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Walmart Advertising Report
 

Walmart Advertising Report

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  • The total Net Sales for 2011 was $419 billion with a 3.4% increase from 2010. The first quarter beings in May, the second in August, the third in November and the fourth in February.Net sales for the first quarter were $103.4 billion, an increase of 4.4 percent from last year.Return on investment (ROI) for the trailing 12 months ended April 30, 2011 was 18.5 percent1, compared to 19.2 percent1 last year. The primary drivers of the change in ROI were the impact from currency exchange and cash held for pending acquisitions. During the quarter, the company returned $3.4 billion to shareholders through dividends and share repurchases.
  • Martin AgencyCost Oriented MarketingIncreasing competitive checks to ensure the lowest priceWorking closer with suppliers to get the lowest cost per itemTraining employees for proper use of policy and easy guidelines to get lowest priceBroadening product assortment by 8,500 items or by 11%Launching a Facebook app which allows you to see local deals, which brings “together two of the biggest institutions in U.S. marketing” Walmart has around 150 million shopper monthly and Facebook has 165 million users in the U.S.
  • The five year sales trends show steady growth, and Walmart expects to grow net sales between 4 and 6 percent in fiscal year 2012.
  • While 62 percent of Walmart’s sales come from its U.S. locations, 26 percent come from international operations.
  • Today, Walmart International is a fast-growing part of Walmart's overall operations, with 5,366 stores and approximately 740,000 associates in 27 countries outside the continental U.S.Walmart International continues to be the growth engine for the company, increasing sales at 11.5 percent in 2011.
  • Return on investment (ROI) in 2009 was 19.3%.ROI was 19.2 percent and 19.3 percent for the fiscal years ended January 31, 2011 and 2010, respectively.
  • Walmart has specialty brands that offer quality products at a cheaper price than leading brands.Known for low prices.Emphasize health.Brands:CanopyEquateFaded GloryGeorgeGreat ValueMainstayNo boundariesOl’ RoyOne SourceOzark TrailParent’s ChoiceAmerican ChoiceSpring Valley
  • In the U.S., Walmart gave more than $378 million in cash and in-kind gifts, up from $296 million in 2007.These donations included $63 million in donations on behalf of Sam's Club in 2008.In international markets, Wal-Mart gave $45.5 million in cash and in-kind gifts, up from $41 million in 2007.In the U.S. and abroad, Wal-Mart's customers and associates gave more than $106 million through in-store giving programs that benefit local charities.In total, Wal-Mart, its Foundations, its customers and its associates supported global organizations with nearly $530 million in charitable contributions during FYE 2009.

Walmart Advertising Report Walmart Advertising Report Presentation Transcript

  • Advertising report 4 Girls 2 guys advertising
  • Table of contentsI. Executive summary...................................................3II. Situation analysis ....................................................5III. Focus group interview............................................39IV. Survey......................................................................... 52V. Problems & Opportunities.....................................70VI. Advertising strategy.............................................73VII. Media plan...................................................................75VIII.Flow Chart................................................................106IX. Media summary.........................................................108X. appendix......................................................................110 2
  • Executivesummary 3
  • Executive summary Situation Analysis  Walmart currently dominates the market with ¾ market share, and far exceeds its main competitors in sales. Walmart stores are highly concentrated in Southern region of the U.S. with a consumer demographic largely made up of women. Survey & FGI  The two primary research methods focused on usage and attitudes toward the Walmart brand and advertising. The results provided in-depth insight into consumer perceptions. Media Objective  To reach 75% of primary and secondary target audience, Women 24-35 and African Americans and Hispanics, with a frequency of 15 over 12 months from January 2013 emphasizing the South and Midwestern geographical regions. Media Strategies  The media plan is implemented as a national campaign, with an emphasis on Midwest and Southern states with DMAs that most effectively reach target audience. The media schedule will be a flighting pattern that will maximize recall and increase insertions during peak seasons. The plan will also seek to increase brand loyalty by reallocating the budget to digital media and below the line media, such as sponsorships and partnerships with charities and social causes. 4
  • SituationAnalysis 5
  • Industryanalysis 6
  • Situation Analysis Industry analysis issues • The business practices that keep Walmart’s prices so low have been criticized by supporters of local businesses. • The wages Walmart pays its employees is low, and drives down wages throughout the retail sector. •Walmart is losing market share to online merchants like Amazon.com and the growth of dollar stores like Dollar General.Economic policy institute 7
