- What are your thoughts about Wal-Mart's recent back and forth merchandising and store changes?
- What are your thoughts about Wal-Mart's pricing strategies discussed in the article? What changes, if any, do you think Wal-Mart should make to its pricing strategies?
- What should Wal-Mart do to regain its customer base and return to its core values -- customers and value -- that helped Wal-Mart become the giant (and #1) retailer it is today?
Tuesday, February 22, 2011
Wal-Mart Tries to Recapture Mr. Sam's Winning Formula
An article in today's Wall Street Journal talks about some of the problems facing Wal-Mart. Same-store sales at Wal-Mart stores in the U.S. have declined for the second year in a row. It is clear from reading the article that Wal-Mart has made some marketing missteps. Please read the article and post your response to the following questions to the course blog no later than the beginning of class on Thursday, February 24th:
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Wal-Mart has always been known for being a very cluttered store with thousands of items marked down to the lowest price they can offer. Recently they have been going to a different approach to compete with Target which is seen as a higher scale retailer, with special line products and a higher household income target market. Wal-Mart's original target market were household income families of under $70,000 making up 68% of the market. By remodeling the stores, set ups, and prices, this has transported its original market out of the store. The market they were trying to get aren't necessarily going to start shopping at Wal-Mart. They still have the previous image and stereotypes blocking them.
ReplyDeleteThe pricing strategies that Wal-Mart has made are mostly hurting them. By putting "roll back" discounts on some items and not all, then raising the price of other products gets rid of the everyday low price feel, that the customers came there for. Changing prices over night will not help them increase there revenue, consumers can shop other places if Wal-Mart is offering the lowest prices. They should bring back the "roll back" on every product so consumers know or think they are getting a deal.
To regain its customer base and return its core values, Wal-Mart should bring back the original style with cluttered aisles, and way more inventory, as well as "roll back" prices. The customer should feel like they have a relationship with the store. Not that they are not welcomed because of increasing of prices. Sam Walton started a great business that was doing very well until a drastic change was set in place. Going back to the previous way of business was working, it might not be like a Target as far as luxury and price, but change isn't always good.
1. I feel that Walamrt constantly changing the merchandise in the store will make people mad. Doing away with some items to make the shelves look nicer and less cluttered will make many people mad that they got rid of what they really like or make some people feel like there are less choices now at Walmart because the shelves look less cluttered. Bringing merchandise back and forth will confuse people, because some times at Walmart they can find the merchandise they want and sometimes they can't. Also, Walmart became the number one retailer with how their old stores looked so there was no need to change the stores appearance.
ReplyDelete2. I think Walmart saw that stores like Target where doing really well with high-low pricing and it tried to copy them with big rollbacks on some items while raising prices on other things to counter it. Walmart's founder believed in everyday low prices on everything which made Walmart succeed, and I don't think they should have extremely low prices on some items and high prices on others. They need to go back to everything in the store being fairly low priced.
3. They need to bring back crowded isles because people like a lot of choices, and get every item in the store back to an everyday low price instead of emphasizing rollbacks. Walmart should just go back to how it was five years ago and people will eventually come back.
1) Wal-Mart should stick to their roots; if it was working before, why change things? I think that the new market that Wal-Mart is trying to reach, a more high class population, isn't going to change their minds of Wal-Mart and start shopping there just because they change the store around and clean up a bit. They already have negative connotations about the store and the type of people that shop there, which they don't want to have any part of. I think it's unrealistic for Wal-Mart to try and target a new market.
ReplyDelete2) Wal-Mart should stay true to it's slogan and keep "rolled back" prices. It might not be completely apparent to consumers that they are lowering some prices and raising others, but it's still not honest. If consumers begin to catch on that they might not be getting the best deal, they may no longer stay true to Wal-Mart and might start looking elsewhere for better deals.
3) To bring back their customer base and core values, Wal-Mart should go back to the old way they did business. Research shows that people perceive having to "dig through" items as a deal. The company I work for says our bargain bins must be messy and completely unorganized, because that's what attracts consumers to lower prices. Wal-Mart should go back to being cluttered to bring back their customers and regain loyalty.
1.What are your thoughts about Wal-Mart's recent back and forth merchandising and store changes?
ReplyDeleteI’m honestly very confused by Wal-Mart’s back and forth merchandising and store changes. Before the company tried changing their image and trying new things they were still doing moderately well but afterwards they faced an immediate downfall. If such things were happening to the company I owned, I would first try going back to how it was when we were still doing well. Even if such strategy didn’t work, it would still put the firm back on track and give them extra time to organize and implement a new plan of action.
2.What are your thoughts about Wal-Mart's pricing strategies discussed in the article? What changes, if any, do you think Wal-Mart should make to its pricing strategies?
