Target has teamed up with BCG Digital Ventures to conduct a 14-week innovation sprint. During that time, Digital Ventures’ designers, engineers and investors will work side by side with five of Target’s team members to develop a portfolio of new growth ventures.
The retailer has had a very busy year putting a turnaround strategy into effect that is already beginning to pay off. A significant part of the retailer’s efforts have focused on the development and launch of a dozen new private brands. It’s essential, however, to keep selection fresh and new. After Target finishes launching these 12 new brands, it can’t afford to let them grow stagnant. Curating a selection of items across various categories requires agility and constant innovation. To that end, Target hopes to leverage its partnership with BCG Digital Ventures to explore compelling business ideas that support the company’s strategic priorities. According to the company, any new products and businesses that result from the innovation sprint will be designed to address the needs of the retailer’s customers.
“This is a unique partnership with tremendous potential — and we’re excited about the passion, inventiveness and entrepreneurial commitment being brought to bear from Target and Digital Ventures,” said Anthony Koithra, partner, BCG Digital Ventures.
Target’s five team members are working out of Digital Ventures’ centers in New York and Los Angeles — and this week, they’re split into groups doing immersive customer behavior research in six cities across the country. Each group has a mix of Target and Digital Ventures team members that include ethnographers, venture capital investors, product managers, designers, engineers and growth specialists.
The news comes on the heels of Target’s latest marketing campaign launch. Called “More in Store,” the campaign promotes A New Day, Goodfellow & Co and Project 62 alongside Cat & Jack and Threshold.
“Our marketing creates a 360-degree experience that brings a touch of joy to everyday shopping, whether guests are walking into our stores, browsing Target.com, Pinterest or Instagram, catching our broadcast spots or print ads and more,” said Rick Gomez, EVP and chief marketing officer, Target. “And, I’m especially proud that this work beautifully highlights inspiration for everyone. The marketing and the brands are unmistakably Target — and we think guests are going to love it.”
Starring in the campaign will be a crew of fashionistas, models, chefs and athletes, including style blogger Paloma Elsesser, pro soccer player Robbie Rogers and interior designer Athena Calderone, each offering diverse perspectives that will be appealing to a wide range of shoppers.
“Building brands is much more than creating labels. It’s about designing products that invest the master brand promise of ‘Expect More. Pay Less’ with deeper meaning. It’s creating products with a point of view, inspired by our guests, that not only represent our shared values, but also are available at a great value,” said Todd Waterbury, Target’s chief creative officer. “I feel the idea of ‘More in Store’ is the perfect way to capture what makes Target, Target. It speaks to the anticipation and the invitation, the excitement of discovery that every guest loves. It also speaks to the power of differentiation that our owned brands deliver for our guests and our business.”
Target is continuing to remake its stores. It has invested in compelling visual merchandising displays, including mannequins and cross-merchandised products that let the retailer “bring the brands to life in new ways.”
Online, the retailer has created individual pages to help customers get to know each brand better. For example, because fit is an essential selling point for its new Goodfellow & Co brand, the page includes a fit guide for shoppers. Meanwhile, A New Day’s brand page shows customers how to style items and outfits for different occasions. And coming soon, the Project 62 page will incorporate 360-degree videos, to help shoppers get a visual feel of how products look in a real room setting.
Throughout autumn, Target plans to feature its new private brands in broadcast spots, as well as across social media, newspapers and magazines.