SAGI & WINK

New Product Introduction – Phase 1

Stuart Gardner, Lauren Esposito, & Ross Gleason

2013

This concept was designed with Walmart as the target company, however Walmart was never

involved in the concept inception or design. Any images used in this paper are used for concept

design and illustration of product.

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Table of Contents

Executive Summary 3

Situation Analysis 4

Industry Snapshot 4

Company Snapshot 4

Brand Review 4

Marketing Plan Goals 5

Product Advertising 7

Ad Campaign Objectives and Strategies 7

Creative Recommendation 7

Media Recommendations 9

Measurement and Evaluation 10

Ad campaign budget summary 11

Timetable 12

Conclusion 13

Appendices 14

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Executive Summary

• Walmart is globally the leader in retail stores and recently has made a movement toward

developing new and innovative ways for consumers to shop.

• The idea behind building brand awareness and customer trust for our newly developed

product and systems that bring about a new concept on doing conventional retail shopping

in order to create a more efficient way to shop and a new way to reach customers.

• January 15th, 2014 – July 1st, 2015

• Any current or new Walmart shoppers who is more technologically inclined.

• To use these creatively designed advertisements to establish customer loyalty and trust with

the new product

• The campaign slogan that will be employed during this period is, ‘Shopping just got easier.’

• Media Plan:

• Brief budget breakdown

Advert Budget

Print Advert (2 different) $2,000,000.00 (29%)

TV Advert (Storyboard) $5,000,000.00 (71%)

• To evaluate the effectiveness of the advertisement campaign, there are two times during the

campaign that measurements can be taken via sales records.

Print  • In  store  banners  • Billboards  

TV  • Storyboard  • 2  weeks  before  Thanksgiving  

Web  • Website  launch  • www.mywink.com  

Info  • WINK  Info  Packet  • Sent  out  with  the  WINK  unit,  (June  15th,  2015)  

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Situation Analysis

Industry Snapshot

Personalized marketing has become the biggest trend for marketers across the Internet

over the last few years and customer reviews have fueled that form of advertising, as

consumers are more likely to trust friends that own a product rather than advertisements

(supplement 1 from appendix). However, this has been limited to the Internet either via a

personal computer or a mobile device. Thus for traditional brick and mortar stores, personal

peer-to-peer recommendations have been inaccessible.

Company Snapshot

Walmart Inc. is a multinational retail corporation with the largest discount department stores

and warehouses. Walmart is also the worlds largest traded company in the world, with over 2

million employees worldwide.

Walmart has been on the rise over the last couple of years, as it has expanded globally

through direct investments and partnerships.

The target market would be all Wal-Mart’s customer, thus ranging from all demographics,

however it will appeal more to technologically inclined individuals.

Brand Review

Smart Advertising Glass Innovations or SAGI & WINK are a new form of advertising that

brings together personal and conventional in store advertising. The idea behind them is to install

Interactive Glass Screen (IGS) that will respond to the presence of a customer via

communication from WINK.

Once a customer approaches the IGS, it will recognize the customer and communicate with

them, giving reviews from friends and recommendations for possible items that friends have

purchased. This information will be collected via social media, since when a customer signs up

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for the loyalty program they will be asked to connect their social media. The only reason for this

is to track friends, groups, and online reviews.

Since SAGI & WINK is a new product being introduced into the market, a SWOT analysis

had been done for it:

Strengths

· Making shopping more efficient

· Unique to Walmart

· Integrating online with physical

Weaknesses

· Consumer resistance

· Expensive start up cost

Opportunities

· Consumer behavior

· Theft reduction

Threats

· Privacy concerns

· Competitors developing other systems

The SWOT analysis above highlights the four areas of the SAGI & WINK product

introduction. On average, across the United States of America, Walmart serves over 140 million

customers a week between its 4,135 stores nationwide, of which there are 3,267 Supercenters.

That is roughly 4,837 customers a day per Walmart store. Within the first year, the goal is to

have 500 of the Supercenters installed with the SAGI system and for 35% of customers within a

store to sign up for WINK. Reaching this goal will enable sufficient data to be collected to

analyze and more forward with installing other systems.

Currently, SAGI & WINK are unique to Walmart and in the hopes of its success, within the

first year, there are bound to be other competitors entering the market.

Marketing Plan Goals

The marketing goals for SAGI & WINK are to introduce the new products into the market

and make customers familiar with the two systems, thus bringing about brand awareness and

customer comfort with the products. Since these are both new technologies that may bring

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about some resistance because they may be considered intrusive and unethical, since the

technology will track customers when in the store and monitor what they are looking at and

ultimately purchasing.

Marketing Goals:

• Sales Volume: Sales of the WINK product will go on pre-sale on September 15th, 2014

with a projected sale of 570,000 units between the 500 Supercenters, and then once

launched on July 1st, 2015 a total of 1,000,000 units to be sold in total.

