MBA Student Case Competition -Walmart Case Third Place Team

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MBA Student Case Competition -Walmart Case Third Place Team

  1. 1. WAL-MART CASE ANALYSIS Neha Ajmani Kristen Karas David Spencer Michael Talplacido
  2. 2. MARKET TRENDS <ul><li>Declining physical DVD and CD sales </li></ul><ul><li>Digital platform is altering entertainment consumption habits </li></ul><ul><li>Lack of digital education for majority of consumers </li></ul><ul><li>Economic downturn leads to increase in value based shopping </li></ul>
  3. 3. COMPETITIVE ANALYSIS <ul><li>Wal-Mart is category leader for physical sales </li></ul><ul><li>Core competency in retail </li></ul><ul><li>Use economic downturn as a way to gain market share from competitors and establish loyalty </li></ul><ul><li>iTunes is entrenched category leader for music downloads and online music experience </li></ul><ul><li>Amazon.com maintains largest selection </li></ul><ul><li>Netflix offers strong product in rental and streaming video </li></ul><ul><li>Wal-Mart faces challenges in online digital downloads </li></ul><ul><li>In Store </li></ul><ul><li>On Line </li></ul>
  4. 4. WAL-MART STRATEGY <ul><li>Other competitors have experience and selection advantage online </li></ul><ul><li>Wal-Mart must maintain online presence for future growth opportunities in digital entertainment </li></ul><ul><li>Wal-Mart must leverage core competencies in retail and value to drive digital conversion in store </li></ul>
  5. 5. TARGET MARKET <ul><li>Moms </li></ul><ul><ul><li>Value-focused </li></ul></ul><ul><ul><li>Aspirational </li></ul></ul><ul><ul><li>Family friendly </li></ul></ul><ul><ul><li>Convenience </li></ul></ul>
  6. 6. CONSUMER INSIGHTS <ul><li>Moms want to save money in this economy </li></ul><ul><li>Majority of consumers still consuming movie entertainment on home TV </li></ul><ul><li>Moms are skeptical of digital media and the benefits it can provide </li></ul><ul><li>Complicated – not comfortable with technology </li></ul><ul><li>Want high quality experience for their children </li></ul><ul><li>Moms are paying more attention to trends in sustainability </li></ul>
  7. 7. POSITIONING <ul><li>For mothers who want quality products at value prices for their families, Wal-Mart entertainment will provide a low cost and an easy to use experience by offering family friendly digital media opportunities in-store. </li></ul>
  8. 8. 360 DEGREE ENTERTAINMENT INTEGRATION OF TACTICS
  9. 9. WAL-MART.COM <ul><li>Concept </li></ul><ul><ul><li>Not a core competency – instead should augment the in-store retail experience in a Mom-friendly way </li></ul></ul><ul><li>Elements </li></ul><ul><ul><li>Provides insight into Wal-Mart products and prices </li></ul></ul><ul><ul><li>Education on new technology at low cost </li></ul></ul><ul><ul><li>Provide “Tips” section for helping families become more technologically-savvy on a budget; also highlight the benefits of new technology </li></ul></ul><ul><ul><li>Link information with products so consumers are exposed to what’s available at Wal-Mart to provide the additional benefit </li></ul></ul>
  10. 10. MUSIC <ul><ul><li>Concept </li></ul></ul><ul><ul><ul><li>Goal of music strategy is NOT to compete with iTunes. </li></ul></ul></ul><ul><ul><li>Elements </li></ul></ul><ul><ul><ul><li>Increase focus on family-friendly content </li></ul></ul></ul><ul><ul><ul><li>Use Wal-Mart online music store as a means to augment in-store sales </li></ul></ul></ul><ul><ul><ul><li>Highlight the Custom CD offering as a kid-friendly “project” ; make more visible </li></ul></ul></ul>
  11. 11. MUSIC <ul><li>More Elements </li></ul><ul><ul><li>Exclusive partnerships with artists e.g. new release distributed exclusively through Wal-Mart </li></ul></ul><ul><ul><li>Make mp3.Wal-Mart.com more interactive e.g. add streaming videos capabilities </li></ul></ul>
