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Wal-Mart and Sustainability: A Consumer Journey

Wal-Mart and Sustainability: A Consumer Journey. Omar Garriott Megan Ryskamp Kathryn Wendell Haas School of Business May 6, 2009. A Wal-Mart World. Today’s Agenda. Wal-Mart : the Corporate Force and the Corporate Citizen Overview of Project and Process Case Studies : Lessons Learned

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Wal-Mart and Sustainability: A Consumer Journey

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  1. Wal-Mart and Sustainability: A Consumer Journey Omar Garriott Megan Ryskamp Kathryn Wendell Haas School of Business May 6, 2009

  2. A Wal-Mart World

  3. Today’s Agenda • Wal-Mart: the Corporate Force and the Corporate Citizen • Overview of Project and Process • Case Studies: Lessons Learned • Store Visits: Lessons Learned • Ideas and Scenarios • Additional Recs and Implementation • Q&A

  4. Wal-Mart the Corporate Force

  5. Overview of Project Scope • The index: A “new global standard” • Several years away from launch • Components: • Energy & Climate (~45%) • Material Efficiency (~25%) • Natural Resources (~15%) • People & Community (~15%) • Being built by a team of experts and academics • We focused on… • The intervening years • The consumer-facing piece • Breadth and creativity

  6. Consumers Must be Brought Along in Advance of Index Rollout In-store Interaction with Index

  7. Process / Methodology • Selected criteria for evaluating case studies and ideas generated: • Envelope-pushing AND do-able • Relevance to Wal-Mart and index specifically • Demonstrated success • Potential to provide a competitive advantage to Wal-Mart • Strategic alignment • Potential revenue driver: More than just cost-cutting • Deliverables: • PPT • Paper with full research / recs

  8. Case Studies RETAIL Marks & Spencer PRODUCT Clorox THIRD PARTY Nutrition Facts Safeway

  9. Case Studies: Lessons Learned Synopsis

  10. Case Studies: Lessons Learned • Keep it simple! Avoid confusing consumers with quantitative data or multiple labels Nutrition Facts Weight Watchers Timberland

  11. Case Studies: Lessons Learned Safeway “O Organics” Energy Star 2) Communicate the value of sustainable products Emphasize low prices and high quality. Compare cost savings against conventional products.

  12. Case Studies: Lessons Learned Marks & Spencer 3) Empower employees to be sustainability ambassadors  Provide training and incentives for employees to engage in sustainability initiatives.

  13. Store Visits: Earth Month Shopping at Wal-Mart can be overwhelming. Some observations surprised us.

  14. Store Visits: Earth Month Wal-Mart has a broad range of sustainable products. In-store messaging around sustainability is confusing.

  15. MASSIVE Wal-Mart Brainstorm THE PROCESS Academic Research Findings Key Case Study Takeaways In-Store Observations

  16. Stakeholder Map

  17. Stakeholder Voices • The Hopeful Mom • Concerns: safety, health, and education of my family • Benefits of “in me” “on me” sustainability • Hope for the future • Shopping made easy • Message value • Education donations as reward • “Live Better” lifestyle message

  18. Stakeholder Voices • The Curious Kid • Purchase influencer • Planet-friendly values • Teacher assistance • Build early brand awareness • Give incentives for participation • Sustainability a FUN way for kids to engage • Speak in their language: youth celebrities, YouTube, class projects

  19. Stakeholder Voices • The Eco-Savvy Hipster • Viral communicator and influential source of info • Skeptical audience • Wal-Mart’s past reputation important • Seek favorite eco-products: CFLs, fair trade, cleaning products • Must surprise and exceed expectations • Likely to accuse Wal-Mart of greenwashing • Affordable sustainable lifestyle

  20. Stakeholder Voices • The Informed Associate • Sustainability as a motivator for associates • Incorporated in new hire training • Rewards (non-monetary) for knowledge/training • Sustainability = FUN • Involve friends & family • Encourage associate – customer eco-interaction • Won’t be the panacea • Will reinforce community values

  21. A FEW OF THE WINNING IDEAS PSP Lesson Plans Games/Interactive Shopping Cart In-Store Sustainability Scanners Eco-Friendly Shopping Carts Eco Rewards Competition Earth Friendly Kid Product Demos YouTube, Kid Celebrities Green Bins, Signs, Tags “Live Better” Brand Partnership Tags Sustainable Shopping List Eco Points for Schools Monthly Impact Update Green Belt Status Checkout Statement Train the Trainer Ask Me Badge Rewards & Bonuses Friends & Family Discounts Scavenger Hunt Customer PSP Participation Public Employee Blog Associate Training Organic/Local Foods Credible Partners Celebrity Tweets Electric Vehicle Recharge Stations Flagship Sustainable Brands/Products Robust Supporting Data Eco Deal Announcements Farmer Video Testimonies

  22. Implementation “Live Better” Brand “Green” signals Associate program Message across media Green Belts and PSP Champions School programs Partnerships Index launch plan Index launch Interactive store technology (carts, scanners) Plug-in parking lot Impact statement at check-out

  23. For the next Haas team… • How can Wal-Mart measure consumer readiness and success of the index? • What should the roles of other stakeholders be? • NGOs • Governments • Competitors/Consortiums • Mass Media/PR • How can Wal-Mart broaden the index to other countries? • Can Wal-Mart leverage social media and web 2.0 to engage customers?

  24. The Wal-Mart Associate

  25. APPENDIX – Reference Slides

  26. Be supplied 100% by renewable energy Create zero waste Sell products that sustain our resources and environment Wal-Mart the Corporate Citizen

  27. Case Studies: Lessons Learned 4) Connect to consumers’ lifestyle choices & hope Clarify linkages to: health, well-being, a better future Marks & Spencer Tesco

  28. Case Studies: Lessons Learned Whole Foods Target’s Re-tote 5) Message “sustainability” clearly and consistently in and out of stores

  29. Case Studies: Lessons Learned Home Depot Safeway “O Organics” 6) Create your own sustainable brand All stores must consistently stock it.

  30. Case Studies: Lessons Learned Starbucks 7) Encourage active consumer participation

  31. Metrics • A variety of impact metrics (and leading indicators) can and should be used • Sustainable product sales vs. conventional • Uptick in sustainable product sales throughout the year (not just April) • Sales of sustainable products by category • # of Associates earning green belts • Average purchase sizes • Customer loyalty data (surveys and repeat customers)

  32. High-Level Observations

  33. High-Level Observations

  34. External-Facing Score • Simple message & icons • Positive (not negative) message • Single stamp icon • Colors and pictures are better than numbers • Separate sustainability into health, people, and planet • Test indicators with Live Better Brand • Supporting full information • Launch on Earth Day 2012

  35. Ask Cameron to Tweet about you!

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