2. ii
Proposed to
Brian Cornell
President and C.E.O.
Prepared by
Vivid Visions
Soonyeub Lee
Alec Harris
Christopher Wright
Elleree Evans
Anastasia Kilmer
April 13th
, 2015
A Golden Bridge
Between Target Home and the Market

3. iii
Kelley School of Business
1309 E. 10th
Street
Bloomington, IN 47405
Brian Cornell, President and CEO
Target Corporation
1000 Nicollet Mall
Minneapolis, MN 55403
Dear Mr. Cornell,
SUBJ: Leveraging Pinterest to Improve Shopping Experience and Marketing in the Target Home
Vivid Visions appreciates the opportunity to support Target Corporation’s traditional brand
promise, “Expect More, Pay Less”. Within a year, we will work with the Home department to
proactively accommodate the consumer trend, which shows a demand for brand engagement
through social media. Target Home has begun to utilize several social media such as YouTube,
Facebook, and Pinterest to market its product assortment. Amongst all social media applications,
Pinterest suits best for marketing Target Home’s line of products. Vivid Visions will further
leverage Pinterest’s high marketing potential by integrating it directly into Target’s online channel
infrastructure. To deliver an omnichannel shopping experience that reflects this marketing strategy,
we will develop a system that will allow Cartwheel mobile application users to scan barcodes of
products in-store and seamlessly engage a shopping experience through Pinterest.
Growth of e-commerce in the last decade has provided consumers with unprecedented market
transparency. Competition among retailers stiffens as consumers increasingly use e-commerce to
research products and find optimal deals. Reflecting the changing consumer behavior, Target can
better cater as well as attract consumers by expanding its marketing presence in the online channel
through Pinterest. Utilizing Pinterest is cost free and an effective online marketing tool for
attracting consumers who use social media to make purchasing decisions. While Target currently
has a strong online presence in the retail sector, it can stay ahead of its competitors by taking
advantage of Pinterest and all it has to offer.
We would like to thank Professor Dana Cattani of Indiana University for her aid in our report.
For any questions, feel free to contact Vivid Visions by email at vividvisions@gmail.com or by
phone at (937) 844-7428. We look forward to being of further assistance to Target and its Home
Department.
Sincerely,
Vivid Visions

4. iv
Table of Contents
Letter of Transmittal ……………………………………………………………………..iii
Table of Contents ……………………………………………………………………………….iv
List of Figures .……………………………………….………………………………………….v
Executive Summary …………………………………………………………………………….vi
Target Races to Capture Audience in Online Channels …………………………………….. 1
Target Successfully Engage Modern Consumers with Technology………………………1
A Little Bump in Target’s Efforts ……………….………………………………………..1
Young Consumers Shop with Research…………………………………………………...2
Wal-Mart is a Leader in Digital Consumer Engagement…………………………………….3
Pinterest Integration into Target’s Online Infrastructure…………………………………….3
Target’s Use of Pinterest Accommodates Consumers ……………………………………4
What Does Pinterest Bring to the Table for Target Home? ………………………………4
Target needs to bridge limited in-store with limitless online……………………………..4
Implementation…………………………………………………………………………………..6
The first step is choosing which products to include……………………………………...6
Target’s IT team will funnel network barcodes through Cartwheel………………………6
Target will market on social media with Pinterest perks………………………………….7
Pinterest will blossom as a marketing tool for Target Home……………………………...8
Profit Analysis…………………………………………………………………………………...8
Best Case Scenario………………………………………………………………………..9
Implementation is expected in 10 months! ………………………………………………..9
Appendices……………………………………………………………………………………...10
Appendix A: Pre-SWOT Analysis……………………………………………………….10
Appendix B: Post-SWOT Analysis……………………………………………………...11
Works Cited…………………………………………………………………………………….12
Works Consulted……………………………………………………………………………….15

