •

4. Establish Target as a Wellness Provider to Capture a New Demographic Health • Happiness • Wellness • Create Awareness Identify Product Offering Define Wellness Reposition these items as wellness-oriented. Generate awareness of Target wellness initiative. Physically, mentally, and spiritually sound. • Being healthy • Making good choices • Exercising • Eating well • Fitness equipment • Athletic apparel and footwear • Health-oriented foods • Hygiene products • Etc. • Television advertisements • Wellness Fair • Wellness Wednesday

5. Television Commercials will Identify Target as Wellness Destination Health • Happiness • Wellness • • Create awareness of Target wellness initiative • Emphasize breadth of wellness-oriented products • Generate business from new demographic • Incorporate Target’s new wellness logo

6. Consumers will Associate Target with Wellness Health • Happiness • Wellness • How People will Know: • Television advertisement • Wellness Fair • Wellness Wednesday What will be Achieved: Why it will Work: • People will associate Target with wellness. • Individuals will identify certain items with wellness. • Target will be established as one-stop shop for wellness. • , • Advertisement introduces initiative • Fair generates excitement • Wellness Wednesday maintains interest

7. Wellness Fair will Kickoff Wellness Initiative Health • Happiness • Wellness • Wellness Fair • Information stands on wellness products and services • Wellness product samples • Flyers for weekly wellness sale • Wellness-themed games for kids Results • Offers fun environment • Generates hype • Introduces key wellness products • Launches Wellness Wednesday

8. Why not Simply Start the Sale? Health • Happiness • Wellness • Wellness Fair • Defines Wellness for the guest • The only event with free samples

9. People will Associate Target with Wellness Health • Happiness • Wellness • The sale Target needs • Rotating Sale Mix • For all guests The sale Target wants • Easy to Implement • The Name is Catchy

10. The Draw of the Water Cup-Coupon Health • Happiness • Wellness • Potential Water Cooler Locations Potential Sale Areas

11. Create a Flow to and from Wellness Products Health • Happiness • Wellness • Revitalize Item Displays • Shelving • Wellness Identification Strip Renovate Pharmacy • On-Floor Pharmacist • Waiting Area Revamp Fitness Section • Reorganization • Seasonal Stock • Good, Better Best Pricing

12. Revitalization of Product Displays will Highlight Wellness Health • Happiness • Wellness • Wellness Identification Strip • Highlights wellness-oriented products using a red strip with white Target logos • Noticeable to those looking for wellness products. • Does not detract from non-wellness oriented products. New Shelving • Cleanliness = Wellness. • New shelving enhances display. • Futuristic design is appealing “Expect More…”

13. Pharmacy Renovation Enhances Ease of Shopping Health • Happiness • Wellness • • Location of pharmacy already entices guests to shop. • Waiting area will ease congestion. • Book and magazine sales will increase.

14. On-Floor Pharmacist Shows Dedication to Personal Wellness Health • Happiness • Wellness • • Assists guest with questions and concerns • Helps guest choose right product for their lifestyle • Shows guest Target’s commitment to personal wellness

15. Revamp Fitness Section to Ease Wellness Purchases For Guests Health • Happiness • Wellness • • Reorganize fitness section • Seasonal aisle • Good, better, best pricing

16. Wellness Recommendations Guarantee Results Health • Happiness • Wellness • • Differentiates Target from Wal-mart and small wellness- oriented retailers • Establishes Target as wellness destination • Pharmacists will aid guests in • purchase decisions • Wellness destination • Wal-Mart initiative • Small retailers • Wellness megatrend • Opportunity to be wellness • “discount retailer’

17. According to Roger Deromedi, Chief Executive Officer of Kraft Foods, ”The growing importance  of health and wellness has altered buying patterns to a degree that he has [I have] never seen before in the food business.”Consumers are taking interest in products that are sustainable, provide purpose, and give real value.The majority of consumers consider themselves to be wellness-conscious.Consumers are seeking multiple ways to provide themselves with a wellness-oriented lifestyle.The wellness industry will continue to grow as consumers seek and purchase items that are specific to their health and fitness needs.The nation’s largest health-oriented segment is comprised of one-fourth of the population. Individuals in this growing segment are choosing brands and retailers based on corporate values.Wellness- oriented individuals want to be able to relate to their supplier.Individuals define wellness as being physically, mentally, and spiritually sound. People identify wellness-oriented products as exercise equipment, healthy food,  vitamins, and personal hygiene products.American society is at the door of a new era. One-third of U.S. adults are obese, and healthcare spending for this group has grown 80 percent in the last eight years.However, a new social trend is surfacing as more individuals take the initiative to lead healthier lifestyles.People recognize that if they practice wellness, they will spend less on future medical care.Consumers are seeking multiple ways to provide themselves with a wellness-oriented lifestyle.