  • Situation Analysis Industry analysis Walmartrepresents nearly 10 % of the $3.8 trillion U.S. retail industry. The U.S. retail industry experienced a 4% annual growth rate between 2006 and 2011.ibisworld 8
  • Situation Analysis Industry analysis 2008 Retail sales Grocery Stores by outlet Other Retail Outlets 22% 33% Home Improvement 4% Drug Stores 4% 5% Department Stores 8% Warehouse Clubs 24% Supercenters Walmart is active in almost all retail outlets.Market share reporter 2010 9
  • Situation Analysis Industry analysis 2007 retailer sales totals (in billions of dollars) Walmart $378.70 Target $63.30 CVS $76.30 Dollar General $9.20 Walmart’ssales performance far exceeds its direct competitor, Target, and more specialized indirect competitors, CVS and Dollar General.Market share reporter 2010 10
  • Situation Analysis Industry analysis 2007 market shares 10% 6% Walmart Supercenter 6% SuperTarget Kroger Others Walmartdominates the market 78% with more than ¾ of the market share.Market share reporter 2010 11
  • Situation Analysis Industry analysis net income (in thousands of dollars) 16,000,000 14,000,000 12,000,000 10,000,000 Target 8,000,000 Walmart 6,000,000 Dollar General 4,000,000 2,000,000 0 2008 2009 2010Market share reporter 2010 12
  • Situation Analysis Industry analysis Walmart can also be classified as a discount department store, ahighly-concentratedindustry of about 5,000 stores with a combined annual revenue of $125 billion.First research 13
  • Situation Analysis Industry analysis walmart Locations (stores per million people) 35 30.87 30 27.46 25 20.51 20.97 21.13 21.38 22.24 19.85 19.87 19.97 20 15 10 5 0 785 stores in a 10-state stronghold make up 21% of Walmart’s U.S. stores.Walmart corporate website 14
  • Situation Analysis Industry analysis target Locations (stores per million people)Target corporate website 15
  • Situation Analysis Industry analysis Geographic indices Walmart is not as prominent as Target in the West or Northeast, but stronger in the South.Mri+ 16
  • Situation Analysis Industry analysis 2011 Quarterly sales (in billions of dollars) 120,000 115,600 115,000 110,000 105,000 103,000 101,200 100,000 99,100 Total net sales for 2011 was 95,000 $419 billion, a 3.4%increase from 2010. 90,000 1st 2nd 3rd 4th * Fiscal year ends January 31.Market share reporter 2010 17
  • Situation Analysis Industry analysis 2011 Competitors Quarterly sales (in thousands of dollars) 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 Target 40,000,000 Walmart 20,000,000 Dollar General 0Market share reporter 2010 18
  • ProductAnalysis 19
  • Situation Analysis Product analysis Brand imageBrandtags.com 20
  • Situation Analysis Product analysis Brand personality • They would be a popular individual. • Their friends would find them reliable when it came to availability as well as accessibility. • Some may view this person as a control freak, but they are just very involved in lots of areas and recognized by lots of people.Brandtags.com 21
  • Advertising Analysis 22
  • Situation Analysis Advertising analysis 2011 Advertising expenditures $2.5 Billion $1.3 Billion $234 million2012 Advertising red books 23
  • Situation Analysis Advertising analysis 5 Year ad expenditures (in millions of dollars)Annual reports 24
  • Situation Analysis Advertising analysis 2011 Ad Expenditures (in millions of dollars) 0.8% of Walmart sales $2,500.00 2.2% of Target $1,292.00 sales CVS $234.00 Dollar General $46.902012 Advertising red books 25
  • Situation Analysis Advertising analysis IfWalmartmatched Target by spending 2.2% of sales on advertising, the budget would be $5.72 billion. That amount would be 4 Times that of Targetand would make Walmartthe No. 1 Largest U.S. Advertiser.Advertising age 26
  • Situation Analysis Advertising analysis 2006 Ad expenditures by medium (in millions of dollars) Walmart only spends $524 million of its $2.1 billion budget on TV advertising.Ad $ summary 2006 27
  • Situation Analysis Advertising analysis “We Sell for Less” “Satisfaction Guaranteed” Walmart’sfirst forms of advertising were 2 signs on the storefront that inspired future campaigns.Walmart corporate website 28
  • Situation Analysis Advertising analysis The “Always” campaign What to say: Walmart’s prices are always low. How to say: Always low prices. Always. Bernstein-ReinAdvertising age 29
  • Situation Analysis Advertising analysis The “Always” campaignHow to say: 30
  • Situation Analysis Advertising analysis current campaign What to say: Saving money on the little things helps families live better. How to say: Save money. Live better. Martin AgencyAdvertising age 31
  • Situation Analysis Advertising analysis The competition Expect More. Pay Less. Save Money. Live Better. Expect Something Extra. 32
  • Situation Analysis Advertising analysis Target 2012 campaign What to say: Our products are the solution to whatever life throws at you. How to say: Life’s a moving Target. Wieden + KennedyTarget corporate website 33
  • Situation Analysis Advertising analysis CVS 2012 campaign What to say: The ExtraCare Card saves you money. How to say: Don’t be a money trasher.Cvs corporate website 34
