Reference no: EM133631161
Info on strategy
The affluent consumer segment can be defined in many ways, but most consider those with over $100,000 in household income and $250,000 or more in assets to be mass affluent. Affluent individuals tend to be men who are older and more likely to be married. They are both upwardly and physically mobile. This demographic enjoys traveling and is more likely to plan for future trips. Although individuals across all income levels value their families and prioritize their children's well-being and education, affluents are more likely to be optimistic about the future.
Regarding purchasing behavior, 85 percent of affluent consumers state that quality is more important than brand name, and only 19 percent say they purchase exclusively upscale brands. Affluent consumers buy a diverse range of items from several types of retailers. Although they are more likely to shop at upscale brands, exclusive also enjoy treasure hunting at T.J.Maxx and Marshals. Therefore, the customer experience plays a crucial role in their shopping satisfaction. Premium programs and benefits are widely popular among these customers, as they like to feel appreciated for the time and money they spend at their favorite retailers.
As a result of inflation, Walmart has been attracting a more affluent clientele in its grocery sales. However, the retail aspect of the business is still lacking in this demographic. To appeal to high-end customers, Walmart must consider renovating its stores, improving lighting and shelling, and introducing high-quality clothing brands. Walmart can attract more affluent shoppers by offering a wider selection of premium products and brands, particularly in categories like apparel, home goods, and electronics. Affluent shoppers usually prefer high-quality products from well-known brands. Therefore, offering a wide range of premium products to meet their expectations.
To meet the higher expectations of affluent shoppers, Walmart needs to improve the store shopping experience. This can be achieved by making stores more organized and inviting and providing better customer service. Affluent shoppers also appreciate personalized shopping experiences. Walmart can use data and analytics to personalize the shopping experience for them. By recommending products and services they are likely interested in, Walmart can make the shopping experience more enjoyable and personalized.
Finally, promoting Walmart's commitment to social or environmental causes is a great way to build a positive image for your brand, such as partnering with reputable charitable organizations to develop cause-related promotions. This approach enhances Walmart's image and allows consumers to feel good about their purchases. By collaborating with a reliable charity or non-profit organization, Walmart can demonstrate its commitment to making a difference and give consumers a chance to contribute to a cause they care about while shopping with you. This mutually beneficial arrangement can help increase customer loyalty and drive sales.
Questions
If one of Walmart's corporate strategies is to attract and retain affluent shoppers, how would they go about that?
Identify 4 initiatives HR could implement in order to support that strategy. In what manner would each initiative contribute to the strategies' success? What should each initiative measure? How should each initiative be measured?