Week 7 BOC: Largest Retailers

Who is the world’s largest retailer?

            Its no surprise, Wal-Mart still holds the number one spot at world’s biggest retailer. As of 2012, Wal-Mart sales were $328,704,000 with a 4.0% growth. Wal-Mart currently operates under three segments:  Wal-Mart U.S., Wal-Mart International, and Sam’s Club. The Wal-Mart U.S. segment reaches all 50 states and Puerto Rico, the International segment reaches 26 different countries, and Sam’s Club reaches 47 states and Puerto Rico. Kroger is in second place as of 2012 with sales at $92,165,000 and Target in third place at sales of $71,960,000.

Who is the world’s largest fashion retailer?

            The world largest fashion retailer is Inditex, or as we commonly know it by their brand Zara. They are located in Galicia, Spain. In a time that GAP was struggling, Zara was able to expand its stores across the globe, making it not only number one in America but also number one in the world. Zara recorded a 9% increase in sales in its first quarter of its financial year while the GAP saw it revenue fall by 10% within that same period.  “Every one of Inditex’s brands — Zara, Zara Home, Bershka, Massimo Dutti, Oysho, Stradivarius, Pull & Bear and Uterqüe — follow the Zara template: trendy and decently made but inexpensive products sold in beautiful, high-end-looking stores. Zara’s prices are similar to those of the Gap: coats for $200, sweaters for $70, T-shirts for $30.” Inditex now has more than 5,900 stores in 85 countries. Their main rivals are Topshop, H&M, and Mango. They have annual revenue of $15 billion. “While the world's largest retailer, Wal-Mart has more than 10,000 stores, most of which sell apparel, Wal-Mart stores are classified as hypermarkets. Inditex is strictly a retailer of apparel and fashion merchandise, and therefore, is considered to be the world's largest fashion retailer.”

Who is the world’s largest music retailer?

            It is none other than iTunes. Although it is the worlds largest it is mainly popular within the states. “iTunes Store surpassed Wal-Mart to become the number one music retailer in the US, based on the latest data from the NPD Group*. With over 50 million customers, iTunes has sold over four billion songs and features the world’s largest music catalog of over six million songs” With Spotify being the second largest source for music in the world, but number one in Europe. Spotify saw a 20% growth in its sales in Europe in 2010.

Citations:

Stores’ 2013 Top 100 Retailers List Shows Continued Industry Growth. Retrieved on August 21, 2013 from http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=1612

Which Retail Clothing Chain is the World’s Largest Retailer of Fashion Apparel? Retrieved on August 21, 2013 from http://retailindustry.about.com/od/FrequentlyAskedQuestionsFAQs/f/Which-Retail-Clothing-Chain-Is-Worlds-Largest-Retailer-Fashion-Apparel-Clothes.htm

Zara overtakes Gap to become world’s largest clothing retailer. Retrieved on August 21, 2013 from http://www.theguardian.com/business/2008/aug/11/zara.gap.fashion

iTunes Store Top Music Retailer in the US. Retrieved on August 21, 2013 from http://www.apple.com/pr/library/2008/04/03iTunes-Store-Top-Music-Retailer-in-the-US.html

Spotify Second Largest Source of Revenue in Europe For Labels. Retrieved on August 21, 2013 from http://www.arcticstartup.com/2011/02/09/spotify-second-largest-source-of-revenue-in-europe-for-labels/

Wal-Mart Stores Inc. Retrieved on August 21, 2013 from http://topics.nytimes.com/top/news/business/companies/wal_mart_stores_inc/index.html

Week 6 BOC: Tylenol Scare 1982

What Happened?

On September 29, 1982, it was reported that seven people had died all of them took cyanide-laced capsules of Tylenol. After the seven deaths a man named James W. Lewis was arrested due to claiming that he was this so called “Tylenol Terrorist” and that he wanted the company Johnson & Johnson to give him a million dollars to before he kills more people. Lewis was found not to be the “Tylenol Terrorist" and this case still goes unsolved to this day.

How did Johnson & Johnson Protect Their Brand?

“Marketers predicted that the Tylenol brand, which accounted for 17 percent of the company's net income in 1981, would never recover from the sabotage. But only two months later, Tylenol was headed back to the market, this time in tamper-proof packaging and bolstered by an extensive media campaign.” Johnson & Johnson is committed to its mission statement of putting its customers first and that is ultimately the reason why they didn’t disappear after the 1982 Tylenol Scare. This was a great step for Johnson & Johnson to do, although it wasn’t their fault that people died using their product they didn’t just sit back and do nothing. “Tylenol maker Johnson & Johnson was quick to cooperate with investigators, ordering a mass recall of the medication, halting production and taking other measures to improve product safety. The company has been widely praised for its reaction.” After they did this huge recall they came up with new packaging so that no tampering could be done to their product, they also changed the design of their Tylenol by making them into caplets. They offered promotions through newspapers and phone calls to help motivate customers to buy their new Tylenol. Also “to recover loss stock from the crisis, Johnson & Johnson made a new pricing program that gave consumers up to 25% off the purchase of the product. (Mitchell 1989)

 Over 2250 sales people made presentations for the medical community to restore confidence on the product. (Mitchell 1989)”

Citations:

Rehak, J. (2002). Tylenol made a hero of Johnson & Johnson: The recall that started them all. Retrieved on August 14, 2013 from http://www.nytimes.com/2002/03/23/your-money/23iht-mjj_ed3_.html

The Tylenol Crisis, 1982. Retrieved on August 14, 2013 from http://iml.jou.ufl.edu/projects/fall02/susi/tylenol.htm

Noonan, J. (2009) History of the Tylenol Poisonings. Retrieved on August 14, 2013 from http://www.findingdulcinea.com/news/Americas/2009/feb/History-of-the-Tylenol-Poisonings-.html