According to Hunn, this little promotion in a relatively low trafficked part of the store soon
blossomed into a major deal, because of the newly expanded scope of the promotion. WalMart
executives were convinced that if consumers were enticed by a gallon of pickles at $2.97
in the Food Service section, then they would be even more enticed if the promotion was
moved to an end aisle. In fact, Wal-Mart buyers saw the one-gallon jar as the “customer stopper”
they wanted. The product was to be a special feature that was showcased in end stacks
near or at the front of the stores. At the agreed upon price of $2.97, the jar would yield only
one or two cents per jar for Vlasic. At this lower cost, Wal-Mart could price the jar at $2.97,
leaving no more than a few cents profit per gallon jar for Wal-Mart as well. However, Hunn
secured the deal with one proviso—all gallon-jar orders would have to be tied to a corresponding
order of grocery sized items. As another control measure, the total number of cases
that Vlasic would sell to Wal-Mart was established at the start of the fiscal year as part of the
normal planning process.
According to Hunn, this little promotion in a relatively low trafficked part of the store soonblossomed into a major deal, because of the newly expanded scope of the promotion. WalMartexecutives were convinced that if consumers were enticed by a gallon of pickles at $2.97in the Food Service section, then they would be even more enticed if the promotion wasmoved to an end aisle. In fact, Wal-Mart buyers saw the one-gallon jar as the “customer stopper”they wanted. The product was to be a special feature that was showcased in end stacksnear or at the front of the stores. At the agreed upon price of $2.97, the jar would yield onlyone or two cents per jar for Vlasic. At this lower cost, Wal-Mart could price the jar at $2.97,leaving no more than a few cents profit per gallon jar for Wal-Mart as well. However, Hunnsecured the deal with one proviso—all gallon-jar orders would have to be tied to a correspondingorder of grocery sized items. As another control measure, the total number of casesthat Vlasic would sell to Wal-Mart was established at the start of the fiscal year as part of thenormal planning process.
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