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Advertising report4 Girls 2 guys advertising
2
Table of contents
I. Executive summary...................................................3II. Situation analysis ....................................................5III. Focus group interview............................................39IV. Survey......................................................................... 52V. Problems & Opportunities.....................................70VI. Advertising strategy.............................................73VII.Media plan...................................................................75VIII.Flow Chart................................................................106IX. Media summary.........................................................108X. appendix......................................................................110
3
Executivesummary
4
Executive summary Situation Analysis
Walmart currently dominates the market with ¾ market share, and far exceeds its main competitors in sales. Walmart stores are highly concentrated in Southern region of the U.S. with a consumer demographic largely made up of women.
Survey & FGI The two primary research methods focused on usage and attitudes toward the Walmart
brand and advertising. The results provided in-depth insight into consumer perceptions. Media Objective
To reach 75% of primary and secondary target audience, Women 24-35 and African Americans and Hispanics, with a frequency of 15 over 12 months from January 2013 emphasizing the South and Midwestern geographical regions.
Media Strategies The media plan is implemented as a national campaign, with an emphasis on Midwest
and Southern states with DMAs that most effectively reach target audience. The media schedule will be a flighting pattern that will maximize recall and increase insertions during peak seasons. The plan will also seek to increase brand loyalty by reallocating the budget to digital media and below the line media, such as sponsorships and partnerships with charities and social causes.
5
SituationAnalysis
6
Industryanalysis
7
Situation Analysis
Economic policy institute
Industry analysis
• The business practices that keep Walmart’s prices solow have been criticized by supporters of local businesses.
• The wages Walmart pays its employees is low, and drives down wages throughout the retail
sector.
• Walmart is losing market share to online merchants like Amazon.com and the growth of dollar
stores like Dollar General.
issues
8
Walmart represents nearly
10 % of the
$3.8 trillionU.S. retail industry.
ibisworld
The U.S. retail industry experienced a 4% annual growth rate between 2006 and 2011.
Situation Analysis
Industry analysis
9Market share reporter 2010
33%
24%
8%
5%
4%
4%
22%
2008 Retail salesby outlet
Walmart is active in almost all retail outlets.
Grocery Stores
Supercenters
Department Stores
Warehouse Clubs
Drug Stores
Home Improvement
Other RetailOutlets
Situation Analysis
Industry analysis
10Market share reporter 2010
Dollar General
CVS
Target
Walmart
$9.20
$76.30
$63.30
$378.70
2007 retailer sales totals
(in billions of dollars)
Situation Analysis
Industry analysis
Walmart’s sales performance far exceeds its direct competitor, Target, and more specialized indirect competitors, CVS and Dollar General.
11Market share reporter 2010
78%
6%
6%
10%
Walmart Supercenter
SuperTarget
Kroger
Others
2007 market shares
Situation Analysis
Industry analysis
Walmart dominates the marketwith more than
¾ of the market share.
12
2008 2009 20100
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
TargetWalmartDollar General
Market share reporter 2010
net income(in thousands of dollars)
Situation Analysis
Industry analysis
13First research
Walmart can also be classified as a
discount department store,a highly-concentrated industry of about
5,000 storeswith a combined annual revenue of
$125 billion.
Situation Analysis
Industry analysis
14
Louisi
ana
Miss
ouri
West
Virginia
New Hampsh
ire
Kentuck
y
Alabama
Kansas
Mississ
ippi
Oklahoma
Arkansas
05
101520253035
19.85 19.87 19.97 20.51 20.97 21.13 21.38 22.24
27.46
30.87
walmart Locations(stores per million people)
Walmart corporate website
785 stores in a 10-state stronghold make up 21% of Walmart’s U.S. stores.
Situation Analysis
Industry analysis
15
target Locations(stores per million people)
Target corporate website
Situation Analysis
Industry analysis
16Mri+
Geographic indices
Walmart is not as prominent as Target in the West or Northeast, but
stronger in the South.
Situation Analysis
Industry analysis
17Market share reporter 2010
1st 2nd 3rd 4th90,000
95,000
100,000
105,000
110,000
115,000
120,000
99,100
103,000101,200
115,600
2011 Quarterly sales (in billions of dollars)
* Fiscal year ends January 31.
Situation Analysis
Industry analysis
Total net sales for 2011 was$419 billion, a 3.4% increase
from 2010.
18Market share reporter 2010
Quarter 1
Quarter 2
Quarter 3
Quarter 4
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
TargetWalmartDollar General
2011 Competitors Quarterly sales
(in thousands of dollars)
Situation Analysis
Industry analysis
19
ProductAnalysis
20Brandtags.com
Situation Analysis
Product analysis
Brand image
21
Situation Analysis
Product analysis
• They would be a popular individual.