In my opinion, Wal-Mart should stick to their idea of “rolling back prices”. Although, I do shop regularly at Wal-Mart and do enjoy their everyday low prices, I feel as if the consumer thinks they are getting a great deal on a particular item they will be more likely to go there to buy it. In the process of shopping for that particular item the customer may even find other products while on their search that they did not go in looking for. While, this would happen in either pricing strategy, it’s obvious that it has worked before and if something is working then what’s the need to change it?
3.What should Wal-Mart do to regain its customer base and return to its core values -- customers and value -- that helped Wal-Mart become the giant (and #1) retailer it is today?
I think Wal-Mart needs to put their focus back onto the ”blue-collar customers” because it seems to be more convenient and accessible for these particular kinds of customers. I feel as if the upper-class community may believe they are too good for Wal-Mart and would much rather shop at a high-end market. By concentrating on the lower & middle-class population they have the ability to make them feel like important customers again instead of feeling as if they have been put on the back burner.
1) I think Walmart needs to go back to it's old ways. I go there often and they way they have moved stuff around and gotten rid of items has made it really hard to find items. The store isn't as cluttered as much as it used to be which makes things nice. They are trying to become like a Target, but that's not how they gained all the customer support back in the day, so why changes things when they were working??
ReplyDelete2)I feel there pricing strategy has hurt them in a sense it's not everyday low prices when they keep raising the prices of some items. I feel they need to stick to the slogan that really got them going in market "rolled back".
3)I feel strongly that Walmart needs to regain their focus back on the blue collar customers instead of trying to switch towards higher class society. I feel it's more convenient for the lower and middle class to shop at Walmart and that the high class feel they are too good to shop there. So all in all they need to return back to way things were and stopping trying to change their who their customers are.
1) I think that changing everything around makes consumers less likely to shop there. If everything moves constantly no one will know where the product they need is will go to another store to find the product they are looking for. I think they should have just kept it the way it was. I was clear and concise on where all of the items were.
ReplyDelete2) I feel like Wal-Mart needs to make a decision on their pricing whether they are going to go with rollbacks or with everyday low prices. They need more consistency when it comes to the pricing strategy. I think they need to stick with the everyday low prices. It is the one pricing strategy that has worked for years and probably will continue to.
3) They need to keep consistency. A constant change means that their loyal customers might become their competitors newest customers. Wal-Mart also needs to stop trying to be Target. There are many ways that the two stores are different and they should be kept that way without a gray area in the middle. Wal-Mart can remain the giant by being themselves with everyday low prices and focusing on their customers.
1. Wal-Mart's recent back and forth merchandising and item changes only confuse the loyal Wal-Mart shopper. Shoppers like familiarity; they like to know where a particular item is located AND that it is priced at the lowest amount around. In an attempt to attrack a higher income segment, Wal-mart alienated it's current customer base and lost some of its stronghold on these shoppers.
ReplyDelete2. The high/low pricing strategy has damaged Wal-Mart's image. Loyal shoppers no longer trust that they are, in fact, paying the lowest price for any items. Wal-Mart made a mistake by assuming it's current customer base would follow them into the upscale retailer segment. Wal-Mart shoppers want the convenience of one-stop shopping and the lowest possible price guarenteed. That's what has made Wal-Mart successful and the executives turned their back on that formula. Wal-Mart should phase out the high/low pricing strategy and return to "everyday low prices."
3. I think Wal-Mart is doing exactly what it needs to in order to regain its customer base and showcase its core values. They admitted that they made a mistake and are correcting course. These things take time, but with the size of this retailer, it will turn around in a timely fasion. Somewhere in Arkansas, a Wal-Mart executive is running through the halls screaming, "if it ain't broke, don't fix it!"
1. I believe that everything in the world is changing and that Wal-Mart is trying to keep up with the fast moving pace. I think that the way the changed the interiors really made Wal-Mart seem 'nicer'. This look will attract people who wouldn’t normally shop at Wal-Mart and make the people who do shop at Wal-Mart feel as if the store is more up-to-date. I think the reaction of the store changing has been somewhat negative because people aren’t used to this change but as time moves on I believe that people will feel just as comfortable in this new environment as they did before in the old.
ReplyDelete2. Prices on products are rising everyday. Things that were cheap like bread and gas 50 years ago aren’t so cheap anymore. I believe that this will keep happening as the nation is expanding. On that note I think the idea of the ‘roll back’ is/was good because it would make consumers want to shop at Wal-Mart other than competitor stores. I think that consumers might start choosing another retailer if the prices continue to rise so therefore Wal-Mart needs to be careful of how high prices get. Although Wal-Mart’s rate of prices is slowly rising it seems to me that the consumers are recognizing this even in the slightest bit.
