Walmart Price Leadership Assertions: EDLP+
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© Copyright 2014 Kantar Retail Walmart Price Leadership Assertions: EDLP+ Source: Kantar Retail analysis 1 Degree of targeting, sophistication me mass EDLP Individualized appeals Savings Events Local Market Campaigns Value Deals Private Labels KVIs
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Walmart Price Leadership Assertions: EDLP+. me. Individualized appeals. Degree of targeting, sophistication. Local Market Campaigns. Private Labels. Value Deals. Savings Events. KVIs. mass. EDLP. Source: Kantar Retail analysis. EDLP : Goal of USD6 Billion in Price Investment. - PowerPoint PPT Presentation
Transcript of Walmart Price Leadership Assertions: EDLP+
© Copyright 2014 Kantar Retail
Walmart Price Leadership Assertions: EDLP+
Source: Kantar Retail analysis 1
Degre
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f ta
rgeti
ng,
soph
isti
cati
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me
mass EDLP
Individualized appeals
SavingsEvents
Local Market
CampaignsValueDeals
PrivateLabels KVIs
© Copyright 2014 Kantar Retail
EDLP: Goal of USD6 Billion in Price Investment
Price Reductions:– “Lead with traffic-driving
categories”– Broad application (not
only KVIs), elastic items– Long-term investments
Furthering investment thru the end of 2016, “self-funded”
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Productivity Gains:• Lower remodel/new
stores costs• Productivity in stores• Efficiency in transport,
marketing, DCs…• Global sourcing• JBP
Source: Company presentations, Kantar Retail research
Walmart reaffirms its pledge to reduce SG&A % thru the
end of 2016
© Copyright 2014 Kantar Retail 3
Exclusive value across the
merchandise ladder
Build Unique Value AppealPrivate Labels
Source: Kantar Retail analysis, store visits; ECRM
© Copyright 2014 Kantar Retail 4
Rollbacks, as well as unique new ways to assert value, for a limited time
ValueDeals Rollbacks, Bonus Offers
Source: Kantar Retail analysis, store visits; ECRM
© Copyright 2014 Kantar Retail 5
Testing matching of BOGO coupon offers in Florida
•Pilot started Sept. 2013
•Across Supercenters, Discount, and Neighborhood Market
•Limit of two BOGO offers per item
•Receive Walmart’s EDLP price on the BOGO
Source: Walmart.com, company presentations, Kantar Retail analysis 5
“See For Yourself” campaign reaches ~75 markets across US, 70% of sales; TV ads are refreshed frequently
Local Market
CampaignsReinforce LeadershipBecoming more aggressive: matching BOGO offers
© Copyright 2014 Kantar RetailSource: Kantar Retail analysis, store visits; company materials 6
Savings Events Create Reason to Shop Now
© Copyright 2014 Kantar RetailSource: Company presentations; Kantar Retail analysis, store visits 7
“If we invest in price and there is no sales response, we are not
going to invest in those categories.” - Bill Simon,
September 2013
“If we invest in price and there is no sales response, we are not
going to invest in those categories.” - Bill Simon,
September 2013
Key Value Items Investing to Drive Impressions