• Their friends would find them reliable when it came to availability as
well as accessibility.
• Some may view this person as a control freak, but they are just very
involved in lots of areas and recognized by lots of people.
Brand personality
Brandtags.com
22
Advertising
Analysis
23Series1
2011 Advertising expenditures
$2.5 Billion
$1.3 Billion
$234 million
2012 Advertising red books
Situation Analysis
Advertising analysis
24Annual reports
5 Year ad expenditures(in millions of dollars)
Situation Analysis
Advertising analysis
25
Dollar General
CVS
Target
Walmart
$46.90
$234.00
$1,292.00
$2,500.00
2011 Ad Expenditures(in millions of dollars)
0.8% of sales 2.2% of sales
2012 Advertising red books
Situation Analysis
Advertising analysis
26Advertising age
If Walmart matched Target by spending 2.2% of saleson advertising, the budget would be
$5.72 billion.That amount would be
4 Timesthat of Target and would make Walmart the
No. 1 Largest U.S. Advertiser.
Situation Analysis
Advertising analysis
27Ad $ summary 2006
2006 Ad expenditures by medium
(in millions of dollars)
Walmart only spends $524 million of its $2.1 billion budget on TV advertising.
Situation Analysis
Advertising analysis
28
Walmart’s first forms of advertising were 2 signs on the storefront that inspired future campaigns.
“We Sell for Less”
“Satisfaction Guaranteed”
Walmart corporate website
Situation Analysis
Advertising analysis
29
The “Always” campaign
Always low prices. Always.
Walmart’s prices are always low.What to say:
How to say:Bernstein-Rein
Advertising age
Situation Analysis
Advertising analysis
30
The “Always” campaign
How to say:
Situation Analysis
Advertising analysis
31Advertising age
Save money. Live better.
Saving money on the little things helps families live better.
What to say:
How to say:
current campaign
Martin Agency
Situation Analysis
Advertising analysis
32
Save Money.Live Better.
Expect More.Pay Less.
The competition
Expect Something Extra.
Situation Analysis
Advertising analysis
33Target corporate website
Life’s a moving Target.
Our products are the solutionto whatever life throws at you.
What to say:
How to say:
Target 2012 campaign
Wieden + Kennedy
Situation Analysis
Advertising analysis
34Cvs corporate website
Don’t be a money trasher.
The ExtraCare Card saves you money.
What to say:
How to say:
CVS 2012 campaign
Situation Analysis
Advertising analysis
35
ConsumerAnalysis
36MRI+
demographicsWalmart Target CVS
Age 25-34 25-34 18-24
Gender Women Women Men & Women
Education HS Diploma, No College Graduated College Plus
Graduated College Plus
HHI $30,000-$39,999 $150,000+ $150,000+
Major Region South West Northeast
The main difference between Walmart’s consumers and its competitors’ is a lower household income.
Situation Analysis
Consumer analysis
37SRDS Lifestyle Analysis 09-10
Psychographics
More likely to own Apple products, digital cameras, smart phones & GPS
locators.
Enjoy camping and hiking.
Are single or recently married.May have infants.
Natural resources, Construction & Maintenance
More likely to live an organic lifestyle.
Health conscious.
Enjoy technology and fashion.
Are single and career-driven.
Business Management, Financial, Sales & Office Occupations
Situation Analysis
Consumer analysis
38MrI+
Purchasing cycle
More women than men.Popular among 25-34 age group.Online shopping:
Walmart serves more than200 million customers
weekly worldwide.
Regular shoppers visit5+ times a month
on average.
Situation Analysis
Consumer analysis
3939
Focus group
interview
40
Focus group
objectives• Gain Deeper Insight into the views and attitudes college students have
toward Walmart and it’s competitors.
• Develop a Better Understanding of why Walmart consumers choose Walmart.
• Attempt to Measure and Analyze the reactions and effects of Walmart’s advertising.
Focus group
Methods/procedures
Moderator: Kearsten Howland• Location: Lindsey + Asp, Room 2144• Date: 2/29/12• Time: 4:30 p.m.• Group Characteristics:
• All females• 8 participants• All participants shop at Walmart• Ages: 19-24
Moderator: Christina Hoener• Location: Lindsey + Asp Room 2144• Date: 3/5/12• Time: 4:30 p.m.• Group Characteristics:
• All males• 8 participants• All participants shop at Walmart• Ages: 19-24
Focus Group A Focus Group B
41
42
Focus group
Focus Group A: Attitudes
• Consumers have a negative view of Walmart when thinking of specific words to describe the store.
Participant A: “Cheap” Participant B: “Dirty”Participant C: “Sometimes kind of scary at night”
Summary of findings
43
• College students consider price and variety as major factors when choosing Walmart.