  • Consumer Analysis 35
  • Situation Analysis Consumer analysis demographics Walmart Target CVS Age 25-34 25-34 18-24 Gender Women Women Men&Women Education HS Diploma, No Graduated College Graduated College College Plus Plus HHI $30,000-$39,999 $150,000+ $150,000+ Major Region South West Northeast The main difference between Walmart’s consumers and its competitors’ is a lower household income.MRI+ 36
  • Situation Analysis Consumer analysis Psychographics More likely to own Apple products, digital cameras, smart More likely to live an organic lifestyle. phones & GPS locators. Health conscious. Enjoy camping and hiking. Enjoy technology and fashion. Are single or recently married. May have infants. Are single and career-driven. Natural resources, Construction & Business Management, Financial, Sales Maintenance & Office OccupationsSRDS Lifestyle Analysis 09-10 37
  • Situation Analysis Consumer analysis Purchasing cycle Walmart serves more than Regular shoppers visit 200 million customers 5+ times a month weekly worldwide. on average. More women than men. Online shopping:Popular among 25-34 age group.MrI+ 38
  • Focus groupinterview 39
  • Focus group objectives• Gain Deeper Insight into the views and attitudes college students have toward Walmart and it’s competitors.• Develop a Better Understanding ofwhy Walmart consumers choose Walmart.• Attempt to Measure and Analyze the reactions and effects ofWalmart’s advertising. 40
  • Focus group Methods/procedures Focus Group A Focus Group B Moderator: Kearsten Howland Moderator: Christina Hoener• Location: Lindsey + Asp, Room 2144 • Location: Lindsey + Asp Room 2144• Date: 2/29/12 • Date: 3/5/12• Time: 4:30 p.m. • Time: 4:30 p.m.• Group Characteristics: • Group Characteristics: • All females • All males • 8 participants • 8 participants • All participants shop at Walmart • All participants shop at Walmart • Ages: 19-24 • Ages: 19-24 41
  • Focus group Summary of findings Focus Group A: Attitudes• Consumers have a negative view of Walmart when thinking of specific words to describe the store. Participant A: “Cheap” Participant B: “Dirty” Participant C: “Sometimes kind of scary at night” 42
  • Focus group Summary of findings Focus Group A: motivations• College students consider price and variety as major factors when choosing Walmart. – “Because I can get everything there. You walk into Walmart and they have a wide selection to choose from.” – “The price of the products is a big issue since we are college students.” 43
  • Focus group Observed differences Focus Group A: advertising• response Consumers recall less-recent ad campaigns before current advertisements. “I remember the smiley face, but I haven’t heard or seen anything lately.” 44
  • Focus group Observed differences Focus Group B: attitudes• The majority of respondents think of Walmartfirst for buying general merchandise products, but when asked if loyal to the store, most say no. Respondent A: “Not very.” Respondent B: “Not loyal at all.” Respondent C: “Could care less.” 45
  • Focus group Observed differences Focus Group B: motivations• Respondents agree that they prefer Target over Walmart, but convenience and price play a large role for choosing to go to Walmart. “I go to Walmart because it’s closest, and I’ve grown up with just Walmart so it’s the first thing I think of.” “I want Walmart’s prices at Target.” 46
  • Focus group Observed differences Focus Group B: advertising response• The overall reaction to Walmart’s recent advertising changes, such as their logo, was either unnoticed or dissatisfied attitudes. “I didn’t notice.” “I like the smiley face better.” 47
  • Focus group Observed differences Group similarities• Both groups easily remembered Walmart’s rollback prices ad campaign that featured the smiley face.• Convenience, location, and price were all criteria that was mention when asked why they go to Walmart.• Most females and males say they would prefer to shop at Target, but the majority of both groups said they shopped at Walmart the most. 48
  • Focus group Observed differences Group differences• Females choose between stores by the variety and quality of products offered (ex: clothes, shoes, household items, etc.), whereas Males focus more on price.• Males would consider online shopping at Walmart for specific products, females would not consider shopping online at Walmart. 49
  • Focus group Observed differences problems– The majority of participants in both groups had negative attitudes toward Walmart.– Both groups associated Walmart with words like “cheap” and “dirty.”– Males and females had difficulty recalling recent advertisements for Walmart. 50
  • Focus group Observed differences opportunities– Modify strategies and budget allocation to improve Walmart’s advertising relevance and recall.– Redesigning the actual stores and their brand image will improve their reputation and brand loyalty.– Offering higher quality products while maintaining everyday low prices will help recapture dissatisfied customers. 51
  • survey 52
  • SURVEY REPORT OBJECTIVES • To investigate what factors motivate consumers when choosing a general merchandise store. • To gain insight into consumers’ perceptions of the Walmart brand compared to its competitors.• To determine usage patterns of the general population. 53