• Market Share: Of all the customers at Walmart, we predict 20% market share pre-sale

sign ups and once launched, a total of 35% market share within the first year.

• Sale Revenue: The projected budget and sale of the WINK product are below:

Amount Cost Note

WINK Pre-sales 570,000 units @ $15 $8,550,000.00 57% pre-sale

WINK Regular sales 430,000 units @ $20 9,400,000.00 43% regular

sales 17,950,000.00

WINK Cost $10/WINK (10,000,000.00) Cost to produce unit

profit 7,950,000.00

• Profit: Between the pre-sales and regular sales of the WINK product, there is a project

$7.95 million profit.

• Return on Investment: ROI for the first year.

o Expense: $37 million

o Sales: $17.95 million

o Profit: $7.95 Million

o RIO: 48.5%

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• Brand Image: The brand image that is being built for SAGI & WINK, is one of trust and

reliance, and it is more of an intrinsic investment than one of profit. Even though each

WINK product is being sold at 100% sales mark-up, the profits will be used for

reinvestment into the SAGI & WINK system R&D.

Product Advertising

Ad Campaign Objectives and Strategies

We want to use advertisements to establish customer loyalty and trust with the new product,

thus using in-store advertising and TV commercials during the time of the year that customers

are increasing shopping activity due to the holidays. This creates the perfect opportunity to

establish the desired relationship with customers and comfort within customers about the new

product. We will be using taglines such as, “Shopping just got easier,” to establish a concept

behind what SAGI & WINK are aiming to do. We will be monitoring the level of online

awareness from social media hash-tags and customer input.

Creative Recommendation

WINK is groundbreaking technology that takes advertising to the next level. It takes online

tracking to the next level and brings it to life in the Walmart stores. WINK will allow monitoring of

shopper activity, simplification of shopping experience, and bring a new experience for Walmart

shoppers. We want to target current Walmart shoppers, as well as try to reach out to new

potential shoppers in this process. Our target market is aimed towards men and women who are

more technologically inclined. Our advertising messages are that this product is sleek, easy to

use, and makes shopping easier.

We created two print advertisements where one targets men and the other women. The

advertisement is simple and to the point.

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Figure  1:  Image  rendered  for  concept  design  

We also created a storyboard in which a woman is entering a cluttered shopping store on a

day such as Black Friday. She is a WINK user, and therefore is greeted by a screen when she

enters the store. Because of her WINK, she is able to keep track of different items on her

family’s ‘wish list.’ She is shopping for her son, who wants a particular video game. The

storyboard then shows her being lead to the item by her WINK (with ease) and then leads her to

the specific game, rather than having to search for it herself. From there, a display will show her

information about the video game (or product that she is buying) to ensure that it is appropriate

and the right product for her. She purchases the video game and is happy and satisfied with the

simplicity of her shopping visit on a busy day.

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This message would appeal to Black Friday shoppers and to shoppers that are always in a

hurry and always on the go. People such as busy employees that stop by to grocery shop for

their family and still make it in time for dinner and family night. The efficiency and simplicity of

this product will make lives easier for all those who use it.

Media Recommendations

Advertisements will be released in a variety of media starting with print, then moving toward

TV and Web and then sending out informational packets to users that have signed up for the

technology. The variety of advertisements will target individuals primarily who are

technologically inclined. Each release of a new advertisement through a different medium will

have different release dates that will vary throughout 2014 and 2015.

First print advertisements will be released through billboards and then printed materials

around Walmart shopping centers on September 15th, 2014. The TV advertisements will be

released two weeks prior to Thanksgiving and play from November 13th until November 27th,

2014. On January 1st, 2015, Walmart will launch www.mywink.com with information about what

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Walmart is doing in 500 supercenters nationally. On June 15th, 2015 WINK promotional

materials will be sent to pre-signed up customers, as well as their WINK units, as well as the

release of the app and Website for function on appropriate devices. These advertisements are

created to reach our target market and then refresh the information and image of WINK to the

target market.

In 2014, 500 supercenters nationally will be installed with the SAGI system during the

beginning of that first year so that a larger market of consumers are able to use this product.

Measurement and Evaluation

To measure and evaluate the ad campaign, there are two times that measurements can be

taken. On September 15th, 2014 SAGI and WINK will be introduced to the world from then till

November 27th, 2014. Also during that time, customers are able to pre-sign up for the WINK

product at any of the 500 Supercenters across the nation. Each Supercenter will have 1,140

applications for pre-sign ups at the discounted price of $15. The measurement that will be used

here is the time and amount of applications that are filled in during that time, as well as,

Print  •  In  store  banners  •  Billboards  

TV  •  Storyboard  •  2  weeks  before  Thanksgiving  

Web  • Website  launch  • www.mywink.com  

Info  • WINK  Info  Packet  •  Sent  out  with  the  WINK  unit,  (June  15th,  2015)  

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monitoring if there is an increase during the time that the TV ad will be aired during the two

weeks before Thanksgiving.

