1. INNOVATION TEAM Grader: Lessley Dennington Team Members:
Sean Campbell Emma Joseph Kate Perry 1
2. Targets Maya SmartCart2
3. Team Members and Roles Kate Perry Research Co-Lead Product
Assistant Service Lead Sell Co-Lead Deliver Co-Lead Emma Joseph
Task Manager Research Assistant Product Lead Sell Co-Lead Sean
Campbell Project Manager Research Co-Lead Deliver Co-Lead Product
Assistant Sell Assistant 3
4. Table of Contents4 Slide Title Page Number Cover Page 1
Title Page 2 Team Members 3 Table of Contents 4 to 9 SELL 10
Executive Summary 11 Current WCA 12 Current WCA Narrative 13
Current VC 14 Current VC Narrative 15 WCA with Maya 16 WCA with
Maya Narrative 17 VC with Maya 18 VC with Maya Narrative 19 Impact
of Maya Smart Cart 20 Presentation 21 Current System 22 Current WCA
23 Current VC 24 Where We Fit In Market* 25 What's the Problem 26
Target Mission Statement 27 Identify Problem 28 Reasons for Problem
29
5. Table of Contents5 Market Potential: Customer Inquiry* 30
Solution: The Maya SmartCart 31 Solution 32 Product Layout Mockup*
33 Maya SmartCart Mockup: Customer Experience* 34 WCA with Maya 35
VC with Maya 36 How The Maya SmartCart Works 37 Feature
Descriptions 38 Feature Map* 39 Impact of Maya Smart Cart 40 Value
Added 41 Maya Impact on Store Hierarchy* 42 Cost 43 Financials:
Total Costs 44 Plan to Deliver 45 Testing Strategy 46 Overall
Distribution Channel Plan 47 Overall Distribution Channel Plan
Narrative 48 Service: Jobs Related to the Maya SmartCart 49
Service: Jobs Flowchart* 50 Service: Jobs Narrative 51 End
Presentation 52 RESEARCH 53 Research Summary 54
6. Table of Contents6 Current WCA 55 Current WCA Narrative 56
Current VC 57 Current VC Narrative 58 Current WCA with Maya 59
Current WCA with Maya Narrative 60 Current VC with Maya 61 Current
VC with Maya Narrative 62 Defining the Notion and Product 63 Target
Market for Product 64 Target Customer Profile 65 Brainstorming and
Ideas 66 Senior Citizen Assistant 67 Hand-e Man 68 Security Guard
69 Maya SmartCart Shopping Assistant 70 Competitor 71 Assumptions*
72 Assumptions Terms* 73 Market Potential 74 Experience Sharing
Graph 75 Incentive to Buy Graph 76 Customer Inquiry Graph 77 Market
Potential Narrative 78 Constraints and Limitations 79
7. Table of Contents7 Asset Protection and Technology 80
Distribution Channel 81 Overall Distribution Plan 82 Overall
Distribution Plan Narrative 83 Financials 84 Hardware Costs 85
Software Costs 86 Hardware and Software Narrative 87 Current Target
Store Hierarchy 88 Current Target Store Hierarchy Narrative 89
Current Workforce Breakdown 90 Current Workforce Breakdown
Narrative 91 Maya Impact on Store Hierarchy 92 Maya Impact on Store
Hierarchy Narrative 93 Impact on Workforce 94 Impact on Workforce
Narrative 95 Financials: Labor 96 Financials: Labor Narrative 97
Financials: Totals 98 Financials: Totals Narrative 99 PRODUCE 100
Production Summary 101 Product Mockups 102 Customer Experience
Mockup* 103 Product Layout Mockup* 104
9. Table of Contents9 SERVICE 130 Service Summary 131 Service:
Salary Positions Created 132 Service Jobs 133 Service Jobs
Narrative 134 Maya SmartCart Technician 135 Inventory and Database
Layout Technician 136 Data Analyst Team 137 Target Quick Response
Task Force 138 Evaluation Plan for the Maya SmartCart Test 139 Ease
of Repairs 140 Data Quality 141 Changes in Customer Behavior 142
Changes in Store Profits 143 REPOSITORY 144 to 149 Sources 150 to
155
10. Sell10
11. Executive Summary As part of Targets Innovation Team, we
recommend Target Corporation implement the Maya SmartCart into its
Super Target retail store in Charlotte, North Carolina for testing.
The application of the popular personal robot technology to store
shopping carts would introduce a groundbreaking and personalized
customer shopping experience, and also open the door to excellent
observational research opportunities for Target as shoppers utilize
their Target REDcard to access full Maya SmartCart capabilities. As
more modern shoppers transition to online stores, a strong focus on
customer service has become vital in todays brick-and-mortar retail
stores in order to compete. However, with over 350,000 team members
country-wide, it can be difficult to standardize and streamline
policies on customer service. With the exponential rise in the
reach of a single customer review, it is imperative that each
customer receives the same exceptional service as the next. Target
needs a solution to systemize its customer service in an innovative
way that will differentiate itself from all competitors across all
modes of shopping. The Maya SmartCart will provide a shopping
experience tailored to the needs of each Target customer with
features including, but not limited to, store maps and guidance to
products, personalized shopping lists, suggested items for
purchase, coupon offerings, and stronger incentives to use the
Target REDcard. Target benefits from the increased customer traffic
and retention as shoppers find that Target provides the most
convenient shopping experience, and also from the research
capabilities Maya SmartCart offers. Instead of predicting customer
wants on point-of-sale, we can utilize camera and store GPS
functions to determine customer tastes on a point-of-preference
basis. With the Maya SmartCart, we can study customer decisions as
they happen, where they happen, and the results of those decisions.
With Maya SmartCart, Target Corporation will revolutionize the
customer service market by providing innovative service, while
continuously researching exact customer needs. 11
12. Overall WCA for Current Target 12
13. Overall WCA Narrative for Current Target Goal: Provide
positive customer experience through quality products laid out in a
simple, ergonomic format Value: By providing positive customer
service, Target will increase customer satisfaction, leading to
higher retention and more positive reviews which makes them more
appealing to shoppers who value quality Product: Customer Shopping
Experience Customer: Target Shoppers Work Practices: Research:
Investigate Targets typical shopper experience and locate areas
that can be improved upon. Produce: Create an environment of
quality that provides positive customer experience. Deliver: Supply
quality brands for affordable prices in an appealing layout.