  • SURVEY REPORT Methods/procedures• March 26, 2012 – April 4, 2012•Participants – 200• Online Survey Host – SurveyMonkey.com• Sample Collection Method – Share link on social networking sites,create Facebook event, word of mouth 54
  • SURVEY REPORT DemographicsParticipant DEMOGRAPHICS Gender Age 3.5 26.5 13.5 18-24 Male 5.5 25-34 Female 35-44 9.5 45-5473.5 68 55+ 55
  • SURVEY REPORT Demographics Participant DEMOGRAPHICS HH Income Education High School $0-9999 6 6 Graduate 24 38 $10,000-29,999 20 Some College $30,000-49,9999 Associates $50,000-69,999 13.5 54.5 Degree 9 $70,000+ Bachelors 20 Degree 56
  • SURVEY REPORT usage Store Rank by usage 4.54 3.6 3.212.3 35.7% of respondents strongly agree that they shop at Walmart 1.53 more than other general merchandise stores. 57
  • SURVEY REPORT usage Store visitsRespondents were asked rank general stores by preference and indicate how often they visit their #1 and #2 ranked stores. Visits to #1 Ranked Store Visits to #2 Ranked Store 5% 1% 7% 7% 1 or less 1 or less 34% 25% 2-5 times 2-5 times 6-9 times 6-9 times 61% 10 or more 60% 10 or more61% of respondents visit their 1st choice for general 60% of respondents visit their 2nd choice for generalmerchandise stores 2-5 times a month, and 25% visit merchandise stores 2-5 times a month, and 34% visit 1 6-9 times. time or less. 58
  • SURVEY REPORT usage FACTORS IN STORE SELECTION 200 147 154 150 100 77 53 51 50 14 0 Price Location Brand Quality Specific Other Options Items“A place I HAVE to go to because of my budget and I can find everything there, but I HATE going there because of the crowds of people and the long lines.” 59
  • SURVEY REPORT usage PURCHASING BEHAVOIR Walmart User Average Spending 13 17 13 Less than $25 $25-54 Yes $55-100 No 31.5 38.5 $100+ 8787% of respondents say they use Walmart to buy everyday products, but 43% say they are not loyal to the store they use the most. 60
  • SURVEY REPORT perception Attitudes50.0%45.0%40.0% Walmart35.0%30.0% Target25.0%20.0%15.0% CVS10.0% 5.0% 0.0% Consumers were asked to rank their feelings towards certain characteristics related to their experience in general merchandise stores. 61
  • SURVEY REPORT perception perceptions 70.0% 60.0% Walmart 50.0% 40.0% Target 30.0% 20.0% CVS 10.0% 0.0%Consumers were asked to rank their views of Walmart, Target, and CVS on a scale of 1-5, 5 being the highest and 1 being the lowest. 62
  • SURVEY REPORT perceptionCONSUMER PERCEPTIONS•Walmart is perceived to be less expensive thanTarget, but not as satisfactory, attractive, or clean.•Attitudes toward CVS were largely neutral. 63
  • SURVEY REPORT perception Comments for walmart 64
  • SURVEY REPORT perception Comments for Target 65
  • SURVEY REPORT advertising Response to advertising • Responses toward Walmart’s advertising were largely neutral.•Many respondents easily recalled the “smiley face rollback prices” and “everyday low prices.”•18.6% of respondents strongly agree that Target’s advertising is “good,” compared with only 8.0% for Walmart. 66
  • SURVEY REPORT advertising Advertising recall 90 82 81.5 80 70 60 Target 50 CVS 40 Kmart 30 25.5 Dollar General 20 14.5 11 Walmart 10 0Both Walmart and Target advertisements were easily recalled. 67
  • SURVEY REPORT advertising Advertising evaluation3.703.603.50 Walmart3.403.30 Target3.203.103.002.902.80 Good Satisfactory Appealing Like Target’s advertising is better received than Walmart. 68
  • SURVEY REPORT summary Summary of findingsThis survey shows that the overall perception of Target is much better than that of Walmart. Target is perceived as a cleaner general store that is slightly more expensive than Walmart, but also more attractive. Walmart is known to be convenient and cheap, one-stop shop.Over 80% of respondents were able to recall advertisements for both Walmart and Target, but consumers like Target’s advertising better. 69
  • Problems &Opportunitie s 70
  • P&O Analysis problems •Walmart is perceived to be less attractive and dirtier than its competitors. • Consumers respond better to Target’s advertising.• Consumers of general merchandise stores are not loyal to the stores they choose. 71
  • P&O Analysis opportunities •Walmart could improve brand image by cleaning or redesigning their stores.•Walmart could improve their advertising campaigns by using more television and outdoor advertising. •Walmart could build loyalty in their consumers by partnering with popular social causes. 72
  • Advertising strategy 73
  • Advertising strategy To convince women aged 24-35 and the African American and Hispanicpopulations to choose Walmart over the competitors by emphasizing the positive qualities associated with the brand and partnering with popular social causes. What to say Walmart is invested their customers by supporting their everyday lives and local communities. 74
  • Mediaplan 75
  • Media plan objectiveMEDIA OBJECTIVE To reach 75%of the target audience with 15 average frequency over 12 months from February 2013emphasizing South and Midwest regions and holiday seasons. 76
  • Media plan Target audience Target audience demographics Target consumers with high tendency to shop at Walmart. Primary target Audience Gender: Women Age: 24-35 Education: High School Diploma, No College HHI: $30,000-$39,999 South Secondary target audience African American & Hispanic PopulationMRI+ 77
