Retail Intimacy, Part 1: Winning at Target

This is the first installment in a five-part series examining best practices for shopper marketing collaboration. In this article, we examine successful CPG initiatives at Target, a chain known for being highly selective in its choice of partners and proposals. Brands can and do break through, however, if they follow the right path.What do a chic first-aid kit, a customizable set of crayons, a seasonal mash-up of iconic figures and an Asian cuisine-inspired frozen meal solution all have in common? Each item was the centerpiece of a deftly conceived shopper marketing program – from Johnson & Johnson, Hallmark Cards’ Crayola, Mars Inc. and ConAgra Foods’ P.F. Chang’s, respectively – that won over Target’s merchant teams and that is currently thriving in its stores.The success stories behind these and the other programs described in this article contain lessons for all manufacturers that hope to strengthen their relationships with Target. The Minneapolis-based chain, an elite and highly discriminating retail customer, is so strict with its clean-store merchandising policies that many CPG brand managers simply assume that getting their programs into the chain would be an impossible dream. It’s quite possible, however, that these marketing execs have not directed enough of their energies toward truly understanding what it takes to clear the hurdles and ultimately succeed at Target.There is a duality to the Target philosophy of “wants” vs. “needs” – a set of core beliefs about how its “guests” (the chain’s preferred term for shoppers) build a trip around luxury items and essentials. Those beliefs are summed up by the “Expect More. Pay Less” brand promise. Target shoppers seek value in high-quality products that add to their lives, especially in terms of style and convenience, and this ethos spreads across the entire organization. It dictates not only how Target treats its customers but also what it requires of vendor partners.Those who work closely with Target on “guest marketing” programs say that it is not just a question of what is in those plans, but how the ideas are presented.“How you go about building relationships within the Target framework is extremely important,” says Heidi Froseth, senior vice president and Target team leader at Minneapolis-based Catapult. While Froseth cautions against taking a “one size fits all” approach, she says that brands can at least improve their chances of getting programs through by adhering to a set of guiding principles (see the “Five Keys to Success” sidebar at right).“You have to bring a different mindset to Target,” adds Joe Robinson, president of Catapult. “You cannot simply check off a box along with the rest of your retail customers. Find where the synergies are between the two shopper marketing organizations and you’ll be able to create something great.”J&J: Form Meets Function in a First-Aid KitA few compelling words come quickly to mind when one thinks of first aid: Safety. Injury. Prevention. For Johnson & Johnson, a stroke of genius arrived in the form of another word: Emotion. By tapping into the emotional states associated with giving first aid and looking deeper into usage occasions, the company elevated its summer-time “First Aid Kit” promotion at Target stores into a “Be prepared everywhere” marketing platform that could be leveraged at any time of year.The partners first introduced the stylish first-aid kit in 2009 as a way to bring innovation to the increasingly commoditized first-aid category. Consumers were encouraged to “Build your own First Aid Kit” and received the bag as a gift with purchase of three or more qualifying J&J brands. J&J has since been able to expand the original exclusive Target program to other retailers nationwide.Thus, the challenge this year was to find a distinctive value proposition for Target. “It was important to our buyers that we go beyond an anniversary program or endcap,” says Heather Campain-Robish, director of shopper marketing and category insights at J&J. “Target owned this promotion and needed to remain the leader.”A full year prior to the summer 2013 launch, J&J’s cross-functional team began conducting brainstorming sessions with Target’s buyers, insights teams, category managers, sales teams and other marketing leaders. The “Be prepared” messaging arose from these meetings and spoke to a more comprehensive strategy to engage the Target “guest” – who is said to over-index on many social activities and active lifestyle pursuits – as well as to an expanded product assortment, in-store merchandising and digital marketing.