You are excited to see the possibilities after finishing the Business Model Canvas Template. The next step is the development of the BMC slide deck for review by the experienced former project manager mentioned in the Module Four assignment.
In the BMC slide deck, you will make educated assumptions (based on research in Marketline, Yahoo Finance, or the company’s website) about your selected company’s resources, partnerships, cost structures (what needs to be paid for), how the product or service will be marketed, value delivery (product sold online, in-store, or both), and the unique value proposition for a specific targeted market segment.
All 9 segments of your redeveloped BMC must encompass elements to achieve new product/service feasibility.
Beyond profitability, other key elements that the experienced project manager stressed were diversity, equity, and inclusion (DEI), as well as corporate social responsibility (CSR). In the marketplace, companies that have diverse project teams get varied perspectives that help the overall project. Just as important, companies that “give back” to the communities they serve do better and are supported by millennial buyers—a big target segment for many companies.
Financials, DEI, and CSR must be addressed in the funding pitch.
You will create a slide deck that will help you expand on your BMC chart in detail as you refine how your selected company will create value for itself while delivering a new product or service for customers. Complete the Milestone Two Template linked in the Guidelines for Submission section for this assignment.
Specifically, you must address the following rubric criteria:
Deliver a unique value proposition.
Leveraging the blue ocean strategy, what makes the product or service unique?
How does it provide a strategic advantage in the marketplace?
Answer key business model questions about the customer.
Customer acquisitions
Revenue models
Price points for the product/service
Key activities for the value proposition (product or service)
Answer key business model questions about assets, partners, and cost.
Assets available
Key partners
Cost structures
Import your existing business model canvas chart from Module Four.
Clarify your business model assumptions.
Check your assumptions
Complete the assumptions chart
Prepare to meet customers.
Highlight the materials needed
Update your documentation.
Targeted segment
Type of value delivered
How the product is unique
Update your business model.
Complete any updates to the BMC chart
Articles you can use: https://www.forbes.com/sites/abdoriani/2019/11/14/6-revenue-models-every-entrepreneur-should-know/?sh=57af77d6475e ( This resource provides an overview of revenue models and can be used to help you choose a model for your product/service.)
https://learn.marsdd.com/article/bottom-up-sales-forecasting-for-pre-revenue-startups/ ( This resource dives into the overarching concepts around forecasting sales, cash flow, selling costs, and expected average selling price per sale.)
PROJECT OUTLINE for Product Assortment Planning for Walmart 3
Project Outline: Product Assortment Planning for Walmart
Jacob Wright
Southern New Hampshire University
BUS-400: Driving Business Opportunities
Professor Winkelhake
10 September 2023
PROJECT OUTLINE for Product Assortment Planning for Walmart 1
About Product Assortment Planning
Walmart is famous for its broad range of goods and services. To improve service quality and market leadership, the organization must optimize its product assortment approach. This initiative seeks to improve Walmart’s product assortment planning, which carefully selects quantities of products for customers. The goal is to personalize shopping to enhance sales and profitability. This program supports Walmart’s commitment to continual development and customer-centricity in the changing retail market.
Goals
· To simplify and improve the product selection offered in Walmart stores, online, and through the newly introduced delivery services.
· To do this by providing a well-selected range of items that are tailored to the requirements of the target audience.
· To adjust to the ever-shifting economic conditions and to enhance overall financial performance.
Target Customer
The intended consumer base for this project is purposely broad and diversified, including customers with different interests and demands. Walmart knows it must appeal to this varied clientele with its product range. Targeted client segments:
Budget-Conscious Consumers: Walmart is known for inexpensive daily things. This initiative aims to improve shopping for budget-conscious families and individuals. Value-driven shoppers want a broad selection at low costs (Van Loo & Aggarwal, 2023). Walmart wants to remain the budget-conscious customers’ first option by refining its product range.
Families: Families searching for one-stop shopping have always favored Walmart. Families trust Walmart to effectively satisfy their grocery, housekeeping, clothes, and other purchasing requirements. This initiative understands the significance of catering to families by offering a wide range of products that ease shopping and enhance the experience.
