A dent in Wal-

Mart's public
image
SUBMITTED TO : Mrs. aman
SUBMITTED BY: SHIVANGI
M.COM 2ND
5826
Wal-Mart's Official Headquarters in Bentonville, Arkansas

Trading name Wal-Mart

Type Public

 NYSE: WMT

 DJIA Component
Traded as
 S&P 100 Component

 S&P 500 Component

Industry Retail

July 2, 1962; 54 years ago

Founded
Rogers, Arkansas, U.S.

Founder Sam Walton

Headquarters Bentonville, Arkansas, U.S.

Number of locations 11,666 (December 31, 2016)

Area served Worldwide

Key people  Doug McMillon (President &
CEO)
 Electronics

 movies and music

 home and furniture

 home improvement

 clothing

 footwear

 jewelry

 toys
Products
 health and beauty

 pet supplies

 sporting goods and fitness

 auto

 photo finishing

 craft supplies

 party supplies
  Walmart-2-Walmart

 Wal-Mart Money Card

Services  Pickup Today

 Walmart.com

 Wal-Mart Pay
Revenue US$482.13 billion (2015)
Operating income US$24.105 billion (2015)
Net income US$14.694 billion (2015)
Total assets US$199.581 billion (2015)
Total equity US$80.546 billion (2015)
Owner Walton family (51%)

 2.3 million, Worldwide (2016)

Number of employees
 1.4 million, U.S. (2016)[

 Wal-Mart U.S.

 Wal-Mart International
Divisions
 Sam's Club

 Global ecommerce
  Wal-Mart Canada

 Wal-Mart Mexico

 Wal-Mart Chile

 Wal-Mart de México y Centro

America

 @WalmartLabs

 Wal-Mart Neighborhood Market

 Asda

Subsidiaries  Amigo Supermarkets

 Vudu

 Massmart

 Seiyu Group

 Stapleton Inc.

 Bompreço

 Líder

 Jet.com

 Hayneedle
 Corporate website
Website
 Commercial website
WAL-MART “LOWEST PRICES FOR ALL”-ALWAYS

• The discount store offered fewer

product lines compared to other
stores and offered lowest price in
each category.
• The first store was twice the size of
a Walton 5-10 stores and reported
sales of $975000 for the first year.
 In 1970s,its sales had • Its main focus is on
reached around $44.2 providing better quality
million and on an average goods at lower prices.
two news stores were • Wal-Mart had continuously
opened each year. focused on its philosophy of
 in 1988 ,after opening of bringing the lowest possible
supermarket ,it reached a prices for the customers.
another landmark of $1 • Foreign suppliers were
bn. focused to make their
 Wal-Mart stores were workers work for more
around 1402 in number hours in poor conditions
employing 272000 and receive less pay.
employees in 26 states of • By the year , it becomes
US. most powerful in the retail
landscape .
• This domination gave it power to
squeeze the prices at which it purchased
from the suppliers and offer lowest
prices for its customers.
• The communication strategies of
company revolved around the low prices
strategy .
• It promoted superior image as a
discount store that offered quality goods
at lowest prices.
 The local chambers
of commerce had a
ic  In 1994 ,fortune
magazine named
different stand ,as Wal-Mart ,the most
they maintained admired company
that wal–mart was in America.
a boon to the local  On an average ,it
community as it was reported to be
created new jobs. facing three
lawsuits each day.

 Whenever an employee
complained of inconsistent
labour polices ,unpaid
overtime etc. media made a
big story out of it.
“NO COMMENT”,SHOUTS WAL-MART !

Wal – mart ‘s public relation troubles took a new

turn but the 1990’s ,when CEO ,David glass ,was
questioned about the non – American labor and the
low wages of the workers and child labor in
sweatshops in Bangladesh.
Glass defended that it was mistake at store level
and for the argument that child labor was practiced
in overseas manufacturing plants that supplied
clothes to Wal-Mart stores, he said ,’to my
knowledge we don’t buy from any vendor who use
child labor.
  In new york ,the union
• In another interview for
leaders and local retailers
60 minutes in 1994
along with the city council
,when Wal-Mart was
argued that with the 1.3
charged of impairing
million workers it
growth of small stores in
employed , it was the
the country, the company
largest private employer
did not react and avoided
and largest retailer, but
any interaction with the
with unclear and
media.
undocumented labor
• When supermarkets
practices.
were launched during
 In 2001, Wal-Mart
1990, the company did
employees filed a suit
not reveal anything ,but
claiming that women
mention of number of
employees were paid less
stores would create
than men .
positive impact.
 a report In 2004 stated
• by 2002 , wal – mart
that wal – mart workers in
had 4800 stores and
California were paid 30%
more than $ 8 billion in
less than those by the
revenue.
competitors.
• Further , the national organization
for women demonstrated in front of
wal –mart stores calling it
“merchant of shame”
• They distributed cards , to
customers that read, “Wal-Mart
:always low prices , but who pays?”
• A search in Google or yahoo !
Displayed many sites talking against
the company .
• Other sites promoted anti-wal- mart
campaigns selling brochures, cards
for public who wished to raise a
protest.
ON A PR PATH: THE DEFENSIVE WAY!