  • Media plan Target audience Target audience psychographics More likely to own Apple products, digital cameras, smart phones & GPS locators. Enjoy camping and hiking. Are single or recently married. May have infants. Natural resources, Construction & MaintenanceSRDS lifestyle analysis 09-10 78
  • Media plan Media consumption audience composition by gender (monthly time in hours : minutes) M 2-17 F 2-17 M 18-49 F 18- M 50+ F 50+ M 2+ F 2+ 49 Traditional TV 113:13 114:29 139:50 151:18 195:15 217:44 150:53 166:20 Online Video 3:04 2:44 7:02 4:57 2:44 2:22 5:25 3:48 Mobile Video n/a n/a 4:20 4:20 2:10 3:37 4:20 4:20 When it comes to TV consumption, women of all ages spend more time than their male counterparts. On the flipside, men consistently spend more time streaming video online.Nielsen cross platform report Q1 2001 79
  • Media plan Media consumption audience composition by race (monthly time in hours : minutes) White African American Hispanic Traditional TV 155:33 212:53 135:42 Online Video 3:57 5:52 6:24 Mobile Video 3:37 6:30 4:20 African Americans spend the most time tuned into traditional TV and mobile video, and Hispanics spend more time watching videos on the internet.Nielsen cross platform report Q1 2001 80
  • Media plan Media consumption African Americans Hours of TV a Day • African Americans read more issues of magazines each month. 5:11 7:12 • A larger percentage of African Americans own smart phones than the overall population. Overall Population African Americans • African Americans are 30% morelikely to visit Twitter. African Americans use more television than the overall population.Nielsen cross platform report Q1 2001 81
  • Media plan Media consumption Hispanics • Hispanic mobile subscribers are the most likely to have a smart phone. • The availability of Spanish-language channels available continues to drive the increased number of Hispanics who tune into cable television. • Hispanic prefer to get their information from print media in Spanish.Nielsen cross platform report Q1 2001 82
  • Media plan Geographical strategy regional Focus on regions with high geographical index. Walmart Target South 102 76 Northeast 101 122 Midwest 99 98 West 97 123 Walmart has a higher geographical index in the South, and a competitive situation in the Midwest.Mri+ 83
  • Media plan Geographical strategy states Illinois Missouri Kansas Oklahoma Texas Arkansas Mississippi Alabama Focus on states in target regions with large DMAs and a large number of Walmartlocations.Nielsen 2011-2012 DMA Ranks 84
  • Media plan Geographical strategy dmas Chicago, IL Dallas-Ft. Worth, TX Atlanta, GA Houston, TX Detroit, MI Birmingham, AL Miami, FL St. Louis, MO Focus on Nielsen’s New Orleans, LA top-ranked DMAs with Oklahoma City, OK multicultural audiences. Little Rock-Pine Bluff, AR Jackson, MSNielsen 2011-2012 DMA Ranks 85
  • Media plan Target audience size Target audience Midwest South Total Total Population 66,927,001 114,555,744 180,154,790 Women 25-34 4,235,200 7,550,135 11,875,335 African Americans 6,969,686 22,022,220 28,991,906 Hispanics 4,382,560 17,247,279 21,629,839 Total Target Audience 15,587,446 46,819,634 62,497,080u.s. Census bureau 86
  • Media plan scheduling Flighting schedule• Use a four-week flightingpattern to maximize recall and provide the most efficient use of the Walmart budget.•Increase amount of insertions during peak times based on quarterly sales.• Allow flexibility to make creative media buys. 87
  • Media plan scheduling Peak seasons Q1 2011 Quarterly Sales Valentine’s Day120,000 Q2115,000 Summer110,000 Independence Day105,000 Q3 Back to School/Tax Free Weekend100,000 Q4 95,000 Black Friday/Cyber Monday 90,000 Thanksgiving 1st 2nd 3rd 4th Christmas * Fiscal year ends January 31. 88
  • Media plan Media selection Media selection Network TV Cable TV Digital(Online Newspapers, Search Engines, Social Media, Entertainment, Mobile) Magazine Local Radio Outdoor Below the Line 89
  • Media plan Media selection Network Program Rating FOX American Idol (Wed) 10.7 FOX American Idol 9.4 (Thurs) Network NBC The Voice 8.4 CBS NCIS 8.2 television CBS CSI 7.5 Advertise during programs CBS Criminal Minds 7.3 with highest ratings. CBS NCIS: Los Angeles 7.3 CBS 60 Minutes 6.9 ABC Missing 6.8 ABC The Bachelor 6.7nielsen 90
  • Media plan Media selection Network Rating Consumption Index for Walmart Users Cable BET 51.1 118 Bravo 44.55 116 television Cooking Channel n/a 202 Advertise on cable E! 51.85 118 networks with high ESPN 29.3 97 ratings, high consumption FamilyNet n/a 223 indices for Walmart users. Galavision 46.6 156 MTV 58.15 159 Choose networks with multicultural audiences. Style 63.25 129 TBS n/a 103Mri+ 91
  • Media plan Media selection Magazine Circulation Ratings Ebony 1263996 5 magazines Entertainment Weekly Essence 1799494 1100000 6.6 3.8Advertise in magazines with Family Circle 3872671 7.9 high circulation rates and O, The Oprah 2380782 7.5 ratings for the target Magazine audience. Parents 2200000 7.2 Choose publications to People 3569811 24.1 reach secondary target People En Español 577636 n/a audience. Womans Day 3886853 11.4 Womens Health 1575425 4.7mri+ 92