The second measurement of time would be after the release of the whole system on July

1st, 2015. Each supercenter will have 860 WINK’s left and whatever else is left from the pre-

sale. The regular price for the WINK will be a $20 sign up cost and measurements will be taken

the same way as previously mentioned, monitoring the sign up rate within the first year.

Ad campaign budget summary

For 2013 and 2012, Walmart’s advertising budget was $2.3 billion a year, this is decrease

from 2011, which was $2.5 billion. Thus, the proposal for the SAGI and WINK campaign is $7

million, to be spent accordingly as indicated below. This budget does not include the cost for

research and development for the SAGI and WINK systems and installation.

Advert Budget

Print Advert (2 different) $2,000,000.00 (29%)

TV Advert (Storyboard) $5,000,000.00 (71%)

WINK cost budget breakdown

Each of the 500 Superstores will have 2000 WINK until to be sold for the first release, 57%

of those units will be able to be sold for pre-sale. The 57% is the 20% of the 35% for the market

share goal for the first year.

SAGI & WINK Proposed Budget (,000)

R&D (SAGI & WINK) $10,000

System’s installed (500) 10,00

Advertising 7,000

WINK Production ($10/WINK) 10,000

Total $37,000

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The figures above do not include supplementary information on the SAGI and WINK

system and the creation of a website and database.

Timetable

The timetable below highlights important dates surrounding the development of SAGI & WINK

until its release date.

Date Event

January 15th, 2014 Design and engineers team formed with Walmart Labs, start work on creating the system software and hardware for SAGI and WINK.

September 15th, 2014 Introduce SAGI and WINK to the public. With the in store promotional advertising, as well as, the starting a pre-sign up that will run till November 27th, 2014. (pre-sign up will include a discounted sign up cost for the WINK) {20% customer sign up}

November 13th, 2014 - November 27th, 2014 (Thanksgiving)

Release the advertisement for the WINK product on TV (storyboard), showing the WINKs use within a store, this advert will run 2 weeks before Thanksgiving. The WINK pre-sign up will also end that day.

January 1st, 2015 Start installing the SAGI systems into the first Walmart Supercenters across the nation. Launch www.mywink.com with information about what Walmart is doing {500 Supercenters}

June 15th, 2015 Mail out the WINK’s and promotional material to pre-sign up customers, also release apps on appropriate devices.

July 1st, 2015 Turn on the SAGI systems. The rest of the WINK at regular price will go on sale ($20).

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Conclusion

SAGI & WINK are two new products that are being introduced in to the world of retail.

Walmart has been identified as the top participant for the introduction of the systems, because

they have a wide national and global reach, within the retail world. A proposal of installing 500

Supercenters nationwide with the SAGI system and selling 1 million WINK units within the first

year, thus covering 35% of customers within those 500 Supercenters.

The advertisements proposed for promoting the two new systems include three methods of

delivery at three different time intervals. The first is in-store print advertisements and printed

billboards. The second is a TV commercial aired two weeks before Thanksgiving 2014. The

third is information provided on our website www.mywink.com. These advertisements are aimed

to bring about product awareness of these two new systems and to establish customer loyalty

and trust of the new systems.

Overall, the two systems have an intrinsic investment value bringing about previously

unprecedented consumer information and behavior- thus outweighing the initial startup costs

and building for a better consumer experience.

On completing phase one and seeing it through its first year, phase two will begin, which

included introducing more SAGI systems across the nation and will begin the sale of more

WINK units.

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Appendices

Supplement 1: Data supporting the recent trends in customer trust in advertising.

http://www.nielsen.com/us/en/newswire/2012/consumer-trust-in-online-social-and-mobile-advertising-

grows.html

Supplement 2: Advertising Costs from Walmart’s Annual Report 2013

Advertising costs are expensed as incurred and were $2.3 billion for both fiscal 2013 and

2012, and $2.5 billion for fiscal 2011. Advertising costs consist primarily of print, television and

digital advertisements and are recorded in operating, selling, general and administrative

expenses in the Company’s Consolidated Statements of Income. Advertising reimbursements

received from suppliers are generally accounted for as a reduction of cost of sales and

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recognized in the Company’s Consolidated Statements of Income when the related inventory is

sold. When advertising reimbursements are directly related to specific advertising activities, they

are recognized as a reduction of advertising expenses in operating, selling, general and

administrative expenses. (Walmart Annual Report 2013, p. 39)

Supplement 3: Walmart Lab’s address

Walmart Labs

850 Cherry Avenue

San Bruno, CA 94066

Phone: (650) 837-5000