1. Advertising report
4 Girls 2 guys advertising

2. Table of contents
I. Executive summary...................................................3
II. Situation analysis ....................................................5
III. Focus group interview............................................39
IV. Survey......................................................................... 52
V. Problems & Opportunities.....................................70
VI. Advertising strategy.............................................73
VII. Media plan...................................................................75
VIII.Flow Chart................................................................106
IX. Media summary.........................................................108
X. appendix......................................................................110
2

3. Executive
summary
3

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.
4

5. Situation
Analysis
5

6. Industry
analysis
6

7. Situation Analysis
Industry analysis
issues
• The business practices that keep Walmart’s prices so
low 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.
Economic policy institute 7

8. Situation Analysis
Industry analysis
Walmartrepresents nearly
10 % of the
$3.8 trillion
U.S. retail industry.
The U.S. retail industry experienced a 4% annual growth rate between 2006 and 2011.
ibisworld 8

9. Situation Analysis
Industry analysis
2008 Retail sales
Grocery Stores
by outlet Other Retail
Outlets
22%
33%
Home Improvement 4%
Drug Stores 4%
5%
Department Stores
8%
Warehouse Clubs 24%
Supercenters
Walmart is active in almost all retail outlets.
Market share reporter 2010 9

10. Situation Analysis
Industry analysis
2007 retailer sales totals
(in billions of dollars)
Walmart
$378.70
Target $63.30
CVS $76.30
Dollar General $9.20
Walmart’ssales performance far exceeds its direct competitor, Target, and
more specialized indirect competitors, CVS and Dollar General.
Market share reporter 2010 10

11. Situation Analysis
Industry analysis
2007 market shares
10%
6%
Walmart Supercenter
6%
SuperTarget
Kroger
Others Walmartdominates the market
78% with more than
¾ of the market share.
Market share reporter 2010 11

12. Situation Analysis
Industry analysis
net income
(in thousands of dollars)
16,000,000
14,000,000
12,000,000
10,000,000
Target
8,000,000
Walmart
6,000,000
Dollar General
4,000,000
2,000,000
0
2008 2009 2010
Market share reporter 2010 12

13. Situation Analysis
Industry analysis
Walmart can also be classified as a
discount department store,
ahighly-concentratedindustry of about
5,000 stores
with a combined annual revenue of
$125 billion.
First research 13

14. Situation Analysis
Industry analysis
walmart Locations
(stores per million people)
35 30.87
30 27.46
25 20.51 20.97 21.13 21.38 22.24
19.85 19.87 19.97
20
15
10
5
0
785 stores in a 10-state stronghold make up 21% of Walmart’s U.S. stores.
Walmart corporate website 14

15. Situation Analysis
Industry analysis
target Locations
(stores per million people)
Target corporate website 15

16. Situation Analysis
Industry analysis
Geographic indices
Walmart is not as prominent as Target
in the West or Northeast, but
stronger in the South.
Mri+ 16

17. Situation Analysis
Industry analysis
2011 Quarterly sales
(in billions of dollars)
120,000
115,600
115,000
110,000
105,000 103,000
101,200
100,000 99,100
Total net sales for 2011 was
95,000 $419 billion, a 3.4%increase
from 2010.
90,000
1st 2nd 3rd 4th
* Fiscal year ends January 31.
Market share reporter 2010 17

18. Situation Analysis
Industry analysis
2011 Competitors Quarterly sales
(in thousands of dollars)
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000 Target
40,000,000 Walmart
20,000,000 Dollar General
0
Market share reporter 2010 18

19. Product
Analysis
19

20. Situation Analysis
Product analysis
Brand image
Brandtags.com 20

21. Situation Analysis
Product analysis
Brand personality
• 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.
Brandtags.com 21

22. Advertising
Analysis
22

23. Situation Analysis
Advertising analysis
2011 Advertising expenditures
$2.5 Billion
$1.3 Billion
$234 million
2012 Advertising red books 23