  • Media plan Media selection Local radio Daypart Average Rating Cost CPP 6am-10am 17.3 $4,134.7 239 10am-3pm 10.3 $2,070.3 201 3pm-7pm 15.2 $3,268 215 7-12am 5.6 $459.2 82 Advertise on local radio stations in targeted DMAs during morning and evening commute times.Marketers guide to media 93
  • Media plan Media selection outdoor City Billboard Type Circulation (000) 4-Week Cost per Unit Chicago Rotary 175,593.6 $5,900 Dallas Rotary 123,000 $3,935 Houston Rotary 110,992 $2,800 Atlanta Rotary 88,298 $3,200 Place billboards in target DMAs in South and Midwest regions whose populations are composed of the target audiences.Marketers guide to media 94
  • Media plan Media selection digital Search Volume CPC Facebook 226 million $0.88 Social Media Twitter 7.84 million $1.12 Pinterest 1.5 million $0.16 Yahoo! 55.6 million $0.90 Search Engines Bing n/a n/a Google 37.2 million $3.22 AdWords YouTube 68 million $0.61 Entertainment Hulu 9.14 million $0.13 Mobile Pandora 11.1 million $0.11 Mobile Apps n/a n/aSEMrush.com 95
  • Media plan Media selection Online newspapers Monthly Unique Visitors Monthly Page Views Chicago Tribune 3.9 million 102.3 million Houston Chronicle 4.5 million 59 million Kansas City Star 3.8 million 29 million Louisville Courier Journal 1.4 million 19 million Tampa Bay Times 1.5 million 22.3 million Advertise on web versions of top-ranked news publications from targeted DMAs.Newspaper websites 96
  • Media plan Media selection Below the line Continued Partnerships Strengthen current partnerships by increasing donations to $1 million and above: Big Brothers Big Sisters • United Negro College Fund Teach for America – Current contribution $500,000 - $999,999 National Partnership for • Hispanic Association of Colleges and Universities Women & Children – Current contribution $250-$499,999 Tornado ReliefWalmart corporate website 97
  • Media plan Media selection Below the line Corporate SponsorshipsNational Football League National Basketball Association U.S. Soccer 98
  • Media plan Media strategy Media strategyTo maximize reach and optimize frequency of exposure ofthe Walmart brand to our target audience through trusted sources and creative media buys. 99
  • Media plan Media strategy “bookend” commercials 33: Percentage of Households Owning DVR Device 56: Percentage of Owners Using DVR to Fast Forward through Commercials 7: Number of Seconds of Guaranteed Ad Space ½: Portion of Cable TV Budget Allotted to 7-Second Media BuysDvr research institute 100
  • Media plan Media strategy Reach/frequency Q1 Q2 Q3 Q4 Average Reach 100 99.9 100 100 100Frequency 90.25 115 90.25 165.25 442 Peak Sales Quarter (Nov-Jan) 101
  • Media plan Budget strategyIt is proposed that Walmartreduce advertising spending to $2 billion by reallocating portions of the budget from traditional mediatodigital media &“below the line” activities. 102
  • Media plan Budget strategy rationale•Walmart has increased advertising expenditures by 56% since 2006, while Target’s spending has remained constant.• The target audience prefers to get their information from digital media, which is cheaper to advertise in than print media.• Extraordinary marketing efforts receive criticism from supporters of local business.•Walmart must repair an unfavorable reputation by allocating more money for donations and sponsorships.• Survey shows that Walmart’s advertising is already recalled by consumers at a high rate. 103
  • Media plan Budget strategy allocation Network TV 30% 30% Cable TV Digital Magazines Radio2% Outdoor 0% 10% 20% Below the Line 8% 104
  • Media plan Budget strategyMedia Budget AllocationNetwork TV $600,000,000Cable TV $400,000,000Online Newspapers $100,000,000Magazine $200,000,000Radio $1,000,000Outdoor $40,000,000Search Engines $20,000,000Social Media $20,000,000Entertainment $18,000,000Mobile $1,000,000Below the Line $600,000,000 105
  • flowchart 106
  • flowchart 107
  • Mediasummary 108
  • Media summary• A national campaign will focus on the South and Midwest regions.• The total budget has been decreased from last year to $1,999,938,331.• More of the total budget will be allocated to digital media and below the line activities.• A flightingmedia schedule allows the flexibility to increase advertising during peak seasons.• 7” bookend commercials will use a creative media buy to reach the target audience.• The primary target audience consists of women aged 24-35 with household incomes under $40,000.• Advertising will also focus on a secondary target audience consisting of African Americans and Hispanics.• The campaign will attain a reach of 75% or more with and average frequency of 15 or more over 12 months starting February 2013. 109
  • appendix 110
  • appendix Company profile • Established in 1984 • World’s No. 1 Largest Retailer • FY 2011 Sales of $419 Billion • 2,100,000 Employees2012 Advertising red books 111
  • appendix 5 Year Sales trends NET SALES (in billions of dollars) 500 401 405 419 400 374 345 3.4% 300 1.0% 200 7.3% 100 8.4% 0 2007 2008 2009 2010 2011 Walmart expects to grow net sales between 4% and 6% in the 2012 fiscal year.Walmartstores.com 112
  • appendix Distribution of sales by segment Sales by segment (in billions of dollars) Walmart U.S. $49 $109 $260 Walmart International Sams Club 26% of Walmart’s sales come from foreign markets.Walmartstores.com 113
  • appendix Domestic Geographic analysis U.S. Locations Walmart has about 3,804 stores in the U.S. and Puerto Rico, not including its Sam’s Club franchise.Walmartstores.com 114
