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Walmart Continuous Case Analysis

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´╗┐Joseph (Chip) Gibson Wal-Mart Continuous Case Analysis MBA 575-K3 March 4, 2012 Major Problems For decades, Walmart championed small suppliers by giving them a shot at national distribution without crippling slotting fees. But its new drive to reduce the vendors it works with is almost sure to shift the supply landscape and force smaller package-goods players to consolidate or else. Walmart wanted a scalable solution that would elevate beauty and highlight new products, the lifeblood of cosmetics. The Challenge/Problem is to: 1. Attract shoppers from all income levels, including high income. 2. Create a standardized section to feature new products. 3. Integrate the Walmart communication hierarchy and style guide. Significant Factors Wal-Mart?s ?Project Impact?, in summary, will focus on increased customer service, creating a cleaner less cluttered store layout, ease of isle navigation for shoppers and positioning departments of advantage (i.e. ...read more.


All those mandates seem certain to favor large suppliers or seem disproportionately costly for smaller ones to implement. Alternatives 1. Price Leadership ? The Company is well known for its ?Every Day Low Pricing?, but Wal-Mart is aiming to give the consumer greater value for each product category. By achieving price leadership Wal-Mart hopes to ward off attempts by other retailers such as Target from gaining market share. 2. Consumables ? This component is an area where Wal-Mart are looking to reduce outlay. Changes will be made in promotional cadence, seasonal advertising and in store signage. 3. Private Label ? One area where Wal-Mart can increase revenue is to expand their private label categories. ...read more.


Implementation Plan Timeline Model Resources Tactics Immediately Preparing marketing materials and hiring PR & Consulting Training materials and advertising 3-6 Months Training and Advertising PR & Consulting Conference calls/Lunch and learns; Logistics/Supply Chain management 6- 12 Months Reviewing and Analyze PR Review, Analyze, Improve Contingency Plan In the worst case scenario we can continue business as usual and probably not have too many issues. Relevance to Management Decision Making Walmart is no longer looking to be an everyday-low-price player in all categories, and in some cases, suppliers and their representatives say Walmart has been willing to turn down lower prices even for vendors who couldn't initially supply the whole country. Walmart is, however, making exceptions for minority-owned vendors, who are much more likely to get a hearing and a trial in a small number of stores. ...read more.

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