5. v
List of Figures
Figure 1: Total Minutes Spent via Target Mobile……………………………………… 1
Figure 2: U.S. Consumer Spending By Age……………………………………………. 2
Figure 3: 2013 Q3 Unique Visitors in Top Retailers…………………………………… 3
Figure 4: Selected Top Retailers: Percent Change in Mobile Visitors…………………. 3
Figure 5: Target Home’s Current In-Store Display…………………………………….. 5
Figure 6: How Customers Use Mobile Phones In Stores………………………………. 5
Figure 7: Sample Database Structure………………………………………………….. 6
Figure 8: Pinterest Link On Target.com………………………………………………. 6
Figure 9: Barcode Scanner To Be Used on Cartwheel App………………...…………. 7
Figure 10: Special Coupons For Target Home Will Be Offered Through Pinteret…… 8
Figure 11: Best/Base/Worst Case Scenario Profit Analysis……………………………. 9
Figure 12: Implementation Expected in 10 Months…………………………………… 9

6. vi
Executive Summary
Purpose of the Report
Our report (1) details recent changes to the consumer landscape and (2) recommends a
marketing strategy that utilizes Pinterest social media to effectively connect Target Home with
consumers in both online and in-store channel. The report will outline the major details of
implementation of the strategy.
Unique Change in Consumer Demographics and Behavior
By 2020, millennials will account for 30% of US retail sales and become the major
consumer group (Seamless Retail). As always, a shift occurs every twenty years in consumer
demographics that place a particular generation as a major spending group. The current shift is
important for Target since the millennials have a unique consumer behavior; for they are the first
generation to truly rely on technology to make purchasing decisions. To connect with this growing
consumer demographic, Target needs a profitable marketing strategy that seamlessly engages
guests through a technological medium in both the online channel as well as brick-and-mortar
stores.
Target Targeting on Pinterest Audience
Pinterest is a platform that Target’s current demographic of consumers as well as
millennials use to share and review products. The platform emphasizes the use of photographs to
describe products and displays many photographs of home goods in application. For instance,
many listings of Target Home décor products on Pinterest show photographs of the décors set in
real-life settings. Product photographs allow consumers to naturally compare products visually and
aid their purchasing decisions. For each product listing, users can also leave reviews, which can
further help consumers in product research. Despite research showing 69% of online consumers
who visit Pinterest have found an item they’ve purchased or wanted to purchase as compared to
only 40% of online consumers who visit Facebook, Target’s Pinterest engagement is lackluster
compared with its attention to Facebook and Twitter (Moth). Target Home can capitalize on
Pinterest’s large consumer audience to effectively capture attention for its product assortment.
Implementation
1. Extract product assortment selected for listing on Target’s Pinterest
2. Integrate Pinterest into Target’s website infrastructure
3. Market the Target/Pinterest system through social media and Pinterest-specific coupons

7. 1
Target Races to Capture Audience in Online Channel
Target Successfully Engage Modern Consumers with Technology
Target has strived to engage the rising generation of technological consumers. In 2013,
Target launched the Cartwheel mobile application to provide personalized, membership
discounts for customers. The application launch proved to be successful. In complement with the
shopping mobile application, Target increased the overall traffic in its mobile channel. In
comparison between September 2013 and September 2014, Target’s mobile usage increased by
78%, with Cartwheel accounting for the majority of that increase (State of the U.S.).
Figure 1 (State of the U.S.)
Target maintains presence on YouTube, Twitter, Facebook, and to a limited extent,
Pinterest. If Target can effectively leverage the marketing potential of social media, Target can
establish stronger prominence in the online channel, which is a key factor in attracting current
consumers.
A Little Bump in Target’s Efforts
During mid-December 2013, Target experienced a data breach that compromised 40
million credit/debit card accounts, as well as personal data for roughly 70 million people (The
Target Breach). The event rendered in 46% drop in profits during the fourth quarter of 2013 and
has negatively affected consumer confidence towards the company (The Target Breach). To
instill a positive image of Target into the consumers’ mind, Target must do more than simply
reinforce its security. With excellent service and products, Target must obtain consumers’
attention and engage them closer. Currently, Target can effectively communicate with consumers
through social media, because for today’s consumers, social media is one of the most prominent
mediums of communication.