24. Situation Analysis
Advertising analysis
5 Year ad expenditures
(in millions of dollars)
Annual reports 24

25. Situation Analysis
Advertising analysis
2011 Ad Expenditures
(in millions of dollars)
0.8% of
Walmart
sales
$2,500.00
2.2% of
Target $1,292.00
sales
CVS $234.00
Dollar General $46.90
2012 Advertising red books 25

26. Situation Analysis
Advertising analysis
IfWalmartmatched Target by spending 2.2% of sales
on advertising, the budget would be
$5.72 billion.
That amount would be
4 Times
that of Targetand would make Walmartthe
No. 1 Largest U.S. Advertiser.
Advertising age 26

27. Situation Analysis
Advertising analysis
2006 Ad expenditures by
medium
(in millions of dollars)
Walmart only spends $524 million of its $2.1 billion budget on TV advertising.
Ad $ summary 2006 27

28. Situation Analysis
Advertising analysis
“We Sell for Less”
“Satisfaction Guaranteed”
Walmart’sfirst forms of advertising were 2 signs on the storefront that
inspired future campaigns.
Walmart corporate website 28

29. Situation Analysis
Advertising analysis
The “Always” campaign
What to say:
Walmart’s prices are always low.
How to say:
Always low prices. Always. Bernstein-Rein
Advertising age 29

30. Situation Analysis
Advertising analysis
The “Always” campaign
How to say:
30

31. Situation Analysis
Advertising analysis
current campaign
What to say:
Saving money on the little things helps
families live better.
How to say:
Save money. Live better. Martin Agency
Advertising age 31

32. Situation Analysis
Advertising analysis
The competition
Expect More.
Pay Less.
Save Money.
Live Better.
Expect Something
Extra.
32

33. Situation Analysis
Advertising analysis
Target 2012 campaign
What to say:
Our products are the solution
to whatever life throws at you.
How to say:
Life’s a moving Target.
Wieden + Kennedy
Target corporate website 33

34. Situation Analysis
Advertising analysis
CVS 2012 campaign
What to say:
The ExtraCare Card saves
you money.
How to say:
Don’t be a money trasher.
Cvs corporate website 34

35. Consumer
Analysis
35

36. Situation Analysis
Consumer analysis
demographics
Walmart Target CVS
Age 25-34 25-34 18-24
Gender Women Women Men&Women
Education HS Diploma, No Graduated College Graduated College
College Plus 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.
MRI+ 36

37. Situation Analysis
Consumer analysis
Psychographics
More likely to own Apple
products, digital cameras, smart More likely to live an organic lifestyle.
phones & GPS locators.
Health conscious.
Enjoy camping and hiking.
Enjoy technology and fashion.
Are single or recently married.
May have infants. Are single and career-driven.
Natural resources, Construction & Business Management, Financial, Sales
Maintenance & Office Occupations
SRDS Lifestyle Analysis 09-10 37

38. Situation Analysis
Consumer analysis
Purchasing cycle
Walmart serves more than Regular shoppers visit
200 million customers 5+ times a month
weekly worldwide. on average.
More women than men.
Online shopping:Popular among 25-34 age group.
MrI+ 38

39. Focus
group
interview 39

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 ofwhy Walmart consumers choose
Walmart.
• Attempt to Measure and Analyze the reactions and effects ofWalmart’s
advertising.
40

41. Focus group
Methods/procedures
Focus Group A Focus Group B
Moderator: Kearsten Howland Moderator: Christina Hoener
• Location: Lindsey + Asp, Room 2144 • Location: Lindsey + Asp Room 2144
• Date: 2/29/12 • Date: 3/5/12
• Time: 4:30 p.m. • Time: 4:30 p.m.
• Group Characteristics: • Group Characteristics:
• All females • All males
• 8 participants • 8 participants
• All participants shop at Walmart • All participants shop at Walmart
• Ages: 19-24 • Ages: 19-24
41

