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Strategy and case studies

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Strategy and case studies

  1. 1. ONLINE VS. OFFLINE DIGITAL BATTLEGROUNDS
  2. 2. THREE FRONTS IN ONLINE RETAIL DEVELOPMENT SOURCE: iConsumer 2012 McKinsey
  3. 3. ONLINE VS OFFLINE MARKETSHARE
  4. 4. WOULD YOU WANT TO SHOP OLD SCHOOL AFTER PANDORA OR SPOTIFY?
  5. 5. REMEMBER BOOK STORES?
  6. 6. …BUT THERE ARE CERTAIN PRODUCTS YOU STILL WANT TO TOUCH AND FEEL.
  7. 7. CUSTOMER AQUISTION AND RETENTION CATEGORY DEVELOPMENT CUSTOMER EXPERIENCE CUSTOMER PROMISE EXCEL AT THE FUNDAMENTALS OF E-COMMERCE
  8. 8. CUSTOMER AQUISTION AND RETENTION CATEGORY DEVELOPMENT CUSTOMER EXPERIENCE CUSTOMER PROMISE EXCEL AT THE FUNDAMENTALS OF E-COMMERCE
  9. 9. MINDSETS OF THE ONLINE SHOPPER IDEAS SIMPLIFIED INFORMATION PERSONALIZED RECOMMENDATIONS NEWEST PRODUCTS TO SAVE TIME I NEED…
  10. 10. $61B $10.6B $6.6B $5B TOP ONLINE RETAILERS BY SALES REVENUE – CAN YOU GUESS?
  11. 11. IN SUMMARY - IMPLICATIONS PROTECT GROW GROW EXPLORE GROW SOURCE: iConsumer 2012 McKinsey
  12. 12. PDMI PROGRAMS EXPLOREGROW CONNECTED LIFE EDLP BROADBAND ERC REFURB FUTURE AUTOMOTIVE SITE EXPERIENCE STRATEGY KIDS DIGITAL – XO TABLET PD CONNECTED SERVICES PERSISTENT PRESENCE THROUGH STRAIGHT TALK WALMART FIT SUBSTANTIATION PROGRAM
  13. 13. PDMI CASE STUDIES - CONNECTED LIFE KIDS DIGITAL: XO TABLET BRIDGING THE EDUCATION GAP
  14. 14. • The Kindle isn’t a book. It’s a bookstore. • We are obligated to link our credit cards to Apple. • Selling an experience and a window into a world of content. • Big screen, big capabilities, big app store, big storage • Big investment in design + build quality. • Big investment in partnerships • Specialized devices that are designed for specific uses (like watching movies and reading books) • Smaller function set, niche markets. • It does one thing really well. • Develop tablets at a compelling price, but that offer all of the high-end usability and features that they offer today,” • Danger of falling into differentiation on price only. The price wars begin. go BIG go ( small ) go ¢heap PDMI CASE STUDIES – KIDS DIGITAL STRATEGY Q4 2011: The tablet market explodes. How do we get in the game?
  15. 15. "The razor toothed piranhas of the genera serrasalmus and pygocentrus are the most ferocious freshwater fish in the world. In reality, they seldom attack a human” Elliot Nicholls, a 17-year-old from Dunedin, New Zealand has set a new record for speed texting without looking at the screen - 45 seconds. Digital Appendages Kids lifestyle = digital devices KGOY - Kids getting older younger Ipads and smartphones are replacing traditional toys Amplified reality – Physical and digital worlds converge Digital dexterity Their digital skills are shaping the Future of technology 2.1. 3. 4. PDMI CASE STUDIES – KIDS DIGITAL STRATEGY – MACRO TRENDS