– “Because I can get everything there. You walk into Walmart and they have a wide selection to choose from.”
– “The price of the products is a big issue since we are college students.”
Focus group
Focus Group A: motivations
Summary of findings
44
Focus groupObserved differences
Focus Group A: advertising response• Consumers recall less-recent ad campaigns before current
advertisements.
“I remember the smiley face, but I haven’t heard or seen anything lately.”
45
Focus groupObserved differences
Focus Group B: attitudes
• The majority of respondents think of Walmart first for buying general merchandise products, but when asked if loyal to the store, most say no.
Respondent A: “Not very.”Respondent B: “Not loyal at all.” Respondent C: “Could care less.”
46
Focus groupObserved differences
Focus Group B: motivations
• Respondents agree that they prefer Target over Walmart, but convenience and price play a large role for choosing to go to Walmart.
“I go to Walmart because it’s closest, and I’ve grown up with just Walmart so it’s the first thing I think of.”
“I want Walmart’s prices at Target.”
47
Focus groupObserved differences
Focus Group B: advertising response
• The overall reaction to Walmart’s recent advertising changes, such as their logo, was either unnoticed or dissatisfied attitudes.
“I didn’t notice.” “I like the smiley face better.”
48
Focus groupObserved differences
Group similarities
• Both groups easily remembered Walmart’s rollback prices ad campaign that featured the smiley face.
• Convenience, location, and price were all criteria that was mention when asked why they go to Walmart.
• Most females and males say they would prefer to shop at Target, but the majority of both groups said they shopped at Walmart the most.
49
Focus groupObserved differences
Group differences
• Females choose between stores by the variety and quality of products offered (ex: clothes, shoes, household items, etc.), whereas Males focus more on price.
• Males would consider online shopping at Walmart for specific products, females would not consider shopping online at Walmart.
50
Focus groupObserved differences
problems– The majority of participants in both groups had negative
attitudes toward Walmart.
– Both groups associated Walmart with words like “cheap” and “dirty.”
– Males and females had difficulty recalling recent advertisements for Walmart.
51
Focus groupObserved differences
opportunities– Modify strategies and budget allocation to improve
Walmart’s advertising relevance and recall.
– Redesigning the actual stores and their brand image will improve their reputation and brand loyalty.
– Offering higher quality products while maintaining everyday low prices will help recapture dissatisfied customers.
5252
survey
53
SURVEY REPORT
• To investigate what factors motivate consumerswhen choosing a general merchandise store.
• To gain insight into consumers’ perceptions ofthe Walmart brand compared to its competitors.
• To determine usage patterns of the general population.
OBJECTIVES
54
• March 26, 2012 – April 4, 2012
• Participants – 200
• Online Survey Host – SurveyMonkey.com
• Sample Collection Method – Share link on social networking sites,create Facebook event, word of mouth
Methods/procedures
SURVEY REPORT
55
26.5
73.5
Gender
Male
Female
68
9.5
5.513.5
3.5
Age
18-2425-3435-4445-5455+
Participant DEMOGRAPHICS
SURVEY REPORTDemographics
56
38
209
9
24
HH Income
$0-9999$10,000-29,999$30,000-49,999$50,000-69,999$70,000+
6
54.513.5
20
6
Education
High School GraduateSome CollegeAssociate's DegreeBachelor's DegreeGraduate Degree
SURVEY REPORT
Participant DEMOGRAPHICS
Demographics
57
Store Rank by usage
35.7% of respondents strongly agree that
they shop at Walmartmore than other
general merchandise stores.
2.3
1.53
3.63.21
4.54
SURVEY REPORTusage
58
Store visits
7%
61%
26%
7%
Visits to #1 Ranked Store
1 or less2-5 times6-9 times10 or more
35%
60%
5% 1%
Visits to #2 Ranked Store
1 or less2-5 times6-9 times10 or more
SURVEY REPORTusage
61% of respondents visit their 1st choice for general merchandise stores 2-5 times a month, and 25% visit
6-9 times.
60% of respondents visit their 2nd choice for general merchandise stores 2-5 times a month, and 34% visit 1
time or less.
Respondents were asked rank general stores by preference and indicate how often they visit their #1 and #2 ranked stores.
59
FACTORS IN STORE SELECTION
“A place I HAVE to go to because of my budget and I can find everything there, but I HATE going there because of the crowds of people and the long lines.”
SURVEY REPORTusage
Price Location Brand Options
Quality Specific Items
Other0
20406080
100120140160180
147 154
5377
51
14
60
87
13
Walmart User
Yes
No
PURCHASING BEHAVOIR
13
38.531.5
17
Average Spending
Less than $25$25-54$55-100$100+
87% of respondents say they use Walmart to buy everyday products, but 43% say they are not loyal to the store they use the most.