Tech-Savvy Shoppers: Tech-savvy shoppers want ease and innovation in the digital world. Walmart’s GoLocal drone delivery and online shopping alternatives attempt to attract this sector (Staff, 2023). This tech-savvy client base appreciates smooth digital interactions, and the initiative keeps Walmart ahead of its changing expectations.
Value and Quality Seekers: A large chunk of the market buys value and quality. Walmart will prioritize high-quality, affordable items in its product assortment strategy. Walmart can attract value- and quality-conscious consumers by creating an inventory that meets their needs. Walmart’s product assortment planning strives to create a shopping environment where everyone can discover items that meet their demands by deliberately addressing these varied consumer categories’ wants and preferences. Inclusivity boosts sales, customer happiness, and market competition. Walmart’s success in retail is based on providing a wide spectrum of consumers.
Market Opportunity
Walmart’s large consumer base and worldwide reach make this project’s market potential enticing. Several elements make this opportunity important. Internet shopping and drone deliveries are in high demand. Changing consumer patterns, spurred by COVID-19, have exacerbated this tendency (Alwan et al., 2023). Walmart can address this expanding demand and lead retail logistics technology by offering the GoLocal drone service. Consumer tastes and economic situations change, making retail a dynamic industry. Walmart’s success will depend on its ability to adjust quickly. Walmart can adapt to market changes with this initiative, keeping it current and attractive to a varied client base.
Walmart has an edge in a competitive industry dominated by e-commerce companies due to its massive retail store network. These physical places may execute orders and engage with customers, providing convenience and tangibility. Walmart is strong because it competes with e-commerce titans while using its physical presence (Alwan et al., 2023). The project’s emphasis on maximizing product selection and adapting it to consumer groups helps attract and keep customers. Walmart can increase consumer loyalty and stand out in a competitive market by personalizing and streamlining purchasing.
Financial Opportunity
This initiative gives Walmart several lucrative revenue potentials. Walmart may boost sales by tailoring its product range to meet client requirements. This personalized strategy should enhance sales and maintain growth. The initiative improves inventory management, reducing waste. By reducing overstocking and product obsolescence, Walmart can save expenses and boost profits (Walmart, 2022). A well-curated product range may increase client loyalty and repeat business. Happy consumers who discover what they need are more likely to purchase at Walmart again, providing a consistent cash stream (McLymore et al., 2022). The idea allows online and drone delivery businesses to grow with user preferences. This diversification may boost Walmart’s earnings and present it as a retail innovation. This initiative aims to boost retail market share and competitiveness. While initial profitability may vary, better customer retention and operational efficiency are expected to provide significant financial benefits, making this initiative a critical investment in Walmart’s future.
Timeline
Phase 2 (Months 4-6): Examine client preferences, market trends, and economic situations. Use insights to optimize product assortment.
Phase 2: (4-6 Months): RFID pricing engine and electronic shelf labeling minimize product waste and increase price transparency.
Phase 3 (Months 7-12): Launch GoLocal drone delivery for small and big companies with optimal product selection.
Phase 4 (13-18 Months): Use real-time data and consumer input to improve product selection. Walmart can react to market circumstances while preserving financial stability and consumer pleasure using this timeline’s progressive, data-driven approach to change.
References
Alwan, S. Y., Hu, Y., Al Asbahi, A. A. M. H., Al Harazi, Y. K., & Al Harazi, A. K. (2023). Sustainable and resilient e-commerce under COVID-19 pandemic: a hybrid grey decision-making approach. Environmental Science and Pollution Research, 30, 47328–47348. https://doi.org/10.1007/s11356-023-25456-0
McLymore, A., Cavale, S., & McLymore, A. (2022, August 11). Focus: Inflation steers budget shoppers away from Walmart. Bringing them back may not be easy. Reuters. https://www.reuters.com/business/retail-consumer/walmarts-long-lasting-challenge-luring-budget-shoppers-back-its-stores-2022-08-11/
Staff, S. (2023). Walmart attracts budget-conscious customers, and remains strong in Q2. In Business Madison. https://www.ibmadison.com/walmart-attracts-budget-conscious-customers-remains-strong-in-q2/
Van Loo, R., & Aggarwal, N. (2023). Amazon’s Pricing Paradox. Social Science Research Network. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4436546
Walmart. (2022). Purpose. Corporate – US. https://corporate.walmart.com/purpose
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1
3-2 Milestone One Submission
Jacob Wright
Southern New Hampshire University
BUS-400: Driving Business Opportunities
Professor Winkelhake
16 September 2023
Introduction:
Ladies and gentlemen of the senior management group, I appreciate the opportunity to discuss an idea that holds great promise for the future of Walmart. Today, I will introduce our Product Assortment Optimization program to improve our product selection approach for our diverse consumer base. This project aligns seamlessly with our strategic plan and objectives.
