How would you run a promotion to increase top-line, in-store revenue for Target? How would you decide what to promote? How would you run the experiment?

This question is asking you to develop a hypothetical strategy to run a promotional campaign for a store like Target. In addition to creating the campaign, you need to describe how you would select the items to be promoted to maximise the top-line revenue. Lastly, you need to explain the way you'd run an experiment to verify the effectiveness of this campaign.

When answering, consider the following elements:

1. The target audience for the promotion
2. The method to determine what products to promote
3. The promotional strategy that you believe would work best for Target
4. The criteria to evaluate the success of the promotion
5. The approach to running a test or an experiment of this proposed promotion

To run a promotion to increase the top-line in-store revenue for Target, my first step would be to determine our target audience. Let's take, for example, that we're focusing on back-to-school shoppers. I'd decide to promote items that are typically in high demand for this season, such as school supplies, clothing, and tech gadgets.

I would decide on these items based on Target's historical sales data. I would identify the top-performing products during the back-to-school season in the previous year and also consider market trends and current consumer preferences.

To promote these items, I'd consider running a buy-one-get-one (BOGO) promotion to encourage bigger purchases. I'd also consider partnering with a popular brand to offer exclusive items available only at Target to attract more customers.

To test this campaign, I'd run a smaller scale promotion in a few selected stores. I'd then compare the revenue during the promotion period to the revenue from the same period in the previous year. This would help me assess the effectiveness of the promotion.

To increase top-line store revenue for Target, I would start by analyzing customer buying patterns and product performance. This would help identify products that are likely to spur in-store visits and purchases. The data could also provide insights into the specific customer segments that are more likely to respond to in-store promotions.

Based on this analysis, I would devise a promotional strategy. For example, if we find that kitchen appliances perform well and attract a lot of foot traffic, running a promotion on these items might be beneficial. Additionally, we might find that our target customers are more responsive to discounts. Therefore, offering a percentage discount on kitchen appliances could work well.

The promotional strategy might also involve cross-selling or upselling. For instance, if a customer is buying a coffee maker, we could offer a discount if they also purchase coffee filters or coffee.

The experiment would be designed to assess the impact of the promotion. We might start with a few stores, measure the increase in revenue, and compare it to similar periods when no promotion was run. We would also track other metrics such as customer footfall, average transaction value, and number of units per transaction.