Wal-Mart Rolls
Back For Christmas
BSAD: 432
B. Morrison
PhilJohnVictoriaEricAlex
Agenda
 Article Overview
 SWOT Analysis
 Retail Strategy
 Positioning Maps
 Target Market/Value Proposition
 Implementation Analysis/Conclusion
Overview of Article
 Wal-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
S
O
Strengths
W
Weaknesses
•Incredible supply chain
•Customer Service
•Buyer power
•Bad PR Campaigns
•Low Prices & Price Match Guarantee
• Staff Availability
Opportunities
T
Threats
•Takeover of Target Canada?
•
Other large Corporations expanding
•Opportunity to improve image and
Public perception
•
Being largest corporation means
target for competition
•
Possible change of labour laws
•Demand supplier’s to improve
workplace practices for employees
and other stakeholders
Overview of Strategy
 Retail 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 Initiative
 They 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 Fit
 Considering Mass Rollbacks, the Target Market of Low
Income Families will be more Attracted to Shop at WalMart.
 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 Implementation
 Aligns 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.
Conclusion
 Smart 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/e5/9ff9a874459
49173fde56316ac5f/2014-annual-report.pdf
 Walmart To Expand Discounts As Retail Price War Heats
Up- http://www.reuters.com/article/2014/10/31/uswalmart-discounting-idUSKBN0IK09K20141031
Works Cited
 Images
http://images.fastcompany.com/upload/faceoff-walmarttarget.jpg
http://utahsweetsavings.com/wpcontent/uploads/2011/11/walmart-christmas-price-guarentee.png
http://observer.com/2013/02/babys-got-rollback-walmart-is-themost-romantic-grocery-store-in-the-country/
http://www.itaremarket.com/wpcontent/uploads/2014/07/downgraph.jpg
http://www.lippincott.com/cache/made/cc190b03fd288467/wal
mart_casestudy_design_logo-1_959_487_90_c1.jpg
http://i2.cdn.turner.com/money/2011/08/16/news/companies/w
almart/walmart-shoppers-2.top.jpg