How it fits:
Walmart’s corporate strategy is based on customer-centricity and our objective to offer a wide range of high-quality products at low rates. A strategic synergy that promises to elevate our brand’s retail excellence is created by the Product Assortment Optimization project’s flawless integration with these guiding principles. This initiative provides as a timely and insightful response in a retail landscape characterized by dynamic transformations and the ever-evolving expectations of our varied client base. This strategy shift recognizes that adaptability and client responsiveness are key to our success. This effort enables us to customize our product range based on our customers’ needs and preferences. It bolsters our mission while fortifying our agility in the ever-changing landscape of modern retail.
Speculation on Company Capabilities:
To embark on a project of this magnitude, we have diligently assessed our capabilities and affirmed our readiness to execute it with precision. Our exhaustive research, which drew insights from reputable sources such as Marketline.com, Yahoo Finance, and our investor relations pages, is the cornerstone of our confidence.
Our findings leave no room for doubt—this initiative is a seamless fit within Walmart’s legacy of adaptability. We have thrived and excelled in navigating market shifts, and this project aligns perfectly with our proven ability to evolve with the times. Leveraging our formidable resources and unparalleled global reach, we stand uniquely equipped to address the ever-evolving demands of our diverse customer base.
Our ability to harmonize our extensive physical presence with cutting-edge digital solutions truly sets us apart. This distinctive capability positions us as a leader and a trailblazer in the fiercely competitive retail landscape.
Justification:
We anticipate this initiative will result in a substantial annual revenue gain for Walmart. Based on our projections and market analysis, we estimate an additional $2.5 billion in annual revenue due to the optimized product assortment. This figure is derived from the expected increase in sales, particularly in high-demand product categories. The revenue gain that we anticipate stems from several key drivers. Firstly, offering a more personalized and curated product assortment will enhance customer satisfaction and loyalty, ultimately driving sales growth. Secondly, our improved inventory management minimizes waste, reduces product obsolescence, and will lead to cost savings. These factors will contribute to an improved profitability outlook when combined with increased sales.
The return on investment (ROI) is a pivotal aspect of our justification, as it provides a concrete measure of the project’s financial viability. While exact ROI figures will naturally evolve over the project’s lifecycle, our preliminary estimates suggest an impressive 20& ROI potential over a conservative five-year period. We estimate an initial investment of $500 million required for the launch and implementation of the project. This projection is grounded in our analysis of anticipated outcomes, including increased sales, cost savings in inventory management, and improved supply chain efficiency resulting from the optimized product assortment planning. A 20% ROI over five years demonstrates a compelling business case for moving forward with the initiative, suggesting that the benefits will significantly outweigh the initial investment.
Enhancing the Mission:
This initiative projects profitability and directly enhances our company’s overall mission. The Product Assortment Optimization project aligns with Walmart’s mission to “save people money so they can live better.” It achieves this by offering a wider range of quality products at affordable prices, enhancing the overall shopping experience for customers (Zacks Equity Research, 2023). Recent reports also demonstrate that our store renovations and smarter store initiatives have yielded robust comp sales, indicating profitability (Zacks Equity Research, 2023). This project reinforces our mission and ensures we meet customer needs while driving growth.
Conclusion:
In conclusion, Walmart’s Product Assortment Optimization project aligns with our mission and strategy, leverages our strengths, and promises significant revenue benefits and ROI. It reinforces our customer-centric strategy and positions us for retail leadership. Our success depends on this initiative’s focus on profitability and retail excellence. Thanks for your time, and I welcome questions and discussions regarding this exciting project.
