Marketing Management Test #2 Case Study

What recommendations would you make to Lew Frankfort to improve the company's competitive position in the industry and its financial and market performance?

Maximize profits while minimizing costs. Also focusing on distribution in America where every other distribution is located. Lastly, the company should expand in formal and business wear.

What policies, practices, support systems, and management approaches underlie Wal-Mart's efforts to execute the company strategy?

One of the main things about Walmart is that they are extremely accessible, they have thousands of stores all around the world and if you don't live near one, you could always use their internet store and buy from there. Being this accessible makes marketing to people much easier since the customer doesn't need to work hard to do business with them. Customers are also able to contact them 24 hours a day, which helps with the customer satisfaction aspect of the whole business. Walmarts performance in the retail industry has resulted into numerous awards and have made the employee and shareholders millionaires due too the increase of their stocks. In addition, the company has included a number of initiatives such as: -Recasting the company's mission to " Saving people money so they can live better" -Revising the Logo to better mirror the company's shift away from their previous logo's and slogans. -Making a special effort to shift the company mission statement to the theme "Save money live better.

Pets.com's growth strategy relied on heavy spending on market communication and low pricing. Critically appraise this strategy. What alternatives did Wainwright have?

Pets.com should not have invested so heavily on marketing without the possession of a physical store. Low-pricing often put them in hard positions because they were not breaking even on things like shipping. Since there was such a high cost of goods sold it caused the stock price to drop. The best alternative for Wainwright was to move towards a physical store, because just because a consumer sees a commercial during the Super Bowl doesn't mean they won't be confused on whether the commercial they saw was for a physical store or an online retailer. Consumers love to have things immediately in hand and that was the problem. Being just an online retailer limited Pets.com severely.

If you were an investor in Red Bull, would you take your money and run or stay for the long haul?

Despite the difficulties that Red Bull has faced of trying to expand and grow its product, if we were investors, we would continue to invest in the company. They have displayed on going efforts to beat competition while staying true to their brand vision. Red Bull is a solid company that continued to pursue different opportunities regardless of rejections they've faced. As an investor the most important thing, is seeing growth and potential success of the product, and ultimately Red Bull exhibited great potential.

Identify and evaluate Clearwater Technology's existing pricing on the QTX line. What are its pricing objectives?

The QTX Line featured a sales support server that allowed more than one user to maintain their sales account database at the same time. These sales account databases had information such as contact information, quote histories, copies of communication and links to the customer's corporate database for shipping records. For a simple and basic QTX package, the manufacturing cost was $500 and included a processor, chassis, hard drive and network interface. This package could accommodate 10, 20 or 30 users at a time. For each increment of 10 users, a $200 manufacturing fee was added to the original $500 cost. Their pricing objective became to provide a reasonable and fair price on the system for their customers that was consistent with Clearwater's current pricing without revealing too much information on the company's margins.

Why did the first U.K. launch go awry?

The beginning stages of Red Bull in the United Kingdom was unsuccessful, there were many things that contributed to the failure. Before introducing the product to the U.K, Red Bull entered through Scotland then the U.K. One of the main ingredients in Red Bull energy drink was taurine which was not on the list of allowable food ingredients in mid 1990s. Secondly, Red Bull identified themselves under the sports-drink market instead of a stimulation drink. Lastly, the U.K management team fail with marketing and advertising the product; they determined not to partake in word-of-mouth promotion. Red Bull decided to sell its products through mass-market channels such as chain stores. The U.K management also decided not to air their typical cartoon commercial with the slogan "Red Bull gives you wings" but instead a billboard-focused campaign with the slogan "You should never underestimate what Red Bull can do for you".

Evaluate the price options presented at the meeting.

The price option began with Rob. During the meeting he admit the firm needs to come up with prices for both the 10 seat and 20 seat upgrades to keep thing measurable. For example a customer upgrading from a10 seat unit to a 30 seat unit is adding is adding which will result in a 200 dollar increase. Rob also suggested an alternative plan. If a 10 seat customer decides to upgrade to 30 seat capability the firm should charge the difference between between what the buyer has already paid and the price of the new capability. Ex: New 30 seat unit $ 17,250 Original 10 seat unit $ 8,000 Price for 20 seat upgrade $ 9, 250

Which of the generic strategy is Walmart employing? What are the chief elements of this strategy?

