WalmartEmployer Brand Positioning Strategy

December 8, 2011

Overview

Methodology

Summary of findings

• Employment experience realities

• Market drivers

• Market perceptions

Positioning strategy

• Positioning essence

• Positioning statement

• Personality

• Message emphasis

content

Overview

Walmart would like to optimally position itself to attract candidates for management, assistant management, supply chain, corporate, and e-commerce positions. Specific objectives follow:

• Probe the strengths and weaknesses of the Walmart employment offer• Identify which attributes are important to the target audience• Understand perceptions of Walmart as an employer• Understand perceptions of Sam’s Club as an employer• Identify those distinct selling points that will enable the crafting of a compelling and believable

message

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Focus group methodology

Employee focus groups (20 groups)

December, 2010 – February, 2011Bentonville• Merchandisers/Buyers (7)• IT (9)• Financial (11)San Francisco• E-commerce (9)

May, 2011Bentonville, AR• 1 group, college/interns; Finance/Merchandising (6)• 1 group, college/interns; ISD, Sourcing Ops,

Merchandising, QA (5)

July – October, 2011Chicago, IL • 1 group, Walmart Retail Management (9)• 1 group, Sam’s Club Retail Management (8)Dallas, TX• 1 group, Walmart Retail Management (4)• 1 group, Sam’s Club Retail Management (3)Los Angeles, CA• 1 group, Walmart Retail Management (7)• 1 group, Sam’s Club Retail Management (6)Philadelphia, PA• 1 group, Walmart Retail Management (2)• 1 group, Sam’s Club Retail Management (8)National, various locations• 4 groups, Supply Chain/Logistics) (29)National, various stores• 2 groups, college hires (13)

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Focus group methodology

Market focus groups (15 groups)

December, 2010 – February, 2011Dallas, TX• Finance (10)Chicago, IL• IT (11)Jersey City, NJ• Merchandisers/Buyers (7)San Jose, CA• E-commerce (11)

May, 2011Salt Lake City, UT• 1 group, undergraduates – Business, Finance (10)Fayetteville, AR• 1 group, graduate students - Business, Finance, IT (10)Austin, TX• 1 group undergraduates – Business, Finance (9)

August – September, 2011Chicago, IL • 1 group, Retail Management (6)• 1 group, Logistics and Transportation (10)Dallas, TX• 1 group, Retail Management (7)• 1 group, Logistics and Transportation (7)Los Angeles, CA• 1 group, Retail Management (8)• 1 group, Logistics and Transportation (5)Philadelphia, PA• 1 group, Retail Management (6)• 1 group, Logistics and Transportation (4)

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employee focus groups“People believe in what the company is doing…gets you back to work every day regardless of what yesterday was like.”

Summary: The employee experience – what’s positive

Walmart: Stores

Sam’s Club Stores

Supply Chain University/Interns

E-commerce Corporate

• People“It is a great company to work for—people are treated respectfully and you quickly become like a family…everybody watches out for each other…associates are so close.”

• Culture“They let you have your own ideas and play them out…there is always an open door policy and people really listen to you, not just lip service. Regardless of title all ideas are encouraged, heard and acted upon.”

• The store environment and the close-knit family feeling you get from working with your “Sam’s family.”

• Getting to know clientele and being able to form relationships with people—many use the word “fulfilling” when they speak about their role.“You see familiar faces come through the door and you have more personal conversation with them—it’s a relationship.”

• Autonomy to run your own business/function“You really feel like you are running your own business, you are given the autonomy to make decisions that make sense for your facility.”

• Continuous learning“From the moment I joined this organization people were so willing to help me learn, didn’t matter what level they were they wanted us to be successful as a team…seems like something that all companies should do but it is sadly not a reality.”

• Allure of working for the number one retailer“They have really shown everybody how to do it…excelled at what they set out to do, defined success.”

• Rotation programs“Being able to do four rotations in one year is really unique and enriching.”“The message about being the biggest retailer, having rotational programs and family values was exactly what I was looking for.”