• THE CEO issued an open letter in the ads stating the company
provides – good jobs with excellent advancement opportunities.
• The executive at the company declared that if their policies had
been so bad , then the chain would not have grown to the size
attracting such a large customer base.
• The commercials released were not meant to sell any products but
were focused on creating an overall goodwill about the company.
Example- in an advertisement , for instance , a couple sits on a sofa
with their son ,who had just undergone two operations for a liver
disease . The man happily remarks that it was only the help by this
company, otherwise he could not have afforded it.
 The company accelerated its image makeover
efforts , launching more testimonial
advertisements and also for the first time
increasing its political donations to $ 1 million.
 In other advertisements of the company
showed how Wal – mart contributed to the
local communities .
 This effort to show that wal –mart has good
jobs- to share the good jobs – which proofs of
the fact that wal- mart is a good company.
 It further begins to offer scholarships for
journalistic studies in about 10 universities
nationwide. These future scholars and
journalists would be obliged to project good
image for the company.
 THE BIGGER THE WORSE

• It seemed that Wal-Mart exponentially grown so fast and had

become so big, was increasingly attention for its size .
• A brand consultant agreed , “Wal-Mart very success may be
working against it.
• Wal – mart was so big that it was comparable to the economy
of swedea and Austria.
• Its contribution to the GDP of the country 2% and if would be a
nation , it would be fifth largest export market for china .
• Wal-Mart however believes that the bad image that had built
up among the public was a result of lack of awareness about it.
• A website ,walmartfacts .com ,was launched
in 2005 that had links to all possible
information on the company. Its labor
policies, lawsuits , benefits to employees .
• In addition ,wal- mart bought paid search ads
from yahoo And others. Walmartfacts.com
saying “who drivers Wal –mart ? Went to the
facts? Go to walmartfacts.com.”
 Recent developments
• In January 2011, Wal-mart announced a program to
improve the nutritional value of its store brands over
five years, gradually reducing the amount of salt and
sugar and eliminating trans fat. Wal-Mart also
promised to negotiate with suppliers with respect to
nutritional issues, reduce prices for whole foods and
vegetables, and open stores in low-income areas
• On November 14, 2012, Wal-mart launched its first
mail subscription service called Goodies. Customers
pay a US$7 monthly subscription for five to eight
delivered food samples each month, so they can try
new foods.
• In 2015, Wal-mart was the biggest US commercial
producer of solar power with 142 MW capacity, and
has 17 energy storage projects.
• On August 8, 2016, Wal-Mart announced a deal to
acquire e-commerce website Jet.com for US$3.3
billion Jet.com co-founder and CEO Marc Lore will
stay on to run Jet.com in addition to Wal-Mart's
existing U.S. e-commerce operation. The acquisition is
structured as a payout of $3 billion in cash, and an
additional $300 million in Wal-Mart stock vested over
time as part of an incentive bonus plan for Jet.com
executives.
• October 19, 2016, Wal-Mart announced it would partner
up with IBM (IBM) and Tsinghai University to track the
pork supply chain in China using block chain.[In 2015,
Wal-Mart was the biggest US commercial producer
of solar power with 142 MW capacity, and has 17 energy
storage projects.
• On August 8, 2016, Wal-Mart announced a deal to
acquire e-commerce website Jet.com for US$3.3
billionJet.com co-founder and CEOMarcLore will stay on
to run Jet.com in addition to Wal-Mart's existing U.S. e-
commerce operation. The acquisition is structured as a
payout of $3 billion in cash, and an additional $300
million in Wal-Mart stock vested over time as part of an
incentive bonus plan for Jet.com executives.
• October 19, 2016, Wal-Mart announced it would partner
up with IBM (IBM) and Tsinghai University to track the
pork supply chain in China using block chain.[
BUSINESS ETHICS TO BE
CONSIDERED-----
• Avoidance of any interaction with the media.
 Unclear and undocumented labour In 2001
 Use of child labour is also offensive and against business
ethics
 Wal-Mart employees filed a suit claiming that women
employees were paid less than men . The factor racism is
involved here which is against law.
 a report In 2004 stated that wal–mart workers in
California were paid 30% less than those by the
competitors.