Walmart's current strategy are deeply ingrained in the cost-efficient operations, everyday low prices, multi store formats, wide selection, and a consumer friendly environment. Walmart uses an everyday Low Price (EDLP) pricing strategy. In fact "Everyday Low Price" advertisements are frequently seen in Walmart stores. Walmart has vigorously and successfully pursued a low-cost leadership strategy and are number 1 in finding new and better ways to operate cost efficiently. To execute its everyday low pricing strategy, Walmart has put a heavy emphasis on getting the lowest prices from suppliers, forging close working relationships with key suppliers to achieve cost saving

Is the U.S. airline industry attractive?

Yes because Southwest growth is in stark contrast to the much slower growth of its major competitors. Load Factor: a sophisticated software tool to maximize capacity utilization aka. Load factor. Yield Management System: analyze travel pattern to determine how many tickets to sell at a certain price. Mission: Sell higher

What should the final price be?

After all three members spoke Jefferies had an alternative. The concluded a theory to help meet the needs of all three departments. The pricing upgrades should not undercut the pricing for the 30 set QTX Motivate all the buyers to purchase a maximum number of seats at the initial purchase. Emphasize a dollar now is better than a potential dollar later. Don't leave any revenue on the table when buyers decide to buy more capacity. In result none of the theories meet all the criterias. Some have come close but did not meet the overall need.

What key factors determine the success of makers of fine ladies handbags and leather accessories?

Key factors that determine the success of makes of fine ladies handbags and leather accessories are accessibility, style, the type of leather, atmosphere in the store, and where the product was made.

What has been Sony's strategic approach with regard to new product development?

Sony in the history of the company has always lead the charge in the direction of innovation. When they decide to do something new the dedicate all available resources in the process of the development. It is displayed in all of the products over time. It has always paid off, but their success is stretched among many companies partnering in the project.

What issues do management/Lee Scott need to address?

work to neutralize the hostility of local citizens towards the opening of new Wal-Mart stores. Upping its wage scale to prevent labor union protests. More of an emphasis on culture in management & employee training. Senior executives go through all policies, procedures, and operating practices. Wal-Mart already had enemies and should not give any more ammunition due to ignorance of policies.

Describe Southwest Airlines' strategy?

"Luv" theme was a staple of the airline from the outset and became the company's ticker symbol on Wall Street. ● Two types of travelers: ○ Convenience time-oriented business travelers ○ Price-sensitive leisure travelers ● Price Cut other airlines: $20 instead of $26 and $13 on the weekends or $26 and a bottle of liquor. "75% of customers went with the $26 fare and Chivas Regal Scotch Whiskey in Texas. ● Initial Focus: Short-Haul (less than 500 miles), point-to-point flights, a fleet consisting only of Boeing 737s, high-frequency flights, low fares, and no internationals flights ● First to sell flights on an Internet site and first to create a homepage on the internet. ● First to have frequent flyer program based on number of flight not miles ● Page 259 Service Changes in 2007 and 2008/2009 ● Kelleher CEO/Chairman personality was, flamboyance, fun and a fresh unique perspective. ○ Committed to his employees and intense loyalty to his employees by remembering their names ○ A Visionary who leads by example you have to work harder than anybody else to show them you are devoted to the business. ● Customer Service is called "Positively Outrageous Service ● One-Size fits all "Customer Experience" ● 1st fewest customer complaints, Top Website, Best Customer on-time estimates, check in experience, best luggage policy ● Southwest flew more passengers per employee than other major airline while have the fewest number of employees per aircraft ● Debt-to-Equity - investment grade credit rating

What changes were made for the U.S. market? Should other changes be considered?

Changes in the U.S market included sampling at hip nightspots, sponsoring several alterna-athletes and sports competitions and creating The Red Bull Music Academy. The Red Bull Music Academy featured a collection of 60 club djs from around the world with hopes of them going back and promoting Red Bull at their local nightclubs. The toured included London, Sao Paulo, Cape Town and Rome. We believe no other changes should be considered, Red Bull has done a wonderful job in targeting their consumers and audience.

With the introduction of the upgrade, should Clearwater reconsider its pricing strategy?