• Rapid growth (past 6-7 years) • Leaders really want you to challenge the thinking – creates an environment of constantly trying to do better in a positive way.• Work environment: physical location is very pleasant, modern.• A place to work and progress as a long-term career versus a training ground

• OpportunityFueled by size“My parents are proud to see me working for Walmart. It gives them a sense of comfort when they see me moving up in the organization and having opportunities to travel and develop.”“The biggest balance sheet around.”•Ability to work in various areas•The ability to work on something that really makes a huge impact and being trusted to do so.

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Summary: The employee experience – what’s positive (cont.)

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Walmart: Stores

Sam’s Club Stores

Supply Chain University/Interns

E-commerce Corporate

Size and opportunities as a result“The sky’s the limit. I came because of opportunities in China, it is my dream to go there and this was discussed in my interview process as a reality down the road.”• Personal reward - creating something sustainable that helps people live better lives.“Seeing people shop in your store and feel thankful that you help people shop for the items they need to provide for their families and create better lives.”“People believe in what the company is doing…gets you back to work every day regardless of what yesterday was like.”“The well-earned bonus at the end of the year.”

• Culture“The company is fabulous at listening to good ideas and takes risks on people and ideas. It pays off and often these grassroots ideas will take off company wide.”• Stability“You have the security of being in a company that is not disappearing and is constantly growing and improving.”“They try to set you up for success, everybody is given equal playing field and opportunity to succeed.”• Growth opportunities within the Sam’s franchise and beyond into Walmart,

A place to build your career and stay. “Walmart gives people a chance, believes in you.”  •The environment• Rewarding job• Growth opportunities

People focus“I like the balance of what I heard regarding work and family.”“The friends you meet here are lasting friendships.”• Respect for the individual with work/life balance, good for yourself personally and for the organization as a whole• Focus on community and helping others—(i.e. walks, direct donations, championing efforts to raise money)“We are providing more value—making someone’s life easier.”

Culture People are pleasant, trustworthy and genuine“The caliber and talent of people who work here is wonderful, there is a family atmosphere where people really look out for one another.”“Extremely open, transparent, humble, fun, and made up of well-intentioned people.”•People are encouraged to work as a team to get the job done versus feeling like you need to be competitive.•A few who were more familiar with Walmart’s home office Bentonville, noted that the small town culture/behaviors seem to transfer to Walmart.com

Summary: The employee experience – what’s positive (cont.)

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Walmart: Stores

Sam’s Club Stores

Supply Chain University/Interns

E-commerce Corporate

Work/life balance (3 days on/off)• Pay• Benefits (401k matching up to 6%). • Job security• Ever-changing fast-paced environment where no two days are the same

Satisfaction from knowing that their work will affect the customer in some positive way“When I am involved in problem resolution it puts a smile on the face of a customer—that makes it well worth it.”

• Encouragement to try new things/grow “At Walmart I can step outside my boundaries…grow, develop and hit the next target.”

Reward• How supportive Walmart has been to not let the lack of a degree hold them back.“Valued for the work I do. I am recognized for the contributions I make and that goes a long way in making you feel good.”•Hear about people who worked hard and were rewarded through their careers at Walmart“Makes you believe in the American dream.”Make a difference•Helping the company improve their systems, save money and ultimately help the customer live better.“The sense of purpose you get from knowing that you are improving someone’s life.”

Employee views

Application:Provides foundation for positioning the realities of the employment experience

Respect PurposeFamily

Supportive

Stability

Autonomy

Mobility

Community focus

Fulfillment

Shared values

Open

Realities

#1 retailer

Development

Learning

Idea sharingEncouraged

Close-knit

Teamwork

Meaningful

Accomplishment

RewardingMake a difference

Scope

Mission

Empowerment

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external focus groups“I want to work for the best — someone who is cutting-edge and at the top in their field.”