42. Focus group
Summary of findings
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”
42

43. Focus group
Summary of findings
Focus Group A: motivations
• 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.”
43

44. Focus group
Observed 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.”
44

45. Focus group
Observed differences
Focus Group B: attitudes
• The majority of respondents think of Walmartfirst 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.”
45

46. Focus group
Observed 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.”
46

47. Focus group
Observed 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.”
47

48. Focus group
Observed 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.
48

49. Focus group
Observed 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.
49

50. Focus group
Observed 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.
50

51. Focus group
Observed 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.
51

52. survey
52

53. SURVEY REPORT
OBJECTIVES
• To investigate what factors motivate consumers
when choosing a general merchandise store.
• To gain insight into consumers’ perceptions of
the Walmart brand compared to its competitors.
• To determine usage patterns of the general population.
53

54. SURVEY REPORT
Methods/procedures
• 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
54

55. SURVEY REPORT
Demographics
Participant DEMOGRAPHICS
Gender Age
3.5
26.5 13.5 18-24
Male 5.5
25-34
Female 35-44
9.5
45-54
73.5 68 55+
55

56. SURVEY REPORT
Demographics
Participant DEMOGRAPHICS
HH Income Education
High School
$0-9999
6 6 Graduate
24
38 $10,000-29,999 20 Some College
$30,000-49,999
9 Associate's
$50,000-69,999 13.5 54.5 Degree
9 $70,000+ Bachelor's
20
Degree
56

57. SURVEY REPORT
usage
Store Rank by usage
4.54
3.6
3.21
2.3 35.7% of respondents
strongly agree that
they shop at Walmart
1.53 more than other
general merchandise
stores.
57

58. SURVEY REPORT
usage
Store visits
Respondents were asked rank general stores by preference and indicate how often they visit
their #1 and #2 ranked stores.
Visits to #1 Ranked Store Visits to #2 Ranked Store
5% 1%
7% 7%
1 or less 1 or less
34%
25% 2-5 times 2-5 times
6-9 times 6-9 times
61% 10 or more 60% 10 or more
61% of respondents visit their 1st choice for general 60% of respondents visit their 2nd choice for general
merchandise stores 2-5 times a month, and 25% visit merchandise stores 2-5 times a month, and 34% visit 1
6-9 times. time or less.
58

59. SURVEY REPORT
usage
FACTORS IN STORE SELECTION
200
147 154
150
100 77
53 51
50
14
0
Price Location Brand Quality Specific Other
Options Items
“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.”
59

60. SURVEY REPORT
usage
PURCHASING BEHAVOIR
Walmart User Average Spending
13 17 13
Less than $25
$25-54
Yes
$55-100
No
31.5 38.5 $100+
87
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.
60

61. SURVEY REPORT
perception
Attitudes
50.0%
45.0%
40.0% Walmart
35.0%
30.0% Target
25.0%
20.0%
15.0% CVS
10.0%
5.0%
0.0%
Consumers were asked to rank
their feelings towards certain
characteristics related to their
experience in general
merchandise stores.
61

62. SURVEY REPORT
perception
perceptions
70.0%
60.0% Walmart
50.0%
40.0% Target
30.0%
20.0% CVS
10.0%
0.0%
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.
62

63. SURVEY REPORT
perception
CONSUMER PERCEPTIONS
•Walmart is perceived to be less expensive than
Target, but not as satisfactory, attractive, or clean.
•Attitudes toward CVS were largely neutral.
63

64. SURVEY REPORT
perception
Comments for walmart
64

65. SURVEY REPORT
perception
Comments for Target
65

66. SURVEY REPORT
advertising
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.
66

67. SURVEY REPORT
advertising
Advertising recall
90 82 81.5
80
70
60 Target
50 CVS
40 Kmart
30 25.5
Dollar General
20 14.5
11 Walmart
10
0
Both Walmart and Target advertisements were easily recalled.
67