3. I think the neatness of the store helps because it is more organized for shopping. I also believe that Wal-Mart should stick to their everyday ‘roll back’ prices. It may be hard to do this but I believe that a huge retail store such as Wal-Mart can think of ways to keep it this way. I believe with these two things customers will appreciate and Wal-Mart will continue to be the giant number one retailer that they are today.
1.) I can't say that I dislike Wal-Mart's pricing and merchanidising strategy, but it's definitely has impacted the store. However, there is some stuff I look for now and cannot find which I don't like but at the end of the day it's the only place in Radford where you can grocery shop, and get your household items.
ReplyDelete2). I don't think there pricing strategies are too bad but, in the article it says Wal-Mart is able to post stable earnings. If they want to keep there #1 spot in retailing they have to get back to there old customer base and fast. They are forgetting that these people (U.S. households making < 70,000 a year), are the ones who made them who they are.
3). Like stated before they have to get that appeal back to there old customer base that they lost a grip on; the people making < 70,000 a year. Just like Scott Edwards said, former regional vice president of operating Wal- Mart, the rollback prices spread like cancer, since they have raised there prices they are losing there blue-collar shoppers.
1. Wal-Mart's changes that they have been making, in my opinion, are good and bad. I think that the obvious move towards looking like Target pays off when it comes to interior decorating or housewares. On the other hand, Wal-Mart needs to stay recognizable to the types of people who put them where they are now. There is nothing wrong with adding some new merchandise or adding value to what you have, but you must stay recognizable.
ReplyDelete2. When it comes to pricing, Wal-Mart needs to continue to fight for the lowest prices they can get because that's why their customers come to shop there. If Wal-Mart wants to continue to have their loyal customers, their pricing needs to not fluctuate because I think in the end K-Mart or some other low end stores are going to steal their customers.
3. To regain their customers, Wal-Mart needs to go back to everyday low prices, and need to stop attempting to be something they're not. Their low to middle class customers need to be their target. Wal-Mart needs to stop trying to gain high class customers because they already have a solid reputation as selling inexpensive products for people who can't afford higher prices. They should advertise that the old Wal-Mart is back and prices are now lower. They need to work towards truly having the lowest prices. Their consumers won't be able to resist.
I think Walmart needs to make a decision on there target market fast. They have always been know for the low prices and messy stores. I think they messed up when they tried competing with target. Target had a different target market though. They aim for a little higher price market. When Walmart started this they lost a lot of there customers. I think Walmart needs to go back to what they were selling before because not only were there sales increased, but they did not have much competition. Even though the article says there is competition, if they go back to what they were doing there customers will return. the reason I think that is because of there name and the fact that it is a one stop shop for all there items.
ReplyDelete2.Once again the idea of going back to where they were before makes sense. The results say everything. There sales are down because people are unhappy and they are competiting when they dont have to be. Target sells a higher end and when they do that there is no way to increase there sales.
3. I would say start with regaining there "always low price" slogan. Having newer stores would be a positive for there atmosphere. In the end going back will lose a few customers but they will dominate again over smaller discount companies. They should run a campain for this showing discounts are there main concern like they used too.
1. Throughout the years Wal-Mart stores have been changing their merchandise and also the way that their stores appearances look. I remember Wal-Mart from the early 90's, the time when Wal-Mart stood for what the said and believed in it. During those times Wal-Mart served the average american family and gave jobs and an economy to places that were struggling. Now when Wal-Mart tries to appeal to the average american they are changing their philosophy and the reason why they started, to give the average american the cheapest deal. By changing their merchandise they are trying to go along with the time, but in reality they need to get back to the basics of why they started.
ReplyDelete2. Wal-Mart has been known for their slogan "every day low prices," and for their customers to be able to go into one store and get anything they could possibly need. In the article it discusses how they have stranded away from their old pricing strategy and they have raised some of their prices while super promoting deals on others so it makes it seem like they are still low prices all over the store. I believe Wal-Mart needs to recollect information and choose their pricing wisely. They should stick to their slogan of low prices, but be able to make enough profit to survive in this economy.
3. There are numerous ideas that Wal-Mart can use to go back to its basics and core values that have made it the number one retailer that it is today. First they need to not follow the crowd with the "organic" food and the "skinny" jeans. Wal-Mart needs to reevaluate customer value and research what the typical american needs. Also to regain the customer base on their core values they need to start producing commercials that explain their motto and advertise using the right products and right people. I believe that through the right marketing skills, Wal-Mart can go on top to being the number one retailer store that they always have been.