SURVEY REPORTusage
61
Attitudes
0.0%10.0%20.0%30.0%40.0%50.0%
Walmart
Target
CVS
SURVEY REPORTperception
Consumers were asked to rank their feelings towards certain characteristics related to their
experience in general merchandise stores.
62
Good Satisfactory Attractive Clean Expensive0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Walmart
Target
CVS
perceptions
SURVEY REPORTperception
Consumers were asked to rank their views of Walmart, Target, and CVS on a scale of 1-5, 5 being the highest and 1 being the lowest.
63
CONSUMER PERCEPTIONS
• Walmart is perceived to be less expensive than Target, but not as satisfactory, attractive, or clean.
• Attitudes toward CVS were largely neutral.
SURVEY REPORTperception
64
Comments for walmart
SURVEY REPORTperception
65
Comments for Target
SURVEY REPORTperception
66
SURVEY REPORTadvertising
Response to advertising
• Responses toward Walmart’s advertising were largely neutral.
• Many respondents easily recalled the “smiley face rollback prices” and “everyday low prices.”
• 18.6% of respondents strongly agree that Target’s advertising is “good,” compared with only 8.0% for Walmart.
67
SURVEY REPORT
Advertising recall
0102030405060708090 82
25.5
14.5 11
81.5
Target
CVS
Kmart
Dollar General
Walmart
Both Walmart and Target advertisements were easily recalled.
advertising
68
SURVEY REPORT
Advertising evaluation
Good Satisfactory Appealing Like2.80
2.90
3.00
3.10
3.20
3.30
3.40
3.50
3.60
3.70
Walmart
Target
Target’s advertising is better received than Walmart.
advertising
69
SURVEY REPORT
Summary of findings
This survey shows that the overall perception of Target is much better than that of Walmart. Target is perceived as a cleaner general store
that is slightly more expensive than Walmart, but also more attractive. Walmart is known to be convenient and cheap, one-stop shop.
Over 80% of respondents were able to recall advertisements for both Walmart and Target, but consumers like Target’s advertising better.
summary
7070
Problems &
Opportunities
71
• Walmart is perceived to be less attractive and dirtierthan its competitors.
• Consumers respond better to Target’s advertising.
• Consumers of general merchandise stores are not loyal to the stores they choose.
problems
P&O Analysis
72
opportunities
P&O Analysis
• Walmart could improve brand image bycleaning or redesigning their stores.
• Walmart could improve their advertising campaigns by using more television and outdoor advertising.
• Walmart could build loyalty in their consumers bypartnering with popular social causes.
7373
Advertising
strategy
74
Advertising strategy
To convince women aged 24-35 and the African American and Hispanic populations to choose Walmart over the competitors by emphasizing the positive
qualities associated with the brand and partnering with popular social causes.
What to sayWalmart is invested their customers by
supporting their everyday lives and local communities.
7575
Mediaplan
76
MEDIA OBJECTIVE75% of the target audience
15 average frequency
12 months
February 2013
South and Midwest regionsand holiday seasons.
To reach
with
over
from
emphasizing
Media planobjective
77
Target audience demographics
Primary target Audience
Secondary target audience
Media planTarget audience
Gender: WomenAge: 24-35
Education: High School Diploma,No College
HHI: $30,000-$39,999South
African American & Hispanic Population
MRI+
Target consumers with high tendency to shop at Walmart.
78
Target audience psychographics
Media planTarget audience
SRDS lifestyle analysis 09-10
More likely to own Apple products, digital cameras, smart phones &
GPS locators.Enjoy camping and hiking.
Are single or recently married.May have infants.
Natural resources, Construction & Maintenance
79
Media planMedia consumption
When it comes to TV consumption, women of all ages spend more time than their male counterparts. On the flipside, men consistently spend more time streaming video online.
M 2-17 F 2-17 M 18-49 F 18-49
M 50+ F 50+ M 2+ F 2+
Traditional TV 113:13 114:29 139:50 151:18 195:15 217:44 150:53 166:20
Online Video 3:04 2:44 7:02 4:57 2:44 2:22 5:25 3:48
Mobile Video n/a n/a 4:20 4:20 2:10 3:37 4:20 4:20
audience composition by gender
(monthly time in hours : minutes)
Nielsen cross platform report Q1 2001
80
Media plan
audience composition by race(monthly time in hours : minutes)
African Americans spend the most time tuned into traditional TV and mobile video,and Hispanics spend more time watching videos on the internet.
White African American Hispanic
Traditional TV 155:33 212:53 135:42
Online Video 3:57 5:52 6:24
Mobile Video 3:37 6:30 4:20
Media consumption
Nielsen cross platform report Q1 2001
81
African Americans
Media plan
African Americans use more televisionthan the overall population.
