December 8, 2011 Walmart Employer Brand Positioning Strategy Overview Methodology Summary of findings • Employment experience realities content • Market drivers • Market perceptions Positioning strategy • Positioning essence • Positioning statement • Personality • Message emphasis Overview Walmart would like to optimally position itself to attract candidates for management, assistant management, supply chain, corporate, and e-commerce positions. Specific objectives follow: • • • • • Probe the strengths and weaknesses of the Walmart employment offer Identify which attributes are important to the target audience Understand perceptions of Walmart as an employer Understand perceptions of Sam’s Club as an employer Identify those distinct selling points that will enable the crafting of a compelling and believable message 3 Focus group methodology Employee focus groups (20 groups) December, 2010 – February, 2011 Bentonville • • • July – October, 2011 Chicago, IL • 1 group, Walmart Retail Management (9) • 1 group, Sam’s Club Retail Management (8) Dallas, TX • 1 group, Walmart Retail Management (4) • 1 group, Sam’s Club Retail Management (3) Los Angeles, CA • 1 group, Walmart Retail Management (7) • 1 group, Sam’s Club Retail Management (6) Philadelphia, PA • 1 group, Walmart Retail Management (2) • 1 group, Sam’s Club Retail Management (8) National, various locations • 4 groups, Supply Chain/Logistics) (29) National, various stores • 2 groups, college hires (13) Merchandisers/Buyers (7) IT (9) Financial (11) San Francisco • E-commerce (9) May, 2011 Bentonville, AR • 1 group, college/interns; Finance/Merchandising (6) • 1 group, college/interns; ISD, Sourcing Ops, Merchandising, QA (5) 4 Focus group methodology Market focus groups (15 groups) December, 2010 – February, 2011 Dallas, TX • August – September, 2011 Chicago, IL • 1 group, Retail Management (6) • 1 group, Logistics and Transportation (10) Dallas, TX • 1 group, Retail Management (7) • 1 group, Logistics and Transportation (7) Los Angeles, CA • 1 group, Retail Management (8) • 1 group, Logistics and Transportation (5) Philadelphia, PA • 1 group, Retail Management (6) • 1 group, Logistics and Transportation (4) Finance (10) Chicago, IL • IT (11) Jersey City, NJ • Merchandisers/Buyers (7) San Jose, CA • E-commerce (11) May, 2011 Salt Lake City, UT • 1 group, undergraduates – Business, Finance (10) Fayetteville, AR • 1 group, graduate students - Business, Finance, IT (10) Austin, TX • 1 group undergraduates – Business, Finance (9) 5 employee focus groups “People believe in what the company is doing…gets you back to work every day regardless of what yesterday was like.” Summary: The employee experience – what’s positive Walmart: Stores Sam’s Club Stores Supply Chain University/ Interns E-commerce Corporate • People “It is a great company to work for—people are treated respectfully and you quickly become like a family…everybody watches out for each other…associates are so close.” • The store environment and the close-knit family feeling you get from working with your “Sam’s family.” • Autonomy to run your own business/function “You really feel like you are running your own business, you are given the autonomy to make decisions that make sense for your facility.” • Allure of working for the number one retailer “They have really shown everybody how to do it…excelled at what they set out to do, defined success.” • Rapid growth (past 6-7 years) • Leaders really want you to challenge the thinking – creates an environment of constantly trying to do better in a positive way. • Work environment: physical location is very pleasant, modern. • A place to work and progress as a long-term career versus a training ground • Opportunity Fueled by size “My parents are proud to see me working for Walmart. It gives them a sense of comfort when they see me moving up in the organization and having opportunities to travel and develop.” “The biggest balance sheet around.” •Ability to work in various areas •The ability to work on something that really makes a huge impact and being trusted to do so. • Culture “They let you have your own ideas and play them out…there is always an open door policy and people really listen to you, not just lip service. Regardless of title all ideas are encouraged, heard and acted upon.” • Getting to know clientele and being able to form relationships with people—many use the word “fulfilling” when they speak about their role. “You see familiar faces come through the door and you have more personal conversation with them— it’s a relationship.” • Continuous learning “From the moment I joined this organization people were so willing to help me learn, didn’t matter what level they were they wanted us to be successful as a team…seems like something that all companies should do but it is sadly not a reality.” 7 • Rotation programs “Being able to do four rotations in one year is really unique and enriching.” “The message about being the biggest retailer, having rotational programs and family values was exactly what I was looking for.” Summary: The employee experience – what’s positive (cont.) Walmart: Stores Sam’s Club Stores Supply Chain University/ Interns Size and opportunities as a result “The sky’s the limit. I came because of opportunities in China, it is my dream to go there and this was discussed in my interview process as a reality down the road.” • Personal reward - creating something sustainable that helps people live better lives. “Seeing people shop in your store and feel thankful that you help people shop for the items they need to provide for their families and create better lives.” “People believe in what the company is doing…gets you back to work every day regardless of what yesterday was like.” “The well-earned