Case Analysis: Walmart’s Next Move
Online Channels vs. Brick-and-Mortar
Smart phones and computers are widely ubiquitous and user friendly. The convenience and appeal is now motivating consumers to shop online more frequently. According to Kotler, and Keller “apparel and accessories, consumer electronics, and computer hardware are the three fastest-growing categories” (p. 498). All of these items are found in Walmart brick-and-mortar stores. The decision to adapt towards e-commerce became clear when the world’s largest retailer experienced a decline in growth. Walmart’s competitor, Amazon, experienced a different flex in sales that year. The online retailer reported a 19.5% in net sales for 2014. (Teach, 2015). Instead of downsizing their brick-and-mortar …show more content…
They discovered dual-channel consumers tend to spend a notable amount of money compared to the single-channel consumer. REI also realized that a consumer will make additional purchases when they enter the store to pick up their online goods (Kotler, Keller 2016). The possibility of increased sales was the motivation behind the brands motivation to integrate multiple marketing channels. REI’s channel strategy is a perfect example of how a brand can benefit from an online/store integration system. With Walmart moving forward to exhibit online channels for their brand, they now have the opportunity to experience the same increase in sales as …show more content…
It’s reasoning for multichannel use is to “…maintain a dynamic balance as results do not depend solely on the performance of a single channel or geographic area” (Kotler, Keller 2016 p. 495). Coach’s North American consumers buy their products through indirect channels, internet, retail stores, and distributors. The International consumers buy Coach products through online channels, company operated stores, and wholesale distributors (Kotler, Keller 2016). It’s important to find the channel(s) that will work best for each market segment. Walmart is very conscious of the adaptability through segments based on their notion of home delivery. Holley commented on the idea, “We’re also trying delivery in some markets. I don’t think one size will fit all markets, but it’s very important that we be able to offer our customers a better experience” (Teach, 2015 p.
Online Channels vs. Brick-and-Mortar
Smart phones and computers are widely ubiquitous and user friendly. The convenience and appeal is now motivating consumers to shop online more frequently. According to Kotler, and Keller “apparel and accessories, consumer electronics, and computer hardware are the three fastest-growing categories” (p. 498). All of these items are found in Walmart brick-and-mortar stores. The decision to adapt towards e-commerce became clear when the world’s largest retailer experienced a decline in growth. Walmart’s competitor, Amazon, experienced a different flex in sales that year. The online retailer reported a 19.5% in net sales for 2014. (Teach, 2015). Instead of downsizing their brick-and-mortar …show more content…
They discovered dual-channel consumers tend to spend a notable amount of money compared to the single-channel consumer. REI also realized that a consumer will make additional purchases when they enter the store to pick up their online goods (Kotler, Keller 2016). The possibility of increased sales was the motivation behind the brands motivation to integrate multiple marketing channels. REI’s channel strategy is a perfect example of how a brand can benefit from an online/store integration system. With Walmart moving forward to exhibit online channels for their brand, they now have the opportunity to experience the same increase in sales as …show more content…
It’s reasoning for multichannel use is to “…maintain a dynamic balance as results do not depend solely on the performance of a single channel or geographic area” (Kotler, Keller 2016 p. 495). Coach’s North American consumers buy their products through indirect channels, internet, retail stores, and distributors. The International consumers buy Coach products through online channels, company operated stores, and wholesale distributors (Kotler, Keller 2016). It’s important to find the channel(s) that will work best for each market segment. Walmart is very conscious of the adaptability through segments based on their notion of home delivery. Holley commented on the idea, “We’re also trying delivery in some markets. I don’t think one size will fit all markets, but it’s very important that we be able to offer our customers a better experience” (Teach, 2015 p.