The Science Based Targets initiative is a collaboration of leading global climate change and conservation groups that help companies determine how much they must cut their GHG emissions to prevent the worst consequences of climate change. Reducing Waste In , Walmart began to look at the interplay of waste and usable materials and to seriously examine our own operations, looking for ways to reduce waste of all kinds.
Today we have a deeper understanding of the challenges and are engaging suppliers and customers in pursuit of the circular economy, in which products are made, consumed and recycled in a continuous loop. We look to the Ellen McArthur Foundation approach of maintaining materials at their best and longest use.
By the end of , we diverted from landfills 81 percent of unsold products, packaging and other waste materials in the U. Total annual waste generated from operations in the U. Our sourcing efforts can help support local and small farmers, foster growth of women-owned business and encourage the growth of small business.
While some value chains are generally subject to effective regulation and oversight, others can present higher potential risks to worker dignity. In , we formally launched our Responsible Sourcing program to establish our expectations for suppliers and their facilities in regard to operating sustainably and responsibly in a way that protects worker dignity. Today, we have nearly Responsible Sourcing associates around the world working with our suppliers and enforcing our standards.
Our longstanding commitment to promoting safe, healthy and coercion-free work environments was renewed when our president and CEO Doug McMillon spoke at the Net Impact Conference in We are already engaged in multiple supply-chain efforts, and by we will use our ability to bring together stakeholders—including industries, civil society, governments and international organizations —to address major potential risks to the dignity of workers in a minimum of 10 retail supply chains.
This commitment goes above and beyond our existing work to hold suppliers accountable to our high standards. Please visit our responsible sourcing website to learn more. Reducing Environmental Impact In the retail sector, our environmental impact extends far beyond retail operations, up and down the value chains that deliver food, apparel, electronics and many other products to customers every day.
Farming, for example, plays a major role in GHG emissions, water usage and deforestation. As a global retailer, we are working to help reduce environmental impacts, from the farm to the factory to the customer and at the end of the product life cycle. We hope to help create a more circular economy, moving away from a take-make-dispose approach to one where resources are preserved in production, and the materials and other component parts are ultimately recycled back into the economic stream.
We work continuously to earn that trust by advocating for them among suppliers and encouraging innovation and transparency in product development and production. They want to feel good about the products they buy. They are asking for more visibility into how food is grown and products made, as well as information about the people and companies involved in those processes.
Measurement and transparency can help us deliver on those customer needs. Measurement and transparency can also enable transformation of value chains upstream and downstream by, for example, helping to flag hot spots or assess the impact of one practice versus another. We are working with others to improve measurement and transparency; it is the right thing for our customers, for society and our business.
Measurement and transparency foster customer trust and can help accelerate sustainability improvements in supply chains. At Walmart, we are dedicated to the fight against hunger and are determined to help families who need ready access to nutritious food. To achieve long-term impact, we aim for whole system change. Walmart and the Walmart Foundation have made significant progress toward the goal we set in FY of providing 4 billion meals over five years to people in need.
Since FY, Walmart has donated over 2. In each case, Walmart and the Walmart Foundation responded quickly to help support the local communities that were hit hardest. In times of disaster, Walmart aims to support the communities in which we do business, as well as the safety and well-being of our associates, by bringing to bear our logistics capability, technology, ability to source products, physical locations, associates and scale.
As with all our efforts, we aspire to improve entire systems, not just respond in the moment. Walmart and the Walmart Foundation support efforts to help communities respond more quickly and effectively in the wake of disasters. We also invest in technologies and other innovations that help communities better prepare for disasters. We aim to strengthen the health of our communities, not only by providing products, services and jobs through our retail business, but also by facilitating associate volunteerism, local donations through stores and customers, and support for strategic diversity and inclusion initiatives.
We believe that strengthening local communities creates a virtuous circle of value for business, as well as society. Inclusive, vibrant communities support business growth, which creates additional opportunities for associates. In turn, having associates and customers who are better engaged leads to more inclusive and vibrant communities.
Walmart has always welcomed U. We know the value veterans bring to our business and to our communities. Walmart has committed to hire , veterans by Several reports on the economic output of the US retail industry have showed that it is the lifeline of the US economy. Apart from its large contribution to the national GDP, the retail industry is also known for being the largest employer in the American economy.
