Wal-Mart Rolls Back For Christmas

BSAD: 432B. Morrison

PhilJohnVictoriaEricAlex

AgendaArticle Overview

SWOT Analysis

Retail Strategy

Positioning Maps

Target Market/Value Proposition

Implementation Analysis/Conclusion

Overview of ArticleWal-Mart Expected to Increase Discounted Products to

Match Online Retailers

Profits Expected to Drop

20000 Rollbacks for 90 Days

Price Matching with Bricks and Mortar

Hiring an Additional 60,000 Seasonal Employees

Strengths

•Incredible supply chain

•Buyer power

•Low Prices & Price Match Guarantee

Opportunities

•Takeover of Target Canada?

•Opportunity to improve image and Public perception

•Demand supplier’s to improve workplace practices for employees and other stakeholders

Threats

• Other large Corporations expanding

• Being largest corporation means target for competition

• Possible change of labour laws

Weaknesses

•Customer Service

•Bad PR Campaigns

• Staff Availability

S W

TO

Overview of StrategyRetail Strategy Mix:

Low Price Discount

High Product Categories: Toys, Electronics, Fashion etc.

Mid-Shallow Product Depth

Merchandise Scrambled

Positioning and Competition

Primary Competition: Target

Costco

Giant Tiger

Amazon

Canadian Tire

Positioning Map (Cost vs. Quality)

Positioning Map (Depth vs. Width)

Target Market Families and Individuals with Lower End to Moderate Levels

of Income.

Cost Conscious

Parents with Young Children

Value Proposition Value Proposition-

“Everyday Low Prices” “Save money. Live Better”

Customer Satisfaction through Efficient Supply Chain Management

Importance of InitiativeThey want to Mitigate Losses this Quarter which

Enforces the Value Proposition

Important that it is Implemented with Haste

Stay Competitive During the Holiday Season

Target Market FitConsidering Mass Rollbacks, the Target Market of Low

Income Families will be more Attracted to Shop at Wal-Mart.

There is Potential for Medium Income Markets to be Attracted to Wal-Mart due to High Quality Products (TVs, game consoles etc.) being Offered at Discounts.

Initiative Cons Decrease Total Net Income

Could Hurt Public Image with Targeting Competition with Local Business

Increasing Competition Targeting to Match Sales

Training Costs Increase

Difficulty Exiting a Price War Once Initiated.

Initiative Pros Increase Customer Traffic

Increase Sales

Could Potentially Increase Net Profits

Could Increase Market Share

Decreased Waiting Times

Implications of ImplementationAligns with retail strategy

Will attract more Customers

Profitability Depends on Whether or not Wal-Mart Draws in Enough new Customers to Make up for the Losses they Experience on their Discounts.

ConclusionSmart Move for Wal-Mart.

Allows them to Remain Competitive in an Ever Increasing Competitive Market

Appropriate Response to Online Price War

Works Cited Wal-Mart's Annual Report -

http://cdn.corporate.walmart.com/66/e5/9ff9a87445949173fde56316ac5f/2014-annual-report.pdf

Walmart To Expand Discounts As Retail Price War Heats Up- http://www.reuters.com/article/2014/10/31/us-walmart-discounting-idUSKBN0IK09K20141031

Works Cited Images

http://images.fastcompany.com/upload/faceoff-walmart-target.jpg

http://utahsweetsavings.com/wp-content/uploads/2011/11/walmart-christmas-price-guarentee.png

http://observer.com/2013/02/babys-got-rollback-walmart-is-the-most-romantic-grocery-store-in-the-country/

http://www.itaremarket.com/wp-content/uploads/2014/07/downgraph.jpg

http://www.lippincott.com/cache/made/cc190b03fd288467/walmart_casestudy_design_logo-1_959_487_90_c1.jpg

http://i2.cdn.turner.com/money/2011/08/16/news/companies/walmart/walmart-shoppers-2.top.jpg