Service: Preserve quality assurance through positive employee
interaction with customers. Sell: Offer customer confidence in the
Target brand through quality products and service. Technology: Cash
registers, Barcode Scanner, Credit/Debit Card Terminal, Product
Price Checkers Data: Payment Information, Product Inventory
Information People: Target Customers, Target Employees 13
14. Overall Value Chain for Current Target 14
15. Overall Value Chain Narrative for Current Target Research:
Shopper Experience Produce: Quality Environment Deliver: Affordable
Products by Quality Brands Service: Quality Assurance Through
Employee Interaction Sell: Customer Confidence Value Added: By
providing positive customer service, Target will increase customer
satisfaction, leading to higher retention and more positive reviews
which makes them more appealing to shoppers who value quality
15
16. WCA for Target with Maya 16
17. WCA Narrative for Target with Maya Goal: Provide a
personalized customer experience for EVERY Target Customer as well
as an incentive to use the Target REDcard Value: By using the Maya
SmartCart, Target will ensure customer satisfaction and promote
their positive reputation while simultaneously collecting key
customer data that can be used for Targets Quick Response Task
Force Product: Maya SmartCart Customer: Target Co. Work Practices:
Research: Investigate Market Potential for an Artificially
Intelligent software that personalizes customer experience.
Produce: Reinvent the shopping cart by integrating the Maya
operating system into the cart design. Deliver: Provide 70
SmartCarts for testing in the SuperTarget in Charlotte, NC. Sell:
Offer a positive, personalized customer experience for any customer
who decides to shop at Target. Service: Ensure that all Maya
SmartCarts can provide the complete intended experience for every
customer. Technology: Maya SmartCart, Zigbee Network, Target
REDcard scanner, 3D Camera Data: Customer Decision making, Customer
Tracking Information, Product Inventory Information People: Target
Customers, Target Employees 17
18. Value Chain with Maya SmartCart 18
19. Value Chain Narrative with Maya SmartCart Research: Market
Potential Produce: Maya SmartCart Deliver: 70 Maya SmartCarts to
Charlotte, NC Sell: Customer Experience Service: Ensure Customer
Experience Value Added: By using the Maya SmartCart, Target will
ensure customer satisfaction and promote their positive reputation
while simultaneously collecting key customer data that can be used
for Targets Quick Response Task Force 19
20. Impact of Maya SmartCart Provides a personalized, positive
experience for each customer Provides an incentive for customers to
be REDcard members Rewards customer loyalty Provides a new
opportunity for customer Data Acquisition Allows Target to better
predict customer trends Enables Target Quick Response Task Force to
understand what products interest the customer that they may not
take with them to the register 20
21. Presentation21
22. Current System22
23. Overall WCA for Current Target 23
24. Overall Value Chain for Current Target 24
25. Where We Fit In Market25
26. Whats the Problem?26
27. Mission Statement Our mission is to make Target your
preferred shopping destination in all channels by delivering
outstanding value, continuous innovation and exceptional guest
experiences by consistently fulfilling our Expect More. Pay Less.
brand promise. 27
28. Problem exceptional guest experiences Problem: Target cant
ensure that EVERY customer that walks through the door receives
positive, personalized customer experience 28
29. Reasons for Problem Employee may not be nearby at the right
time Employee could be answering other customer questions Customer
may not know what to ask Customer may be anxious about asking
29
30. Market Potential: Customer Inquiry Figure 3 Customers were
asked What mode do you prefer to deal with customer service based
on the complexity of the problem? 38% of people prefer to view
company website when facing a simple problem. 30
31. Solution: The Maya SmartCart31
32. Solution continuous innovation Make Target Website: Easy to
use Accessible/Mobile for use in-store Up-to-date Maya SmartCart:
Hands-free Website in Shopping Cart 32
33. Product Layout 33
34. The Maya SmartCart: Customer Experience Mockup of customers
view of Maya in an obtuse triangle hardware piece in the cart,
tilted towards the customer. 34
35. WCA for Target with Maya SmartCart 35
36. Value Chain with Maya SmartCart 36
37. How The Maya SmartCart Works37
38. Feature Descriptions Software: Grocery List Map/ Store GPS
Suggestions/Specials Maya Computer Network Hardware: Front and
Forward facing camera Items placed in the cart: Suggest related
items Give Directions Selective Listening Microphone Allows
dialogue with Maya interface 38
39. Feature Map Information Gathering Information Gathering
Welcome Page Main Page In-depth GPS Product Information Product
Specials Color Code Chart Color Meaning RED REDcard Member BLUE
General Guest GREEN Both 39
40. Impact of the Maya SmartCart40
41. Value Added 1. Provide Customer Service Personalized
Readily Available Organic 2. Incentive to be REDcard member More
Features Even MORE Personalized Special Savings 3. Data Acquisition
Eye Tracking Products interested in but NOT purchased Cart Tracking
41
46. TestingStrategy Best to test in North Carolina SuperTarget:
Charlotte, NC 200 Carts Total Recycle 70 Carts (35%) into Maya
SmartCart Distribution Center: Newton, NC Bemis Manufacturing:
Lenoir, NC 46
47. Overall Distribution Channel Plan Continuum (Boston, MA)
RobotBase (New York City, NY) Bemis Manufacturing Company (Lenoir,
NC) Regional Distribution Center (Newton, NC) Local Target Store
(Charlotte, NC) Customer 47
48. Overall Distribution Channel Narrative Multi-Phase Plan: (4
Phases) 1. Prototyping: Continuum RobotBase 2. Recycling:
SuperTarget Distribution Center 3. Assembly: Continuum RobotBase
Bemis Manufacturing 4. Redistribution Bemis Distribution Center
SuperTarget 48
49. Service: Jobs Related to the Maya SmartCart49
50. Service Jobs Inventory and layout Database Technician Maya
SmartCart Technician Data Analyst Team Target Quick Response Task
Force 50
51. Service Jobs Narrative Inventory and Layout Database
Technician: Provides Maya SmartCart with merchandise information
Maya SmartCart Technician: Keeps Maya/Database functional allowing
it to acquire more Data Data Analyst Team: Sort Data from Maya
Database Target Quick Response Task Force: Use Sorted Data to
predict purchase patterns 51
52. End Presentation52
53. Research53
54. Research Summary Based on our research, we recommend that
Target Corporation partner with RobotBase, Continuum, and Bemis
Custom Plastics to integrate the Maya personal robot technology
into its shopping carts. The new Maya SmartCart will incorporate
the two most important aspects of Targets Mission Statement:
Innovation and Customer Service. After our research, we have found
that over the years, the importance of customer service has
increased during the rise of online shopping. In order to keep a
competitive edge, it is important to continue to innovate and
strive to provide the best customer service available. From our
extensive research of companies, methods, and materials, we
determined that, from the design table to store implementation,
each cart will cost $6,679.83. True competition for this product
does not exist yet, as the Lowes OSHBot left many features to be
wanted after its test store implementation. We examined both the
successful and failed attributes, designer narratives, and customer
reviews in order to ensure that the Maya SmartCart experience would
exceed the robotic customer service standards set by the OSHBot.