bonus at the end of the year.” • Culture “The company is fabulous at listening to good ideas and takes risks on people and ideas. It pays off and often these grassroots ideas will take off company wide.” • Stability “You have the security of being in a company that is not disappearing and is constantly growing and improving.” “They try to set you up for success, everybody is given equal playing field and opportunity to succeed.” • Growth opportunities within the Sam’s franchise and beyond into Walmart, A place to build your career and stay. “Walmart gives people a chance, believes in you.” •The environment • Rewarding job • Growth opportunities People focus “I like the balance of what I heard regarding work and family.” “The friends you meet here are lasting friendships.” • Respect for the individual with work/life balance, good for yourself personally and for the organization as a whole • Focus on community and helping others—(i.e. walks, direct donations, championing efforts to raise money) “We are providing more value—making someone’s life easier.” 8 E-commerce Corporate Culture People are pleasant, trustworthy and genuine “The caliber and talent of people who work here is wonderful, there is a family atmosphere where people really look out for one another.” “Extremely open, transparent, humble, fun, and made up of wellintentioned people.” •People are encouraged to work as a team to get the job done versus feeling like you need to be competitive. •A few who were more familiar with Walmart’s home office Bentonville, noted that the small town culture/behaviors seem to transfer to Walmart.com Summary: The employee experience – what’s positive (cont.) Walmart: Stores Sam’s Club Stores Supply Chain University/ Interns Work/life balance (3 days on/off) • Pay • Benefits (401k matching up to 6%). • Job security • Ever-changing fast-paced environment where no two days are the same Satisfaction from knowing that their work will affect the customer in some positive way “When I am involved in problem resolution it puts a smile on the face of a customer—that makes it well worth it.” • Encouragement to try new things/grow “At Walmart I can step outside my boundaries…grow, develop and hit the next target.” 9 E-commerce Corporate Reward • How supportive Walmart has been to not let the lack of a degree hold them back. “Valued for the work I do. I am recognized for the contributions I make and that goes a long way in making you feel good.” •Hear about people who worked hard and were rewarded through their careers at Walmart “Makes you believe in the American dream.” Make a difference •Helping the company improve their systems, save money and ultimately help the customer live better. “The sense of purpose you get from knowing that you are improving someone’s life.” Employee views #1 retailer Stability Scope Development Mobility Open Supportive Realities Teamwork Encouraged Idea sharing Community focus Learning Accomplishment Autonomy Empowerment Close-knit Mission Make a difference Meaningful Fulfillment Purpose Family Shared values 10 Rewarding Respect Application: Provides foundation for positioning the realities of the employment experience external focus groups “I want to work for the best — someone who is cutting-edge and at the top in their field.” Summary: Opportunity considerations Store Management Supply Chain University/Interns Corporate/Ecommerce • To have an impact on people—both associates and consumers. Being able to impact the growth and development of their staff and developing relationships with consumers • Being able to have every day be different and exciting “New challenges ad never boring” “No day is ever the same” Specific Employer attributes • Great people—good management that will help you grow and look out for you, people who are upbeat/optimistic/enjoy job • Positive work environment/atmosphere— feel accepted, sense of team work, synergy between people • Stimulating environment— where you can grow/become better as a person/smarter • Ability to progress/get promoted/ Feeling of accomplishment • Being part of a growth industry— stability/strength/security of industry • Opportunity to “own” career/grow within the company— be able to take the direction you want • Being part of something important/meaningful (i.e. Teach for America) • Good benefits (healthcare, pay for graduate school) • Flexibility (can work at home, free time, freedom) • Work/life balance—being happy in their personal life and having a “quality” personal life (time to enjoy it) • Compensation—total package (benefits, cost of living consideration) Culture/environment •Inspiring, empowered, trusting •People listen, straight shooters •Value employees •Open-minded, open to ideas/input •Intelligent, motivating •Friendly – laid back, low stress level, high energy • Fulfilling but exhausting • Do not have “down time” in their day, but this is also a key driver of what makes the role exciting—the constant change and pace and no time to sit around. “No two days are alike and you can’t even begin to predict what tomorrow will bring if you try.” • The variety of skills/functions in their role • Dealing with the daily store/customer issues balanced with things like employee training/mentoring and the excitement of seeing people grow and develop professionally. Specific employer attributes • Good pay (taking into account the ratios of hours worked) • Benefits—health, vacation, 401k, tuition reimbursement, bonus • Positive work environment (employeefocused) • Size of company and opportunities (many locations equal opportunities for personal growth) • Despite hard work the ability to have work/life balance “As long as you are clear on the expectations (i.e. shift, work to be done) people realize you have a life and