8. 2
Young Consumers Shop with Research
Millennials will be the next prime spending consumers within the retail industry. This
demographic of 13 to 30 year olds makes up approximately 15-30% of the US population, and
expects easy access to comment on the world through computers and social media (Kiersz).
Millennial shopping has grown a steady 3% and will account for nearly one-third of total
spending by 2020 (Donnelly). By this time, Millennials will surpass the Baby Boomers with a
collective spending power of $1.4 trillion (Jenkins).
Figure 2
(Kiersz)
75% of millennials research a product before making purchasing decisions, which implies
that online presence is essential for retailers (Lewis). They research before purchasing to search
for the lowest prices and shipping costs amongst all other retailers. As compared to other
demographics, millennials are 247% more likely to be influenced by social networking sites
(Inside the Heads). 63% of millennials stay up-to-date on brands via social media while 44% are
willing to promote brands on their social networks (Jenkins). In addition, 28% of millennials will
make a purchase due to social media recommendations (Donnelly). Such numbers manifest the
significant influence of social media on consumers. Providing information to this demographic in
real-time is crucial to influencing their decision-making.
Interestingly, although millennials heavily use technology to make purchasing decisions,
they still like brick-and-mortar stores. In fact, 82% of them prefer to shop and make transactions
in brick-and-mortar stores (Donnelley). In addition, 68% of all millennials demand an integrated,
seamless experience regardless of the channel. They want engagement that transitions
effortlessly from smartphone or personal computer to physical store in their quest for the best
products and services (Cox).

9. 3
Wal-Mart is a Leader in Digital Consumer Engagement Figure 3 (State
Target has risen in the ranking of top retail sites; it
ranks fourth in the number of total website visits during the
third quarter of 2014 (State). Yet, Target’s major competitor,
Walmart, still leads in the number by 22 million visitors
(43%) (State). Isolating the number of website visitors in the
mobile channel, Walmart recorded 84% growth in the
number of visits from 2013 to 2014 while Target recorded
35% growth, respectively. Target needs to take lead in
capturing consumers’ attention in the online channel (State.
Figure 4 (State of the U.S.)
Pinterest Integration into Target’s Online Infrastructure
To foster the usage of Pinterest’s marketing potential, the social media must become
directly integrated into Target’s infrastructure. For shoppers engaging Target.com, users can
seamlessly connect to Pinterest for respective products though hyperlinks. For users who engage
Target’s Pinterest initially, there will be direct reverse links to product descriptions on
Target.com. This access is an opportunity to link customers to product reviews, and leverage the
marketing potential of Pinterest through Target’s website.
In physical stores, barcodes create a quick and seamless transition between smart phones
and Pinterest/Target.com. Through the Cartwheel application, shoppers can scan barcodes and
become directed to Pinterest for the respective products. On Pinterest, customers have access to a
collection of information to support consumer decision-making in-store including images
ranging from simple product pins to showroom images. The strategy will appeal to the
expectations of quick-paced, tech-savvy consumers and compensate for the lack of limited in-
store showrooming at Target Home. This in-store strategy will accommodate millennial
consumers that expect a seamless omni-channel experience.