I think by Wal-Mart constantly changing merchandising and the pricing is starting to confuse consumers about what Wal-Mart is now about. The changes they are making go against what they are known for, lowest prices. Instead, they have a variety, some low and some high. Before Wal-Mart was the one-stop shopping place for consumers that were guaranteed with the lowest prices. Now, consumers are left wondering if they are truly getting the best deal. I think Wal-Mart needs to restructure their pricing strategies & change them back to how they used to be. This is what made Wal-Mart successful and this is what will regain customer base and its core values. Wal-Mart should continue trying to make the store appear higher class without going to over the top into a completely different atmosphere. Changing the atmosphere and overall design of the store will help rejuvenate the perception consumers have on Wal-Mart.
ReplyDeleteWell I have never been a fan of Wal-Mart but since I since I go to college here it the main place to shop. People are starting to realize that its not as cheap as other stores...they are no longer the cheapest which really defeats the purpose of going to Wal-Mart. Even when people weren't a fan of the place they were still drown in but the low prices. Now more people are getting mad because of the price increases and not much to show for it but fewer products.
ReplyDeleteI feel like when they do rollback pricing on some items and raising prices on other items it just feels like a scam. It defeats the purpose of getting a good deal because people who shop at Wal-Mart aren't usually there to get one or two items so the deal you got on one product could easily be tacked onto another.
I think that they need to bring back more product lines and stop trying to make it upscale...because Wal-Mart isn't and shouldn't be. The purpose of Wal-Mart is for a good deal for people with less money to push around. I think they would be ok with fewer renovations. Also they should go back to all around low prices. Wal-Mart got popular because you could do bulk shopping and know you are getting a good deal on everything which made it unique from other stores. Now its starting to blend in with the rest.
1. I think that Wal-Mart needs to stop changing from high-end to low-end and go back to its roots. To be honest I don’t see why they changed in the first place after being #1 in sales for so many years. They did the best when the store was crowded with merchandise and focused on supplying blue collar families. People don’t necessarily care what a store looks like as long as it carries everything they need and items are easily found. If it’s not broken, don’t fix it.
ReplyDelete2. Wal-Mart needs to go back to the pricing that the company was founded on, everyday low prices. Their move to high-low pricing did more harm than good and left customers feeling cheated. Even by lowering the prices back down, Wal-Mart should keep revenue up by gaining back all of their old shoppers.
3. Wal-Mart needs to stop chasing Target and just do them. Target was not #1 in sales, Wal-Mart was, and they should stick with what works for them: crowded isles full of products, wall to wall merchandise, everyday low prices, less organic food, and less designer motivated clothing. Sure Wal-Mart may lose their high-end customers, but that is a small percentage of customers anyway. They need to refocus on gaining back the large and loyal blue collar crowd, and recreating the one-stop-shop experience.
1. Wal-Mart is definitely at its worse. Customers use to always look at Wal-Mart as the "everyday low-price" store. I think that if you're gonna have a slogan like that you should stick to what you say. Wal-Mart trying to increase product price attract higher-income customers is just basically pushing the public away because they're not living up to what they say.
ReplyDelete2. I believe the store should definitely go back to it's lower price method like it use to be. I personally use to go get groceries at Wal-Mart but noticed to price increase and started shopping elsewhere. I think other people have noticed to same thing, and the only way the store is ever gonna get there original customers back is if they lower their prices again. The "roll back" thing has just become a joke to us now.
3. To regain it's customers back Wal-Mart should just basically go back to what they use to be. Trying to compete with higher-end stores is just not in Wal-Mart's nature. They started off as a "everyday low price" store and should remain one. It's become all one big mess, and is probably gonna take a while to regain it's customers.
Wal-Mart for a long time was one of the best retailers. The reason was because it was known to be a low-price store all the time. But recently Wal-Mart has backed out on their slogan “everyday low-price” and as gone to higher end pricing to attract higher income customers. The changes they made are in some ways good but I think they need to go back to their roots with the low pricing that has made them so successful in the past. A lot of my friends are in college or just getting out of college and many of them tell me that they have stopped shopping at Wal-Mart. The place that was once known for its roll back prices is now non-existent. Wal-Mart has lost a lot of its original customers and really isn’t gaining any new ones. I still go to Wal-Mart for something’s but now I find myself shopping more at Kroger or food lion. Wal-Mart trying to compete with higher-end stores does not go with the Wal-Mart brand. They are better off staying as a low-end retailer, which is a formula that has helped them grow into one of the top retailers. It is important that they live up to their slogan “everyday low-price” because contradicting that will alienate their current customers and bring inconsistency to its brand image.
ReplyDeleteThanks for sharing such a wonderful Blog. Depending on your individual shop display requirements remember that display fixtures affect the customer’s perception of your product.
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