Class project. Fall 2008.

1. Walmart Sporting Goods Case Study November 4, 2008 MST Creative Group Mariam Shahab Shannon Reed Taylor Foley

3. As the rise in importance of large sporting goods retailers has grown, Walmart is looking to be a relevant competitor in this industry.

6. 9 Walmart store intercepts

7. 7 focus group participants

8. 3 in-depth interviews

10. Store Layout Walmart Store # 2341: 301 Falls Blvd Quincy, MA 02169 Photos taken on October 26, 2008

11. Store Layout Walmart Store # 2341: 301 Falls Blvd Quincy, MA 02169 Photos taken on October 26, 2008

12. Store Layout Walmart Store # 2341: 301 Falls Blvd Quincy, MA 02169 Photos taken on October 26, 2008

13. Store Layout Walmart Store # 2341: 301 Falls Blvd Quincy, MA 02169 Photos taken on October 26, 2008

14. Store Layout Walmart Store # 2341: 301 Falls Blvd Quincy, MA 02169 Photos taken on October 26, 2008

16. Current perceptions of Walmart

18. Importance of price when purchasing sporting goods

19. Importance of interactivity in a sporting goods department

20. Age differences in participation in sports and outdoor activities

23. “Anything you could possibly need to engage in sports activities, from different types of shoes and clothing to actual equipment.”

24. “Both traditional sporting products plus hunting and fighting products.”

25. “Goods and products used for the purpose of physical activity.” Key Insight: “Sporting goods” is difficult to define. Quotes from email surveys, in-depth interviews and store intercepts.

26. unamusing Current Perceptions of Walmart impersonal low cost provider worldly unfriendly versatile busy hectic convenient out of shape giant affordable friendly easy dirty bully ugly boring old awesome mean comfortable cheap treacherous not durable popular disorganized vast good deal variety dated average quality goods wise happy thrifty big no care quality cultural low paying jobs Words from email surveys, in-depth interviews, store intercepts and focus group.

28. Target and Dick’s Sporting Goods appeal to more affluent consumers. 2Key Insight: The common perception of Walmart and the quality of its’ products is negative. 1 Mintel, Mass Merchandisers-US- July 2008. Brand Analysis – Target. 2 Mintel, Mass Merchandisers-US- July 2008. Brand Analysis – Target.

29. Where Consumers Buy Sporting Goods Data from email surveys, in-depth interviews and focus group.

31. Men are 47% more likely to buy sporting goods at specialty stores. 4

32. 34% of men and 33% of women bought sporting goods at mass retailers in the last year. 5Key Insight: Consumers are more likely to purchase their sporting goods from mass retailers than specialty stores. Affluence plays a significant role in purchasing patterns. 3 Mintel, Sporting Goods Team Sports-US-August 2008. Retail Channels. 4 Mintel, Sporting Goods Team Sports-US-August 2008. Retail Channels. 5Mintel, Sporting Goods Team Sports-US-August 2008. Retail Channels.

33. Frequency of Sporting Goods Purchases Data from email surveys, in-depth interviews and store intercepts.

35. “Only when a sports season changes or when a family member out grows something.”Key Insight: Consumers typically shop for sporting goods every few months, therefore, they want quality products that will last through the season. Quotes from email surveys, in-depth interviews and store intercepts.

37. “Price is a primary purchase decision criterion. The quality of an item is often related to its price.”

38. “The cheapest price isn’t always the best buy”

39. “I’ll pay anything to get a good quality product.”

40. “I shop for value.”Quotes from email surveys, in-depth interviews and store intercepts.

43. “Interactivity allows me to determine quality level of the item”

44. “I want to know what I am buying before I have to return it.” Quotes from email surveys, in-depth interviews and store intercepts.

46. Age differences in participation in sports and outdoor activities Data from email surveys, in-depth interviews, store intercepts and focus group.

48. Gender differences in participation in sports and outdoor activities Data from email surveys, in-depth interviews, store intercepts and focus group.

50. Women do not play team sports with people they do not know. 9Key Insight: More men participate in competitive sports. 8 Mintel, Sporting Goods Team Sports-US-August 2008.Participation and Ownership. 9 Mintel, Sporting Goods Team Sports-US-August 2008. Attitudes and motivations.

51. Ideal sporting goods store/department layouts Drawings from focus group.

52. Ideal sporting goods store/department layouts Drawings from focus group.

53. Ideal sporting goods store/department layouts Drawings from focus group.

55. Female, 46, working mother

57. Hispanics purchasing power will increase by 48% by 2011. 11

58. Baby boomers are leaving team sports and buying at home fitness equipment. 12

59. Children cause elevated ownership of sporting goods. 13

60. Moms and grandparents buy children sporting goods. 1410 Mintel, Leisure Activities of families-US-June 2005.Sports Recreation and Fitness. 11 Mintel, Sporting Goods Team Sports-US-August 2008. Market Drivers. 12 Mintel, Sporting Goods Team Sports-US-August 2008. Market size and forecast. 13 Mintel, Sporting Goods Team Sports-US-August 2008.Participation and Ownership. 14 Mintel, Sporting Goods Team Sports-US-August 2008. It’s for the kids.

62. Increase product quality, while keeping price intact

63. Significantly increase the level of interactivity

64. Tout partnership with Gold’s Gym

65. Carry name brands

66. Provide athletic shoes

67. Advertise in parenting magazines

68. Sell seasonal equipment