7:125:11
Hours of TV a Day
Overall Population African Americans
• African Americans read more issues ofmagazines each month.
• A larger percentage of African Americans own smart phones than the overall population.
• African Americans are 30% more likely to visit Twitter.
Media consumption
Nielsen cross platform report Q1 2001
82
Hispanics
Media plan
• Hispanic mobile subscribers are the most likely to have a smart phone.
• The availability of Spanish-language channels available continues to drive the increased number of Hispanics who tune into cable television.
• Hispanic prefer to get their information from print media in Spanish.
Media consumption
Nielsen cross platform report Q1 2001
83
Media planGeographical strategy
Mri+
regional
Walmart Target
South 102 76
Northeast 101 122
Midwest 99 98
West 97 123
Focus on regions with high geographical index.
Walmart has a higher geographical index in the South, and a competitive situation in the Midwest.
84
Media planGeographical strategy
IllinoisMissouriKansas
OklahomaTexas
ArkansasMississippiAlabama
Focus on states in target regions with large DMAs
and a large number of Walmart locations.
states
Nielsen 2011-2012 DMA Ranks
85
dmas
Media planGeographical strategy
Chicago, ILDallas-Ft. Worth, TX
Atlanta, GAHouston, TXDetroit, MI
Birmingham, ALMiami, FL
St. Louis, MONew Orleans, LA
Oklahoma City, OKLittle Rock-Pine Bluff, AR
Jackson, MS
Focus on Nielsen’stop-ranked DMAs with
multicultural audiences.
Nielsen 2011-2012 DMA Ranks
86
Target audience
Media planTarget audience size
u.s. Census bureau
Midwest South Total
Total Population 66,927,001 114,555,744 180,154,790
Women 25-34 4,235,200 7,550,135 11,875,335
African Americans 6,969,686 22,022,220 28,991,906
Hispanics 4,382,560 17,247,279 21,629,839
Total Target Audience 15,587,446 46,819,634 62,497,080
87
Flighting schedule
Media planscheduling
• Use a four-week flighting pattern to maximize recall and providethe most efficient use of the Walmart budget.
• Increase amount of insertions during peak times based on quarterly sales.
• Allow flexibility to make creative media buys.
88
Peak seasons
Media planscheduling
1st 2nd 3rd 4th90,000
95,000
100,000
105,000
110,000
115,000
120,0002011 Quarterly Sales
Q1Valentine’s Day
Q2Summer
Independence DayQ3
Back to School/Tax Free WeekendQ4
Black Friday/Cyber MondayThanksgiving
Christmas
* Fiscal year ends January 31.
89
Media selection
Media plan
Network TVCable TV
Digital(Online Newspapers, Search Engines, Social Media, Entertainment, Mobile)
MagazineLocal Radio
OutdoorBelow the Line
Media selection
90
Networktelevision
Media selection
Media plan
Network Program Rating
FOX American Idol (Wed) 10.7
FOX American Idol (Thurs)
9.4
NBC The Voice 8.4
CBS NCIS 8.2
CBS CSI 7.5
CBS Criminal Minds 7.3
CBS NCIS: Los Angeles 7.3
CBS 60 Minutes 6.9
ABC Missing 6.8
ABC The Bachelor 6.7
Advertise during programs with highest ratings.
nielsen
91
Cabletelevision
Media selection
Media planNetwork Rating Consumption
Index for Walmart Users
BET 51.1 118
Bravo 44.55 116
Cooking Channel n/a 202
E! 51.85 118
ESPN 29.3 97
FamilyNet n/a 223
Galavision 46.6 156
MTV 58.15 159
Style 63.25 129
TBS n/a 103
Advertise on cable networks with high ratings, high consumption indices
for Walmart users.
Choose networks with multicultural audiences.
Mri+
92
Media selection
Media plan
Magazine Circulation Ratings
Ebony 1263996 5
Entertainment Weekly 1799494 6.6
Essence 1100000 3.8
Family Circle 3872671 7.9
O, The Oprah Magazine
2380782 7.5
Parents 2200000 7.2
People 3569811 24.1
People En Español 577636 n/a
Woman's Day 3886853 11.4
Women's Health 1575425 4.7
magazinesAdvertise in magazines with
high circulation rates and ratings for the target
audience.
Choose publications to reach secondary target
audience.
mri+
93
Media selection
Media plan
Daypart Average Rating Cost CPP
6am-10am 17.3 $4,134.7 239
10am-3pm 10.3 $2,070.3 201
3pm-7pm 15.2 $3,268 215
7-12am 5.6 $459.2 82
Local radio
Advertise on local radio stations in targeted DMAs duringmorning and evening commute times.
