Hello to you all, 👋

The weekend arrives and along comes a flurry of possibilities before we step into the next week. 

Before we get all philosophical, we present to you another fresh edition of DTC Creator. There’s news, views, and hues in there – untangle at your own risk.

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Walmart is acquiring Vizio for $2.3 billion 😯

Walmart has agreed on a huge acquisition deal. The retail store giant is set to acquire smart TV Maker Vizio Holding Corp. in a $2.3 billion deal. 

Why does Walmart need 📺

The acquisition will help Walmart in speeding up its advertising business. Walmart Connect said its advertisers will be able to engage more with customers.  

This isn’t the first deal. Walmart has been pushing for expansion in its non-retail segments, including Walmart Connect, that have faster growth potential and can deliver better margins. 

Here's the scoop:

• Walmart Connect gets a major boost: This deal adds Vizio's 18 million users and $500 million ad business to Walmart's already growing ad platform. 

• Walmart+ could explode: Reaching Vizio households could mean millions more Walmart+ members, potentially unlocking even more data and shopping opportunities. ️

• Small businesses get a shot: Walmart could use Vizio's platform to reach smaller advertisers, creating a more level playing field.

Walmart’s financial performance exceeds expectations 

Walmart released its fourth-quarter earnings report. Walmart’s same-store sales increased by 4% for US stores beyond Wall Street expectations of 3.1%. The company reported adjusted earnings of $1.80 a share, higher than the forecast of $1.65. The stock is up about 16% over the past year.

Vizio shares jumped by 15% after the deal announcement. Walmart shares only saw a marginal rise of 1.9%.  

Boomers don’t prefer direct brand purchases 🧓

A recent survey by PYMNTS and Adobe sheds light on some interesting consumer trends. 35% of the boomers prefer to shop on retailer websites than engage in direct brand purchases.

43% of Gen Z consumers prefer rand stores. The main drivers behind this inclination are wider product ranges and competitive pricing. 

The choice of online shopping avenues differs across demographics: 

Source: PYMNTS 

Factors customers consider

Among the factors that take precedence when customers shop online, a few include:

• Trust 

• Pricing

• Convenience

• Checkouts

48% of consumers agree that online marketplaces fare better than retail and brand sites for online features; 27% favored retailers, and 25% favored brands. 

Factors impacting the choice of online avenues

More customers who shop on online marketplaces and retail sites like Amazon expressed satisfaction than those who purchased directly from brands. Amazon’s 2023 growth numbers are a testimony to this study. 

The e-commerce giant saw the highest footfall in last year at 108.3 billion visits. The US led the visitor pack at 47% followed by Japan at 10.5%, and India at 8.13%. 

Campaign of the week: 

Pepsi teams with Shaq and Reebok for its ‘Sneak’ers 👟

These Pepsi sneakers are updated Reebok Pump Shaq Attaqs that can hold a Pepsi Can in the sole. Ingenious marketing! 

The Pepsi ‘Sneak’ers are original Reebok Pump Shaq Attaq shoes modified to fit a full Pepsi Mini Can into the sole. Pepsi partnered with Reebok, basketball legend Shaquille O’Neal, and Shoe Surgeon for this creative marketing campaign. 

Here’s the ‘Sneak’ peek 👀

• These sneakers have been created with the Shoe Surgeon. 

• They are tailored for Shaquille O’Neal’s feet who is a size 22. (My gawd! 😯)

• O’Neal debuted these sneakers during the 2024 NBA All Star Weekend. 

• The shoe has a custom compartment for an entire Pepsi can to fit in.

Can you own one?

The shoes won’t be available for sale as such. There will only be 22 pairs of these sneakers which consumers can win via social media sweepstakes. 

Insider scoop on the marketing campaign:

• O’Neal had plugged Pepsi’s mini Cans in a commercial earlier which had a remixed soundtrack ‘I Wish’ – Skee Lo’s 1995 hit. The campaign embodies Pepsi’s first visual overhaul in 14 years last year. 

• The marketing campaign reunites Pepsi, Reebok, and O’Neal, a trio that first came together in the early 1990s. 

• O’Neal has retired from the game. The marketing campaign with the 7-feet star brings an element of nostalgia. If successful, the campaign would set new heights of fandom and fresh parameters of what a marketing campaign can look like. 

Will you have a Pepsi Can ‘within your leg’s reach?’🤨

In the mood for a podcast?

Listen to the latest Elon. Inc. podcast where Elon Musk shares what prompted him to buy Twitter and the whole backstory. (Link)

More agency and marketing news:

• Hy-Vee partners with Ogilvy: Retail chain Hy-Vee appoints Ogilvy as a strategic and creative partner for its health brands, including Vivid Celsr Rx, Amber Speciality Pharmacy, RedBox Rx, etc. (Link)

• Ntwrk acquires Complex Media: Live shopping platform Ntwrk acquired music and culture publisher Complex Media at $108 million from BuzzFeed Inc. Universal Group will serve as the strategic partner in th tie up. (Link) 

• McDonald’s debuts anime-inspired packaging: MacDonald’s has decided to leverage the Anime mania overtaking most of the world. Its ‘WcDonald’s’ campaign has manga-inspired packaging and four anime episodes. (Link)

The campaign features an often-flipped WcDonald’s logo by art illustratorAcky Bright. 

More snappy bytes:

• Why is the cost of eating out rising in America? 

• Volkswagon appoints new CMO from within

• The water bottle wars between Stanley, Owala, and rivals 

• Wach out for America’s 20 hottest brands 

Hope you enjoyed. Take care and we meet again on Monday for a short-snappy edition of DTC Creator!