  16. 16. Designed for an adult - made for a child – kids and parent mode functionality. Spill-proof and shock proof cover included in the tablet (Yves Behar design) The only dual language tablet with apps & content in English and Spanish Special XO AppsStore: safe apps environment curated by OLPC 100 free selected books available for different target ages Price $149 ($2 of every sale will be donated to an educational charity) Avg of 4.5 stars on Walmart + Amazon Since the launch on July 16th 2013. PDMI CASE STUDIES – PARTNERSHIP WITH OLPC – LAUNCH DATE 7.16.13 The tablet was the flagship retail merchandise strategy for OLPC.
  17. 17. PDMI CASE STUDIES - CONNECTED LIFE PDMI: PRODUCT DEVELOPMENT + MERCHANDISE INNOVATION CONNECTED LIFE.
  18. 18. Explosive growth from 10.2M automated homes in 2012 to 22M in 2013 Now is the time! Consumers want a full solution, connected ecosystem 130M US Homes = Significant Opportunity to Walmart High adoption of smart phones with younger consumers. Appeal to both home owners and renters Security Monitoring Automation Health & Wellness Entertainment Energy Management Average number of connected devices will jump from 5 in 2012 to 15 in 2015 Source: CEA – Consumer perspective on home automation white paper Smarthome Devices: Do-It-Yourself (DIY) Solutions Drive Adoption in 2013 PDMI CASE STUDIES - CONNECTED LIFE
  19. 19. PDMI CASE STUDIES - CONNECTED LIFE
  20. 20. PDMI CASE STUDIES - CONNECTED LIFE – PHASE 1 LAUNCHED 6.24.13
  21. 21. PREPAID BROADBAND JUNO BROADBAND EXCLUSIVELY @ WALMART ROUNDING OUT OUR SERVICES BUSINESS
  22. 22. SERVICES OVERVIEW WIRELESS MOBILE MIFI HOME PHONE IN HOME BROADBAND ENTERTAINMENT (CONTENT + GAMING) STRAIGHT TALK FAMILY MOBILE STRAIGHT TALK MIFI INTERNET ON THE GO BASIC TALK JUNO HOME BROADBAND ??? CURRENTPLANNEDFUTURE
  23. 23. 1/3 NUMBER OF US HOUSEHOLDS WITHOUT HIGH SPEED BROADBAND BARRIERS & PAINPOINTS DEVICES ARE TOO EXPENSIVE SERVICE IS TOO EXPENSIVE NOT INTERESTED IN LONG TERM CONTRACTS US Home Broadband market size100B PDMI: PRODUCT DEVELOPMENT + MERCHANDISE INNOVATION PDMI CASE STUDIES – PREPAID BROADBAND
  24. 24. PDMI CASE STUDIES – PREPAID BROADBAND ANTICIPATED LAUNCH Q4
  25. 25. PREPAID BROADBAND Pricing $15/ 7 days or $45/30 days $90 / 10Gigs $50/5Gigs Hotspot + 7 Gigs = $149 Each additional Gig is $14 $60 / 10 Gigs $50 / 10Gigs Non expiring or monthly plans Monthly Monthly Monthly Non expiring $10/10Gigs at 1.5Mbps 1 free Gig/month at 4g Speeds Monthly Speed 3Mb / 768 Kbps 4G / LTE 4G / LTE 4G / LTE 4G/LTE 4G/LTE Hardware $69.95 $99 $150-170 Included in starter kit price. $99 $79 Comments Offering service to those who are not currently customers or delinquent customers who are about to have their service shut off. Slowest service among competition. $36 one time activation fee Competes with our Interent on the go plan $45/3Gigs Additional $4/month for rollover data plan. Prepaid set up as recurring charges until you cancel your service. 10Gig plan has slow speed. Best price per Gig. Available only at Walmart MARKET SIZE: $7 BILLION 5% MARKET SHARE IS A $490M OPPORTUNITY
  26. 26. PDMI CASE STUDIES – UPCOMING STRATEGIES – WALMART FIT An additional Walmart Supercenter per 100,000 residents increases average BMI by 0.25 units and the obesity rate by 2.4 percent. What are strategies we can employ to improve the lives of our customers and help them live better?
  27. 27. THANK YOU! QUESTIONS OR COMMENTS? TLIN@WALMART.COM

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