Clearwater's Pricing Strategy seems to work for them, and the introduction of the upgrade can only provide benefits. By getting the QTX line into the hands of the user, they can assure that the user enjoys the experience enough to want to continue using it. Now, instead of having to buy a whole new system or switching to another, larger system when they expand their database, they can simply upgrade for what seems like a cheaper price. Or they can anticipate growth and buy the largest size outright. I think that Clearwater should reconsider having more users be able to use the database that way, if the user's database grows past 30, they won't consider switching companies.

What new market opportunities does Coach have? What threats do you see to the company's future well-being?

Coach can build on its contract with the Movado group since they have been partnered since 1998. The expansion of clothing pertaining to men, women's accessories, and other new product ideas will help distinguish the brand from its competitors.

Do you think the creation of a brand.icon, such as the sock puppet, was an effective strategy for drawing customers to the Pets.com website?

Creating the sock puppet was both effective and successful for Pets.com. The sock puppet gained quick recognition outside of the pet world. It had become somewhat of a celebrity making appearances on various morning shows (Today and Good Morning America) and magazines such as US Weekly. This opened a new gateway for Pets.com to advertise for free. Buzz is generated around the sock puppet, which ultimately generated attention for Pets.com

What would be your choice for the top five opportunities? The top 10? What equation did you use to reach that conclusion and why?

First choice would be Spain, because it has one of the highest meat consumptions beside the United states, has a high urbanization rate of 77 %. Second choice would be Ireland despite the lower population , they have a high urbanization rate, high beef consumption rate and a large GDP in the country. Third choice would be the UK because of their large population: 60,609 Urbanization rate: 89% and high GDP:30,300. Fourth choice France High beef consumption, 101.1 large population: 60,876 large urbanizations: 76% Fifth choice: Germany high beef consumption: 82.1 large population 82,422 high urbanization rate :76% and decent per capita gap Choices 6-10 6)Brazil 7)Argentina 8) Dubai 9)Switzerland 10)Netherlands

How easy would it be to imitate this strategy?

Imitating this strategy is possible, but it will not be easy. Once a company defines and separates itself from others, it is difficult to have other people hop on board to a repeated idea, especially if they are loyal. The only time that this strategy could successfully be imitated would probably be in the world of retail, which requires a marketing team always willing to serve the people well. Customer service is a necessity and in order to be successful, there has to be some kind of structure. A company can add and be influenced by the useful values and overall culture of another, but it will never completely replace what has already existed. Other airlines can attempt to come up with deals and even collaborate with one another to compete with Southwest, but this airline thinks faster and is always two steps ahead. Although Southwest has had issues and challenges, they have always recovered and continued to use their resources to ask the question "How can we get better?"

How is the market for luxury handbags and leather accessories changing? What are the underlying drivers of change and how might those driving forces change the industry?

Increasing incomes and wealth in developing countries and the changing of buying habits in the United States contribute to the change in the luxury handbag and leather accessories market. Households that consume less than $300,000 aspire to own higher level of products. Middle income consumers with a two income household reward themselves with these luxuries. The price of leather and how it is treated (difference between leather and fine Italian leather).

What are some of the internal and external challenges Hanna will face in moving from a list to actually opening restaurants?

Internal challenges Managing multiple locations over seas o Keeping the same integrity of the Ruth Chris name o Effectively appealing to the customs and consumers of that country External challenges: (economy finances accounted for when choosing the country ) - Government regulations / laws - Rules set in place by the government that the business must follow - Weather- significant events in weather, tsunamis, hurricanes can affect business in that country - Taste for American brands- it is important factor to understand if the consumers in that country are accustomed to American brands - Infrastructures - the basic physical structure is important regarding the buildings, roads and power supplies that can affect the location of the busines

What, if anything, should Sony do to turn around the sales of the PS3?

It be in Sony's best interest to continue to push innovative creative thinking moving forward using game consoles. In the history they have dominated when executing in foreign territory. They should become more multidimensional for gamers and other personnel. It is imperative they reach multiple markets in terms of users. Although, the amount of successful games does play a part in the potential future of Sony and developing game consoles​.

Evaluate Jefferies' pricing considerations for the upgrade. Are there other pricing factors that Jefferies might consider?