Reference
Zacks Equity Research. (2023). Walmart (WMT) Continues to Stand Strong: Stock Up 20% in a Year. Yahoo Finance. https://finance.yahoo.com/news/walmart-wmt-continues-stand-strong-125700184.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAJcPCJPmZ-EnqMR4vA-0tN8N0s5tSTM37gR1NDSzQVgmIvwetPNIK9itRHeXxVJDEm115inmb4T9q6nZsf09XbEMrJsTWBULIHU3p-l3UxFbzbfpc77IQ13sR0D9nMC-263ZE09qbYgacLocYceLKYWfT4Ff134XASZkQJhzm7jc
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Business Model Canvas Template
Key Partners
Logistics and transportation partners
Technology and software providers
Marketing and advertising agencies
Regulatory and compliance authorities
Financial institutions and banks
Research and development collaborators
Franchisees or third-party retailers
Key Activities
Data Analysis and Market Research: Gather and analyze customer data and market trends.
Assortment Planning: Develop a tailored product assortment strategy.
Inventory Management Implementation: Integrate RFID pricing engine and electronic shelf labeling.
Product Curation and Selection: Curate products based on market demand.
Key Resources
Data Analysis and Market Research: Data analytics tools.
Assortment Planning: Cross-functional teams.
Inventory Management Implementation: Technology infrastructure.
Product Curation and Selection: Supplier collaboration.
Launch GoLocal Drone Delivery:
Value Proposition
Wide product selection: Offering a vast array of products across various categories to meet diverse customer needs.
Everyday low prices (EDLP): Providing consistently affordable pricing to save customers money.
Convenience: Offering a one-stop shopping experience, both in physical stores and online, for added convenience.
Quality assurance: Ensuring high-quality products to build trust with customers.
Customer-centricity: Focusing on customer satisfaction and needs, tailoring product offerings accordingly.
Customer Relationship
Assumption 1: Customers prefer personalized shopping experiences and are willing to share their data for tailored recommendations and promotions.
Assumption 2: Effective customer support and issue resolution contribute to higher customer satisfaction and long-term loyalty.
Channels
Walmart’s primary sales channels include physical retail stores and e-commerce.
The physical retail stores serve as the core channel for in-person shopping.
E-commerce includes both the official Walmart website and mobile app.
Walmart also utilizes third-party online marketplaces to reach a wider audience.
Customer Segments
Budget-Conscious Shoppers
Families and Households
Tech-Savvy Consumers
Value and Quality Seekers
Online Shoppers
Business and Bulk Buyers
Cost Structure
Labor Costs: Assumed to include salaries, wages, benefits, and training expenses for employees.
Inventory Costs: Covering the purchase, storage, and management of products in stock.
Overhead Costs: Including rent, utilities, maintenance, and other facility-related expenses.
Marketing and Advertising Costs: Budget for promotional activities, advertising campaigns, and marketing materials.
Technology and IT Costs: Expenses related to software, hardware, and IT infrastructure.
Supply Chain and Logistics Costs: Covering transportation, distribution, and warehousing.
.
Revenue Streams
Sales of physical products or goods
Subscription-based services or memberships
Licensing or royalties from intellectual property
Advertising and sponsorship revenue
Affiliate marketing or referral fees
Rental or leasing income
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BUS 400 Milestone Two Template
Business Model Canvas
[Slide Deck Template]
Company: [Enter your company name here]
Last updated: [Enter the last update date here]
[Complete this template by replacing the bracketed text with the relevant information throughout.
Your slides should summarize key points in the text that you will elaborate on within the speaker notes section below the slide. Professional slides limit their use of words to highlight main points, while enabling the speaker to extend and enhance the main points within the speaker notes section. Remember to cite your sources in each slide and include a list of references on the last slide. Finally, be sure to overwrite or delete all instructions in brackets before submitting.]
Unique Value Proposition
[Leveraging the Blue Ocean Strategy, write a brief response that describes what makes your selected product or service unique and how it will provide a strategic advantage in the marketplace.]