Summary: Opportunity considerations

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Store Management Supply Chain University/Interns Corporate/E-commerce

• To have an impact on people—both associates and consumers. Being able to impact the growth and development of their staff and developing relationships with consumers

• Fulfilling but exhausting• Do not have “down time” in their day, but this is also a key driver of what makes the role exciting—the constant change and pace and no time to sit around.“No two days are alike and you can’t even begin to predict what tomorrow will bring if you try.”

• The variety of skills/functions in their role• Dealing with the daily store/customer issues balanced with things like employee training/mentoring and the excitement of seeing people grow and develop professionally.

Specific employer attributes• Good pay (taking into account the ratios of hours worked)• Benefits—health, vacation, 401k, tuition reimbursement, bonus • Positive work environment (employee-focused)

• Being able to have every day be different and exciting“New challenges ad never boring” “No day is ever the same”

• Size of company and opportunities (many locations equal opportunities for personal growth)

• Despite hard work the ability to have work/life balance“As long as you are clear on the expectations (i.e. shift, work to be done) people realize you have a life and respect this.”

Specific Employer attributes • Career growth• Stability of company• Autonomy• Training/development• Benefits—medical/dental, 401k, vacation, discounts, education, one stop shop (phones, hotels, loans, workout area, daycare)• Salary—competitive, bonus• Level of responsibility/impact• Work/life balance-- Good schedule (set shift, flexibility), time for personal life,

Specific Employer attributes • Great people—good management that will help you grow and look out for you, people who are upbeat/optimistic/enjoy job• Positive work environment/atmosphere—feel accepted, sense of team work, synergy between people • Stimulating environment— where you can grow/become better as a person/smarter• Ability to progress/get promoted/ Feeling of accomplishment• Being part of a growth industry—stability/strength/security of industry • Opportunity to “own” career/grow within the company— be able to take the direction you want• Being part of something important/meaningful (i.e. Teach for America)• Good benefits (healthcare, pay for graduate school)• Flexibility (can work at home, free time, freedom)• Work/life balance—being happy in their personal life and having a “quality” personal life (time to enjoy it)• Compensation—total package (benefits, cost of living consideration)

Culture/environment•Inspiring, empowered, trusting•People listen, straight shooters•Value employees•Open-minded, open to ideas/input•Intelligent, motivating•Friendly – laid back, low stress level, high energy

Growth/development•Focus on skills development•Ability to grow and learn•Opportunity and mobility•Career path

Stability•Size of company and sector•Reputation of company

Empowerment•Trusted to do your job, helping as needed•Ability to work as somewhat of an entrepreneur•Make/influence key decisions

Summary: Opportunity considerations (cont.)

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Store Management Supply Chain University/Interns Corporate/E-commerce

• Stability—size, longevity, performance over time• Growth opportunities (training, education support, fairness)• Mobility (for larger companies)• Structured (identified processes) without being inflexible• Work life balance/Quality of life—flexibility, family friendly, vacation, holidays (although retail hours are a given)• What the company stands for• Name/brand reputation—pride/credibility/integrity• Location

• Location—close to family, home• Diversity/Inclusion—upper management looks like me, one day I can be there

• Stability/reliability/knowing that company not going to fail• Company that community views positively (ethics, philanthropic)

Flexible •Location/flexibility (from home, working hours)•Work/life balance—want to feel like they can have a personal lifeCompensationBenefitsTechnology •Cutting-edge•Invest in technologyStrong brand/reputation•Product/brand they feel good about•Work with high end/luxury brands

Employer brand associations

Advancement

Stimulating

Challenge

Compensation

Flexibility

Autonomy

Market drivers

Inspiring

Stability

Open

Benefits

Impact Application:Describes the universe of attributes under consideration by the target audience.

