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Transcript of Walmart
American multinational retail corporation.
Headquartered in Bentonville, Arkansas, U.S.
Founded by Sam Walton in 1962
1st Store @ Rogers, AR. (1962)
The lowest prices. Anytime.Anywhere
Walmart goes national.
A decade of incredible growth.
It becomes WMT @ NYSE.
Decade of firsts.
Sam's Clubs & Supercenter opened.
$1 billion in annual sales.
America's top retailer.
Every Day Low Prices went international.
Globalization takes over.
Technology & Sustainability
Did the company make the right decision to drop "Always Low Prices. Always." as a tagline?
"Save Money. Live Better."
Attracts a new type of costumer without forsaking the usual one. People more inspired by a 'better life' than a 'lower price', and likely with higher budgets to spend.
Walmart does very well when the economy turns sour. How can it protect itself when the economy is on the rise?
# Building a stronger customer loyalty.
# Enhancing their product portfolio.
# Improving the cleanliness and aesthetics in stores
#Adding even more amenities to the stores: banks, fast-food chain restaurants.
+Developing a new business unit aimed to a customer with a higher budget that wants to buy better products.
+Developing an accessible organic (and healthy) product line
Elements inside Walton’s EDLP strategy
When did Wal-Mart's international expansion begin? How?
1991: Sam's Club in Mexico
1994: 122 Woolco stores in Canada turned into Walmarts
1996: First store in China
1999: Purchased ASDA in UK
2002: Invested in SEIYU in Japan
2010: First 'Best Price' in India
2011: Purchased MassMart in South Africa
(They don't use the 'Walmart' brand in every country.)
What is their presence internationally today?
Discuss Wal-Mart’s marketing strategies and campaigns over the years.
Why did their stock price fell between 2000-2005?
# Hard opposition generating bad reputation, claiming unethical practices.
# Very bad press.
# Executive managers were extremely closed with the company's information, until 2005.
# Expected China's inflation (80% of products are Made in China).
# The bigger you are, the harder to grow at a high rate.
What did Target do to make Wal-Mart change it’s strategy? How did Wal-Mart reacted?
# Target aimed to a higher-income customer.
# Better aesthetics and appeal inside stores.
# Wider product portfolio, including important and desirable brands.
# Focus on apparel (50% of sales).
Fortune Global 500 (2012):
# 3rd largest public corporation.
# 1st private employer (+2.2M employees).
# 1st retailer in the World. (+10K units)
# 48% stake is owned by Walton family.
# 51% sales from grocery.
Walton's philosophy was price it low, pile it high, and watch it fly.
Then Walmart benchmarked.
Key: Aim to higher-income customers without leaving the actual customer base behind.
Competitive pricing (Every Day Low Price)
Low margin & High sales mix
Economies of scale
Strategic alliances with suppliers (high buyer power)
Flooding presence with large stores
and new formats (Walmart Express)
Target customer: People with small/medium budgets
Focus on what people needs more than what they want.
Own brand development (chain integration)
Diversifying the business units
The online experience