Dollar Tree Analysis

IBP Objectives * Focus on continual growth and improvement while providing a reasonable return to our investors. * Obtain more of the middle-income consumers as consumers, opposed to just low-income consumers. * Increase the public’s awareness of Dollar Trees products, inventory, and quality of products. Have Dollar Tree become a part of consumers recall. * Inform consumers of the extreme quality of Dollar Tree’s products, no products are expired or out to date. We just get an extreme discount with loyal distributors. * Change customer’s attitudes towards Dollar Tree and discounts stores in general. Discount stores carry the same quality name brands as department stores, while staying true to their single price of $1 for everything. * Increase sales and customer traffic in stores from $5,882.4 million annual revenue by 5% to $ 6,176.52 million. * Increase consumer purchases from seasonal purchases to everyday purchases. Most people shop in discount stores for seasonal, party supplies opposed to everyday consumer needs, like dish soap.

IBP strategy Being a dollar store, Dollar Tree’s usual target audience is primarily low-income households with about 55% of their customers making less than $40,000 annually (IBISWorld, 2011). About 69% of African Americans shop at dollar stores at least once a month compared to 50% of Caucasian consumers (Mintel, 2005). Dollar Tree has successfully marketed themselves to lower income Hispanics and African Americans, but there is an opportunity in another market. In recent years there has been a rise in the number of upper income consumers using Dollar Stores. Everyone would much rather save money shopping, which is why with the recent economic downturn, it has become more common for middle and upper income families to supplement their shopping needs with dollar stores. We see an opportunity to market to this newly emerging market, and believe that we need to capture brand loyalty before the