  • appendix International Geographic Analysis International locations 5,366 stores in 27 countries outside the U.S. International sales increased by 11.5% in 2011.Walmartstores.com 115
  • appendix Financial summary 2011 Operating Income increased Financial 6.4% summary Net Sales Earnings Continued per share ROI of over increased increased 19% 3.4% 12% Returned $19.2 billion to shareholde rsWalmartstores.com 116
  • appendix Brands2012 Advertising red books 117
  • appendix Brand history Evolution of the logo 1968- 1981 1962-1964 1964-1981 Used in print & in- Sam Walton names The first official and store signing. Never his new store consistently used used as building Walmart. logo. signage. 1981-1992 1992-2008 2008 Logo updated Adopted the star Current Logo again in 1981. logo.Walmartstores.com 118
  • appendix philanthropy Walmart gave more than $378 million in cash and in-kind gifts in the U.S. and an additional $106 million in international markets.Walmartstores.com 119
  • appendix Giving distribution Giving for 2008 (in millions of dollars) $45.50 U.S. $63 International $106 Sams Club $378 Customers & AssociatesWalmartstores.com 120
  • Fgiquestions 121
  • appendix Focus group questionsIntroductionIntroduce moderator, define group sessions, participant introductions.Where do you go to buy everyday general products?Are you loyal to that store?How do you make up your mind where to go when choosing a general merchandise store?List that criteria in order of importance.Information About Store ChoiceDo you ever shop at a superstore such as Walmart or Target?Which one do you prefer?How often do you visit that store?Information About Shopping HabitsWhat criteria do you use when picking which store to shop at?What type of products do you buy when you shop there?Why do you choose to buy those products from that store?When you shop at Walmart, do you ever buy the Great Value brand?Information About Walmart’s AdvertisingDo you remember any advertising for Walmart?Where did you see the ads?What was the main advertising message?Which ones do you like and what did you like about it?Which ones do you dislike and what did you dislike about it?Were you able to relate to the advertising message? 122
  • appendix Focus group questionsInformation About Walmart As A BrandWhat words do you think of when you think of Walmart?Describe the Walmart brand.Describe the Walmart logo.How important is online availability to you and your shopping habits?Have you ever shopped online at Walmart.com? 123
  • Fgitranscripts 124
  • appendix Focus group a transcript 125
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  • appendix Focus group B transcriptDoes everyone want to go around and say their name?I’m Brady. Do you want my year?Sure.Sophomore.I’m Thomas Law. I’m a junior.Timothy Catcher. Junior. Advertising major. University of Oklahoma.Casey Todd. Junior.Robert Hogue. Senior.Humzah, and I’m a junior too.Okay, my first question is where do you go to buy everyday general products? So that’s like groceries, other random things.Cleaning supplies.Yeah.Probably Walmart.Walmart.Yeah, Walmart.Walmart.Target.It really just depends on what I’m getting.It depends on how close I am to the place.Yeah, and where’s closer.Amazon.com. 131
  • appendix Focus group B transcriptFor groceries?Depends on whoever’s going to go for me since I don’t have enough money.Okay, how loyal are you to that store?Not very.Not loyal at all.Couldn’t care less.Okay, well then how do you make up your mind about where to go for those general supplies?How close it is.If I have to get a lot of things, I tend to go more out of my way to go to Walmart, because if I just need to pick up bread andmilk then I don’t need to go like 30 minutes out of my way to go get it.Yeah, if I’m planning on getting a bunch of stuff I’d go to Target probably. But usually Walmart’s closer, so I just go there.I just go wherever’s cheaper.Location. I usually go to Target though. I feel safer going there.Why do you feel safer going to Target?Well, when I shop I don’t shop at 3 in the afternoon, I go at like 9 or 10 o’clock. I don’t know. Walmart kind of feels weird.You always hear stories in the news about people getting kidnapped at Walmart, and raped at Walmart, so I don’t have toworry about it.That never happens at Target.So, if you listed that criteria in order, it would be location and then price? Any other criteria you think about? Well, the nextquestion was do you ever shop at asuperstore such as Walmart or Target, but you all said yes to that. And which one youprefer. And Casey prefers Target because of safety.Yes. 132
  • appendix Focus group B transcriptHow about everyone else? Target or Walmart, which is your preference?We have to pick one of those?Yes.Probably Target.Yeah, I’d like to go to Target.I mean, it doesn’t matter, but if I had to choose one, I’d guess I’d choose Target too.Why?Just because it’s nicer. I feel like.I want Walmart’s prices at Target.Yeah.I go to Walmart because it’s closest, and I’ve grown up with just Walmart so it’s the first thing I think of.I just like Target because of Walmart’s people.How often do you visit that store? Walmart or Target?As least often as possible.Yeah, in college I barely ever go because I don’t have to buy groceries or anything.Whenever I need something.3 to 4 times a month maybe.Alright, what type of products do you buy when you shop there?Groceries.Toiletries, school supplies, toiletries.Everything.Definitely groceries. 133