Instead of focusing extensively on competition, we built the bulk
of our research base on customer experience surveys, general Target
Corporation information, cart design and manufacture information,
and information on RobotBases Maya technology. Using all of this
information, we were able to determine exactly what customers want
in their retail service, and exactly how to provide them their
ideal customer experience. Research found in a secondary survey
performed in 2011 showed that 78% of people have backed out on a
sale because of poor/lack of customer service. Our product ensures
that this will never be the case. 54
55. Overall WCA for Current Target 55
56. Overall WCA Narrative for Current Target Goal: Provide
positive customer experience through quality products laid out in a
simple, ergonomic format Value: By providing positive customer
service, Target will increase customer satisfaction, leading to
higher retention and more positive reviews which makes them more
appealing to shoppers who value quality Product: Customer Shopping
Experience Customer: Target Shoppers Work Practices: Research:
Investigate Targets typical shopper experience and locate areas
that can be improved upon. Produce: Create an environment of
quality that provides positive customer experience. Deliver: Supply
quality brands for affordable prices in an appealing layout.
Service: Preserve quality assurance through positive employee
interaction with customers. Sell: Offer customer confidence in the
Target brand through quality products and service. Technology: Cash
registers, Barcode Scanner, Credit/Debit Card Terminal, Product
Price Checkers Data: Payment Information, Product Inventory
Information People: Target Customers, Target Employees 56
57. Overall Value Chain for Current Target 57
58. Overall Value Chain Narrative for Current Target Research:
Shopper Experience Produce: Quality Environment Deliver: Affordable
Products by Quality Brands Service: Quality Assurance Through
Employee Interaction Sell: Customer Confidence Value Added: By
providing positive customer service, Target will increase customer
satisfaction, leading to higher retention and more positive reviews
which makes them more appealing to shoppers who value quality
58
59. WCA for Target with Maya 59
60. WCA Narrative for Target with Maya Goal: Provide a
personalized customer experience for every Target Customer, as well
as an incentive to use the Target REDcard Value: By using the Maya
SmartCart, Target will ensure customer satisfaction and promote
their positive reputation while simultaneously collecting key
customer data that can be used for Targets Quick Response Task
Force Product: Maya SmartCart Customer: Target Co. Work Practices:
Research: Investigate Market Potential for an Artificially
Intelligent software that personalizes customer experience.
Produce: Reinvent the shopping cart by integrating the Maya
operating system into the cart design. Deliver: Provide 70
SmartCarts for testing in the SuperTarget in Charlotte, NC. Sell:
Offer a positive, personalized customer experience for any customer
who decides to shop at Target. Service: Ensure that all Maya
SmartCarts can provide the complete intended experience for every
customer. Technology: Maya SmartCart, Zigbee Network, Target
REDcard scanner, 3D Camera Data: Customer Decision making, Customer
Tracking Information, Product Inventory Information People: Target
Customers, Target Employees 60
61. Value Chain with Maya SmartCart 61
62. Value Chain Narrative with Maya SmartCart Research: Market
Potential Produce: Maya SmartCart Deliver: 70 Maya SmartCarts to
Charlotte, NC Sell: Customer Experience Service: Ensure Customer
Experience Value Added: By using the Maya SmartCart, Target will
ensure customer satisfaction and promote their positive reputation
while simultaneously collecting key customer data that can be used
for Targets Quick Response Task Force 62
63. Defining the Notion and Product The Maya SmartCart is a
perfect fit for Target Corporation due to its extensive focus on
innovation and the customer experience. The Maya SmartCart design
not only accomplishes the goal of cutting-edge technology, but also
ensures a positive, personalized customer experience. Customer:
Target Corporation Goal: Broaden Target Corporations customer base
and increase customer loyalty through personalized cutting-edge
technology. Value: Sales and revenue increases as customer needs
and preferences are suggested and recorded. This creates a
revolutionary opportunity for customer research through more
personalized data acquisition known as Point-of-Preference.
Shopper: Target Customer Goal: Streamline the shopping experience
of Target shoppers as their frequent purchases are recorded and
suggested, while increasing in accuracy as their trips to Target
become more common. Value: Target becomes the preferred destination
of every Target customer due to convenience created through
predicted preferences generated as they walk in the door. 63
64. Target Market for Product The Maya SmartCart would most
benefit a company that emphasizes providing strong, personalized
customer service and innovation. Best Fit: Target Co. Target is
known for its innovative and fresh environment and always strives
to be on the cutting edge of technology. Target would be the
perfect company to incorporate Maya into retail stores and ensure
that every customer has a personalized, positive experience at
Target. Targets Mission Statement: Our mission is to make Target
your preferred shopping destination in all channels by delivering
outstanding value, continuous innovation and exceptional guest
experiences by consistently fulfilling our Expect More. Pay Less.