The retail industry has been through challenging phase and it has seen various ups and downs in the past decade. Growth has returned since after the recession.
A few things that have kept growing important in the context of the retail industry are technology, operational efficiency and customer orientation. Retail has also grown at a whopping speed challenging the growth of traditional retail with Amazon at the helm of the commerce growth globally. These were the people employed directly in the retail industry whereas the figures can be far higher and past 40 million if we include the people it employs indirectly.
Apart from that, as per figures it generated 1. Walmart and Costco are leading in the retail industry with their low prices and large assortments of merchandise and services. While the US retail industry is marked by heavy competition, growth in the recent years was primarily supported by higher digitization and better economic activity.
Bargaining power of suppliers: The bargaining power of suppliers in the US retail industry is low. Moreover, apart from a few of the bigger brands the smaller suppliers do not hold any major clout. They are bound to offer their products on lower prices or risk losing business.
There are more than one lac small and big businesses that are the suppliers of Walmart. Moreover, the suppliers are required to follow the rules set by the business. The immense bargaining power of the big retailers like Walmart also comes from their financial clout.
Bargaining power of buyers: Control is in the hands of the customers or the buyers in the 21st century. Retail brands are doing every thing to keep their customers happy and satisfied. Apart from everyday low prices, retail brands like Walmart are also focusing on better customer service as well as leveraging technology to provide a better and personalized customer experience.
Some of the factors that moderate the bargaining power of the buyers are the brand image, low prices, quality products and services and high level of customer service. The overall bargaining power of customers in the retail industry is moderate to high.
The bigger brands like Walmart and Costco enjoy higher loyalty. Threat of substitute products and brands: The threat of substitute products in the retail industry is high because of the high number of retail brands in the market. The threat gets moderated in case of the larger brands like Walmart and Costco because of their competitive advantage in the form of lower prices and a wider product assortment.
Threat of New entrants: The threat of new entrants is moderate because it will not require a very large investment for a new brand to enter the retail market and it is why several foreign brands are also in a race to enter the US market.
However, in case of the bigger brands this threat is low because of the high level of loyalty that they enjoy as well as their international presence. The overall threat remains moderately low. In case of the large brand like Walmart or Costco, switching costs can be high for customers since all brands do not sell at as low prices.
Level of competitive rivalry in the retail industry: The level of competitive rivalry in the retail industry is very high. There are several influential and financially strong players in the market like Walmart, Krogers, Costco and Bets Buy.
The overall competitive rivalry in the retail industry is highly intense. Walmart Core Competence: The core competence of Walmart is its everyday low prices that it has used to grow its market share by increasing customer base.
The brand offers a large range of good quality products and services and that too at very low prices which can sometimes be much lower than the nearest competitor. In this way the brand has been able to obtain very high level of customer loyalty.
Walmart buys in bulk from its suppliers which allows it to obtain products at extra low prices and it passes on the benefit to the customers. Its another core competence is customer service. Its customer centered business strategy also focuses on high degree customer convenience. Higher customer convenience means higher popularity and faster growth in customer base. A third core competence that is enabling its growth in the recent years is technology.
Walmart is investing in e-commerce and purchased a large stake in Indian brand Flipkart apart from its own website in 28 countries. These are some of the main sources of competitive advantage. In past Walmart was known to pay its staff very less to minimize its operational costs and to protect its price advantage. During the recent years, it increased the basic wages as well as benefits for its associates.
In , the brand crossed the Billion dollar mark in terms of revenue for the first time. Net sales of the brand reached past Billion. Fiscal has been very good in terms of financial performance. Its merchandise mix consists of three main categories that include grocery, health and wellness and general merchandise. The general merchandise include entertainment, apparel, hardline and apparel products. Apart from these Walmart offers fuel and financial services and related products.
This is a major strength for the brand which has helped it acquire higher popularity as well as increase its market share and customer base.
India is still not open to Foreign direct investment but Walmart entered the Indian market by buying a large and controlling stake in the Indian e-commerce brand Flipkart. Apart from US, Mexico is the largest market for Walmart with the number of stores there in at Its revenue from Walmart International was Its several websites operate under 65 banners in 28 markets. Growing focus on e- commerce and digitization are also going to help the brand acquire faster growth.