“We know that some occasions require products that are complementary to the first-aid category,” says Campain-Robish. “We can help people be prepared in ways that they may not have thought of.” She cites, for example, the happiness that comes with being able to relieve foot pain for guests at a wedding, hence the addition of Band-Aid Friction Block to the promotional basket.The concept of “family” was also broadened to reflect the way people live – going to soccer practice, taking a camping trip or spending a day at the beach – thus the participating products are featured on camping and wedding-related pages within Target.com. At J&J’s brand page, Target promotes the “First Aid Kit” with brands such as Neutrogena sunscreen and Neosporin anti-itch cream with more typical first-aid remedies like Band-Aids.The kit’s style quotient too has been elevated each year. Working with Nsight Connect (a shopper marketing unit of Catapult), Target and J&J this year introduced a mini travel case inside the water-resistant thermoform red bag, which is embossed with an elegant cross design to evoke the universal symbol for first aid. Additionally, a waistband includes a QR code that directs smartphone-equipped shoppers to tips, tools and other first-aid ideas on Target.com.Crayola: Color Me Creative with “Pick Your Pack”The typical Target mom is said to be confident that her kids will receive a good education. So when she steps into the arts-and-crafts aisle, her primary concern is fostering her children’s creativity and self-expression. That is the premise of Crayola’s “Pick Your Pack” product line, now in its third year as an “only at Target” exclusive.“Pick Your Pack” allows shoppers to create their own custom tins of up to eight original eight-pack Crayola crayons, whose colors have been arranged by themes and given names like “Secret Agent,” “Glitterati” and “Fire and Ice.” The box designs are geared toward both boys and girls, sporting characters such as a monster, superhero and princess. The product line is based on the idea that, as with most art supplies, kids use crayons as a means of self-discovery.“It’s about the individualization of color: Here’s who I am, here’s what I can create,” says Jason Eastman, customer business and Target team leader at Crayola.Eastman says kids like to create their own figures (similar to the way they interact with Legos) vs. sticking to what is shown on the box. Hence the colorful characters are meant to inspire new ideas. “Moms also want something different for their children, but they want it at a great value,” he says. “When you partner with Target [on exclusives], you want to give them something really special. But it has to be reasonably priced and address a clear customer need.”The product line originated during a top-to-top meeting in 2011 in which Target challenged Crayola to boost foot traffic and profitability in the arts-and-crafts category. The strategic approach to apply customization to crayons appealed to both sides, since crayons are one of the category’s largest segments and Crayola’s core strength.Crayola’s insights, product development and creative teams presented Target buyers with 30 to 40 theme concepts (new themes are rotated in about every six months). Target vetted the list down to 24 final SKUs. Pricing for the eight-count boxes was set at 99 cents, which is higher on a per-stick basis (a 24-count box retails for about $1.39) but deemed a good value in the context of a compelling product. “We’re taking our core crayon and charging a reasonable price for something that’s special, exclusive and fills a consumer need,” says Eastman.During a test run at 50 Target stores, Eastman says product flew off shelves. The original product featured cartons that could be filled with higher multiples of eight-packs as a way to promote increased basket size. Target later suggested the move to tins, which has been very successful.“Pick Your Pack” is now being expanded to other segments. For the upcoming back-to-school season, Crayola is rolling out a customizable marker line (in Target stores as of this month), backed by in-store marketing and an updated packaging design. Unlike the separate crayon-themed characters, the markers will be depicted with arms and legs and given accessories such as a cowboy or Viking hat. “At Target, success in one category can often drive innovation in other areas,” says Eastman.P.F. Chang’s: ‘Asian with a Flair’ Wins in FrozenConvenience has long been the driving force behind meal solutions. With that in mind, Target sought to draw more time-starved shoppers to its frozen food department this past spring through a “Meals Made Easy” endcap destination. When Target buyers approached ConAgra with the opportunity, the manufacturer turned to its recently acquired portfolio of P.F. Chang’s frozen foods to fit the bill.ConAgra estimated that the restaurant quality of P.F. Chang’s – dubbed “Asian with a Flair” – would be a natural fit for Target’s discerning shoppers. The company had a P.F. Chang’s frozen fried-rice product already in development and pitched that item as an exclusive offering to Target’s merchandising team.“One of Target’s strategic focuses is the busy family segment. It’s been supported heavily in grocery but less so in frozen,” says Evan Cross, director of shopper marketing at ConAgra. “Target loved our initial creative concept but challenged us to go further with our value proposition. Since fried rice is typically an ingredient or side dish, we wanted to create a total meal plan.”As part of the solution, ConAgra developed a recipe for a spicy peanut dipping sauce, which it promoted along with an offer for a free package of Target’s private-label Archer Farms frozen vegetables with purchase of any two P.F. Chang’s appetizers, fried rice SKUs or entrées. In stores, the six-week program (which ended mid-June) featured a two-door freezer display, easel cards, tabletop handouts and a cooking demonstration using the frozen rice and vegetable products. ConAgra also blanketed Target.com with a P.F. Chang’s brand page presence, mobile coupons, direct mail support and circular ads.ConAgra drew on previous experience in developing meal solutions at Target around its premium Bertolli line of authentic Italian frozen foods. (ConAgra acquired both Bertolli and P.F. Chang’s from Unilever in August 2012.) The idea to bring the “Meals Made Easy” concept to frozen foods had arisen from discussions between ConAgra’s insights team and Target’s frozen foods buyer group over ethnographic research conducted in the spring of 2012.