Jefferie is very insightful in considering that providing the upgrade option is leaving money on the table. If people assume that they can expand later, they will spend less now. This is definitely something to consider. Jefferies might also consider people's unwillingness to pay an extreme amount of money outright. People want to feel that they are getting a choice in their purchasing decisions and also want to feel that they are getting the best deal possible. Forcing a customer to pay a large amount outright for something they do not feel that they need at the moment (even if they do end up needing 30 users later) will cause hesitation and for the customer to consider other options. Jefferies also should consider the attractiveness of the idea of growth. If a customer buys a 30 user package outright, there is no upgrade or room for growth. They will have to switch to another company once their number of users exceeds 30 which might dissuade them from purchasing as well

What is Red Bull's success formula? For which kind of product/beverage categories will this formula work? How does Red Bull know when to turn on the advertising? What metrics would you use to make this judgment?

Red Bull came into the market by being exclusive. They would introduce the beverage into small communities and rely on word of mouth to increase popularity. They also priced their beverage higher than comparable drinks saying that the price was because it was a premium product. This again added to its idea of exclusivity. Red Bull has an interesting advertising tactic because it does a large part of it by sponsoring sporting events or music events, but it did do a great job with its commercials too. Red Bull begins to partake in traditional advertising avenues once it has already been successful in its test markets.

What was Sony's marketing program for the launch of the PS3? What is the competitive advantage of the PS3? What are the weaknesses of the PS3?

Sony supported the launch of the PS3 with a $150 million advertising campaign that aimed to convince potential customers to hold off purchasing a new system until after the holiday season instead of purchasing and Xbox 360 or Wii. The slogan "Pay beyond" originally developed for the Electric Entertainment Expo 2006 trade show by Sony's advertising agency TBWA, continued to be used throughout the prelaunch period. ● The competitive weakness ○ The playstation 3 was priced over $200 more dollars than the Xbox 360. ○ Sony decided to not include video cables needed to take advantage of the console's graphics cabalilities and the eliminate rumble (vibration) feature ● The competitive advatage ○ Customer loyaty, processor, brand reputation ○ Rechargable remotes ○ Touch screen interface remotees ○ Controllers spacially interactive with the game

Why is Southwest successful?

Southwest is successful strictly because they make it priority to create a culture that is much different from the others. I. Herb Kelleher (CEO of Southwest from 1981-2001) A. Kelleher set the standard for the company by giving his "unorthodox personality and engaging management skills" a shot. B. He was humbled, but was recognized by many as an astounding leader that deserved the credit and respect from others. C. He was loyal to the company which encouraged others to be just as enthused and alert and he was. II. Operations A. Revenue is high in number B. Became one of the largest airlines in the United States even in the midst of not deviating from its initial focus: primarily short haul (less than 500 miles), point to point flights, consisting only of Boeing 737s, high frequency flights, low fares and international flights. C. Only large airline to operate without major hubs. (was replaced with transit point cities) III. Service Changes 2007-2009 A. Southwest began including three new fare categories, including higher-tier fares for business travelers B. Establishment of new boarding processes (pay extra to board first) C. "Two bags fly free" offer in 2010 (no one else offered this service) D. Corporate sales increase IV. Southwest Spirit A. Promoting positively outrageous customer service. B. Testimonials from passengers C. Prioritizing to create a friendly environment for all who are able to experience. D. All of the enthusiasm that Kelleher instilled into the company are constantly being revisited, renewed and incorporated within training and day to day services. Overall, Southwest provides its customers the uttermost respect and make it priority to make sure that they are taken care of, even if it requires opening up their home for two weeks just so someone will not feel alone. Customer service and a strong training environment/marketing strategy always pays off.

What are the strengths and weaknesses of coach? What competencies and capabilities does it have that its chief rivals don't have?

Strengths i. Its attractive pricing - appeals to those consumers that normally do not consider luxury brands and those traditional luxury consumers that appreciate the quality and styling of products. ii. Sourcing agreements with offshore manufacturers, such as licensing agreement with the Movado group to make Coach Watches, agreement with Jimlar Corporation in 1999 that allowed Jimlar to manufacture and market Coach Ladies' footwear. iii. Coach's monthly product launches and voguish image increases consumer visits iv. The attractiveness of Coach full price stores enhances the company's luxury image and provides consumers with differentiated way of customer service than its' competitors b. Weaknesses i. Department store exposure - not favored by young consumers (shop more online and in smaller boutiques) ii. Storewide sales in department stores cause Coach to discount its items more than it would prefer iii. Outlet stores contribute very little to the elevation of Coach's brand c. Competencies i. The competencies and capabilities that Coach has is its locations: the U.S. and 18 international countries. Coach is a long trusted brand and an American product. Also, it has frequent releases of new collections.