However, this has a negative effect on the human resources and drives attrition rate high. During the recent years, Walmart has increased the wages but yet, the HR environment and culture at Walmart needs to be innovated to provide the workers with security and satisfaction. This image happened because of its poor record in supply chain and HR.
While it has managed its reputation and image somewhat better during the recent years, it will need to focus more on CSR, ethics and HR management to shed its old image completely. Apart from US all the major markets including the ones in Asia Pacific are seeing higher sales online.
However, studying these habits and catering to their needs offers faster opportunities of growth to the brand. This generation of consumers likes to shop online and is a high tech savvy generation. Understanding its shopping habits and using technological innovation to provide it with a better shopping experience will help increase sales. It will help the brand manage a better reputation and create a positive work environment which is good for productivity. Competition is one of the biggest challenges in the retail industry and a primary threat to growth.
To overcome tis pressure, Walmart will need expand to more markets and increase its online presence. A stronger dollar can have an adverse impact on the profit of the American brands. Fluctuation in the currency exchange rates can lead to lower profits. All these stages add value to the product and managing them efficiently helps a brand grow its business performance. Walmart has optimised its value chain very well.
Primary Activities: Inbound logistics: Walmart has a large and global supply chain that consists of more than , suppliers of various sizes. These suppliers are located al around the globe from which Walmart sources the products that it sells at its stores and clubs. Since it buys in bulk from its suppliers, it is able to press them for lower prices. The fresh category products are sourced from the suppliers located close to its stores and clubs.
Walmart has managed its supply chain very well with the help of technological tools including apps and software. In , its total number of stores reached Out of the total, were located in US and were located internationally. It serves its customers under 65 banners in 28 countries through its stores and e-commerce websites. Outbound logistics: Walmart has managed an excellent and extensive distribution network. Walmart has managed an excellent private fleet of trucks but also hires private careers to ship perishable grocery merchandise.
It also has 30 dedicated fulfillment centers that it uses to ship merchandise to its customers that have purchased from its online platform. Walmart uses its distribution centres for cross docking the material received form the suppliers which can then be forwarded to the stores. Apart from reducing the transportation and storage costs, it also reduces inefficiencies in the system and Walmart stores are replenished easily and immediately.
Marketing and Sales: The brand has gained very high level of popularity because of its consistently low prices but apart from its brand image, it also actively invests in marketing. In , it spent 3. It is using advanced technology in new ways for marketing its brand more efficiently and to grow its sales as well as serve its customers better.
Apart from having raised the basic salary for its associates, it is also spending on their training and development. Procurement: Walmart has managed trustful long term relationships with its suppliers who provide standard quality products and do business according to the requirements mentioned in the Code of conduct for the suppliers.
Firm Infrastructure: The infrastructure of any organization plays a key role in the success of that firm. Walmart has built a very large infrastructure that includes its management, supply chain, human resources, its distribution and fulfilment centers and more.
Apart from excellent management of its technological and financial resources now it is focusing on managing its employees better to be more successful. It has kept increasing its investment in technology and people during the recent years considering their importance for the faster growth and success of the brand. This is also the thing that Walmart is most known for. It is known for helping Americans save money, buy more with their money and live better lives.
On the one hand it buys in bulk from most suppliers grabbing the lowest prices from them and then passes this advantage on to its customers. This is an effective strategy because in the retail industry which is intensely competitive, this can be the best method of differentiation.
This is also who Walmart has differentiated its brand from the other retailers in US. Another key strategy used by Walmart is that of quality. It sells only good products because if you sell low quality products at lower prices than you will be unable to generate a competitive advantage.
So, Walmart sells the right quality products at affordable prices. Lower pricing strategy helps create a competitive advantage which is sustained through good quality products. Anything else may be more speculative than factual. Most now use colors from standardized systems such as the Munsell Color System. They also use carefully monitored lighting designed to approximate daylight. Color Psychology Color Preference Researchers have conducted color preference studies in many age groups and have found significant results.
Infants as young as three months old consistently stared at some colors longer than others Crozier, They stared longest at red, then yellow, blue, and green. Color preferences appear to shift with age, however. Five-year-olds also preferred red, but ranked other colors as follows: blue, purple, orange, yellow, and green. Further shifts in color preference occur with maturity and adulthood.