respect this.” Specific Employer attributes • Career growth • Stability of company • Autonomy • Training/development • Benefits—medical/dental, 401k, vacation, discounts, education, one stop shop (phones, hotels, loans, workout area, daycare) • Salary—competitive, bonus • Level of responsibility/impact • Work/life balance-- Good schedule (set shift, flexibility), time for personal life, 12 Growth/development •Focus on skills development •Ability to grow and learn •Opportunity and mobility •Career path Stability •Size of company and sector •Reputation of company Empowerment •Trusted to do your job, helping as needed •Ability to work as somewhat of an entrepreneur •Make/influence key decisions Summary: Opportunity considerations (cont.) Store Management Supply Chain University/Interns Corporate/Ecommerce • Stability—size, longevity, performance over time • Growth opportunities (training, education support, fairness) • Mobility (for larger companies) • Structured (identified processes) without being inflexible • Work life balance/Quality of life— flexibility, family friendly, vacation, holidays (although retail hours are a given) • What the company stands for • Name/brand reputation— pride/credibility/integrity • Location • Location—close to family, home • Diversity/Inclusion—upper management looks like me, one day I can be there • Stability/reliability/knowing that company not going to fail • Company that community views positively (ethics, philanthropic) Flexible •Location/flexibility (from home, working hours) •Work/life balance—want to feel like they can have a personal life Compensation Benefits Technology •Cutting-edge •Invest in technology Strong brand/reputation •Product/brand they feel good about •Work with high end/luxury brands 13 Employer brand associations Location Compensation Benefits Stability Work/Life balance Flexibility Variety Development Mobility Advancement Open Learning Market drivers Brand reputation Impact Meaningful Accomplishment Autonomy Challenge Valued Stimulating Accepted Trusted Fulfilling Inspiring 14 Application: Describes the universe of attributes under consideration by the target audience. Summary: Employer brand associations - Walmart Store Management Supply Chain University/Interns E-commerce #1 retailer—always busy • For everybody/affordable • More of a suburban store/outside the city • All about stores/retail positions • So many stores = opportunities/growth • Good on resume #1 retailer • For everybody/affordable • Convenient “On the positive, Walmart can be the best thing you see as you pass through small towns, means you can find things you need.” • Opportunities/growth • Good on resume Massive/largest retailer “Where else could you have the responsibility to manage a 30 million dollar budget and have the kind of global impact on the economy?” • Doing something right “You are getting the opportunity to learn the operational best practices.” • Walmart is #1 and must have great leaders. “I want to work for the best— someone who is cutting edge and at the top in their field.” “If you’re in operations or supply chain management it seems like it would be the place to be.” • Major global efforts “In China, it’s exploding and bringing people out of poverty” • Social responsibility and sustainability efforts • Helps people in need •Attractive to have as first employer “If you have Walmart on your resume you can work anywhere after that.” •Great customer service (i.e. shop online/pick up in store) •Good products 15 Corporate •Take care of employees • Nice benefits package • Buyers have lots of leeway • Door opener/differentiator on a resume “They definitely are doing things right and it would be exciting to learn from them what makes them the most successful retailer.” • Company is “1st / tops the charts—this equates to growth.” Summary: Employer brand associations – Walmart (cont.) Store Management Supply Chain University/Interns E-commerce Corporate Questions about product quality • Look worn down • Women not promoted • Expensive benefits • Unreasonable workload and poor pay. “It is almost as if they would have to change their name...it is so tainted from all the negative things reported.” • Arkansas not a place to be “Saying you work for Walmart is not something that I would feel proud to say—people just have such a negative impression of it as a company.” Look worn down/lack of pride— not consistent • Management must be inexperienced to let stores look like that • Squeeze vendors but $ not going back into buildings • Bad experience/service— “nicest person is the greeter” • Questions about product quality • All about stores/retail positions • Discriminatory/lawsuits (women, African-Americans) “All the things you hear make you question working for them…lawsuits, complaints, vendors being bullied, small business communities being torn down.” • Poor culture—people overworked/angry/not smiling • Documentary about substandard practices • Arkansas not a place to be good?” First thought is about stores “Immediately people are going to think you work in the store.” • Cheap, outsourcing, China • Cheap with expenses (i.e. share rooms when traveling) • Bully with vendors • Competitive/negotiation power due to size • Stuck in Bentonville “Saying you work at Walmart and live in Arkansas is not cool or sexy.” • Too dominant—takes advantage of its position • Too big, hard to advance/get recognized • Discriminatory—only gives raises to certain people, less to women • Hurts small business •Sued by employees •Not in the same league as the type of companies they work for today or aspire to work for •A place where IT would be more about standardization and less about innovation – making the level of challenge and excitement very low •Type of business they are in “Less than exciting.” Low-frills environments “People automatically think of the stores, the lawsuits, rude employees – not seen as very glamorous.” • Biased against women (citing a lawsuit) • Non-progressive culture/environment • Old technology “Behind the curve.” • Wonder what kinds of IT jobs would there be in such a massive organization. • Not visible as a technology player “They are not in the technology magazines, at conferences, places where you see/hear the best talking.” 