  12. 12. BLU-RAY <ul><li>Concept </li></ul><ul><ul><li>Blu-Ray is a high margin product, with a better point of parity (to DVDs) for Moms than online movie downloads </li></ul></ul><ul><li>Elements </li></ul><ul><ul><li>Use Wal-Mart website to provide education and information on added benefits of Blu-Ray discs and players </li></ul></ul><ul><ul><li>Promote large, high-quality selection of family friendly movies moms would want to share with their kids </li></ul></ul>
  13. 13. WAL-MART APPLICATIONS <ul><li>Concept </li></ul><ul><ul><li>Use electronics purchases as a way to drive consumers to appreciate Wal-Mart as a digital content provider of the future </li></ul></ul><ul><li>Elements </li></ul><ul><ul><li>Application on cell phone purchases in-store </li></ul></ul><ul><ul><li>Wal-Mart.com link on computers </li></ul></ul><ul><ul><li>Use google.com searches for Wal-Mart.com to come up at top music downloads </li></ul></ul>
  14. 14. MOMMY BLOGGERS <ul><li>Concept </li></ul><ul><ul><li>Mom’s rely heavily on word of mouth for their purchases </li></ul></ul><ul><li>Elements </li></ul><ul><ul><li>Identify influential bloggers and provide them with trial products in exchange for posting reviews of product and reinforcing value of purchasing product at Wal-Mart </li></ul></ul><ul><ul><li>Invite Mommy Bloggers with their kids to be a part of the digital experience at Wal-Mart stores </li></ul></ul>
  15. 15. AN IN-STORE EXPERIENCE <ul><ul><li>Concept: </li></ul></ul><ul><ul><ul><li>Busy moms want a rich experiences for their children </li></ul></ul></ul><ul><ul><ul><li>Many have not made the digital transition </li></ul></ul></ul><ul><ul><ul><li>100 million shoppers visit a Wal-Mart every week </li></ul></ul></ul><ul><ul><ul><li>Tailor entertainment solutions to fit mothers needs </li></ul></ul></ul>
  16. 16. MAKE IT MOM FRIENDLY <ul><li>Break away from home electronics as being the “man zone” </li></ul><ul><ul><li>Saatchi & Saatchi X to re-design section </li></ul></ul><ul><ul><li>Widen isles, continue with sleek/clean look </li></ul></ul><ul><li>Create help guides so that Moms can self-educate </li></ul>
  17. 17. MAKE IT KID FRIENDLY <ul><li>Develop a kid friendly zone </li></ul><ul><ul><li>Include Disney, Blues Clues – just for them </li></ul></ul><ul><ul><li>Move sensitive electronics higher on shelf </li></ul></ul><ul><ul><li>Encourage interaction between mom and kids </li></ul></ul><ul><ul><li>Increase children's music (CD and digital) selection </li></ul></ul>
  18. 18. AID DIGITAL CONVERSION <ul><li>Ultimately drive mother and child to an at-home digital experience </li></ul><ul><li>Wal-Mart’s strong store experience will aid coming digital conversion </li></ul>
  19. 19. U-VERSE <ul><ul><li>Concept </li></ul></ul><ul><ul><ul><ul><ul><li>Digital TV and Movies not Wal-Mart’s core competency </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Partner with a key player that provides customers with a way to consume entertainment in a new way </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Satisfies aspirational elements with new technology, value-based motivations and integration </li></ul></ul></ul></ul></ul><ul><ul><li>Elements </li></ul></ul><ul><ul><ul><li>Leverage U-verse partnership- a service that integrates IPTV, high speed internet, wireless, DVR , HD, and on-demand movies </li></ul></ul></ul><ul><ul><ul><li>Offer U-verse sign-ups in-store with dedicated AT&T employee </li></ul></ul></ul><ul><ul><ul><li>Integrated platform that makes it simple for Mom to take care of all technology needs </li></ul></ul></ul>
  20. 20. ELEVATOR PITCH <ul><li>Empowering Moms to make value-based decisions on new entertainment technology </li></ul><ul><ul><li>Low prices </li></ul></ul><ul><ul><li>Kid Friendly Content </li></ul></ul><ul><ul><li>Education on new technology </li></ul></ul><ul><ul><li>In retail space that they are comfortable with </li></ul></ul><ul><li>Long term: Position Wal-Mart to be player in new entertainment technology in the retail space </li></ul>

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