68. SURVEY REPORT
advertising
Advertising evaluation
3.70
3.60
3.50 Walmart
3.40
3.30 Target
3.20
3.10
3.00
2.90
2.80
Good Satisfactory Appealing Like
Target’s advertising is better received than Walmart.
68

69. SURVEY REPORT
summary
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.
69

70. Problems &
Opportunitie
s 70

71. P&O Analysis
problems
•Walmart is perceived to be less attractive and dirtier
than its competitors.
• Consumers respond better to Target’s advertising.
• Consumers of general merchandise stores are not loyal to the
stores they choose.
71

72. P&O Analysis
opportunities
•Walmart could improve brand image by
cleaning or redesigning their stores.
•Walmart could improve their advertising campaigns by using
more television and outdoor advertising.
•Walmart could build loyalty in their consumers by
partnering with popular social causes.
72

73. Advertising
strategy
73

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 say
Walmart is invested their customers by
supporting their everyday lives and local
communities.
74

75. Media
plan
75

76. Media plan
objective
MEDIA OBJECTIVE
To reach 75%of the target audience
with 15 average frequency
over 12 months
from February 2013
emphasizing South and Midwest regions
and holiday seasons.
76

77. Media plan
Target audience
Target audience demographics
Target consumers with high tendency to shop at Walmart.
Primary target Audience
Gender: Women
Age: 24-35
Education: High School Diploma,
No College
HHI: $30,000-$39,999
South
Secondary target audience
African American & Hispanic Population
MRI+ 77

78. Media plan
Target audience
Target audience 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
SRDS lifestyle analysis 09-10 78

79. Media plan
Media consumption
audience composition by gender
(monthly time in hours : minutes)
M 2-17 F 2-17 M 18-49 F 18- M 50+ F 50+ M 2+ F 2+
49
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
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.
Nielsen cross platform report Q1 2001 79

80. Media plan
Media consumption
audience composition by race
(monthly time in hours : minutes)
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
African Americans spend the most time tuned into traditional TV and mobile video,
and Hispanics spend more time watching videos on the internet.
Nielsen cross platform report Q1 2001 80

81. Media plan
Media consumption
African Americans
Hours of TV a Day
• African Americans read more issues of
magazines each month.
5:11 7:12 • A larger percentage of African
Americans own smart phones than
the overall population.
Overall Population African Americans • African Americans are 30% morelikely
to visit Twitter.
African Americans use more television
than the overall population.
Nielsen cross platform report Q1 2001 81

82. Media plan
Media consumption
Hispanics
• 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.
Nielsen cross platform report Q1 2001 82

83. Media plan
Geographical strategy
regional
Focus on regions with high geographical index.
Walmart Target
South 102 76
Northeast 101 122
Midwest 99 98
West 97 123
Walmart has a higher geographical index in the
South, and a competitive situation in the Midwest.
Mri+ 83

84. Media plan
Geographical strategy
states
Illinois
Missouri
Kansas
Oklahoma
Texas
Arkansas
Mississippi
Alabama
Focus on states in target
regions with large DMAs
and a large number of
Walmartlocations.
Nielsen 2011-2012 DMA Ranks 84

85. Media plan
Geographical strategy
dmas
Chicago, IL
Dallas-Ft. Worth, TX
Atlanta, GA
Houston, TX
Detroit, MI
Birmingham, AL
Miami, FL
St. Louis, MO Focus on Nielsen’s
New Orleans, LA top-ranked DMAs with
Oklahoma City, OK multicultural audiences.
Little Rock-Pine Bluff, AR
Jackson, MS
Nielsen 2011-2012 DMA Ranks 85

86. Media plan
Target audience size
Target audience
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
u.s. Census bureau 86

87. Media plan
scheduling
Flighting schedule
• Use a four-week flightingpattern to maximize recall and provide
the 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.
87

