Read the Walmart case study below. In addition to the information provided in the case study, you will need to conduct research related to Amazon and Walmart to answer the questions below. Evaluate the evolution of Walmart’s marketing campaign over the years. What does the company do well? What were the pros and cons of its current marketing plan? How has Walmart continued to compete with Amazon? Paper Requirements: · 5 pages (without counting citations) double-spaced; 10–12-point font · APA style citations of sources may be as footnotes or endnotes; please include a bibliography Walmart Case Study (Page 95 - 97 “Marketing Management, 15th Edition, Phillip Kotler and Kevin Keller, ISBN ISBN: 9780133856460, Pearson 2015) Walmart, the giant chain of discount stores, is the third-largest company in the world, with more than $473 billion in revenue and 2.2 million associates (or employees). Its phenomenal success story began in 1962 when Sam Walton opened his first discount store in Rogers, Arkansas. Walton sold the same products as his competitors but kept prices lower by reducing his profit margin. His customers quickly caught on, and the company took off almost immediately. Walton’s EDLP (Every Day Low Price) strategy remains the foundation of Walmart’s success today. Through the company’s economies of scale, Walmart is able to offer customers top brand-name products for the lowest possible price. Walmart expanded throughout the United States in the 1970s and 1980s by acquiring many of its competitors and opening new stores. The first Walmart Supercenter—a discount store beefed up with food outlets and other amenities such as an optical center, photo lab, and hair salon—opened in 1988. By 1990, Walmart had become the nation’s number-one retailer, with $32 billion in revenue and stores in 33 states. The company’s international expansion began with a store outside Mexico City in 1991 and has grown to more than 5,600 international locations, some under a different brand name. Walmart thrives on three basic beliefs and values:“Respect for the Individual,” “Service to Our Customers,” and “Striving for Excellence.” Sam Walton’s original 10-foot rule—“I promise that whenever I come within 10 feet of a customer, I will look him in the eye, greet him, and ask if I can help him.”—still governs today, embodied by the “greeters” at the front door. In addition, Walmart embraces the communities it enters, develops strong local relationships, and works hard to foster its brand image in the area. The company donates significant amounts of money to local charities through its “Good Works” program, hires local individuals, and purchases food from local farmers. Walmart’s marketing strategy has evolved over the years. Early efforts were based on word of mouth, positive PR, and aggressive store expansion. In 1992, Walmart introduced its well-known tagline “Always Low Prices.Always,” which effectively communicated the company’s core brand promise and resonated with millions. In 1996, Walmart launched its price rollback campaign featuring the familiar yellow smiley face as the star of the campaign.The company’s stock soared 1173 percent in the 1990s. Walmart hit a few bumps in the road as it entered the 21st century. Critics protested its entry into small communities.Researchers at Iowa State University found that within 10 years of a new Walmart opening, as many as half the small stores in town went out of business.Walmart also faced multiple lawsuits from employees who complained about poor work conditions, exposure to health hazards, and pay below minimum wage. In some cases, employees said Walmart failed to pay for overtime, prevented them from taking rest or lunch breaks, and discriminated against women. These problems led to a very high turnover rate in the 2000s and an abundance of negative media coverage. According to one Walmart survey, 70 percent of employees left the company within the first year of employment due to lack of recognition and inadequate pay. From 2000 to 2005, Walmart’s stock price fell 27 percent, and it remained low through 2007. Negative backlash, combined with increased competition, contributed to the decline. Target, for example, reemerged on the retail scene with revamped stores, merchandise,and marketing strategy, all of which appealed to the top tier of discount shoppers. Target stores were well lit, and their wider, cleaner aisles displayed merchandise better. Even Target’s television commercials featured more attractive models and trendier clothes from high end designers. One analyst stated, “Target tends to have more upscale customers who don’t feel the effects of gasoline prices and other economic factors as much as Walmart’s core customers might.” During the mid-2000s, Target outperformed Walmart in same-store sales growth and profit growth. In addition, Walmart lost the exclusive rights to use the smiley face in its marketing campaign. Walmart launched a series of new initiatives to help improve sales and its image. First, it introduced a highly successful $4 generic drug campaign, a program eventually copied by Target. Walmart also launched several environmentally friendly initiatives such as constructing new buildings from recycled materials, cutting transportation costs and energy usage, and encouraging customers to buy more green products. Next, the company implemented a massive store remodeling effort called Project Impact. Stores ended up cleaner, aisles were less cluttered, and merchandise became easier to reach. Finally, Walmart replaced its long-running slogan “Always Low Prices” with “Save Money. Live Better. “Television commercials went beyond the EDLP message and highlighted other positive contributions, including Walmart’s improved energy costs, 401(k) (retirement) savings, employee health care coverage, and family savings. Walmart also used the new campaign to highlight its unique product mix and low prices and to attract consumers hurt by the recession. Same-store sales rose, and the company’s stock price improved during the recession. Analyst believed Walmart’s product mix—45 percent consumables (food, beauty, health items)—was better fitted for a poor economy than Target’s—20 percent consumables and 40 percent home and apparel products. One analyst explained, “Walmart sells what you need to have as opposed to what you want to have.” After the recession, Walmart sought new strategies to maintain its momentum and expand its consumer base. After decades of making its stores bigger, it began launching smaller-format stores— neighborhood Markets of less than 50,000 square feet and Walmart Express shops of about 10,000 square feet—to fend off the growing dollar-store chains. Walmart also increased its presence on social media to help connect with its consumers, gain feedback, and build loyalty. Today, Walmart has stores in 27 international markets and serves more than 250 million customers a week through Walmart Supercenters, Discount Stores, Neighborhood Markets, and Sam’s Club warehouses.