  • appendix Focus group B transcriptDo you get it all at one store? Or do you go to Walmart for groceries, and then Targetfor something else?No.God no.All one store.Okay, when you shop at Walmart, do you ever buy Walmart’s brand Great Value?Yeah.Yeah.Occasionally, yes.Sometimes.It depends on what I’m buying and how much money I have.Exactly.If it’s like chips, I usually get the chips. And the milk also.And if its like spaghetti or something, I’ve bought that before.Yeah.Do you remember any advertisements for Walmart?Yeah, Rollback prices back in the day.Rollback prices back in the day.The smiley face.Okay, so just TV ads? Anything else? Print or online?For some reason I remember the Christmas ads the most. 134
  • appendix Focus group B transcriptWhat was the main advertising message?See, I don’t remember, I just remember seeing a lot of their Christmas stuff. Oh, well the layaway stuff that tied into theirChristmas stuff.Oh yeah.Do you guys remember the Rollback prices more?Like when he was dressed up as Zorro?Yeah. Or like the smiley face?Yeah.Yes.Yeah, that’s what I’m thinking of.Are you aware that they’ve changed their branding recently? Instead of the smiley, it’s the asterisk?We’ve been talking, and it’s not cool.I didn’t notice.No. I have never noticed.It’s been a while.I like the smiley face better.He’s still in my head.He’s there forever.They did it to be more like Target, because Target has a symbol that’s noticeable.I don’t know if that’s the difference between Walmart and Target.That’s not why I choose it. 135
  • appendix Focus group B transcriptYeah, there’s a quality issue.And Walmart, I don’t know, it’s kind of oddly lit. Maybe that’s just me that thinks that. It’s kind of dark in Walmart.Or really bright lighting.Yeah, there’s something unsettling about it. Sometimes.And Target doesn’t have a website called People of Target.That’s true.Well there might be, but I haven’t seen it or heard of it.Very true.Okay, as far as advertisements, what did you like and what did you dislike about the commercials?It seemed to me like, specifically with the layaway being back, they tried to be young and hip with the humor, but then youstop and realize, oh, it’s Walmart layaway. Why do I care about this? Why is this trying to be interesting?Yeah, I feel like it’s a commercial. It needs to get off my TV.Perfect.Alright, so were you able to relation to the advertisement at all? I’m gathering a no.Yeah, no.No.What words do you think of when you think of Walmart?Cheap.Whenever I think of Walmart I think of like, everything.Yeah.Robust. 136
  • appendix Focus group B transcriptI honestly think of the greeters and think, please don’t make eye contact with me.I think of cheap. And $4, because I work at a pharmacy so all I hear all day is $4 plan. So that sticks out in my head.Okay, can you describe the Walmart brand?What do you mean?Well, I guess like the company, or the reputation.I can tell you it’s really plain packaging. That’s what I can tell you about Great Value.Every day low pricing.That’s true.Can you describe the brand’s logo? And I know everyone said the smiley face, but it’sbeen gone for about 3 years now.Is it that stupid sun sign now?It’s that star-like thing.Yeah, the asterisk is their new logo.It’s relatively recent because they fired their, well we don’t need to get into that.Yeah, but it’s not the smiley face anymore. So were you either unaware that it’s not the smiley face, or did you not careabout it?I never really knew. I just thought the smiley face went away. I didn’t realize they replaced it with the asterik.Do you guys know what we’re talking about?Yeah, it’s like the sun.Yeah, everyone knows.I mean, it’s still yellow, but that’s about it. 137
  • appendix Focus group B transcriptHow important is online availability to you and your shopping habits?I’ve actually used Walmart’s online to look up prices before. I know that’s kind of lame.No, I do that sometimes.I’ve looked up the price of a television, like bigger buys, but I mean, if I’m going grocery shopping I’m not going to look it up.But I remember I looked up a television once to see how much it was.I’ve even looked up the price of pepper on Walmart, and mineral oil.For schoolwork?For account planning?No, I looked up mineral oil last night for some reason. I don’t remember why. Like, I’ve used it for a few different things also.Okay, anyone besides Tim?It was an air conditioner, that’s what it was.I mean, I’ll look at prices and see if they have certain products, but it’s not worth it to order stuff online really.Yeah, because you can go on and see if they have it in your location.So you use it for location pricing, but you never actually order anything from Walmart.com?I wouldn’t order groceries online, but maybe like a TV or something.I got my mom’s Christmas present online.From Walmart.com?Inside the store pick up. That’s what’s up.Alright, well that was our focus group.I had a blast.Thanks guys. 138
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  • Mediachart 146
  • appendix Media planning chart 147
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