Most significantly, adults begin to prefer green and blue, while beginning to dislike yellow Crozier. Color preference studies have found slight variations in adult hue preference, but this classic hierarchy that Eysenck established has been generally correct for sixty years: blue, red, green, violet, orange, and yellow. It was found to be true across both genders and ethnic groups.
This does not imply, however, that traits such as gender and ethnicity have no bearing on response to color stimuli. Extroverts generally prefer brighter colors, whereas introverts prefer lighter, more subdued tones Crozier, Khouw , as cited in Singh, found the genders differed in perception of grayscale tones and color combinations. Women also became more confused and distracted than their male counterparts.
Color preference research commonly has studied only hues; but the other two dimensions of color, brightness and saturation, play a large role in the overall appearance and emotional effects of any given color. They discovered relatively simple patterns in which brightness and saturation had substantially greater effects on emotions than hue. It is because of such research that the findings of early experiments that studied and specified only hues must be read with discernment.
Color Response Nature and nurture. One of the chief questions to arise in color psychology is the question of behavioral origins. Studies seek to determine if responses to color stimuli are innate, learned, or some combination of the two. Although research with infants indicates that innate reactions do exist, variation in color response across demographics suggests that much of adult color response is learned Crozier, Innate response. As mentioned in the previous section, Choungourian as cited in Crozier, found that three-month-old babies stared longer at long-wavelength colors such as red and yellow.
Many animals with color perception also show innate preferences, but, ironically, for short-wavelength colors such as blue and green. Moths, bumblebees, and robins also showed preferences for blue Crozier. If these animal responses are innate, humans differ drastically from animals in innate color response. Learned response. Although some mature human responses to color stimuli may be innate, many others appear to be learned.
These learned responses may result from either natural or cultural color conditioning Crozier, Natural color conditioning occurs when a positively or negatively perceived natural element casts its own positive or negative connotation on a related color.
It can operate universally and cross-culturally. Consistent with this theory, Hemphill also found negative responses to gray, which subjects associated with rainy, overcast days. Cultural color conditioning plays a significant role in shaping responses to color stimuli. Different cultures vary in their use of color, affecting individual responses.
For example, the Ndembo of Zambia do not recognize orange as a color, whereas the Hindus consider it sacred Singh, Muslims and Celts shared green as their sacred color Singh. Christianity, while not embracing colors as sacred, contributed strong salvation-related meanings to red, white, and black.
Other color associations, such as white in weddings, red ink used to mark mistakes, and figures of speech such as green with envy influence color evaluation. Responses to hues of different wavelengths.
Hue classes. Colors are paradoxes. They affect emotions, behaviors, preferences, performance, and physiology in many different, and sometimes contradictory, ways. Two classes of hues exist, arranged according to wavelength.
Each class is distinct, generally exerting influences opposite to those of the other class. Warm hues. Warm colors raise the heart rate and increase hunger Berman, This makes them popular choices for fast- food restaurants. They are also eye-catching and appear as warning signs on fire trucks, brake lights, stinging insects, stoplights, traffic cones, hazardous substances, and inmate uniforms. Red is perhaps the most studied, yet most disputed color. Researchers agree that it is powerful and generally liked, but it is difficult to study conclusively.
It has implications of passion and romance in relational contexts. Red is a popular choice for sports teams. Despite its energizing qualities, red also has an intimidation factor. It makes objects seem heavier and time pass slowly Birren, Fashion experts warn against wearing red for job interviews, as it may intimidate prospective employers Berman, Elliot and Maier found the presence of red anagram tests significantly impaired performance.
Yellow and orange share many of the same properties. Color theorists agree that yellow is a happy hue Cimbalo et al.
It has pleasant connotations of sun, brightness, and warmth Cimbalo et al. Ironically, it is also the least-preferred hue. Like red, it raises the pulse, but not to the same extent. In soft, creamy tones, yellow is soothing Berman, It often appears brighter than white to the human eye Birren, , and is a popular color for attracting attention in everything from packaging Berman to road signs.
Orange is another happy but unpopular warm hue Cimbalo et al. It also draws attention and stimulates the appetite Berman. As the hybrid of yellow and red, its bright yet powerful properties have made it a popular color for marketing cleaning products. Cool hues. Cool hues, on the other hand, are recognized as more relaxing, and are collectively much better liked Crozier, Blue is a popular choice for traditional restaurants because it relaxes customers and encourages them to linger, making them more likely to add to their orders.