“We went into people’s homes and talked to them about the role that frozen food plays in their lives,” recalls Tim Olson, national account manager for ConAgra. One issue was overcoming the perception of frozen foods as bland and texturally challenged. Plus, moms often reported feeling guilty having all the cooking done for her. “She wants ideas to make the meal her own, but also seeks products to make her life easier,” says Olson.The program underwent several iterations. For example, ConAgra took the proactive step of including Archer Farms on mockups of the collateral materials, and Target further suggested adding pictures of the frozen appetizers on the back of the cards/handouts along with the dipping sauce recipe. “The concepts got better and better through each of the ideation stages,” says Cross.M&M’s: Easter Means Taking Candy from a BunnyTarget has extensive stylebook guidelines and adheres to a strict clean-store policy. So when a marketing partner manages to get one of its brand assets clearly visible on Target’s shelves, they’ve done something right. That credit goes to Mars for its charming M&M’s “Red” character, who was depicted wearing a bunny suit on a seasonal endcap promotion at Target this past Easter.Mars’ relationship with Target dates back many years, and the company knows it can continue to secure display – if it delivers. The Easter solution: an endcap display filled with 9 oz. and 12 oz. laydown bags of white chocolate M&M’s in pastel shades of pink and blue, available only at Target. “We’ve been able to strengthen our relationship by going beyond the fundamentals to deliver something that’s truly unique to Target,” says Lisa Moes, shopper marketing manager at Mars.Mars unveiled the white chocolate M&M’s at Target the previous year, based on the insights that half of U.S. households use candy for Easter decorating and 91% include chocolate in their Easter baskets. These same insights on this core consumer supported the idea that this unique flavor offering would be conducive to gift giving.During the 2012 holiday season, “Red” was introduced into Target stores dressed in a festive hat. Target executives noted “a positive guest reaction and emotional connection” upon seeing the character in the store and wanted to continue the momentum for this year’s “It’s Time for Easter” seasonal displays, says Moes. “Red” was prominently featured on endcap headers and shelf strips, in coupon books and online at Target.com/mms.Being able to deliver a unique property to Target may lead to other opportunities in the same category, adds Matt Kipling, national account manager for Mars Chocolate. Based on this year’s success with M&M’s, Mars offered a special Easter egg-shaped version of its Snickers and Twix brands. “You might find that item in other stores on a [standard merchandising unit], but we were able to come up with a unique offering by presenting it in a shipper that fits within Target’s clean-store requirements,” says Kipling.About the SponsorCatapult is today the merger of two powerful agency brands – Catapult and RPM – now operating under a single vision and name. Catapult was launched in 2005 as an integrated agency resource, while RPM began in 2008 as a decentralized shopper marketing agency. Today both have come together under the Catapult name, delivering insights, brand strategy, shopper marketing, consumer promotions, digital, and outstanding creativity. Catapult has been named Consumer Promotion Agency of the Year by Chief Marketer magazine and has been voted the No. 1 Shopper Marketing Agency by The HUB. In addition, Ad Age has ranked Catapult among the top 10 largest promotion agencies in the country, and the agency has garnered several dozen awards for digital excellence.In 2012, the agency became part of Epsilon, the recognized leader in providing data and technology solutions. This gives Catapult access to proprietary data and analytics that help develop rich, fact-based insights to fuel winning creative solutions. It also provides a more granular level of assessing in-market performance of its programs.About the AuthorMichael Applebaum is a freelance writer and editor who specializes in developing features that address all aspects of marketing. He trained in the New York City publishing industry and held senior-level editorships at Brandweek, Photo District News and Spy magazine. He has covered marketing since 2000 and now produces various independent research, copywriting and editing projects for businesses and agencies. His marketing journalism work has been regularly featured in Adweek and Shopper Marketing magazine. He is based in Chicago.

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