A review of the effect that Wal-Mart has had on the toy industry.
Written in 2006; 1,548 words; 3 sources; MLA; $ 50.95
Paper Summary:
This paper takes a look at how the toy industry is experiencing premature market consolidation due to the pricing, distribution and marketing strategies and influences of Wal-Mart. According to the paper, Wal-Mart has, in the past, launched an aggressive loss leader campaign to capture the majority of holiday toy sales every year.
Outline:
Executive Summary
Wal-Mart and the Loss Leader Concepts' Impact on Distribution
Toy Manufacturers Re-Thinking Distribution
From the Paper:
"Wal-Mart has a very analytically-oriented corporate culture, meaning they have key performance indicators for many of their advertising, marketing, sales and support activities. As a very analytics-driven culture, the company has created a steady stream of data from its stores to corporate headquarters in Bentonville, Arkansas. The integration of daily store operations including hourly sales data during the holiday season uploaded via satellite at the close of every day, and the quickness with which Wal-Mart's pricing managers can analyze the impact of pricing on volume is one of Wal-marts' major competitive advantages. In addition a department of pricing analysts and managers study the massive amounts of data and look for those product lines most successful in drawing people into the store, in addition to looking for products that have the highest level of pricing elasticity in them, in addition to support of up-sell and cross-sell strategies."
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