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Danny Seavey Blake Teasley Taylor Young

Danny Seavey Blake Teasley Taylor Young. Introduction. Approximately 1800 retail locations across 49 states. General Merchandise stores and SuperTargets “Expect More. Pay Less” . The Situation. E-Commerce is on the Rise 2013 Projection: $262 billion (+13.4%) 2012 Sales: $231 billion

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Danny Seavey Blake Teasley Taylor Young

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  1. Danny Seavey Blake Teasley Taylor Young

  2. Introduction • Approximately 1800 retail locations across 49 states. • General Merchandise stores and SuperTargets • “Expect More. Pay Less”

  3. The Situation • E-Commerce is on the Rise • 2013 Projection: $262 billion (+13.4%) • 2012 Sales: $231 billion • Projections from Forrester Research Inc. 10% compound annual growth rate from 2012.

  4. Competition

  5. Strategic Group Map

  6. SWOT Analysis

  7. Proposal Goals • Increase E-Commerce Sales • Expand Globally to increase retail coverage and sales

  8. Increase E-Sales • How? • Implementation of Vee24 Software https://www.youtube.com/watch?v=T3Ln_khNULY

  9. Average shopping cart abandonment rate: 65.23% • Average value of an online order is $116.58 • Average online conversion rate is 2.31% • Increase conversion rate by 2%, this will result in an additional $230 per every 100 customers that visit the website

  10. Global Expansion Expansion • United States market continues to reach saturation • Our target demographics (middle class) continue to grow abroad • China, India, Brazil, Mexico • Focus on destination cities of American’s travel • Mexico receives nearly 25 million travelers from US (US Department of Commerce Office of Travel and Tourism Industries) • Cancun (#1 US travel destination), Mexico City, Cabo San Lucas • According to The Values Institute American’s are more likely to buy from brands they recognize and trust (brand recognition at 97% ahead of Nike, rated the 5th most trusted company by TVI) • Focus on international destination cities • London: 17 million international visitors; $21.1 billion in international receipts (#1 visited city in the world, #2 by American’s) • Paris: 16 million visitors; $17.8 billion (#2 world; #4 by Americans) • Madrid: 9.7 million; $11.5 billion (#7 world) • Frankfurt: 8.1 million; $11 billion (#9 world) • Rome: 7.8 million; $8.3 billion (#12 world; #6 Americans) (Forbes)

  11. Global Expansion Cont. • Much Potential Available as seen in Wal-Mart's expansion • Over $100 billion in sales • International revenues increased 15% annually over the last several years. Domestic growth is 1% over the same period • International sales account for less than 30% revenue, yet 40% of its stock value • Q3 2013 Wal-Mart reported 7.6% revenue growth from international business. • Largely from Brazil, Mexico, and China • Last 2 quarters; Brazil: 10% and 5% increase in sales. Mexico: 10% and 4%

  12. Vee24 Cost • Vee24 • Approximately $5,000 per unit. • @ 10,000 units: Investment of $50 million • Increase conversion rate to 4% resulting in approximately an additional $230 per every 100 customer interactions • @ 26,000,000 hits per month at Target.com this would generate an additional $600,000,000 in retail sales each month.

  13. Proposal Based SWOT Analysis

  14. Questions?

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