Week 7 BOC: Largest Retailers

Week 7 BOC: Largest Retailers

According to an article from Marketingcharts.com; Wal-Mart, there’s a large drop-off to the nation’s second-largest retailer, Kroger, with roughly $92.2 billion in 2012 sales. Target ($72 billion) and Costco ($71 billion) are virtually tied for the third spot, with Home Depot ($66 billion) edging CVS ($63.7 billion) for the 5th position.  There is a little bit of adjustments for the 5th, 6th, and 7th spot:  The Home Depot, Walgreen, and CVS Caremark are all under this small area for these competing positions. 
In the what's "Hot 100 Retailer's" the positions go to:

1	Bi-Lo
2	Michael Kors Holdings
3	Sprouts Farmers Market
4	Lululemon Athletica
5	Apple Stores / iTunes
6	Under Armour
7	Amazon.com
8	H&M
9	Helzberg's Diamond Shops
10	The Fresh Marke

 With all the changes there is an increase in more online shopping, non-store, and Brick-and-Mortar segments growing.  Since what's on top today can quickly change to a different top 10 next year, we are looking at the top 100 hot fashion retailers for the moment.  
Even though Wal-Mart sits at the top, they fell to a dissapointment in their quartly reports. 
Same-store sales, a key metric for retailers, dropped by 1.4% at Wal-Mart stores, a signal that price cuts on groceries and other every-day items haven’t been enough to keep shoppers interested. It was the first decrease in same-store sales in more than a year. Wal-Mart’s target customer is hit especially hard by the nation’s continued economic uncertainty with high unemployment and increased payroll taxes.
Sam’s Club, the company’s wholesale retailer, saw sales rise 0.2%, with growth restrained by decreased interest from business customers, bad weather and inflation. None of this came as a shock to the company.  They plainly plane it on weather, inflation, and customer decrease in interest.  

http://www.marketingcharts.com/wp/topics/e-commerce/americas-largest-retailers-brick-and-mortars-dominate-30857/ 

http://www.stores.org/STORES%20Magazine%20August%202013/hot-100-retailers

http://www.forbes.com/sites/abrambrown/2013/05/16/wal-mart-a-business-slump-at-the-worlds-largest-retailer/

Week 6 BOC: Tylenol Scare of 1982

Week 6 BOC:Tylenol scare of 1982

In the Fall of 1982 unknown persons replaced Tylenol Extra-Strength capsules with cyanide-laced capsules, and resealed and packaged them for distribution.  They were sold at over half a dozen pharmacies and food stores in the Chicago area.  Seven unsuspecting people died a horrible death due to this issue. 

“Johnson & Johnson chairman, James burke, reacted to the negative media coverage by forming a seven-member strategy team.  Their mission was ultimately “How do we protect the people?” and “How do we save the product?”  They used the media to inform the public not to use Tylenol products.  They established a 1-800-hotline for crisis.  They pulled the products off all shelves, until the source could be determined.  Johnson & Johnson created their new Triple safety seal packaging (a glued box, a plastic sear over the neck of the bottle, and a foil seal over the mouth of the bottle.) Since Tylenol brand accounted for 17% of the company’s net income, marketers predicted that they would never recover from the sabotage. Two month later, Tylenol was headed back to the marked, this time in tamper-proof packaging and bolstered by an extensive media campaign.  A year later, its shares of the $1.2 billion analgesic market, which plunged to 7% had climbed back to the 30%. 

They company achieved the status of consumer champion, because it acted with quick and complete openness about what had happened.  They immediately removed any source of danger based on the worst-case scenario.  “Not waiting for evidence to see whether the contamination might be more widespread.” “They showed themselves to be prepared to bear the short-term cost in the name of consumer safety.”

JOHNSON & JOHNSON established a basis for trust with their customers. 

http://www.ou.edu/deptcomm/dodjcc/groups/02C2/Johnson%20&%20Johnson.htm

http://www.nytimes.com/2002/03/23/your-money/23iht-mjj_ed3_.html

http://www.mallenbaker.net/csr/crisis02.php