88. Media plan
scheduling
Peak seasons
Q1
2011 Quarterly Sales Valentine’s Day
120,000 Q2
115,000 Summer
110,000 Independence Day
105,000 Q3
Back to School/Tax Free Weekend
100,000
Q4
95,000
Black Friday/Cyber Monday
90,000 Thanksgiving
1st 2nd 3rd 4th Christmas
* Fiscal year ends January 31.
88

89. Media plan
Media selection
Media selection
Network TV
Cable TV
Digital
(Online Newspapers, Search Engines, Social Media, Entertainment, Mobile)
Magazine
Local Radio
Outdoor
Below the Line
89

90. Media plan
Media selection
Network Program Rating
FOX American Idol (Wed) 10.7
FOX American Idol 9.4
(Thurs)
Network NBC The Voice 8.4
CBS NCIS 8.2
television CBS CSI 7.5
Advertise during programs CBS Criminal Minds 7.3
with highest ratings. CBS NCIS: Los Angeles 7.3
CBS 60 Minutes 6.9
ABC Missing 6.8
ABC The Bachelor 6.7
nielsen 90

91. Media plan
Media selection
Network Rating Consumption
Index for
Walmart Users
Cable BET 51.1 118
Bravo 44.55 116
television Cooking Channel n/a 202
Advertise on cable E! 51.85 118
networks with high ESPN 29.3 97
ratings, high consumption FamilyNet n/a 223
indices for Walmart users. Galavision 46.6 156
MTV 58.15 159
Choose networks with
multicultural audiences. Style 63.25 129
TBS n/a 103
Mri+ 91

92. Media plan
Media selection
Magazine Circulation Ratings
Ebony 1263996 5
magazines Entertainment Weekly
Essence
1799494
1100000
6.6
3.8
Advertise in magazines with Family Circle 3872671 7.9
high circulation rates and O, The Oprah 2380782 7.5
ratings for the target Magazine
audience.
Parents 2200000 7.2
Choose publications to People 3569811 24.1
reach secondary target People En Español 577636 n/a
audience. Woman's Day 3886853 11.4
Women's Health 1575425 4.7
mri+ 92

93. Media plan
Media selection
Local radio
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
Advertise on local radio stations in targeted DMAs during
morning and evening commute times.
Marketers guide to media 93

94. Media plan
Media selection
outdoor
City 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 94

95. Media plan
Media selection
digital
Search Volume CPC
Facebook 226 million $0.88
Social Media Twitter 7.84 million $1.12
Pinterest 1.5 million $0.16
Yahoo! 55.6 million $0.90
Search Engines Bing n/a n/a
Google 37.2 million $3.22
AdWords
YouTube 68 million $0.61
Entertainment
Hulu 9.14 million $0.13
Mobile Pandora 11.1 million $0.11
Mobile Apps n/a n/a
SEMrush.com 95

96. Media plan
Media selection
Online newspapers
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
Advertise on web versions of top-ranked news publications from targeted DMAs.
Newspaper websites 96

97. Media plan
Media selection
Below the line
Continued Partnerships Strengthen current partnerships by increasing
donations to $1 million and above:
Big Brothers Big Sisters
• United Negro College Fund
Teach for America – Current contribution $500,000 - $999,999
National Partnership for • Hispanic Association of Colleges and
Universities
Women & Children
– Current contribution
$250-$499,999
Tornado Relief
Walmart corporate website 97

98. Media plan
Media selection
Below the line
Corporate Sponsorships
National Football League National Basketball Association U.S. Soccer
98

99. Media plan
Media strategy
Media strategy
To maximize reach and optimize frequency of exposure of
the Walmart brand to our target audience through trusted
sources and creative media buys.
99

100. Media plan
Media strategy
“bookend” commercials
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 100

101. Media plan
Media strategy
Reach/frequency
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)
101

102. Media plan
Budget strategy
It is proposed that Walmartreduce advertising spending to
$2 billion
by reallocating portions of the budget
from traditional mediato
digital media &“below the line” activities.
102

