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Walmart

Walmart is known as a hardball negotiator due to its large size and buying power. The document discusses two examples of successful negotiations with Walmart. Tom Muccio from P&G improved P&G's relationship with Walmart by focusing on mutual goals and trust instead of just price. This increased P&G's sales with Walmart over 350% in 25 years. A young farmer, Sarah Tally, was also able to negotiate successfully with Walmart by deeply understanding their operations and finding innovative solutions to lower costs.

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1921 Pallav Pali
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218 views

Walmart

Walmart is known as a hardball negotiator due to its large size and buying power. The document discusses two examples of successful negotiations with Walmart. Tom Muccio from P&G improved P&G's relationship with Walmart by focusing on mutual goals and trust instead of just price. This increased P&G's sales with Walmart over 350% in 25 years. A young farmer, Sarah Tally, was also able to negotiate successfully with Walmart by deeply understanding their operations and finding innovative solutions to lower costs.

Uploaded by

1921 Pallav Pali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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WALMART

TACKLING HARD BALL NEGOTITATION


CREATING MUTUAL BENEFIT OR A WIN-WIN SITUATION
How to deal with ultimate non-negotiator
• Walmart can survive without sally but not without P&G.
• Try to develop the customer experience and benefits
• the relationship improvement and wider angle pov.
• and sales increase by margins
• the price piece will be one of many points, most of which they’re aligned
on.
• Increasing the scope
• WIN-WIN
• ASSERTIVE AND EMPATHY
• LOOK FOR LINKS ACROSS NEGOTIATION
• WIDE ANGLE VIEW
• BUILIDNG RAPPORT, CREDIBILITY AND EFFECTIVE WAY TO APPROACH
DEALS
• TO THE POINT
SCENARIO
• Walmart is a hard ball negotiator due to its volume and reach.
• Walmart treats the other party tonegotiation depending on the
importance and place of the dealer in their large grand scheme.
• Sales of 514.4 billion of goods in 2019.
• The main reason for success – EDLP “Everyday low prices”.
• The negotiations with Walmart can either be win-win that is
successful or push the player out of the market that is to shut down
operations.
• Sarah Tally & Frey Farm Produce
• Tom Muccio : P&G relationship with Walmart.
TOM MUCCIO : P&G
RELATIONSHIP WITH
WALMART
• Created a win-win situation by forming a supplier-retailer relationship.
• The relationship was formed by devoting time and developing trust.
• P&G shifted to home turf of Walmart Arkansas.
• Resulted in elimination of legal contract and formed letter of intent by
crating the relationship.
• Moved away from lowest common denominator “low price” that were
earlier the basis of interactions.
• Common goals, problem solving and information sharing were the
pillars of trust.
• 1987-2013 sales went 350 million to 7.8 billion. (2128%)
SARAH MEETS GOLIATH
• Young 19, negotiating for watermelons and pumpkins.
• Hard ball stance by Walmart.
• She studied the culture of Walmart and came up with innovative and
creative solution by creating money and saving cost in supply chain.
• Reducing cost from 12000 to 1500 for transportation and decreasing
lead time to the warehouse. (87.5% reduction).
• Negotiated a co-management supplier agreement to share the
responsibility of inventory levels and sales.
• This saved money of customers increasing discounted price and
improving profit margin.
KEY TAKEAWAYS
• negotiating to resolve differences should focus on long term common
goals.
• Don’t make direct demands and conditions.
• Become a problem solver
• Never ignore small issues
• Be clear about agenda and be to the point. Point out the issues.
• Communication and negotiated compromises are key.
• Young people are ambitious to move up within the company and can be
some of the toughest negotiators.
• Know your product all the way from the production standpoint to the end
use.
• Chances are your buyer does, and will expect you to be even more
knowledgeable.

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