16 Summary: Employer brand associations – Sam’s Club Store Management Supply Chain University/Interns Positive • Those who are familiar with it see it as being somewhat different in terms of environment Positive • They know the affiliation with Walmart but seem to have less outwardly negative impressions. “You don’t hear the negative press directed towards them so you wonder if they might be a little better.” “The environment is different, even though it is a warehouse it seems more professional.” Low awareness • Seen as part of Walmart versus a stand-alone entity Negative • See it as being part of Walmart and assume the same problems would exist “it wouldn’t give you any freedom in terms of merchandising.” “Sam’s could be a better place to work but you wouldn’t have much opportunity for advancement, limited stores.” 17 Employer brand associations Arkansas #1 retailer Limited to retail positions Resume enhancer Growth Market perceptions Lawsuits Application: Provides points of leverage and counterbalance 18 positioning strategy Positioning themes Attribute Positioning Maps Pragmatic Theme: A career with a future With Walmart’s extensive scope and success, I have an incredible range of opportunities within my grasp, now and in the future. Realities Market drivers Market perceptions #1 retailer Stability #1 retailer Stability Advancement Growth Scope Mobility Resume enhancer Mobility Limited to retail positions 20 Positioning themes Attribute Positioning Maps Aspirational Theme: Everyone has potential No matter what my role, my learning and development is supported and encouraged by everyone in the organization, resulting in the challenge and variety I thrive on. Realities Market drivers Market perceptions Development Learning Discriminatory Learning Development Lawsuits Accomplishment Challenge Idea sharing Variety Supported Accomplishment Encouraged Impact Autonomy Stimulating 21 Positioning themes Attribute Positioning Maps Relational theme: Beyond the bottom line When improving the quality of life for millions is the mission, it extends beyond our service to customers through our outreach to the community. Realities Market drivers Market perceptions Community focus Inspiring Effect on small business Purpose Brand reputation Meaningful Meaningful Make a difference Fulfilling Mission 22 Positioning themes Attribute Positioning Maps Emotional Theme: The biggest family in the world We share the same values, treating each other the way we would like to be treated. Realities Market drivers Market perceptions Teamwork Trusted Huge corporation Close-knit Open Family Accepted Respect Valued Fulfillment Open Rewarding Shared values 23 Positioning strategy Positioning essence The positioning essence is the basic strategic concept - it is a distillation of the various trends that will maximize relevance and differentiation. Positively energized • A career with a future • Everyone has potential • Beyond the bottom line • The biggest family in the world The positioning essence is used to provide a compass point, or north star, for articulation of the employer brand through using marketing and advertising vehicles. “Positively energized” not only addresses the tangible and intangible aspects of employment, but does so as a forward-thinking, mission-embracing imperative that elevates all dimensions of the Walmart experience. It draws a distinction, highlighting the opportunity to do well, and to do good. With the positioning essence in place, the next step is to understand and embrace the positioning statement. 24 Positioning strategy Positioning statement • The positioning statement is designed to serve as the strategic basis for the development and articulation of all employment marketing communications, both formal and informal. Neither the positioning statement, positioning essence, nor the positioning subsets are meant to represent the actual wording utilized in employment marketing communications. Rather they are designed to help inform the creative and messaging strategies and execution, providing a constant point of reference. With Walmart’s extensive scope and success, I feel good about my future, knowing I have an incredible range of opportunities available to me. No matter what my role, my learning and development is supported and encouraged by all in the organization, resulting in the challenge and variety I thrive on. At Walmart, we share the same values, treating each other the way we would like to be treated, all while improving the quality of life for millions. I belong here. Subset amplification • See Message Emphasis 25 Positioning strategy Message emphasis Supply Chain Educate Inspire Counter Educate Inspire Counter Educate Inspire Counter Educate Inspire Counter Focus on information Create an emotional connection Alter misperceptions Size Autonomy University Rotation program (MBAs) Mission E-commerce Growth Technology Sam’s Club Scope Mobility 26 Positioning strategy Personality These traits have been selected to complement the positioning, and therefore, deliver it in a manner that is more compelling. • Passionate – engaged and enthusiastic • Genuine – sincere, without pretense or contrivance • Welcoming – open, inviting, accepting 27 December 8, 2011 Walmart Employer Brand Positioning Strategy