Marketers guide to media
94
Media selection
Media plan
outdoorCity Billboard Type Circulation (000) 4-Week Cost per
Unit
Chicago Rotary 175,593.6 $5,900
Dallas Rotary 123,000 $3,935
Houston Rotary 110,992 $2,800
Atlanta Rotary 88,298 $3,200
Place billboards in target DMAs in South and Midwest regions whose populations are composed of the target audiences.
Marketers guide to media
95
Media selection
Media plan
digitalSearch Volume CPC
Facebook 226 million $0.88
Twitter 7.84 million $1.12
Pinterest 1.5 million $0.16
Yahoo! 55.6 million $0.90
Bing n/a n/a
Google AdWords
37.2 million $3.22
YouTube 68 million $0.61
Hulu 9.14 million $0.13
Pandora 11.1 million $0.11
Mobile Apps n/a n/a
Social Media
Search Engines
Entertainment
Mobile
SEMrush.com
96
Media selection
Media plan
Monthly Unique Visitors Monthly Page Views
Chicago Tribune 3.9 million 102.3 million
Houston Chronicle 4.5 million 59 million
Kansas City Star 3.8 million 29 million
Louisville Courier Journal 1.4 million 19 million
Tampa Bay Times 1.5 million 22.3 million
Online newspapers
Advertise on web versions of top-ranked news publications from targeted DMAs.
Newspaper websites
97
Media selection
Media plan
Below the line
Big Brothers Big Sisters
Teach for America
National Partnership forWomen & Children
Tornado Relief
Strengthen current partnerships by increasing donations to $1 million and above:
• United Negro College Fund– Current contribution $500,000 - $999,999
• Hispanic Association of Colleges and Universities– Current contribution
$250-$499,999
Continued Partnerships
Walmart corporate website
98
Media selection
Media plan
Below the line
National Football League
Corporate Sponsorships
National Basketball Association U.S. Soccer
99
Media strategy
Media strategy
Media plan
To maximize reach and optimize frequency of exposure of the Walmart brand to our target audience through trusted
sources and creative media buys.
100
“bookend” commercials
Media strategy
Media plan
33: Percentage of Households Owning DVR Device
56: Percentage of Owners Using DVR to Fast Forward through
Commercials
7: Number of Seconds of Guaranteed Ad Space
½: Portion of Cable TV Budget Allotted to 7-Second Media Buys
Dvr research institute
101
Reach/frequency
Media planMedia strategy
Q1 Q2 Q3 Q4 Average
Reach 100 99.9 100 100 100
Frequency 90.25 115 90.25 165.25 442
Peak Sales Quarter(Nov-Jan)
102
Budget strategy
Media plan
It is proposed that Walmart reduce advertising spending to
$2 billionby reallocating portions of the budget
from traditional media to
digital media & “below the line” activities.
103
rationale
Budget strategy
Media plan
• Walmart has increased advertising expenditures by 56% since 2006, while Target’s spending has remained constant.
• The target audience prefers to get their information from digital media, which is cheaper to advertise in than print media.
• Extraordinary marketing efforts receive criticism from supporters of local business.
• Walmart must repair an unfavorable reputation by allocating more money for donations and sponsorships.
• Survey shows that Walmart’s advertising is already recalled by consumers at a high rate.
104
allocation
Budget strategy
Media plan
30%
20%
8%
10%
0%
2%
30%
Network TVCable TVDigitalMagazinesRadioOutdoorBelow the Line
105
Budget strategy
Media planMedia Budget Allocation
Network TV $600,000,000
Cable TV $400,000,000
Online Newspapers $100,000,000
Magazine $200,000,000
Radio $1,000,000
Outdoor $40,000,000
Search Engines $20,000,000
Social Media $20,000,000
Entertainment $18,000,000
Mobile $1,000,000
Below the Line $600,000,000
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flowchart
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flowchart
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Media summary
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Media summary
• A national campaign will focus on the South and Midwest regions.• The total budget has been decreased from last year to $1,999,938,331.• More of the total budget will be allocated to digital media and below the line
activities.• A flighting media schedule allows the flexibility to increase advertising during
peak seasons.• 7” bookend commercials will use a creative media buy to reach the target
audience.• The primary target audience consists of women aged 24-35 with household
incomes under $40,000.• Advertising will also focus on a secondary target audience consisting of
African Americans and Hispanics.• The campaign will attain a reach of 75% or more with and average frequency
of 15 or more over 12 months starting February 2013.