brand promise. Issue: Constantly trying to find a way to
differentiate itself as the company grows and maintains a unique
image The Shopping Experience: We apply our design philosophy to
everything from our visually appealing building exteriors, to our
award-winning mobile app, to innovative tools and systems. It all
comes together to create a great guest experience. Competitor:
Walmart After researching Wal-Marts practices and missions, it was
clear that the Maya SmartCart would not be a good fit. Walmart is
not concerned with customer satisfaction or quality. Instead, their
focus is on low prices and making a profit on the margin. Walmart
customers accept this business model of a lesser-quality trade-off
because of the price. 64
65. Target Customer Profile Young Middle-class Median Age of 40
Income of approx. $64,000 43% have children 57% completed college
Looking for a Positive Experience: Convenient place to shop that is
Fresh and Innovative 65
66. Brainstorming and Ideas66
67. Senior Citizen Assistant This application would provide
care and companionship for seniors that might have previously
needed to placed in assisted living. Pros: Contact emergency
services immediately when necessary Provides personalized
companionship lacked by most Seniors Provides instantaneous contact
with loved ones, ensuring peace-of-mind and a closer relationship
Cons: Cost is more than most seniors can afford Most likely not
covered under health insurance plan Can not provide any physical
care for Seniors 67
68. Hand-e Man This application allows people to perform any
fix-it-yourself or simple maintenance project with the help of a
detailed and visual guide. Pros: Provide a list of instructions
allowing any person to complete do-it-yourself projects (i.e. Oil
Changes, Household Maintenance) Use augmented reality to better
instruct how to complete tasks for specific situation Any person
can add their own instruction list Cons: Very difficult to account
for every personalized problem that may occur High level
maintenance required to ensure that the instructions provided by
people are accurate and usable 68
69. Security Guard The application replaces the need of
companies to have security personnel. It would also replace any
need of a central building desk clerk (directs where to go for
certain departments/people) Pros: Locate certain employees by GPS
trackers in name badges Determine what situations are real threats
through emotion recognition Use security cameras to monitor entire
building simultaneously Cons: Not able to physically stop any
situation that may occur Possible malfunctions/misunderstandings
lead to unnecessary police contacting 69
70. Maya SmartCart Shopping Assistant This application allows
retail stores to provide customized customer service to every
customer that walks through the door. Pros: Directs customer to
specific products in store based on dialogue with customer Suggest
items the customer would like based on past purchases Remind
customer of specials on related products Provide Incentive to be a
REDcard member Collect a completely new form of BIG Data known as
Point of Preference Cons: Expensive to have one for every customer
Customer must be a REDcard Member to get the full Maya SmartCart
Experience 70
71. Competitor The Lowes OSHBot is the closest competitor to
the Maya SmartCart. Pros: First retail-based robot Locates and
directs customers to products Ability to scan and identify products
with camera Mobile Multi-language communication Cons: Can only
handle one customer and product at a time Needs to follow a script
to communicate Impersonal customer experience Designed strictly as
an science-fiction innovation, not for customer service use 71
72. Assumptions About Us: We are an innovation Team Working for
Target We are communicating with Target Executives Technology: Maya
Personal Robot technology is commonly owned and used by households
RobotBase can handle our demand and will work with us in design and
manufacture Duracell (Charging Mats) Technology has improved to
offer large PowerMats for multiple devices Putting the wireless
Charging Chip will be common practice actively doing research on
technology and getting customer feedback to get this product made
Target has strong enough WiFi to support 30-35 Mayas in-Store We
are using an advanced version of the factory microphone Maya
already has People are comfortable/familiar with the Maya
technology Maya can communicate in multiple languages (we are
presenting the English Speaking Version) 72
73. Assumptions Terms Maya SmartCart Name of our product
combines Target shopping cart and RobotBases Maya personal robot
technology Point-of-Preference (vs. Point-of-Sale) Reference to the
BIG Data acquisition capability of the Maya SmartCart Tracks
Customer Route: Details what departments are busiest at what time
of day/week/month/year Tracks Customer Item Choice: Tracks what
items the customer applies interest to that may/may not make it to
the transaction at the register This information will be compiled
and used in Targets Quick Response Task Force Targets Quick
Response Task Force Group that identifies/predicts customer trends
and purchase patterns 73
74. Market Potential74
75. Market Potential: Experience Sharing Customer Service
studies conducted by American Express*: Customers were asked How
often do you share your positive and negative experiences with
businesses with other people? On average, they [customers] tell 15
people about their good experiences (up from 9 in 2011), and 24
people about their bad experiences (up from 16 in 2011) (Figure
1.C)
*http://about.americanexpress.com/news/docs/2012x/axp_2012gcsb_us.pdf
Average # of people they tell 15 9 Average # of people they tell 24
16 Figure 1 75
76. Market Potential: Incentive to Buy Customers were asked How
much more would you be willing to spend with a company that you
believe provides excellent customer service? Two thirds of
consumers state that they are willing to spend more with a company
they believe provides excellent customer service, compared to a
slightly higher seven in ten in 2011 (66% in 2012; 70% in 2011) 66%
of shoppers are willing to spend an average of 13% more. 70% of
shoppers are willing to spend an average of 13% more. 58% of
shoppers are willing to spend an average of 9% more. Figure 2
76
77. Market Potential: Customer Inquiry Customers were asked
What mode do you prefer to deal with customer service based on the
complexity of the problem? 38% of people prefer to view company
website when facing a simple problem. Figure 3 0% 10% 20% 30% 40%
50% Company website or email Real' person on the phone Automated
response on the phone Face-to-face Online chat/Instant messaging
Text message Social networking site Difficult Inquiry (such as
making a complaint or disputing a charge) 77
78. Market Potential Narrative From these three studies
conducted by American Express, it is clear that customer service is
a large part of the customer experience as a whole. Approximately
55% of Americans have backed out on a sale because of poor/lack of
customer service in 2012 [Figure 1] From 2011 to 2012, customers
expressed that they were likely to tell an average of 12 other
people about a good experience they have had with a company, and an
average of 20 people about a poor experience. Looking at this data,
companies must work diligently to keep their customers satisfied
and happy. One bad experience may take several good experiences to
remedy. [Figure 2] The importance consumers place on customer
service has greatly increased recently. From 2010 to 2012, the
number of consumers who say they would pay more for a business that
provides excellent customer service. Companies that emphasize
customer relations will likely see a correlation in revenues.