Location

Accomplishment

Meaningful

FulfillingTrusted

Work/Life balance

Learning

Development

Valued

Accepted

Brand reputation

Mobility

Variety

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Summary: Employer brand associations - Walmart

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Store Management Supply Chain University/Interns E-commerce Corporate#1 retailer—always busy• For everybody/affordable• More of a suburban store/outside the city• All about stores/retail positions• So many stores = opportunities/growth• Good on resume

#1 retailer• For everybody/affordable• Convenient“On the positive, Walmart can be the best thing you see as you pass through small towns, means you can find things you need.”• Opportunities/growth• Good on resume

Massive/largest retailer“Where else could you have the responsibility to manage a 30 million dollar budget and have the kind of global impact on the economy?”• Doing something right“You are getting the opportunity to learn the operational best practices.” • Walmart is #1 and must have great leaders. “I want to work for the best—someone who is cutting edge and at the top in their field.”“If you’re in operations or supply chain management it seems like it would be the place to be.”• Major global efforts“In China, it’s exploding and bringing people out of poverty”• Social responsibility and sustainability efforts• Helps people in need•Attractive to have as first employer“If you have Walmart on your resume you can work anywhere after that.”

•Great customer service (i.e. shop online/pick up in store)•Good products

•Take care of employees• Nice benefits package• Buyers have lots of leeway• Door opener/differentiator on a resume“They definitely are doing things right and it would be exciting to learn from them what makes them the most successful retailer.”• Company is “1st / tops the charts—this equates to growth.”

Summary: Employer brand associations – Walmart (cont.)

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Store Management

Supply Chain University/Interns E-commerce Corporate

Questions about product quality• Look worn down• Women not promoted• Expensive benefits• Unreasonable workload and poor pay. “It is almost as if they would have to change their name...it is so tainted from all the negative things reported.” • Arkansas not a place to be “Saying you work for Walmart is not something that I would feel proud to say—people just have such a negative impression of it as a company.”

Look worn down/lack of pride—not consistent• Management must be inexperienced to let stores look like that• Squeeze vendors but $ not going back into buildings• Bad experience/service—“nicest person is the greeter”• Questions about product quality• All about stores/retail positions• Discriminatory/lawsuits (women, African-Americans)“All the things you hear make you question working for them…lawsuits, complaints, vendors being bullied, small business communities being torn down.”• Poor culture—people overworked/angry/not smiling• Documentary about substandard practices• Arkansas not a place to begood?”

First thought is about stores“Immediately people are going to think you work in the store.”• Cheap, outsourcing, China• Cheap with expenses (i.e. share rooms when traveling)• Bully with vendors• Competitive/negotiation power due to size• Stuck in Bentonville“Saying you work at Walmart and live in Arkansas is not cool or sexy.”• Too dominant—takes advantage of its position• Too big, hard to advance/get recognized• Discriminatory—only gives raises to certain people, less to women• Hurts small business

•Sued by employees•Not in the same league as the type of companies they work for today or aspire to work for•A place where IT would be more about standardization and less about innovation – making the level of challenge and excitement very low

•Type of business they are in“Less than exciting.” Low-frills environments“People automatically think of the stores, the lawsuits, rude employees – not seen as very glamorous.”• Biased against women (citing a lawsuit)• Non-progressive culture/environment • Old technology“Behind the curve.”• Wonder what kinds of IT jobs would there be in such a massive organization.• Not visible as a technology player“They are not in the technology magazines, at conferences, places where you see/hear the best talking.”

Summary: Employer brand associations – Sam’s Club

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Store Management Supply Chain University/InternsPositive• Those who are familiar with it see it as being somewhat different in terms of environment

Negative• See it as being part of Walmart and assume the same problems would exist        “it wouldn’t give you any freedom in terms of merchandising.”“Sam’s could be a better place to work but you wouldn’t have much opportunity for advancement, limited stores.”

Positive• They know the affiliation with Walmart but seem to have less outwardly negative impressions. “You don’t hear the negative press directed towards them so you wonder if they might be a little better.”“The environment is different, even though it is a warehouse it seems more professional.”

