Marie Macha Birte Cappenberg Patrick Pohla Simon Prinz The future of retail lies in the satisfaction of creators and consumers Agenda 3 01 Management Summary 02 Analysis and Alternatives 03 Implementation 04 Financials and Risks 05
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Presentation Transcript
01
Marie Macha
Birte Cappenberg
Patrick Pohla
Simon Prinz<br>
02
The future of retail lies in the satisfaction of creators and consumers<br>
How our strategy will maximize Walmart’s benefit from eliminating their customer’s pain points 5 Strategy Challenges Question Impact 200 48 % + 1.5 % Creators face difficulties in growing and diversifying while remaining authentic Consumers are switching from materialism to preferring experiences Walmart is constantly searching for additional revenue growth Co-Creating Value How can Walmart change the future of retail by solving the main problems of Walmart's two customer groups? Number of events per month Sales growth co-created products Influencer engagement Host events with creators
Support Co-Creation and launching of creator products
Encourage creator engagement throughout the value chain<br>
06
Analysis and Alternatives 02<br>
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There are two key target groups emerging with common interests 7 Consumers Prioritizing experiences
Materialism and waste
Missing authenticity<br>
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There are six megatrends that are most influential to transform the retail industry 8 Tribalism Experiences Authenticity Co-Creation Curation Instant Entrepreneurship<br>
09
Strengths
Flywheel business model: Walmart Infrastructure
Strong corporate values
Strong customer centricity
Focus on concept developing process based on divergent thinking and loops S Weaknesses
Lack of presence in urban areas
Missing experience with content creators Both internal and external factors need to be considered –Strengths being the most influential 9 Threats
Disruptive innovation
Competition
Creators selling directly to consumers Opportunities
Creator reach is increasing
Walmart US launch of Walmart Creator
Societal trends W O T EXTERNAL FACTORS INTERNAL FACTORS<br>
10
Based on the multi-perspective analysis, three alternatives have been developed 10 Multi-perspective analysis Combined key results Alternatives Co-Creating Value
Offer platform for consumers and creators to collaborate during the product journey Launch Walmart Creator
Introduce Walmart Creator in Canada to gain revenues through affiliate marketing Creator Marketplace
Offer marketplace in Walmart stores to creators to advertise their products Platform for collaboration
Offer experience for both consumers and creators
Help creators to grow Leverage Beta version of Walmart Creator
Address consumers Platform to diversify Help creators to grow by offering marketplace
Create shopping experience for consumers<br>
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The recommended strategy Co-Creating Value offers collaborated benefit for all stakeholders 11 Corporate Values 1. Testing 2. Criteria Entrepreneurial Drive 3. Collaborated benefit 4. Overall score: Co-Creating Value Launch Walmart Creator Creator Marketplace 11 6 8<br>
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With Co-Creating Value four of the most influential megatrends are addressed 12 Tribalism Experiences Authenticity Co-Creation Curation Instant Entrepreneurship<br>
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13 Educator Type of Creator Content Category Platform By implementing the Co-Creating Value approach, creators across all four dimensions are approached Nano
(1K-10K) Size Coach Blogger Vlogger Podcaster Artist Recommender (Influencer) Builder (Creator) Micro
(10K-50K) Mid
(50K-500K) Macro
(500K-1M) Product Reviewer Writer Mega
(1M+) Instagram LinkedIn TikTok YouTube Pinterest Facebook Twitch Discord Home & Design Experts DIYers & Artists Fashionistas Professionals Beauty Gurus Lifestyle Vlogger Health & Wellness Sports Aficionados Tech Wizards Family People BookTokers Foodies<br>
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Implementation 03<br>
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Three pillars will lead to the success of the Co-Creating Value strategy 15 Event hosting Facilitate Co-Creation Creator engagement Co-Creating Value 1 2 3<br>
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Live cooking Planting lessons Cosmetics try-outs Gaming tournaments Hosting events of smaller creators will bring experiences to consumers and consumers to creators 16 What? Why? How? Host events in Walmart stores across the country with creators Small influencers are struggling to grow their viewership
Consumers ask for experiences, not only products
Walmart has a lot of suitable locations Offer products used in the event Host different event every month Give away discount coupons<br>
17
Facilitating Co-Creation will ensure wanted products are launched and sold at Walmart 17 What? Why? How? Support Co-Creation and launching of products by providing network and knowledge Creators are closer to the consumer
Consumers want products that suit their needs
Walmart has an extensive network of suppliers and supply chain partners Creators Consumers Walmart Connect creator with the best suited supplier Create point of contact through designated department Supplier<br>
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Engagement of creators in their process will bring the whole product journey closer to the consumer 18 What? Why? How? Let creators engage in the value chain of their product from production to delivery Consumers want authenticity of the creators
Creators have more opportunities for content creation and stay close to their viewership Development Testing Production Delivery Product Journey Allow streaming the product journey Let influencers deliver their products Creators and their products are more authentic<br>
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Our proposed implementation is addressing the five most important trends in the creator economy space 19<br>
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Gantt-chart provides guidance regarding the time horizon of the testing steps of Co-Creating Value 20<br>
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Financials and Risks 04<br>
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Different KPIs can be used in order to track the successful implementation of Co-Creating Value initiatives 22 KPI Number of events per month Sales growth co-created products Influencer engagement Target for 2027 200 48% + 1.5% Yearly Investments CAD 9.6 mn. CAD 5.6 mn. CAD 1.4 mn. Event hosting Product Co-Creation Creator engagement Overarching KPI for steering purposes: Net Promoter Score<br>
23
More products overall will be sold
Attractive prices can be set being a close partner of influencers A higher Net Promoter Score has a positive impact on sales from two sides 23 Walmart’s revenue streams Number of purchases Average purchase value Impact of a higher Net Promoter Score Higher customer retention in customer target groups
Customers tempted to buy more often<br>
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Co-Creating Value ensures additional values from 2024 onwards as customers increase their average purchase value 24 25% of daily customers (online and offline) are assumed to be a concrete target group Underlying assumptions Moderate overall customer growth of 3% Forecasted net revenue streams (in mn. CAD) Additional revenues will rise up to 776 mn. CAD per year in 2027 Average purchase value by customer will increase by $4.2 until 2027<br>
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The strategy is exposed to various risks which can be mitigated by effective countermeasures 25 Impact Probability A B C Risk Matrix Risks and how to mitigate them<br>
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Conclusion 05<br>
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With Co-Creating Value, you will be able to maximize Walmarts benefits from eliminating their customers problems 27 Monday Morning Action Next steps Get out on the streets and asks consumers for their needs
Reach out to creators to identify their pain points
Conduct market research to verify Co-Creating Value as a perfect strategy 1 2 3 Host events in Walmart stores across the country with smaller creators Let creators engage in the value chain of their product from production to delivery Support Co-Creation and launching of products by providing network and knowledge How can Walmart change the future of retail by solving the main problems of Walmart’s two customer groups?<br>
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Thank you for your attention! We will happily answer any questions that you might still have.<br>