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• Established in 1984
• World’s No. 1 Largest Retailer
• FY 2011 Sales of $419 Billion
• 2,100,000 Employees
appendixCompany profile
2012 Advertising red books
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5 Year Sales trends
2007 2008 2009 2010 20110
50100150200250300350400450
345374 401 405 419
7.3%
1.0%
8.4%
NET SALES(in billions of dollars)
Walmart expects to grow net sales between4% and 6% in the 2012 fiscal year.
3.4%
Walmartstores.com
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$260
$109
$49 Walmart U.S.
Walmart Interna-tional
Sam's Club
Sales by segment(in billions of dollars)
Distribution of sales by segment
26% of Walmart’s sales come from foreign markets.
appendix
Walmartstores.com
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Domestic Geographic analysis
Walmart has about
3,804 storesin the U.S. and Puerto Rico,not including its Sam’s Clubfranchise.
U.S. Locations
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Walmartstores.com
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International Geographic Analysis
International locations5,366 stores in 27 countries outside the U.S.
International sales increased by 11.5% in 2011.
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Walmartstores.com
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Financial summary
appendix
Walmartstores.com
2011Financialsummary
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appendixBrands
2012 Advertising red books
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Brand history
Evolution of the logo
appendix
Walmartstores.com
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Walmart gave more than
$378 millionin cash and in-kind gifts in the U.S.
and an additional
$106 millionin international markets.
philanthropy
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Walmartstores.com
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Giving distribution
$378 $106
$63
$46
U.S.InternationalSam's ClubCustomers & As-sociates
Giving for 2008(in millions of dollars)
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Walmartstores.com
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Fgiquestions
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appendixFocus group questions
IntroductionIntroduce moderator, define group sessions, participant introductions.Where do you go to buy everyday general products?Are you loyal to that store?How do you make up your mind where to go when choosing a general merchandise store?List that criteria in order of importance.Information About Store ChoiceDo you ever shop at a superstore such as Walmart or Target?Which one do you prefer?How often do you visit that store?Information About Shopping HabitsWhat criteria do you use when picking which store to shop at?What type of products do you buy when you shop there?Why do you choose to buy those products from that store?When you shop at Walmart, do you ever buy the Great Value brand?Information About Walmart’s AdvertisingDo you remember any advertising for Walmart?Where did you see the ads?What was the main advertising message?Which ones do you like and what did you like about it?Which ones do you dislike and what did you dislike about it?Were you able to relate to the advertising message?
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Information About Walmart As A BrandWhat words do you think of when you think of Walmart?Describe the Walmart brand.Describe the Walmart logo.How important is online availability to you and your shopping habits?Have you ever shopped online at Walmart.com?
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s
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appendixFocus group B transcript
Does everyone want to go around and say their name?I’m Brady. Do you want my year?Sure.Sophomore.I’m Thomas Law. I’m a junior.Timothy Catcher. Junior. Advertising major. University of Oklahoma.Casey Todd. Junior.Robert Hogue. Senior.Humzah, and I’m a junior too.Okay, my first question is where do you go to buy everyday general products? So that’s like groceries, other random things.Cleaning supplies.Yeah.Probably Walmart.Walmart.Yeah, Walmart.Walmart.Target.It really just depends on what I’m getting.It depends on how close I am to the place.Yeah, and where’s closer.Amazon.com.
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For groceries?Depends on whoever’s going to go for me since I don’t have enough money.Okay, how loyal are you to that store?Not very.Not loyal at all.Couldn’t care less.Okay, well then how do you make up your mind about where to go for those general supplies?How close it is.If I have to get a lot of things, I tend to go more out of my way to go to Walmart, because if I just need to pick up bread and milk then I don’t need to go like 30 minutes out of my way to go get it.Yeah, if I’m planning on getting a bunch of stuff I’d go to Target probably. But usually Walmart’s closer, so I just go there.I just go wherever’s cheaper.Location. I usually go to Target though. I feel safer going there.Why do you feel safer going to Target?Well, when I shop I don’t shop at 3 in the afternoon, I go at like 9 or 10 o’clock. I don’t know. Walmart kind of feels weird. You always hear stories in the news about people getting kidnapped at Walmart, and raped at Walmart, so I don’t have to worry about it.That never happens at Target.So, if you listed that criteria in order, it would be location and then price? Any other criteria you think about? Well, the next question was do you ever shop at a superstore such as Walmart or Target, but you all said yes to that. And which one you prefer. And Casey prefers Target because of safety.Yes.
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How about everyone else? Target or Walmart, which is your preference?We have to pick one of those?Yes.Probably Target.Yeah, I’d like to go to Target.I mean, it doesn’t matter, but if I had to choose one, I’d guess I’d choose Target too.Why?Just because it’s nicer. I feel like.I want Walmart’s prices at Target.Yeah.I go to Walmart because it’s closest, and I’ve grown up with just Walmart so it’s the first thing I think of.I just like Target because of Walmart’s people.How often do you visit that store? Walmart or Target?As least often as possible.Yeah, in college I barely ever go because I don’t have to buy groceries or anything.Whenever I need something.3 to 4 times a month maybe.Alright, what type of products do you buy when you shop there?Groceries.Toiletries, school supplies, toiletries.Everything.Definitely groceries.