[Figure 3] For simple questions, customers indicated that they
prefer to use the internet to solve the issue with either the
company website or email. This is where the Maya SmartCart comes
in. The Maya technology makes problem solving much simpler for the
customer, as information can be found very quickly and accurately.
78
79. Constraints and Limitations79
80. Asset Protection and Technology Asset Protection:
Technology Weather Exposure: Flexible display technology Theft:
Systec SmartStop No batteries Fully mechanical Virtually
maintenance-free Gentle, no sudden braking Technology: Charging:
Difficult to charge Maya because securely positioned in cart
Resonant Wireless Charging= uses Magnetic Resonance in floor to
charge battery Floor Material: Linoleum (durable, environmentally
safe, can be different colors.) Charging area can be a different
color than the Target white walking areas Network: Use in-store
WiFi to create a network for Maya to access the internet 80
81. Distribution Channel81
82. Overall Distribution Channel Plan Continuum (Boston, MA)
RobotBase (New York City, NY) Bemis Manufacturing Company (Lenoir,
NC) Regional Distribution Center (Newton, NC) Local Target Store
(Charlotte, NC) Customer 82
83. Overall Distribution Channel Plan Narrative PHASE 1:
Prototyping RobotBase sends Continuum test designs of Maya to fit
into the shopping cart Continuum integrates the Maya technology
design with the shopping cart, creating the Maya SmartCart PHASE 2:
Recycling Charlotte, NC SuperTarget brick-and-mortar store sends
carts to Newton, NC Target Distribution Center Newton, NC Target
Distribution Center sends the carts they have collected to Bemis
Manufacturing Company in Lenoir, NC PHASE 3: Assembly Working with
RobotBase, Continuum designs hardware prototype for SmartCart with
Maya network capabilities RobotBase sends customized Maya software
to Bemis Manufacturing Company for installation Continuum sends
hardware prototype to Bemis Manufacturing Company for production
PHASE 4: Redistribution Bemis Manufacturing Company ships
SmartCarts to Newton, NC Target Distribution Center Newton, NC
Target Distribution Center allocates carts back to Charlotte, NC
brick-and-mortar store Shoppers then use the upgraded SmartCart
in-store 83
86. Financials: Maya SmartCart Software Software Components
Single SmartCart Total (70 SmartCarts) Maya by RobotBase $700.00
$49,000.00 Target Store WiFi (Annual Cost) $71.43 $5,000.00 TOTAL:
$771.43 $54,000.10 86
87. Financial Narrative for Maya SmartCart: Hardware and
Software In order to determine financial cost of the Maya SmartCart
for Target Corporation, we broke all costs into three sections:
hardware, software, and labor. In this way, we can easily see where
every expense comes from. In Hardware and Software, we outlined the
costs for each individual SmartCart. Based off of the price of the
original personal-robot Maya design, we decided that our simpler
hardware design with a stronger focus on software would cost $995
per robot. The protective plastic cover manufactured by Bemis would
cost $30, derived from the cost of the cart itself, which was also
manufactured by Bemis ($269.13 per cart). The Target carts will be
recycled, so the base of the SmartCart will be no cost. The
Duracell PowerMat will cost $42.86 per cart to park and charge
while not in use. The in-store WiFi will need to be high quality,
which will cost $71.43 per cart per year. 87
88. Current Target Store Hierarchy 88
89. Target Store Hierarchy Narrative Store Team Leader: Every
Target store is headed by a Store Team Leader. They are responsible
for overseeing on average 200 employees. Deals directly with the 6
Executive Team Leaders Executive Team Leader: Every Target store
department is headed by an Executive Team Leader. They are
responsible for either: Food, Sales Floor, Guest Experience, Asset
Protection, Human Resources, or Logistics. In each of these
departments, there are 30-60 members. Team Leader: Every facet of a
Target stores departments are headed by a Team Leader. If they are
in the Food Department, there will be a Team Leader for Bakery,
Produce, Deli, Starbucks, etc. Specialist: Specialists are in
charge of Specified products in each section of the Target store
Department. They have a handful of Minimum wage workers that they
are responsible for. Team Member: Minimum wage workers that perform
little decision making and low-risk tasks like checking out
customers, restocking shelves, etc. Includes the Sales Floor
Stocker and the Overnight Stocker 89
90. Current Workforce Breakdown 90 Job Title Number of Workers
Hourly Wage Yearly Cost (40 hr/wk) Sales Floor 4 $10.62 $88,358.40
Stockers 10 $10.23 $212,222.40 Overnight Stockers 13 $12.31
$332,862.40 Totals: 27 $33.16 $633,433.20
91. Current Workforce Breakdown Narrative We analyzed several
in-store positions in SuperTarget and determined the three
categories of workers that will be affected by the new Maya
SmartCart: Sales Floor Personnel Sales Floor Stocker Overnight
Stocker In order to analyze these effects, we first calculated the
current costs per year to employ one full shift team, which is
$633,433.20 for 40 hours a week. Currently, a full shift team
consists of: 4 Sales Floor Personnel: Paid average of $10.62/hour
10 Sales Floor Stockers: Paid average of $10.23/hour 13 Overnight
Stockers: Paid average of $12.31/hour 91
92. Maya Impact on Store Hierarchy 92
93. Maya Impact on Hierarchy Narrative Maya: Maya has the
capability to replace all of the Sales Floor Team Members Inventory
and Layout Database Technician Change of title of existing Sales
Floor Stocker Team Member In charge of recording all products and
their locations into the Maya Database, to be updated and checked
daily Estimated wage: $12.31 per hour NEW Position: Maya would
require the creation of two new Jobs: Maya SmartCart Technician In
charge of training other employees on Maya handling, takes care of
minor IT and software issues, regularly inspects hardware for
problems Requires two technicians per store Estimated wage: $20.60
per hour 93
94. Mayas Impact on Workforce 94 Job Title Number of Workers
Hourly Wage Yearly Cost (40 hr/wk) Sales Floor 0 $10.62 $0
Inventory and Database Layout Technician 8 $10.23 $170,227.20
Overnight Stockers 9 $12.31 $230,443.20 Maya Technician 2 $20.60
$120,000.00 Totals: 19 $53.76 $520,670.40
95. Mayas Impact on Workforce Narrative After the introduction
of the Maya SmartCart, we expect the need for human-based customer
service on the sales floor to decrease significantly as the
SmartCart effectively aids customers in simple product inquiries.