[Insert response here.]
1: Key Business Model Questions: The Customer
[Write a brief response to the following questions.]
How do you acquire customers? [Insert response here.]
How do you deliver the product/service to the customer? [(Note: This is the Channels section of the BMC chart.) Insert response here.]
After you have landed a new customer, how do you plan to relate to that customer and manage the relationship (if at all)? [(Example: customer service) Insert response here.]
1(a): Key Business Model Questions: The Customer, Continued
[Write a brief response to the following questions.]
How will you charge your customers? What is your revenue model? [Insert response here.]
How much will you charge your customers? Can you calculate your revenues for the next month, quarter, and year? [Insert response here.]
What key activities do you need to engage in to deliver your value proposition? [Insert response here.]
2: Key Business Model Questions: Assets, Partners, and Cost
What assets are available to you or under your control? [(Refer to the company’s SWOT analysis.) Insert response here.]
Who are your key partners? [Insert response here.]
What are your cost structures? What will you need to pay for in order to create the product/service? [(Example: What do you need to pay for to create your unique value proposition?) Insert response here.]
3: Create Your Own Business Model Canvas Chart
[Paste your completed chart from the Module Four assignment here.
Be sure it reflects instructor feedback.]
Key Partners
[Add your assumptions here.]
Key Activities
[Add your assumptions here.]
Key Resources
[Add your assumptions here.]
Value Proposition
[Add your assumptions here.]
Customer Relationship
[Add your assumptions here.]
Channels
[Add your assumptions here.]
Customer Segments
[Add your assumptions here.]
Cost Structure
[Add your assumptions here.]
Revenue Streams
[Add your assumptions here.]
*
4: Consider Your Business Model
Based on the BMC chart, why does it make sense to proceed with this new product/service? [Insert response here.]
What are the risks to your business model? [(For example, do you have the right relationships with suppliers and partners to create the value proposition and bring it to market?) Insert response here.]
Are there things that can or should be changed to strengthen the business model to reduce its risk? [(Refer to the SWOT analysis. Example: having multiple suppliers to protect the project.) Insert response here.]
[Delete this slide once your have completed the table on the next slide.]
[Clarify Your Business Model Assumptions]
[Check each response in your previous BMC chart against the following criterion:
How do you know that what you wrote in each block is true? Have you made an assumption, or do you have solid evidence in the form of documented facts (based on research)?
Using the table on the next slide, list your assumptions and fill in the relevant information as follows:
Where you have facts, write the evidence in the “Fact” column.
Where you have made assumptions, place an X in the “Assumption” column.
The table will help you identify where more research is still needed to address your assumptions.]
*
5: Clarify Your Business Model Assumptions
[List and categorize your assumptions about your business model below. Use as many lines as you need. Remember to indicate if this item is an assumption with an X in the third column or provide supporting evidence in the second column.]
BMC Chart Item in Question
This Is a Fact. Here Is My Evidence:
This Is an Assumption
[Example: Customers are loyal enough to pay more for our product vs another company’s product]
X
6: Preparing to Meet Customers: Materials and Sales Process
[Create a checklist of the materials you will need for your customers from the points below by highlighting the items that apply. (Note: Not all may apply.) Add materials as needed. Please include the necessary items in your updated BMC chart.]
Website
Customer presentation
Marketing plan
Sales process description
Acquisition of customers
The sales process (for example: website sales)
Pricing options: single-priced product or service versus multi-tier pricing
7: Update Your Documentation
[Create your positioning statement using the following template bullets. Note: These are typical funding questions. ]
The product/service is targeted to… [Insert response here.]
The type of value our product/service delivers is… [Insert response here.]
Our product/service is unlike others because… [Insert response here.]
9: Updated Business Model Canvas Chart
[Complete this template by replacing the bracketed text with the relevant information.]
Key Partners
[Update your assumptions here.]
Key Activities
[Update your assumptions here.]
Key Resources
[Update your assumptions here.]
Value Proposition
[Update your assumptions here.]
Customer Relationship
[Update your assumptions here.]
Channels
[Update your assumptions here.]
Customer Segments
[Update your assumptions here.]
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