103. Media plan
Budget strategy
rationale
•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.
103

104. Media plan
Budget strategy
allocation
Network TV
30% 30% Cable TV
Digital
Magazines
Radio
2%
Outdoor
0% 10%
20% Below the Line
8%
104

105. Media plan
Budget strategy
Media 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
105

106. flowchart
106

107. flowchart
107

108. Media
summary
108

109. 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 flightingmedia 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.
109

110. appendix
110

111. appendix
Company profile
• Established in 1984
• World’s No. 1 Largest Retailer
• FY 2011 Sales of $419 Billion
• 2,100,000 Employees
2012 Advertising red books 111

112. appendix
5 Year Sales trends
NET SALES
(in billions of dollars)
500
401 405 419
400 374
345
3.4%
300 1.0%
200
7.3%
100
8.4%
0
2007 2008 2009 2010 2011
Walmart expects to grow net sales between
4% and 6% in the 2012 fiscal year.
Walmartstores.com 112

113. appendix
Distribution of sales by segment
Sales by segment
(in billions of dollars)
Walmart U.S.
$49
$109
$260 Walmart
International
Sam's Club
26% of Walmart’s sales come from foreign markets.
Walmartstores.com 113

114. appendix
Domestic Geographic analysis
U.S. Locations
Walmart has about
3,804 stores
in the U.S. and Puerto Rico,
not including its Sam’s Club
franchise.
Walmartstores.com 114

115. appendix
International Geographic Analysis
International locations
5,366 stores in 27 countries outside the U.S.
International sales increased by 11.5% in 2011.
Walmartstores.com 115

116. appendix
Financial summary
2011 Operating
Income
increased
Financial 6.4%
summary Net Sales Earnings
Continued
per share
ROI of over increased increased
19%
3.4% 12%
Returned
$19.2
billion to
shareholde
rs
Walmartstores.com 116

117. appendix
Brands
2012 Advertising red books 117

118. appendix
Brand history
Evolution of the logo
1968- 1981
1962-1964 1964-1981
Used in print & in-
Sam Walton names The first official and
store signing. Never
his new store consistently used
used as building
Walmart. logo.
signage.
1981-1992 1992-2008 2008
Logo updated Adopted the star Current Logo
again in 1981. logo.
Walmartstores.com 118

119. appendix
philanthropy
Walmart gave more than
$378 million
in cash and in-kind gifts in the U.S.
and an additional
$106 million
in international markets.
Walmartstores.com 119

120. appendix
Giving distribution
Giving for 2008
(in millions of dollars)
$45.50
U.S.
$63
International
$106 Sam's Club
$378
Customers &
Associates
Walmartstores.com 120

121. Fgi
questions
121

122. appendix
Focus group questions
Introduction
Introduce 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 Choice
Do 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 Habits
What 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 Advertising
Do 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?
122

123. appendix
Focus group questions
Information About Walmart As A Brand
What 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?
123

124. Fgi
transcripts
124

125. appendix
Focus group a transcript
125

126. appendix
Focus group a transcript
126

127. appendix
Focus group a transcript
127

128. appendix
Focus group a transcript
128

129. appendix
Focus group a transcript
129

130. appendix
Focus group a transcript
130

131. appendix
Focus 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.
131

132. appendix
Focus group B transcript
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 asuperstore 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.
132

133. appendix
Focus group B transcript
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.
133

134. appendix
Focus group B transcript
Do you get it all at one store? Or do you go to Walmart for groceries, and then Targetfor 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.
134

135. appendix
Focus group B transcript
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.
135

136. appendix
Focus group B transcript
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.
136

137. appendix
Focus group B transcript
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’sbeen 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.
137

138. appendix
Focus group B transcript
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.
138

139. Survey
questionnair
e 139

140. appendix
Survey questions
140

141. appendix
Survey questions
141

142. appendix
Survey questions
142

143. appendix
Survey questions
143

144. appendix
Survey questions
144

145. appendix
Survey questions
145

146. Media
chart
146

147. appendix
Media planning chart
147

148. appendix
Media planning chart
148