Marketing Factoids

  • Music sales in the United States will decline to $9.2 billion in 2013, from $10.1 billion this year. source ›
  • Acquiring a new customer costs about five to seven times as much as maintaining a profitable relationship with an existing customer source ›
  • Consumers ages 18 to 27 say they use the Internet nearly 13 hours a week, compared to viewing 10 hours of TV source ›
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DEC 2007

How the Discounters Hurt Themselves†

Wal-Mart, Dell, Others See Growth Stall as Rivals Learn How to Beat Them

Advertising Age, December 10, 2007 — If one thing defined the marketing landscape of the 1990s, it was the power of cheap.

Wal-Mart Stores, Southwest Airlines and Dell Computer reshaped their industries with low-cost models that forced competitors to adapt or die. Each of the power discounters thrived heading into the 21st century as their competitors often struggled.

But each is now facing a much tougher battle for growth. Wal-Mart's top line has continued to weaken; both its revenue and comparable-store sales — excluding grocery — grew slower than Macy's last quarter. Southwest is cutting expansion plans and revamping its service model. And Dell returned to founder Michael Dell as CEO to reinvigorate growth.

Category: Marketing Strategy
Tags: Dell, Southwest, Wal-Mart, Repositioning

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