Low awareness• Seen as part of Walmart versus a stand-alone entity

Employer brand associations

Application:Provides points of leverage and counterbalance

Market perceptionsLawsuits

Arkansas

Limited to retail positions

Resume enhancer

Growth

#1 retailer

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positioning strategy

Positioning themes

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Pragmatic Theme: A career with a futureWith Walmart’s extensive scope and success, I have an incredible range of opportunities within my grasp, now and in the future.

Realities Market drivers Market perceptions

#1 retailer

Stability

Mobility

Scope

Stability

Mobility

Advancement

Limited to retail positions

Resume enhancer

Growth

#1 retailer

Attribute Positioning Maps

Positioning themes

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Aspirational Theme: Everyone has potentialNo matter what my role, my learning and development is supported and encouraged by everyone in the organization, resulting in the challenge and variety I thrive on.

Realities Market drivers Market perceptions

Development

Learning

Accomplishment

Accomplishment

Challenge

Variety

Learning

Development

Supported

Encouraged

Idea sharing

Impact

Autonomy

Stimulating

Discriminatory

Lawsuits

Attribute Positioning Maps

Positioning themes

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Relational theme: Beyond the bottom lineWhen improving the quality of life for millions is the mission, it extends beyond our service to customers through our outreach to the community.

Realities Market drivers Market perceptions

Purpose

Community focus

Meaningful

Make a difference

Mission

Meaningful

Fulfilling

Inspiring

Brand reputation

Effect on small business

Attribute Positioning Maps

Positioning themes

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Emotional Theme: The biggest family in the worldWe share the same values, treating each other the way we would like to be treated.

Realities Market drivers Market perceptions

Open

Respect

Close-knit

Family

Teamwork

Rewarding

Fulfillment

Shared values

Trusted

Open

Valued

Accepted

Huge corporation

Attribute Positioning Maps

Positioning strategy

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Positioning essence

The positioning essence is the basic strategic concept - it is a distillation of the various trends that will maximize relevance and differentiation.

Positively energized• A career with a future• Everyone has potential• Beyond the bottom line• The biggest family in the world

The positioning essence is used to provide a compass point, or north star, for articulation of the employer brand through using marketing and advertising vehicles.

“Positively energized” not only addresses the tangible and intangible aspects of employment, but does so as a forward-thinking, mission-embracing imperative that elevates all dimensions of the Walmart experience. It draws a distinction, highlighting the opportunity to do well, and to do good.

With the positioning essence in place, the next step is to understand and embrace the positioning statement.

Positioning strategy

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Positioning statement

• The positioning statement is designed to serve as the strategic basis for the development and articulation of all employment marketing communications, both formal and informal. Neither the positioning statement, positioning essence, nor the positioning subsets are meant to represent the actual wording utilized in employment marketing communications. Rather they are designed to help inform the creative and messaging strategies and execution, providing a constant point of reference.

With Walmart’s extensive scope and success, I feel good about my future, knowing I have an incredible range of opportunities available to me. No matter what my role, my learning and development is supported and encouraged by all in the organization, resulting in the challenge and variety I thrive on. At Walmart, we

share the same values, treating each other the way we would like to be treated, all while improving the quality of life for millions. I belong here.

Subset amplification

• See Message Emphasis

Positioning strategy

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Message emphasis

Size

Autonomy

Supply Chain Educate Inspire Counter

Rotation program (MBAs)

Mission

University Educate Inspire Counter

Scope

Mobility

Sam’s Club Educate Inspire Counter

Focus on information

Create an emotional connection

Alter misperceptions

Growth

Technology

E-commerce Educate Inspire Counter

Positioning strategy

PersonalityThese traits have been selected to complement the positioning, and therefore, deliver it in a manner that is more compelling.

• Passionate – engaged and enthusiastic

• Genuine – sincere, without pretense or contrivance

• Welcoming – open, inviting, accepting

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WalmartEmployer Brand Positioning Strategy

December 8, 2011