Contrary to red, blue makes objects seem lighter and time pass more quickly Birren. Like red, its happiness properties are disputed.
In a study conducted by Cimbalo et al. It is a pervasively popular wardrobe choice, as the major color in half of all clothing combinations Hemphill, A happy color Cimbalo et al. Green also has creepy associations with death, poison, and supernatural or extraterrestrial phenomena. Birren described it as a psychologically neutral color, representing a withdrawal from stimulus.
Importance of context. Although blue is consistently preferred and yellow consistently disliked Crozier, , most people would prefer yellow in the context of a lemon or a wedding band. There is a sort of dignity employed in proper color application. Color should function as more than a basic tool for blunt impact. Good design incorporates color in all its subtleties—shade, tint, hue, and chroma.
Designers should use color to relate with their audiences, rather than as a tool for psychological manipulation. Color may shout, but it must also speak to its viewers in witty, intelligent, and conversational ways. Audience Targeting Personalizing through color. Color is a wonderful, seemingly effortless way to converse with specific audiences.
With careful attention given to gender, age, culture, social status, personality, and color trends, the designer is able to reach his audience more effectively through color. Color signals personalization Lambert, Any intimacy a designer can achieve with his audience through color is a valuable asset.
Both sexes prefer the same house and car colors white and beige; and blue, silver, and black, respectively. Thanks to a more flexible gender role, women are free to be more accepting of the entire color spectrum.
Social restraints still discourage men from liking pinks and purples, but more men are wearing these colors than ever before. A general rule of thumb in designing for different age demographics is to use lighter colors when designing for older audiences. As people age, colors begin to look darker, making lighter colors more appealing. They are very open to novelty and experimentation with colors.
Color effects such as glitter, translucence, pearlescence, and metallics appeal to younger audiences Paul. Secondary colors are also heralded as young Dettmer, Hues are an important consideration, but shades also factor into preference differences across age demographics.
Culture, ethnicity, and nationality. A study of international color connotations revealed that there are virtually no universals. Peterson and Cullen catalogued cultures and colors and found tremendous diversity worldwide. For example, green can hold vastly different connotations for desert and rainforest dwellers; white, for tropical and polar residents. Natural color occurrences, coupled with local preferences and centuries of history, produce complex color meanings and associations across the globe.
Learning the color vernacular of the target audience is important, but Peterson and Cullen warned against mere mimicry. Cultures worldwide love the exotic. In the United States, there are slight color preference variations among ethnic groups. Asians, blacks, Hispanics, and whites all prefer blue Paul, Purple is slightly more popular among blacks and Hispanics, whereas Asians prefer pink and whites lean towards green.
Social status. Blue-collar audiences prefer primary colors, while more upscale audiences prefer softer pastels Nelson, Personality affects not only response to different colors, but color sensitivity in general Nelson, Extroverts are highly responsive to color, whereas introverts are actually more sensitive to shape. Color is more persuasive with its audience than shape is, however, as extroverts are more responsive to color than introverts are to shape.
Extroverts also prefer brighter colors, whereas introverts prefer lighter, more subdued tones Crozier, Color trends. Choosing colors is an important decision in any area of design. Selecting a color that will appear for years to come has far-reaching consequences and may either bolster or damage sales in the future Lambert, It must be formulated with a careful understanding of current and future color trends. Faber Birren theorized that popular colors are in for about three years Toufexis, Preferred colors rise and fall in accordance with current events, pop culture, influential designers, and social movements Nelson, The King Tutankhamen traveling exhibit of left golds, browns, and autumn colors in its wake Nelson, One writer attributed the widespread soft pastels of the mids to the influence of architect Michael Graves Nelson.
Social causes also affect color trends, often employing colored ribbons as cause symbols. Color trends can also be embarrassed responses to earlier fads. Sometimes the color pendulum swings out of repulsion rather than attraction.
