Revitalizing the Wall Drug Brand
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The document provides recommendations for strategic planning at Wall Drug, including opportunities to expand the brand through improved marketing, international expansion, and key infrastructure investments. It analyzes the target market and customer base, and outlines strategies for advertising, partnerships, and measuring success. An organizational structure is proposed, and financial considerations around operations, staffing, and leveraging assets are discussed. Expansion of the brand into Germany through a theme park partnership is recommended.
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Revitalizing the Wall Drug Brand
- 1. Brandon Luong Blair Crawley Strategic Plan Recommendations Tyler Weaver Carter Whitelow Whitney Washington
- 2. Opportunities & Threats Wall Drug being overcome by other similar tourist destinations, due to not having a competitive advantage or key differentiation Expand into a foreign market.
- 3. Revitalizing the Wall Drug Brand • Current Marketing Efforts • Marketing Objectives – Web Presence – SEO – Advertising – Key Partnerships – Focus=People
- 5. Understanding Our Customers/Tailoring Content
- 6. Advertising & Sales Promotion Strategies
- 7. Website Optimization Itunes App.
- 8. Branding Celebrity Endorser Destination Marketing Logo Design
- 9. Social Media • Emphasize Product over Social Media • Social listening • Going viral!
- 10. Measurement • Search Engine Optimization • Cost Per Thousand (CPM) • Pay Per Click
- 11. Key Partnerships
- 12. International Expansion Germany
- 14. Example: • Decorations • Employees will dress as ghouls, monsters, demons…and Butler • Entertaining for both customers and employees • Special goods and cuisines
- 15. Activities (cont’d) • Capital holidays with extended time frames • Possible events to capitalize: • distinct themes
- 16. Key Construction Investments -Stage -Staged shows -Private Rentals -Casino -Saloon Style -Different age appeal -Bars -Saloon Style -Complement casinos …Pools & Laser Quest…
- 17. Human Resources • Support… • Collaborate... • Create…
- 18. The People
- 19. Egalitarian Structure Hierarchical Structure Loosely coupled Tailored
- 20. • Hierarchical Structure – value differences in work content, individual skills, and contributions – Multiple Levels – Opportunities for Promotion – Larger Pay Differentials – Individual performers – Performance is key
- 21. • Recruitment Process • College Audience
- 22. President and CEO of Wall Drug Bill Hustead VP of VP of VP of Sales Marketing Production Rick Karen Marjorie Hustead Hustead Hustead Wall Drug Mall Finance Manager Manager Teddy Hustead Karen Poppe Pharmacist Manager Kathy Hustead
- 23. Owner of Wall Drug Store since 1931 with his wife Dorothy. Together, Ted and Dorothy bought the drugstore in Wall, South Dakota for $2500. Retired at the delicate age of 82, Ted and Dorothy had decided to pass down the prosperous and successful business to his only son Bill and his wife Marjorie, who have Ted Hustead brought great Former Chairman of the Board contribution to the store as well.
- 24. Responsible for the success or failure of Wall Drug ●Ensures that Wall Drug is operating in a positive environment and that employees are providing the best customer service to clients and customers ●Oversees all Departments of Wall Drug Store including Operations, marketing, strategic planning, financing, the company’s culture ●Makes sure the store is in compliance with safety regulations, sales and public relations ●Makes sure revenues are in coordination with Wall Drug’s balance sheets and income statements Enforces the rules and regulations which are in compliance with those of the state and Bill Hustead federal laws President and CEO of Wall ●Makes sure managers, supervisors and Drug employees are carrying out their duties effectively and efficiently within their own departments
- 25. Addressed specifically with Karen Poppe, the Head Personnel Manager of Wall Drug. Base salary varies for employees, depending on knowledge, skills, abilities and experience. Incentives are directly related to job performance of the individual and change each pay period.
- 26. • First months receipts totaled $350 • Struggled financially until 1936, when Wall Drug stated offering free ice Water and 5 cent coffee • Increasing Revenues
- 27. • cost leadership & niche product line • Turned from a drug store into a tourist attraction • Capitalized on the Badlands and Mount Rushmore • Gained massive publicity from their worldwide signs and publications
- 28. • Wall Drug maintained steady growth until the gas shortage of 1971 • It cut into profits dramatically due to a decrease in tourism to the attractions • This threat could be resolved by keeping a cash balance of at least $100 K to remain solvent
- 29. • There are significant threats from Deadwood, S.D. due to the betting casino • Deadwood is able to attract 10 times the revenue for lodging in the winter months • Utilizing Christmas in the West Art Gallery is key • Constructing lodging or acquiring a franchise for lodging is key
- 30. • The Wall Drug Western Art Gallery and Mansion will be crucial to growth. • They must charge at least $10 per person • Conservative estimates project average revenues of $11,000 per month • Can raise additional capital by cycling out pieces and always maintaining 30-40 pieces in the gallery and selling less popular paintings
- 31. • Franchise a Best Western hotel and put it in Wall, S.D. • This would legitimize their lodging concerns at a very low price • Total 10-year costs total $1,388,333 • Potential 1-year income totals nearly $2,000,000 • Capitalizes on the Sturgis and ritzy family markets
- 32. • Wall Drug should leverage its firm strongly • Take out a loan of $1,000,000 USD for ten years at an estimated 8 percent cost of capital • Contact a favorable bank in the area to acquire great rates and leniency.
- 33. • Should diversify into different asset classes, not just cash • Should have $100 K in marketable securities and $167K in cash • Inventory levels are very high, but could be balanced by an increase in tourism
- 34. • Expansion in Germany is a ten year strategic partnership plan starting two years from now • Will partner with Silver Lake City in Germany, which is a fledgling Wild West theme park • Wall Drug can lend its authentic western expertise, and use the funds from their US operations • They charge more in Germany than Wall Drug charges in South Dakota, and it is 60 miles from Berlin
- 35. Any Questions or Comments?
Editor's Notes
- -Support an environment that encourages advancement and retention of employers and staff through effective training and development-Collaborate with all departments of Wall Drug to support each other’s successes in achieving the division’s goals and objectives. -Create a positive atmosphere that respects diversity, trust, confidentiality and encourages professional interpersonal relationships among employers and employees
- The employees, including managers, supervisors and staff, are the most important part of the business. The employers and employees are the heart of Wall Drug, and it is in their hands to assist in contributing to the company’s growth and success for many years to come. It is up to them as Wall Drug’s backbone to provide an extraordinary experience to customers, and maintain a positive, respectful and attractive image for Wall Drug Company as a whole.
- Pay structures were more loosely linked to the organization to provide flexibilityPay structures will now be based more on performance/ experience of the employeeEveryone was working more as a team to carry out tasksNow, Wall Drug will work toward having more sections where individual work depends on the job description.
- Within Each section, there will be a handful of student employees from which we will select from the recruitment process.We strongly feel that having student employees will bring a nice college crowd to Wall Drug Stores, and eventually parents will have to stop by as well.