10. 4
Target’s Use of Pinterest Accommodates Consumers
Establishment of presence in online and mobile platforms is already in Target’s arsenal,
but Target’s engagement is misplaced. While 71% of consumers are likely to make purchases
based upon social media referrals (Stadd), and 51% of millennials say website opinions have
greater impact on purchasing decisions than family and friend recommendations (Talking To
Strangers), some platforms outreach others. Target has accomplished 22 million Facebook
followers, but is still missing out on a large section of the market by barely engaging with only
146 thousand Pinterest followers, despite 43% of Pinterest millennials reporting interactions with
retailers and brands they like (Nanji). In fact, 69% of online consumers who visit Pinterest have
found an item they’ve purchased or wanted to purchase as compared to the 40% of online
consumers who visited Facebook (Moth). While 64% of millennials feel companies need to offer
more engagement and opportunities to share opinions with other consumers, Target is yet to
mention their Pinterest account in the past three months (Talking To Strangers).
What Does Pinterest Bring to the Table For Target Home?
Pinterest, an online sharing forum where images are ‘pinned’ to collection boards for
public views and comments, is now the 3rd
most popular social network site (2012 Digital
Marketer). In addition to its popularity, Pinterest’s top searched topics include home décor and
design (Hanson). 28% of Pinterest guests are age 25-34 and are looking for products to fill
household space (Ledbetter). As a platform for feedback and consumer engagement, Pinterest
already has the traffic base with a claim of 63 million monthly active users in the fourth quarter
of 2014 (Will Pinterest Reach). Pinterest is the ideal social media for building a bridge between
Target Home and home goods shoppers.
Target’s needs to bridge limited in-store with limitless online.
Target Home’s product assortment layout does not reflect the trendy image that Target’s
website and brand suggest. They do not offer options to explore products in stylized settings like
competing retailers like Ikea, and Bath, Bath and Beyond. In Target Home, merchandise is
shelved as if sold in a warehouse, without styled layouts to demonstrate the potential of the
stocked items. This lack of visual appeal and functionality disrupts the preference of 68% of all
millennials for a seamless shopping experience regardless of channel (Donnelly).

11. 5
Figure 5
Data regarding recent consumer trends suggests that utilizing technology can compensate
for Target Home’s limited in-store product layout. 86% of retailers report that customers use
mobile phones while shopping in stores (5 Ways). In addition, 58% of guests said they preferred
to look up information on their mobile devices while shopping, rather than talk to an in-store
employee (5 Ways). This was especially true among shoppers between the ages of 25 and 44 (In-
Store Mobile). Such a large number of smart phone users in store imply that consumers need an
effective bridge to incorporate smart phone usage into the traditional in-store shopping
experience.
Figure 6 (5 Ways)

12. 6
The first step is choosing which products to include
For organizational purposes, the Operations Department will create a database of Target’s
products that will be listed on Pinterest. This will allow efficient and accurate maintenance of
Target’s Pinterest account. Moreover, the database will include attributes for each product such
as date of post on Pinterest, respective barcodes, and pictures. Maintaining the database allows
operators to keep track of old product listings that may need removal. Target’s Pinterest will
continuously cycle products by deleting out of season and out of stock items.
The sample database structure depicts at an example of a Pinterest pinned products’
database in low attribute detail
Figure 7
Target’s IT team will funnel network barcodes through Cartwheel.
Target’s Information Technology department will develop a mechanism to direct customers
back and forth between Target.com and Pinterest. Online hyperlinks on selected products will
direct shoppers to the products’ respective Pinterest pages to receive product information and
reviews. In addition, there will be direct reverse links to product descriptions on Target.com.
The IT department will also modify the Cartwheel app to allow in-store customers to scan
product barcodes. Upon scanning, the Cartwheel app will direct users to Pinterest to view the
scanned product. If a product is not on Pinterest, users will be directed to Target.com.
To ensure success, this infrastructure must be timely and maintain live and active links.
Figure 8

13. 7
Figure 9
Target will market on social media with Pinterest perks.
The marketing department will attract shoppers to Target Home’s Pinterest website by
posting information about its availability on other social media such as Facebook and Twitter.
The marketing department will also need to develop exclusive discounts for Target’s customers
who use Pinterest. Website links that direct shoppers from Pinterest’s product description page to
Target’s product description page will become embedded with a code that will provide Pinterest-
exclusive discounts.

