its other regions. It is just launching into the chain’s final 200 stores,
Target stocks Chameleon’s 32-ounce Original Black, Vanilla, Mocha
and Caramel, which was a Target exclusive for its first six months.
“The way the Caramel flavor came about was very organically collaborative,” Campbell says. “We were talking with them about how we
know we always need to innovate. They said that salted caramel has
been hot for a while, that caramel is a popular flavor, and could you do
a caramel flavor for us? We said, sure, we’d try. They saw our packaging, gave us feedback on taste, and we put it together and launched it.”
Manufacturers say that being carried by Target also helps swing open
the doors at other retailers.
“To be able to say that we’re in Target and that we’ve been in Target
for a few years certainly will calm the fears of other retailers as we talk
to them about selling a coffee product that doesn’t have milk in it,”
LaCasse agrees, saying that “Having data showing we’ve been a
success in Target has added to our sales story for other retailers, and
makes it easy to show them that our best placement is next to the Aunt
A benefit to dealing with Target is that they look at the overall value
of the brand being offered and its impact on the category for the long
haul, says Rosenquist.
“Target looks at the whole schematic, the whole grocery shopping
experience, and asks, what is best for their consumers’ baskets?” she
says. “What do our customers come here for? How can we ‘wow’ them?
It is like they take care of things. They like to put something out there
that pops, gets their guests’ attention and is something special.”
Due to its size Target has to be extra careful, Lamberti cautions.
IN REDESIGNING THEIR GROCERY DEPARTMENTS officials
at Target really did their homework. That included sitting down with
shoppers for some one-on-one market research.
“For the past 12 months we have been doing extensive deep dives
across the entire portfolio, including doing some really deep dives with
our guests,” says Anne Dement, senior vice president, merchandising,
grocery at Target Corp., based in Minneapolis. “We spent a lot of time
talking to our guests. We went to their homes. We talked to them about
their habits, routines, families and their values. They really opened
their homes to us. It was an amazing experience,” she says.
“They let us look in their cupboards and in their refrigerators. We
watched them create their grocery lists and search for products online,
post ideas on Pinterest,” Dement says of the research, which was done
Dubbed “demanding enthusiasts” by Target officials, the researched
guests were loyal Target shoppers with high expectations.
Dement says Target will do similar guest interviews in other markets. “We are going to continue to talk to our guests and we’re going
to continue to gain insight,” she says. “This is not a one-and-done.
We should always stay very in tuned to our guests and their needs and
understand their behavior and the changing dynamics.”
“As Target goes after this grocery format as its focus, especially going
after variety and tapping into the Millennial trend, the execution is
going to become key,” he says. “With the scale in which they operate,
and the size of the stores that they run, can they keep the execution
where it needs to be to really feel all the benefit to that approach in merchandising?”