Brandon LuongBlair CrawleyTyler Weaver

Carter WhitelowWhitney Washington

Strategic Plan Recommendations

Opportunities & Threats

Threat Wall Drug being overcome by other

similar tourist destinations, due to not having a competitive advantage or key

differentiationOpportunity

Expand into a foreign market.

Revitalizing the Wall Drug Brand

• Current Marketing Efforts• Marketing Objectives– Web Presence– SEO – Advertising– Key Partnerships– Focus=People

Target Market Analysis

Understanding Our Customers/Tailoring Content

Advertising & Sales Promotion Strategies

Website Optimization

Itunes App.

Branding

Destination Marketing

Logo Design

Celebrity Endorser

Social Media

• Emphasize Product over Social Media• Social listening• Going viral!

Measurement

• Search Engine Optimization

• Cost Per Thousand (CPM)

• Pay Per Click

Key Partnerships

International Expansion

Germany

Operations

Special Holidays/Festivities

Example: Halloween

• Decorations • Employees will dress as

ghouls, monsters, demons…and Butler

• Entertaining for both customers and employees

• Special goods and cuisines

Activities (cont’d)

• Capital holidays with extended time frames

• Possible events to capitalize:– Halloween– St. Patrick’s Day– Super Bowl– Anniversary of Wall Drug

• distinct themes

Key Construction Investments

-Stage-Staged shows-Private Rentals

-Casino-Saloon Style-Different age appeal

-Bars -Saloon Style -Complement casinos

…Pools & Laser Quest…

Human ResourcesKey Values of Wall Drug

• Support…

• Collaborate...

• Create…

The People

Happy Employees=Happy Customers

The Transition…Egalitarian Structure

Hierarchical Structure

Loosely coupled Tailored

Internal Alignment• Hierarchical Structure– value differences in work content,

individual skills, and contributions–Multiple Levels– Opportunities for Promotion– Larger Pay Differentials– Individual performers– Performance is key

Student Recruitment

• Recruitment Process

• College Audience

President and CEO of

Wall Drug

Bill Hustead

VP of Marketing

Karen Hustead

VP of Production

Marjorie Hustead

VP of Sales

Rick Hustead

FinanceManager

Karen Poppe

Wall Drug Mall Manager

Teddy Hustead

Pharmacist Manager

Kathy Hustead

Owner of Wall Drug Store since 1931 with

his wife Dorothy. Together, Ted and

Dorothy bought the drugstore in Wall,

South Dakota for $2500. Retired at the

delicate age of 82, Ted and Dorothy had decided to pass down the prosperous and successful business to his only son Bill

and his wife Marjorie, who have brought

great contribution to the store as well.

Ted HusteadFormer Chairman of the Board

Responsible for the success or failure of Wall Drug

●Ensures that Wall Drug is operating in a positive environment and that employees

are providing the best customer service to clients and customers

●Oversees all Departments of Wall Drug Store including Operations, marketing,

strategic planning, financing, the company’s culture

●Makes sure the store is in compliance with safety regulations, sales and public

relations●Makes sure revenues are in coordination

with Wall Drug’s balance sheets and income statements

●Enforces the rules and regulations which are in compliance with those of the state and

federal laws●Makes sure managers, supervisors and

employees are carrying out their duties effectively and efficiently within

their own departments

Bill HusteadPresident and CEO of Wall

Drug

Compensation/ Benefits Package

Addressed specifically with Karen Poppe, the Head Personnel Manager of Wall Drug.

Base salary varies for employees, depending on knowledge, skills, abilities and

experience.

Incentives are directly related to job performance of the individual and change

each pay period.

Financial history• First months receipts totaled $350• Struggled financially until 1936,

when Wall Drug stated offering free ice Water and 5 cent coffee

• Increasing Revenues

Revenue Growth

• cost leadership & niche product line

• Turned from a drug store into a tourist attraction

• Capitalized on the Badlands and Mount Rushmore

• Gained massive publicity from their worldwide signs and publications

Threat From Rising Commodities

• Wall Drug maintained steady growth until the gas shortage of 1971

• It cut into profits dramatically due to a decrease in tourism to the attractions

• This threat could be resolved by keeping a cash balance of at least $100 K to remain solvent

Taking Market Share From Deadwood

• There are significant threats from Deadwood, S.D. due to the betting casino

• Deadwood is able to attract 10 times the revenue for lodging in the winter months

• Utilizing Christmas in the West Art Gallery is key

• Constructing lodging or acquiring a franchise for lodging is key

Western Art Gallery

• The Wall Drug Western Art Gallery and Mansion will be crucial to growth.

• They must charge at least $10 per person• Conservative estimates project average

revenues of $11,000 per month• Can raise additional capital by cycling out

pieces and always maintaining 30-40 pieces in the gallery and selling less popular paintings

Strategic Alliance with Best Western

• Franchise a Best Western hotel and put it in Wall, S.D.

• This would legitimize their lodging concerns at a very low price

• Total 10-year costs total $1,388,333• Potential 1-year income totals nearly

$2,000,000• Capitalizes on the Sturgis and ritzy family

markets

Leveraging• Wall Drug should leverage its firm strongly• Take out a loan of $1,000,000 USD for ten

years at an estimated 8 percent cost of capital• Contact a favorable bank in the area to

acquire great rates and leniency.

Balance Sheet Examination

• Should diversify into different asset classes, not just cash

• Should have $100 K in marketable securities and $167K in cash

• Inventory levels are very high, but could be balanced by an increase in tourism

Expansion

• Expansion in Germany is a ten year strategic partnership plan starting two years from now

• Will partner with Silver Lake City in Germany, which is a fledgling Wild West theme park

• Wall Drug can lend its authentic western expertise, and use the funds from their US operations

• They charge more in Germany than Wall Drug charges in South Dakota, and it is 60 miles from Berlin

Any Questions or Comments?