14. 8
Figure 10
Pinterest will blossom as a marketing tool for Target Home.
Rather than using the traditional marketing schemes of sending store catalogs and
advertising products directly on Target Home’s website, using Pinterest as a marketing tool will
effectively align with the millennial consumer trends. Pinterest will accommodate the increased
millennial reliance on technology to research products and engage in product reviews. The use of
Target’s existing structure to integrate Pinterest will not require additional capital expenditure,
which makes it a cost-effective strategy.
Profit Analysis
Consumers are 10% more likely to buy products when Pinterest directs them to the
retailer’s website (Krizter). After they are directed, the average user spends roughly $170
(Gregory). The home department accounts for 17% of Target’s yearly revenue, which equals
roughly $12.2 Billion (2013 Annual Report). Best-case scenario, after the implementation of our
report, Target Home will have a 15% increase in their sales. Base case scenario, there will be a
10% increase. Worst-case scenario, there will only be a 5% increase.
20% OFF

15. 9
Current Revenue
from Home
Furnishings/Décor
% Increase from
Pinterest usage
$ Increase
Total Increased
Revenue
Best Case Scenario $12.2 Billion 15% Increase
$1.8 Billion
Increase
$14 Billion
Base Case
Scenario
$12.2 Billion 10% Increase
$1.224 Billion
Increase
$13.464 Billion
Worst Case
Scenario
$12.2 Billion 5% Increase
$617 Million
Increase
$12.8 Billion
Figure 11 (2013 Annual Report/Krizter/Gregory)
Best Case Scenario
Pinterest becomes a major attraction for Target customers interested in purchasing home
decor. This attraction leads to an increase in Target revenues with little to no added costs. The
profits earned from the new social media implementation can be used to develop future projects.
Target shoppers show their satisfaction with the new Pinterest account by posting reviews
on Target’s Pinterest page. Target uses analytical data from its business linked Pinterest page to
see which products are most valued by the consumer. It then uses this data to determine what
items to produce in the future to best satisfy the consumer need.
Implementation is expected in 10 months!
The implementation of our strategy is possible within 10 months because certain
processes can become accomplished simultaneously. While the Operations Department is
composing the assortment list, the Information Technology department can modify the online
infrastructure to help integrate Pinterest. Figure 12

16. 10
Appendices
Appendix A: Pre-SWOT Analysis
S
 Consumers 35-64
 US presence
 Post-recession consumer:
“Expect More, Pay Less” value
marketing
 Variety of products, consider
better than Wal-Mart
 Designer relationships
 Expanding fulfillment centers
 “Shops at Target”
W
 Walmart e-commerce sales
increased 21% in Q3 of 2014
 Closed Canada operations- issues
with vendors
 Cartwheel not reliable.
 Failed former partnerships
(RadioShack/Verizon)
 Security breach
 Consumers using Target as
showroom for low-price vendors
(Amazon, etc.)
 Not a “destination” for home décor
O
 People use mobile in-store to
enhance experience
 Mini-stores/clinics rising in
popularity
 94% of retail is brick and
mortars (touch and feel, instant
gratification)
T
 Walmart looking for better image
 1/3 of online shoppers hesitate
because of credit card fraud.
 Gap- new exec of e-
commerce/marketing
 Neiman Marcus- memory mirror
 in products in stores

17. 11
Appendix B: Post-SWOT Analysis
S
 Consumers 35-64
 US presence and International
 Post-recession consumer: “Expect More,
Pay Less” value marketing
 Variety of products, consider better than
Wal-Mart
 Designer relationships
 Expanding fulfillment centers
 “Shops at Target”
 Larger customer bade from social media
 Increase social Media act
 Online Presence
 Customer satisfaction through reviews
and display
 Cartwheel will become a reliable retail
app
 Destination for home décor from
Pinterest
 Less time spent in store
W
 Walmart e-commerce sales
increased 21% in Q3 of 2014
 Closed Canada operations- issues
with vendors
 Failed former partnerships
(RadioShack/Verizon)
 Security Breach
O
 People use mobile in-store to enhance
experience
 Mini-stores/clinics rising in popularity
 94% of retail is brick and mortars (touch
and feel, instant gratification)
 Pinterest is more reliable then Facebook
and twitter when it comes to purchased
items
 Pinterest’s top searched category is home
décor
T
 Walmart looking for better image
 1/3 of online shoppers hesitate
because of credit card fraud.
 Gap- new exec of e-
commerce/marketing
 Neiman Marcus- memory mirror
 Overlap in products in stores
 * App security (hacks & viruses)

18. 12
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