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MBA Student Case Competition -Walmart Case Third Place Team
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MBA Student Case Competition -Walmart Case Third Place Team MBA Student Case Competition -Walmart Case Third Place Team Presentation Transcript

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