Wedding Registry Target Case

Wedding Registry Target Case

Instructions/Descriptions

Wedding Registry Target Case

Wedding registry.

Situation analysis. This case presents a scenario with a hypothetical challenge. Approach it as if you were a target team member.

The wedding registry landscape is more competitive than ever. Each year approximately 1.5 million couples register equating over $10 billion spent on gifts every year [1]. Traditional wedding registries still dominate but are declining as universal and experience registries are gaining steam.

While 50% of registries are started in-store, most are managed exclusively online, up from 81% in 2013 [1]. Having the ability to access and manage a registry online/mobile, as well as the ability for guests to make purchases from registry online, are important criteria when choosing a primary registry.

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Millennial couples are looking for more personalized experiences in all aspects of their lives and their weddings and registries are no different. They want less “stuff” and more experiences and expect that brands and retailers understand who they are and address their individuality [2].

As a leader on the wedding registry team, how would you develop a strategy that delivers a personalized registry experience for the millennial couple, considering product assortment, technology, customer service or marketing?

The history of target. Minneapolis-based target corporation (nyse: tgt) is a publicly-owned fortune 40 company that currently serves guests across the u.s as well as at target.com. Target had $72.6 billion in annual sales in 2014.

The first target store opened in 1962 in the minneapolis suburb of roseville with a focus on convenient shopping at competitive discount prices. Target currently is the second largest general merchandise retailer in america, with target.com consistently ranked as one of the most-visited retail websites.

The company continues to deliver on its brand promise of “expect more. Pay less.” Since 1946, target has given 5 percent of its profit to communities, that giving today equals more than $4 million a week. Corporate responsibility magazine has named target on its “100 best corporate citizens list.”

Today target has nearly 1800 stores and 38 distribution centers in the united states, all of which are supported by nearly 350,000 team members worldwide.

For target, the guest is at the center of everything. The company is continually developing new ways to serve the guest anytime, anywhere – including rolling out store pickup, launching a

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Cartwheel digital savings app, opening flexible format stores and offering target subscription services.

The wedding registry industry is a $5.7b market and expected to grow at a 4% rate for the foreseeable future [1]. Although the industry has been perennially dominated by in store sales, a natural movement to digital channels is occurring. The current industry breakout of sales by channel is: 65% in store & 35% online.

The wedding registry business at target has been flat to slightly declining over the past few years while we rebuilt our team & technology supporting this critical initiative. Over the past 6 months we have begun to see positive comp sales. About 50% of our business is done in stores and the other 50% is done online and on mobile.

Target wedding registry has been actively building technology and guest experience enhancements over the past year. These updates include:

• target registry app for apple and android that allows registrants to create, browse and manage anytime, anywhere
• universal registry capabilities
• increased completion offer to 15% (registrant can buy anything left on their registry with the discount)
• 15% off coupons for friends and family (4 coupons to pass out)
• registrant has up to one year from their event date to return or exchange items

The guest [consumer]. Couples are waiting longer before getting married and likely to have lived together prior to marriage [2]. This greater co-habitation reduces the overall demand for equipping a new residence with traditionally registered-for items.

Now, they are looking to upgrade items they already have, expand into non-traditional categories or get gift cards. In this sense, registry remains a key opportunity for couples to realize their dreams–be it for a home, item or experience. After all, a wedding registry is isn’t for the wedding day, it’s for the life the couple wants to have together.

The main reason couples are setting up a registry is to make it easy for their gift givers. If they don’t have a registry, they get pressured by family and friends to set one up. Engaged couples typically register at 3 retailers [1]. To provide a range of options for gift giver convenience and affordability.

Registry choice is quick and with little research, it’s based on familiarity and past experiences with the retailer. Other factors include product selection and online and mobile accessibility. Partners often work together in building their registry and may find conflict between what they really want on their registry vs. What’s expected. They look to friends and family and retailers to provide inspiration and guidance on what to register for.

Couples typically get engaged 12-24 months out from their wedding date. Then they begin to research retailers and products anywhere from 8-12 months out and set up their wedding registries 6-8 months out. After the wedding, couples are likely to buy final items from their registries (with completion offers) 6 months after their wedding date [1].

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The competitive landscape. Target is #10 in wedding registry sales, whereas we are a top 5 competitor in terms of registry creations & $ size added to registries. Furthermore, we are considered the favorite secondary registry. Target has experienced declines, along with bed, bath & beyond, while macy’s and amazon have been able to maintain or improve their performance.

There are also new competitors emerging in the marketplace like west elm, best buy and walmart.com, along with registry aggregators such as zola.com and specialty registries such as honeyfund and hatch my house.

Couples typically choose a primary registry based on product selection, brand perception of goods and how special they make the registrants feel about their upcoming milestone.

The challenge ahead. How could target develop a personalized registry experience for the millennial couple, considering product assortment, technology, customer service or marketing?

Considerations/thought starters:

Product assortment: how can target’s product assortment be optimized to suit the needs of millennial couples who are looking for upgrades to products and more experiences?

• honeymoon registries continue to gain having doubled over the past 5 years
• having a wide product selection is extremely important in choosing a primary registry
• target is where the couple stocks up on paper towels. How can target feel special for this special time in their life?

Technology:

• universal registries are up 18% and allow registrants to add product from multiple retailers into one destination (giftregistry360.com, myregistry.com)
• online only retailers are up 13%
• online and mobile management and purchasing is important for choosing a retailer
• couples place significant value on touching and feeling products, so the in store experience gives target an advantage

Customer service:

• how can target reinvent customer service solutions to make the couple feel celebrated & special, both in store & online, without an appointment or in store wedding concierge?

O 41% of couples start a registry in-store without an appointment, 42% start registries online via computer/mobile

• how can target provide more personalized customer service solutions through all touch points of registry? Set-up, management, returns/exchanges, etc.

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Marketing:

• how could a marketing campaign showcase target’s personalized wedding registry experience to engaged couples?
• knowing the millennial couple is digitally savvy, how do digital and social channels support this marketing message? How do traditional channels, such as print and direct mail, fold into support digital, if at all?
• are there promotions or rewards that would keep the couple engaged throughout the registry journey?
• should any focus be placed on the gift giver?

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References. [1] the knot / xo group “2014 bridal registry study” fielded september 2014

[2] “gift registries – us, may 2013” published by mintel group ltd

Interested in learning about what it’s like to work at target? Read the latest team member stories at http://pulse.target.com or visit www.target.com/careers to view current openings.

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Wedding Registry Target Case

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