Because the Maya SmartCart can handle customers on its own,
shoppers will not need to stop Sales Floor Stockers (now Inventory
and Database Layout Technicians) to ask for directions or
information on products. While this distraction is outsourced to
the SmartCart technology, we predict that the productivity of
Inventory and Database Layout Technician will increase. With
increased production during the day, there will be less of a
workload for Overnight Stockers to catch up on between store
operation hours. With this in mind, we determined that we would be
able to cut out the Sales Floor Personnel position completely,
decrease the number of Inventory and Database Layout Technicians by
20%, and decrease the number of Overnight Stockers by nearly 31%.
Based on the same 40 hour work week and hourly wages, the new cost
for these positions would be $400,700.20. The introduction still
requires the creation of two new Maya SmartCart Technician
positions per shift. We suggest that the wage of this position
should be $20.60 per hour, which will mean a yearly salary of
$60,000. This makes the final labor cost of one 40-hour in-store
shift team $520,700.20, which saves Target Corporation $112,733
annually. 95
97. Financial Narrative for Maya SmartCart: Labor The final
category of costs is Labor, in which we detailed out costs of
manufacture, design, and distribution. RobotBase will need to
reconfigure the hardware design and install new software to work
for Targets needs. We estimate that this cost will be $20,000
altogether. Continuum will design the plastic protective container
to attach the Maya robot to the shopping cart. We project that the
cost of this design will be $15,000. The final manufacture and
installation of the Maya hardware will be performed by Bemis
Manufacturing, which we estimate will cost $30,000. We calculated
shipping costs based on the type of truck, gas prices, and miles
traveled. For this shipment, we are utilizing a Target semi-truck
to control costs. The merchandise will travel 637.48 miles. With
the average gas mileage of 7 miles per gallon, and gas prices at an
estimated $3.00 per gallon, we calculated the total gas cost to be
$329.72. The driver will be paid $0.40 per mile driven, which was
calculated a $307.76. This brings the total shipping costs to
$638.48. Other labor costs will include paid employment at the
Super Target store. Two Maya SmartCart Technician positions will be
filled with $60,000 salaries (averaging to be roughly $20.60 per
hour). A second role will also be created called Inventory and
Layout Database Technician, and will be filled by five employees.
The salary will be $40,040 per year (averaging to $19.25 per hour).
The total employment cost added with Maya is $520,670. For the
first year of Maya implementation, the total costs will be
$586,307.88. Annual cost of 70 Maya robots after year one is
projected to be $520,670, which is $112,763.20 less than current
labor costs. 97
99. Financials: Maya SmartCart Totals Narrative In order to
easily visualize the cost of a single Maya SmartCart, we divided
software, hardware, and labor total costs between: 70 Maya
SmartCarts: $467,587.90 Individual Maya SmartCart: $8,577.44 For a
single Maya SmartCart: Software = $771.43 Hardware = $367.86. Labor
=$7,438.15 99
100. Produce100
101. Production Summary We recommend that Target produce the
Maya SmartCart to ensure personalized customer service for every
customer. The integration of RobotBases Maya technology with
Continuums already innovative Target shopping cart will create a
brand new avenue in retail. The manufacture of the Maya SmartCarts
will be a joint- effort between several companies. RobotBase will
provide the redesigned Maya Robot and include adjustments to fit
Target Corporations customer service needs. Continuum was chosen to
design the plastic cover used to protect the Maya user interface
because it created the original Target shopping carts in 2006. We
believe that this will make the attachment fluid and appealing to
the shoppers eye. Bemis Manufacturing was also involved in the
production of the original shopping cart, so in order to continue
the original styling, we decided to work with the same company
again. The Maya SmartCarts user interface begins with a universal
Welcome Page prompting the customer to scan his or her REDcard. If
they scan their REDcard and have a membership with Target Co.,
their transaction history can be used to offer immediate
suggestions like frequently purchased items. It also can provide
more extensive suggestions and special deals for products that fit
the specific customers preferences. If the customer walking in does
not have a membership, they will not receive as personalized of an
experience because Maya will have to learn as they shop. However,
the Maya SmartCart can still provide product location and most
efficient route creation for that specific customers needs.
101
102. Product Mockups102
103. The Maya SmartCart: Customer Experience Mockup of
customers view of Maya in an obtuse triangle hardware piece in the
cart, tilted towards the customer. 103
104. Product Layout 104
105. Product Layout Narrative Maya Screen Display: Interface
used for Maya to interact with customer Bemis Plastic Cover:
Structure made to support and protect the Maya Screen Display as
well as support/protect the Duracell battery and charging chip
Duracell battery and charging chip Positioned inside the Bemis
Plastic Display Used to power the Maya Screen Display Duracell
charging chip is charged through the Duracell PowerMat 105
106. Feature Map Information Gathering Information Gathering
Welcome Page Main Page In-depth GPS Product Information Product
Specials Color Code Chart Color Meaning RED REDcard Member BLUE
General Guest GREEN Both 106
107. Feature Map Narrative Welcome Page: REDcard member- swipes
their REDcard Guest (No REDcard)- generic experience Information
Gathering Page: REDcard member- uploads online account of past
transactions to make suggestions/reminders Guest- Maya asks many
questions to assist the customer; learns from every answer Main
Display page: REDcard member- displays all basic information like:
item list, overall store map, and Maya avatar Access a full screen
map of store with Maya leading customer to next product via GPS
Guest- displays all basic information like: item list, overall
store map, and Maya avatar Access a full screen map of store with
Maya leading customer to next product via GPS Product Specials
page: REDcard member- displays suggested deals related to the
current product and cross-referenced with customer transaction
history Guest- displays general store deals and some deals related
to the product the customer is searching for 107
108. Feature Descriptions Software: Grocery List Map/ Store GPS
Suggestions/Specials Maya Computer Network Hardware: Front and
Forward facing camera Items placed in the cart: Suggest related
items Give Directions Selective Listening Microphone Allows
dialogue with Maya interface 108
109. Mockups: Welcome Page Establish if the customer is a
Target REDcard holder (loyal customer) or a first time guest.