What are the key success factors in the video gaming industry today? Are these the same as in the past?

Success in the gaming industry today is based on a company's ability to create a interesting and complex game that draws the attention of a selected audience with life like graphics. There is a similarity in the style of competition within the industry. As far as game consoles though, they adapted to a new technological culture. Game consoles are no longer just that. They have became streaming beacons, music, picture, and video file ready. As well as the ability to download new capabilities.

What created Red Bull's success? Where is the core franchise and benefit? Has the product's positioning changed over time? What is the role of alcohol mixing to Red Bull's success?

The fact that Red Bull was one of the leading energy-drinks worldwide and was growing by 45 percent to achieve sales of 30 million cases created the success of Red Bull today.The core franchise is in Austria the "functional food" product had a few benefits when it came to product positioning because the brand "Revitalizes Body and Mind" was so flexible; making the product suitable for intensive work days, prior to athletic activities/events, before tests and exams, after a long day and before a long night, when driving long distances, and as a revitalizing product after partying all night.Following entering the UK, Red Bull had to change its traditional marketing strategy as a stimulant to a sports drink. Then, rather than marketing by word-of-mouth, the product was sold through chain stores. On top of that, the company had to change its slogan; rather than the cartoon commercial with the slogan "Red Bull gives you wings" in the UK the slogan was "You should never underestimate what Red Bull can do for you." Alcohol mixing had become popular with the product and contributed to the company's success in nightspots. Different combinations had become well-known such as vodka and Red Bull also know as Smirnoff Bull and Red Bull and champagne. Norbert Kraihamer, the company's global director of marketing and sales, stated that they weren't opposed to the product being used as a mixer but "over time we must make sure that the product is regarded as much more than a mixer.

Compare the marketing program of the Nintendo Wii to the PS3. How are they different?

The major Difference between the marketing program for the Wii compared to the PS3 was there approach in system complexity. The wii was a much simpler console which allowed developers to focus on bringing more exclusive games to the console at its launch. The PS3 only had 15 wjereas the Wii had a much larger amount and the games they put out were well received. Nintendo decided that instead of having a bunch of add ons to the console which would add on to the price they would compensate with having better and a larger variety of games.

Describe the situation faced by Wainwright when she joined Pets.com as CEO.

The situation that Wainwright faced when she joined Pets.com as CEO was the possibility of Amazon.com looking to enter the pet supplies category. She made the decision to offer shares of Pets.com to Amazon.com. Out of all of the competitors, Wainwright feared Amazon.com the most due to its establishment as the leader in selling books and music online, and potentially broaden its product line towards pets supplies due to the booming pets industry. In June 1999, $50 million was invested in Pets.com and Jeff Bezos, CEO and founder of Amazon.com purchase 54 percent of the shares. In addition, Pets.com obtained a link on Amazon.com's home page. As a result of the partnership with Amazon.com, Wainwright believed this was a platform for early success because it eliminated a strong potential competitor and enabled Pets.com to use the experience and strategic assets of Amazon.com to build a competitive advantage (Peter, 2013, pg. 427).

Is the strategy sustainable?

The strategy is sustainable for customer retention and customer satisfaction as it pertains to price and service. Most flyers, whether they're business travelers or leisure travelers, are price conscious and are always on the hunt for the best deals on tickets. Hence, they make sure to book their flights in advance or compare prices online between differing airlines. Bearing this is mind, Southwest's high frequency flights and low fares are very attractive and appealing to such consumers as they ensure low competitive prices. Southwest's brand positioning in the market as a low fare carrier will always give them a upper hand advantage in attracting customers who prefer deals over luxury and are more concerned with saving money. Furthermore this fosters customer loyalty as consumers will always look to Southwest for the best deals. In terms of their customer service, Southwest's "positively outrageous" approach sets them apart from the competition and appeals to consumers through an unconventional way. Giving their employees the freedom to be themselves and genuinely connect with the flyers, created a heightened sense of camaraderie between employees and customers and also amongst employees themselves. There's no better way to create customer satisfaction without great customer customer service, so Southwest's efforts to create a unique and unorthodox approach to service is a great way to ensure customer retention. However, from an economical standpoint, their strategy is not the most sustainable. This is evident with the challenges they faced that were far beyond their reach when expanding into the north east region. These challenges were a result of uncontrollable factors such as airport congestion, air-traffic control delays, and inclement weather. So although their strategy is great and their employee productivity is high, impeding factors such as those mentioned above ultimately result in rising operation costs. The higher these operation costs get, the harder it will be for Southwest to strategize and compensate.