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Do you get it all at one store? Or do you go to Walmart for groceries, and then Target for something else?No.God no.All one store.Okay, when you shop at Walmart, do you ever buy Walmart’s brand Great Value?Yeah.Yeah.Occasionally, yes.Sometimes.It depends on what I’m buying and how much money I have. Exactly.If it’s like chips, I usually get the chips. And the milk also.And if its like spaghetti or something, I’ve bought that before.Yeah.Do you remember any advertisements for Walmart?Yeah, Rollback prices back in the day.Rollback prices back in the day.The smiley face.Okay, so just TV ads? Anything else? Print or online?For some reason I remember the Christmas ads the most.
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What was the main advertising message?See, I don’t remember, I just remember seeing a lot of their Christmas stuff. Oh, well the layaway stuff that tied into their Christmas stuff.Oh yeah.Do you guys remember the Rollback prices more?Like when he was dressed up as Zorro?Yeah. Or like the smiley face?Yeah.Yes.Yeah, that’s what I’m thinking of.Are you aware that they’ve changed their branding recently? Instead of the smiley, it’s the asterisk?We’ve been talking, and it’s not cool.I didn’t notice.No. I have never noticed.It’s been a while.I like the smiley face better.He’s still in my head.He’s there forever.They did it to be more like Target, because Target has a symbol that’s noticeable.I don’t know if that’s the difference between Walmart and Target.That’s not why I choose it.
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Yeah, there’s a quality issue.And Walmart, I don’t know, it’s kind of oddly lit. Maybe that’s just me that thinks that. It’s kind of dark in Walmart.Or really bright lighting.Yeah, there’s something unsettling about it. Sometimes.And Target doesn’t have a website called People of Target.That’s true.Well there might be, but I haven’t seen it or heard of it.Very true.Okay, as far as advertisements, what did you like and what did you dislike about the commercials?It seemed to me like, specifically with the layaway being back, they tried to be young and hip with the humor, but then you stop and realize, oh, it’s Walmart layaway. Why do I care about this? Why is this trying to be interesting?Yeah, I feel like it’s a commercial. It needs to get off my TV.Perfect.Alright, so were you able to relation to the advertisement at all? I’m gathering a no.Yeah, no.No.What words do you think of when you think of Walmart?Cheap.Whenever I think of Walmart I think of like, everything.Yeah.Robust.
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I honestly think of the greeters and think, please don’t make eye contact with me.I think of cheap. And $4, because I work at a pharmacy so all I hear all day is $4 plan. So that sticks out in my head.Okay, can you describe the Walmart brand?What do you mean?Well, I guess like the company, or the reputation.I can tell you it’s really plain packaging. That’s what I can tell you about Great Value.Every day low pricing.That’s true.Can you describe the brand’s logo? And I know everyone said the smiley face, but it’s been gone for about 3 years now.Is it that stupid sun sign now?It’s that star-like thing.Yeah, the asterisk is their new logo.It’s relatively recent because they fired their, well we don’t need to get into that.Yeah, but it’s not the smiley face anymore. So were you either unaware that it’s not the smiley face, or did you not care about it?I never really knew. I just thought the smiley face went away. I didn’t realize they replaced it with the asterik.Do you guys know what we’re talking about?Yeah, it’s like the sun.Yeah, everyone knows.I mean, it’s still yellow, but that’s about it.
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How important is online availability to you and your shopping habits?I’ve actually used Walmart’s online to look up prices before. I know that’s kind of lame.No, I do that sometimes.I’ve looked up the price of a television, like bigger buys, but I mean, if I’m going grocery shopping I’m not going to look it up. But I remember I looked up a television once to see how much it was.I’ve even looked up the price of pepper on Walmart, and mineral oil.For schoolwork?For account planning?No, I looked up mineral oil last night for some reason. I don’t remember why. Like, I’ve used it for a few different things also.Okay, anyone besides Tim?It was an air conditioner, that’s what it was.I mean, I’ll look at prices and see if they have certain products, but it’s not worth it to order stuff online really.Yeah, because you can go on and see if they have it in your location.So you use it for location pricing, but you never actually order anything from Walmart.com?I wouldn’t order groceries online, but maybe like a TV or something.I got my mom’s Christmas present online.From Walmart.com?Inside the store pick up. That’s what’s up.Alright, well that was our focus group.I had a blast.Thanks guys.
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appendixMedia planning chart