109
110. Mockups: Guest Information Gathering Page Maya interacting
with a first time guest while suggesting questions the customer
could ask 110
111. Mockups: REDcard Information Gathering Page If the
customer showed Maya their Target REDcard then she would bring up
past purchases and questions so that the customers transaction
history can be brought up and used to provide personalized
suggestions each time they visit the store. 111
112. Mockups: Guest/REDcard Main Display When asked where a
product is Maya shows where the customer currently is and provides
a route to the desired product. 112
113. Mockups: Guest/REDcard GPS Map While traveling toward the
product Maya herself can disappear and enlarge the map and
suggested route. The arrow next to the map shows real time
direction. 113
114. Mockups: Guest/REDcard Product Information Maya uses her
catalog of Target products to provide the customer with more
information about Hebrew Nationals hotdogs by bringing up their
website. 114
115. Mockups: REDcard Product Specials Maya shows how a REDcard
Customer receives benefits such as a discount on their purchase.
115
116. Delivery116
117. Delivery Summary We recommend that Target Co. test the
Maya SmartCart in the Super Target in Charlotte, North Carolina to
ease shipping constraints. We also recommend that Target take
advantage of the carts already in use in stores. Instead of
manufacturing new Maya SmartCarts, recycling a percentage of the
present shopping carts will be far more efficient and cost
effective. The Maya SmartCart is a completely new concept. However,
its incorporation of Maya technology to the shopping cart requires
very little modification to the already existing cart. The Maya
SmartCart revolutionizes the shopping cart while making almost no
substantial structural changes to cart space, folding capability,
or ease of transport. The plan for producing the Maya SmartCart is
to use the Super Target in Charlotte, NC to test the product.
Production is split into four phases. Phase one involves developing
and designing the SmartCart which will be done between Continuum
and RobotBase. Phase two involves sending 70 (35%) of the Super
Target shopping carts to be recycled into the SmartCart by Bemis
Manufacturing in Lenoire, NC. Phase three is the assembly of the
shopping carts and the Maya interface. Finally, phase four is the
redistribution of the Maya SmartCart from Bemis back to the
customers in the Super Target in Charlotte, NC. 117
118. Overall Distribution Channel Continuum (Boston, MA)
RobotBase (New York City, NY) Bemis Manufacturing Company (Lenoir,
NC) Regional Distribution Center (Newton, NC) Local Target Store
(Charlotte, NC) Customer 118
119. Overall Distribution Channel Narrative PHASE 1:
Prototyping RobotBase sends Continuum test designs of Maya to fit
into the shopping cart Continuum integrates the Maya technology
design with the shopping cart, creating the Maya SmartCart PHASE 2:
Recycling Charlotte, NC SuperTarget brick-and-mortar store sends
carts to Newton, NC Target Distribution Center Newton, NC Target
Distribution Center sends the carts they have collected to Bemis
Manufacturing Company in Lenoir, NC PHASE 3: Assembly Working with
RobotBase, Continuum designs hardware prototype for SmartCart with
Maya network capabilities RobotBase sends customized Maya software
to Bemis Manufacturing Company for installation Continuum sends
hardware prototype to Bemis Manufacturing Company for production
PHASE 4: Redistribution Bemis Manufacturing Company ships
SmartCarts to Newton, NC Target Distribution Center Newton, NC
Target Distribution Center allocates carts back to Charlotte, NC
brick-and-mortar store Shoppers then use the upgraded SmartCart
in-store 119
120. PHASE 1: Prototyping RobotBase Continuum 120
121. PHASE 1: Prototyping Narrative RobotBase sends Continuum
test designs of Maya to fit into the shopping cart Working with
RobotBase software, Continuum designs hardware prototype for
SmartCart with Maya network capabilities 121
122. PHASE 2: Recycling Charlotte, NC SuperTarget Brick-and-
Mortar Store Newton, NC Target Distribution Center Lenoir, NC Bemis
Manufacturing Company 122
123. PHASE 2: Recycling Narrative Charlotte, North Carolina
SuperTarget brick-and- mortar store sends 70 carts (35% of store
stock) to Newton, North Carolina Target Distribution Center Newton,
NC Target Distribution Center ships collected carts to Bemis
Manufacturing Company in Lenoir, NC to be fit with Maya SmartCart
technology Upon arrival at Bemis Manufacturing Co. they will assume
responsibility for storing the carts 123
125. PHASE 3: Assembly Narrative RobotBase sends customized
Maya to Bemis Manufacturing Company for installation Continuum
sends hardware prototype to Bemis Manufacturing Company for
production During assembly of the Maya SmartCart, Bemis
Manufacturing Co. takes on full responsibility for storing both old
shopping carts and the recycled Maya SmartCart 125
126. PHASE 4: Redistribution Lenoir, NC Bemis Manufacturing
Company Newton, NC Distribution Center Charlotte,NC Target Brick-
and-Mortar Consumer 126
127. PHASE 4: Redistribution Narrative Bemis Manufacturing
Company ships SmartCarts to Newton, NC Target Distribution Center
Newton, NC Target Distribution Center allocates carts back to
Charlotte, NC brick-and-mortar store The Charlotte, NC SuperTarget
now assumes the responsibility of warehousing the new Maya
SmartCarts with their current shopping carts Shoppers use the
upgraded SmartCart in-store 127
128. Supply Chain Raw Materials Suppliers Manufacturers
Inventory Distribution Customer 128
129. Supply Chain Narrative Raw Materials Collection and
purchase of raw materials by RobotBase and Bemis Continued shipping
schedules of RobotBase and Bemis Manufacture RobotBase and Bemis
receive raw materials and carts from Target Distribution From raw
materials, RobotBase manufactures the Maya hardware component From
raw materials and RobotBase hardware, Bemis manufactures the
plastic casing of the Maya hardware and installs both components
into the SmartCart Supplier Target Distribution receives completed
SmartCarts from Bemis Target Distribution organizes SmartCarts to
be shipped, and delivers product to shipping department Distributor
Target semi-truck receives SmartCarts and packs product to ship
Customer Super Target of Charlotte, NC retail store receives
shipment of Maya SmartCarts 129
130. Service130
131. Service Summary The Maya SmartCart and its Network will be
serviced by two types of in-store technicians: the Maya SmartCart
Technician, and the Inventory and Layout Database Technician. The
Maya SmartCart Technician is in charge of training other employees
on Maya handling, takes care of minor IT and software issues, and
regularly inspects hardware for problems. The Inventory and Layout
Database Technician is in charge of digital stock, meaning all
data-entry in the Maya Network. This includes the recording of all
in-store merchandise, locations, coupons, and specials information
in the Maya Database. Two teams at Target Corporation offices will
handle all data collected by the Maya SmartCarts. The Data Analyst
Team will receive and interpret data to determine and predict
trends in customer preferences, in-store movement, and purchased
and non-purchased items. The analysis will be sent to the Target
Quick Response Task Force, who will then use the information to
update and streamline current Maya SmartCart functions, marketing,
and handling. The will also determine how to provide a better store
experience based on the customer behavior as recorded by Maya.