What did Hannah do to make a first cut in the list of potential countries? How did he go from 200 to less than 35 potential new markets? Which variables seemed more important in his decision-making? Which unused variables might have been useful?

To make the first cut in the list of potential countries to expand to, Hannah focused on specific market selection criteria. This included: constituents that were beef-eaters, countries that allowed U.S beef to be imported, population/ urbanization rates, consumer that eat out often, affinity for U.S brands and high disposable income. This market selection criterion allowed markets to be quickly sifted through and eliminated, ultimately concluding where Ruth's Chris would potentially strive. These variables in decisions were all important when analyzing countries that were best suited for this type of restaurant. A unused variable that could have been essential to consider would be tourist areas. Simply put, places where Americans are likely to travel, spend a considerable amount of money while there and want a somewhat familiar American brand to splurge on would be a positive place to plant a franchise. These places would be recognized easily and could potentially increase revenue abroad and domestically with one trip.

Overall, what do you think are the mains reasons for Pets.com's failure in the market? How would you have done things differently?

Ultimately, Pets.com entered the online pet market at a disadvantage. Its two biggest and most successful competitors, Petopia.com (owned by Petco) and Petsmart.com (owned by PetsMart), both have brick-and-mortar locations. Each of them were ran by already established and well-known companies. For companies such as Petco and PetsMart, their websites are advertised to in-store customers daily. They had the advantage of promoting their websites for online ordering throughout the store, and on printed receipts. The third top competitor was Petstore.com. Petstore.com focused their advertising on the benefits carried with its 12,000 veterinarian relationships with members of American Animal Hospital Association. In 1999, Petsore.com received investment from Discovery Communications Inc., the parent company for Animal Planet. While both Pets.com and Petstore.com have means for television advertisements, Petstore.com would dominate the Animal Planet channel, whose viewers are typically pet-owners. We would've suggested that Pets.com utilized Amazon.com more. When Amazon.com purchased 56% of Pets.com's shares, Amazon offered each employee a counterpart for business guidance and a link on their homepage. While this is beneficial, Pets.com could've gotten more out of Amazon, as far as inside information about their online success. The relationship between the two could've been more beneficial for each party.

Should Wainwright have offered a shareholding position to Amazon.com? Assess the rationale behind this decision. What were the advantages and disadvantages of having Amazon.com as a partner?

Wainwright made the right decision when offering a shareholding position to Amazon. This put pressure on the other companies within the retail pet industry (Companies that had already established brick-and-mortar stores). In response companies like PetSmart launched its petstore website in order to compete with Pets.com and other existing dot-com independent companies. This essentially gave a good foundation for Pets.com being an online retailer and more exposure to the public since Amazon was such a popular and growing company. With the shareholding position came with more money for Pets.com and a link on Amazon's homepage but Pets.com gave Amazon a seat on its board. Another advantage was the experience that Amazon offered Pets.com employees in terms of business insight and know how, it also allowed them to recruit top talent for job seekers.

What are the chief elements of and characteristics of Wal-Mart's culture? Why does the culture seem to be so much stronger in Bentonville than out in the stores?

Wal-Mart cheers An emphasis on driving costs out of the business. Dedication to customer satisfaction. Strong tradition of innovation. Senior executives practice of staying in touch with daily operations. Sundown rule: answer requests by sundown on the day they are received. The treatment of employees as partners/associates. Positive motivational practices. Recognition that failure is part of the learning process on the road to success. 3 basic underlyings of Wal-Mart's culture: respect for the individual, service to the customer, and strive for excellence. 4b: why the culture is stronger in Bentonville Where the headquarters of buyers & merchandising staff is located Birthplace of Wal-Mart "Living Better" element Workers chose to make a career of Wal-Mart More employees were trained in the culture of Wal-Mart Culture was deeply rooted in Bentonville for several years prior to the present