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

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 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

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

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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