Chapter 8-Segmentation and targeting markets

Originally, WalMart's target shoppers were lower income Americans. Next, bargain shoppers were enticed with constant advertisements heralding price "roll-backs." The way the United States economy has suffered in the past decade has driven most lower to middle class Americans to this store- myself and my family included with the masses.

Chapter 11-Developing ang managing products

WalMart’s competitive advantage is a result of several key strategic choices. First, WalMart’s choice

of geographic location in rural/small town locations that were not being served by competitors

allowed it to establish itself as the sole discount retailer in these areas. As Sam Walton describes “the

key strategy was to put good-sized stores into little one-horse towns which everybody else was

ignoring…. If we offered prices as good or better than stores in cities that were four hours by car,

people could shop at home.” This key strategic choice of location was completely different from

what competitors had done and gave WalMart a first mover advantage in markets that had not

previously been served by discount retailers. A second key strategic feature is WalMart’s inventory

management strategy. From the onset, WalMart has been a leader in implementing new and cost

effective methods to manage inventory. Merchandise is tailored to local market demand via “traiting”

where a product’s movements are indexed over a thousand store and market traits. In addition, store

managers are given local control over which items to display based on customer preferences and how

to allocate shelf space based on local demand. Therefore, each store is fine-tuned to best meet local

needs rather than follow a general corporate policy. In addition, WalMart’s pricing strategy allows

more local control again based on geographic demand. Store managers can price to meet local

demand, to maximize sales volume and inventory turnover and to minimize expenses. Pricing varies

by geography and by proximity to competitors. This flexible pricing policy allows WalMart to

achieve maximal strategic pricing, whereby it remains most price competitive in regions with higher

concentration of competitors yet avoids pricing too low in areas where it is the sole discount retailer

Chapter 21-Customer relationship management

Suppliers involved in the formation of the enterprise value chain, operating efficiency of enterprises have a significant influence on the establishment of strategic partnership is the focus of supply chain management,
 Wal-Mart and Procter & Gamble’s marketing alliance is such a win-win model. Harmonious relationship with the supplier company, so that Wal-Mart has always been able to maintain long-term stability of low-cost supply. At the same time, these products will not be cheap and lead to lower quality, because Wal-Mart’s personally involved in helping enterprises to reduce production costs. The one hand, suppliers of products sold to Wal-Mart as long as you do not need slotting allowance and the margin, and simple procedures, commitment agreement; other key suppliers to Wal-Mart store to arrange an appropriate room for the vendors themselves design layout of their product display area to create a more attractive store and more professional shopping environment; another Wal-Mart suppliers will be free information management system software support. For suppliers to provide the necessary help and support at the same time, Wal-Mart suppliers also developed a series of regulatory and urge them to comply, including Wal-Mart’s own remuneration, working hours, discrimination rights, working conditions, environment issues and confidentiality aspects of standards and requirements.

Wal-Mart proved, retail businesses and its suppliers are not always in between the irreconcilable struggle between interest among suppliers and retailers in establishing symbiosis between the prosperity of the partnership to achieve mutual cooperation long-term development objectives of both sides is possible.

walmart

Strengths

• Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store.
• Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA).
• The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement.
• A focused strategy is in place for human resource management and development. People are key to Wal-Mart's business and it invests time and money in training people, and retaining a developing them.

Weaknesses

• Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control.
• Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.
• The company is global, but has has a presence in relatively few countries Worldwide.

Opportunities

• To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.
• The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India.
• New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centres, to local and mall-based sites.
• Opportunities exist for Wal-Mart to continue with its current strategy of large, super centres.

Threats

• Being number one means that you are the target of competition, locally and globally.
• Being a global retailer means that you are exposed to political problems in the countries that you operate in.
• The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.

Chapter 16

Walmart are strategically a low cost strategy store to
attract customer . But this is not enough as they have to contend with
fierce competition from rivals like Target and K-Mart . In order to
survive , Walmart has set up a very competitive marketing and
communication strategy that is integrative and distinctive from all the
other market competitors.Wal-Mart 's Marketing Communication Strategy
The Walmart marketing communicative strategy is solely built
around the company 's low cost strategy . Unlike its competitors , Walmart
does not concentrate its marketing communication strategy to issues like
hygiene in store , aesthetics and quick service . Walmart is instead focused
on marketing communication around daily prices and advertisements mixed
with wide product choices .

Chapter 16-Integrated marketing communications

Walmart uses an integrated marketing communication system to gain
competitive advantage over its strong competitors . This marketing
communication involves various mixes such as media and networks which
are regularly reviewed to conform to the changing business environment .
Walmart Communication is very effective in order to achieve a conversion
to product sales . Walmart is keen of ethical communication as a core
marketing responsibility and for ethical reasons .

Walmarts product concept