After one year of Maya SmartCart implementation, the Data Analyst
Team and the Target Quick Response Task Force will be responsible
for analyzing overall data before and after the application. They
will be the teams to determine if the project was a success and
should continue to be invested in and potentially expanded, or if
the project was a failure and requires either major structural
revision to the program or should be terminated. 131
132. Service Salary Positions Created Maya: Maya has the
capability to replace many of the Minimum Wage Team Members in each
department, particularly in Guest Services NEW Jobs Created: Maya
would require the creation of two new Jobs: Maya SmartCart
Technician In charge of training other employees on Maya handling,
takes care of minor IT and software issues, regularly inspects
hardware for problems Requires two technicians per store Estimated
wage: $31.25 per hour Inventory and Layout Database Technician In
charge of recording all products and their locations into the Maya
Database, to be updated and checked daily Requires five technicians
per store Estimated wage: $19.25 per hour 132
133. Service Jobs Inventory and layout Database Technician Maya
SmartCart Technician Data Analyst Team Target Quick Response Task
Force 133
134. Service Jobs Narrative Inventory and Layout Database
Technician: Receives updated inventory information determined by
Target Quick Response Task Force Provides Maya SmartCart with
merchandise information Allows SmartCart the opportunity to collect
customer Data Maya SmartCart Technician: Keeps Maya functional
allowing it to acquire more Data Services Maya Database containing
all Data collected Data Analyst Team: Extract and sort data from
the Maya Database Target Quick Response Task Force: Uses
information provided by Data Analysts to determine products to
restock 134
135. Maya SmartCart Technician Day-to-Day operations of the
Maya User Interface Damages (Hardware) Broken Screens Broken Bemis
Plastic Cover Water/weather damages Regular Cart damages Software
Updates for Maya user Interface Malfunctions Upgrades Service to
Maya Network Liaison between Target Co. and RobotBase 135
136. Inventory and Layout Database Technician Daily update
merchandise information Inventory restocking Product location
information Specials/Deals on certain products Update the Maya
Network with merchandise information 136
137. Data Analyst Team Acquire and Sort BIG Data collected from
each Maya SmartCart Sorted data: Customer in-store tracking
information Non-purchased product information 137
138. Target Quick Response Task Force Determine and predict
product trends and customer purchasing patterns Influence Seasonal
product patterns Influence product pricing for specific times of
day/week/month/year Influence innovative product ideas Annually
evaluate Data information provided Use information to perform a
Cost/Benefit Analysis 138
139. Evaluation Plan for the Maya SmartCart Test One year after
the implementation of the Maya technology, the Data Analyst Team
and the Target Quick Response Task Force will use information
gathered from Maya SmartCarts themselves, along with customer and
employee surveys, to determine if the SmartCart initiative was a
success or a failure. Evaluation criteria will include: Ease of
Repairs Data Quality Changes in Customer Behavior Changes in Store
Profits 139
140. Ease of Repairs Common repair needs is it worth it to
improve upon? Can repairs be made to multiple SmartCarts at once?
Ease of working with RobotBase, Continuum, and Bemis to fix issues
and/or expand program Maya SmartCart Technician trainability (can
they handle repair demand?) What improvements must be made to the
product or system to continue the program? Customer handling Data
collection Hardware needs 140
141. Data Quality Can Target Corporation learn something from
this? GPS tracking (time spent, area in store) Items picked up,
where they were picked up, if they were put down, did another item
replace it? Study customer preferences and find correlations with
items, prices, locations, and designs 141
142. Changes in Customer Behavior Did the retail store notice
an increase in traffic? How much? Did the retail store notice an
increase in sales? How much? Were these sales smaller or larger
ticket items? How is the customer perception of Target different?
142
143. Changes in Store Profits Seen as more innovative or
convenient? Did the cost of Maya SmartCarts outweigh the benefits
of integration? Within the near future, will the Maya SmartCart
costs outweigh benefits? 143
144. Repository144
145. Distribution Channel #1 145
146. Distribution Channel # 1 Narrative Step 1: Production
RobotBase supplies the Custom Designed Maya that fits into the
Target SmartCart Continuum supplies the new Custom Designed Maya
friendly shopping cart called SmartCart Step 2: Assembly RobotBase
sends Custom Maya to a TARGET installation center to be assembled
Continuum sends Custom SmartCart to TARGET installation center to
be assembled Step 3: Distribution Assembled SmartCart and Maya
Shipped to Regional Distribution Centers SmartCart and Maya shipped
from Regional Distribution Centers to local Brick and Mortar stores
Step 4: Product to Consumer Shopping carts replaced by SmartCart
and Customers now use them for Shopping experience 146
147. Distribution Channel #2 147
148. Distribution Channel #2 Narrative Step 1: Production
RobotBase creates the Custom Designed Maya that fits into the
Target SmartCart and ships it to Continuum Continuum creates the
new Custom Designed Maya-friendly shopping cart called SmartCart
Step 2: Assembly Continuum assembles the Custom Designed Maya and
the Custom SmartCart Step 3: Distribution Assembled SmartCart and
Maya Shipped to Regional Distribution Centers SmartCart and Maya
shipped from Regional Distribution Centers to local Brick and
Mortar stores Step 4: Product to Consumer Shopping carts replaced
by SmartCart and Customers now use them for Shopping experience
148