Color Use in Graphic Design Color schemes. After audience research, designers must focus on the organization, corporation, product, or service to represent to the target audience. Before designers can select individual colors, they must assess color schemes and printing budgets Williams, Multiple-color combinations can add depth, complexity, and additional meaning to design. A common two-hue combination involves complimentary colors, colors directly opposite each other on the color wheel e. Three-hue color harmonies often involve triads, colors located equally far from each other on the color wheel Bleicher, Adding a second color allows the designer to fake a full-color print.
Nelson recommended adding greens and blues while avoiding yellow. In the direct mail arena, red has been a longtime leader for the most effective second color. One-color schemes, however, were ranked more tasteful than their two- or four-color counterparts. A simple monochromatic color scheme can lend an air of sophisticated restraint while cutting costs Nelson, A phenomenon known as vibrating colors occurs when bright colors of equal intensity are placed beside each other Berman This can make text difficult to read.
Color vibration is most often a design faux pas except for rare occasions when the vibration is an intentional part of the design.
The graphic designer must consider value and saturation as well as hue. Gorn, Chattopadhyay, Yi, and Dahl found that greater value in a magazine ad increased viewer relaxation, and greater saturation increased excitement. Gorn et al. Color is king in advertising.
Consumers remember colors first, then graphics, numbers, and finally words Wallace, Full-page color ads are noticed twice as much as their black and white counterparts Nelson, Although full-color ads cost a third more than black and white ads, they are up to fifteen times as effective in measured results.
Color advertising pays for itself. Packaging plays two vital roles. Furthermore, they scan store aisles for colors, not for design or text Nelson. Packaging color defines and destines products. In packaging, some colors or color combinations carry different connotations than they would have in other contexts. On a package, white is far from a passive ingredient.
When white appears on soft drink cans, it implies that the drink is low in calories Nelson, Bright letters on fields of white convey impressions of strength and purity. The weight loss drug Alli utilizes a white field across which it splashes red, blue, yellow, and green letters that testify to its slimming powers Sturgess, John Steel of Colgate-Palmolive Co.
Colors as allies. Colors are entities of vast power. This is why color is a weighty factor in branding logos and palettes. Color choice is nowhere more crucial than in logo design, where slight variations in hue can have enormous economic impact.
Color choice can also make a logo memorable or forgettable. Huang, Lin, and Chiang found that using a preferred color with an unfamiliar logo significantly increased logo recall. In survival mode, a low-quality grayscale reproduction such as in a want ad, a logo must be able to function independently of color or even value. Gernsheimer recommends that designers create their logos in black and white to test their grayscale effectiveness before exploring color possibilities. For a logo to reach its maximum potential, a signature color is a virtual requirement Gernsheimer, Additional colors are often distracting and can harm branding consistency.
However, neutral colors e. They can also be added to the primary color palette. Restraint is invaluable in color selection. The colors should function well both independently and collectively. Successful, established logos can rely on design and color alone, rather than text, in their representations Bleicher, Some companies can even be represented only by their colors, such as UPS with brown and Coca-Cola with red. Brand colors. In branding, there is no greater trademark than owning a color Alva, Branding colors make enormous suggestions about the organizations or corporations they represent.
Brown promises that UPS is steady and reliable Alva, Purple hints that Nexium is sensual and spiritual Applebaum, Orange says that Tide is cleansing and energetic Berman, Brand confusion is an important factor that can either help or harm.
Often competitors within a given market choose colors that will differentiate them. Although red is passionate and yellow is eye-catching Alva , secondary colors are enjoying popularity Dettmer, They are nontraditional and more youthful. Orange has largely replaced blue in this decade. Eiseman , as cited in Alva, condemns taking advantage of brand confusion. However, Forest , as cited in Nelson, points out that new brands can actually enjoy free rides on the backs of established competitors by using similar colors.
For brand independence, however, it is best to introduce a new color into a given arena. Color palettes. Color palettes must work in close harmony with the logo and the signature color Gernsheimer, Each color in the palette must also function well alongside other palette colors.
Colors can lend a hierarchical element to branding design Gernsheimer, They often function in pairs, with a mid-value color defining the logo and a darker shade used for accents or coloring the tagline. The medium in which the palette colors will most commonly appear determines color parameters and possibilities Gernsheimer, Color is free onscreen, whereas printed color is much more expensive. Logos and palettes that appear most commonly onscreen make for easy and inexpensive full-color reproduction.
Conclusion At its best, color converses.
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