Advantages Of Everyday Low Pricing Strategies

One of the most significant competitive edges that Wal-Mart possesses is bringing products to the ordinary customers at lower prices than its rivals (Woohyoung & Alan, 2013). In other words, Wal-Mart has kept its promise of ‘everyday low prices’ (EDLP) as a sustainable selling point (Walmart, 2015). At Wal-Mart, price is the core factor of most of the foreign markets, where that it has established operations in addition to the United States. The other 3 countries that have been included in this report (namely South Africa, Germany and Japan) are all implementing the policy of EDLP. Sam Walton, the founder of Wal-Mart understood that customers from Berlin to Tokyo, from New York to Cape Town are all attracted to purchasing products at the lowest prices. Undoubtedly customers around the world choose Walmart for its low prices, convenient access to versatile products portfolio and for a shopping experience which meets individual’s expectations based on the fact that It delivers sales through customer relevance and is always passionate about driving sales wherever it operates. EDLP, enabled by being a low-cost operator, is the foundation of its customer proposition, which strives to serve customers regardless of household income in Japan, Germany, South Africa and the US (Walmart, 2015).

For retailers, being online is efficient and improves customer relationships, but it does not replace a retailer's ability to "up-sell" and ultimately it struggles to match the brand appeal created by a physical presence in a strong shopping centre.

Department stores Targets, Kohls, and Kmart provides the consumer with a large selection of merchandise for all ages and genders these stores use a multichannel strategy which describes how these corporations incorporate their business’s offline and online channels, this technique is also known as brick and mortar (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012). The marketing scheme is to let the customer decide how they want to make a purchase a product through the store, the website which provides more information about the products, a call can be placed to a customer service representative or forms that are included in catalogs can be filled out and mailed into the store. Online shopping allows for comparison shopping to see which store

According to A.T. Kearney (2013), the result from online study of 3,200 U.S. and UK customers found that customers spend a large proportion of time inside the brick-and-mortar channel with 61%. The following channels are shopping online and mobile channel, with 31% and 4% respectively (Appendix 1). This figure means that traditional stores persist at the center of retailers’ relationships with customers, although nowadays Omnichannel as online and mobile strategy can help retailer remaining in the market. Therefore, retailers should find a solution that influence to stores and store networks to keep stores at the heart of the customer relationship while managing value across new channels. In addition, the

The Internet has changed the way we do virtually everything, including the way we shop. However, shopping is not the only thing that has changed. In the last decade we have changed the way, we apply for loans, study, and even plan a vacation. Doing any of these things would have been impossible a few decades ago. At present, online banking, paying bills, ordering new services, and shopping online have become part of our daily lives. Traditional brick-and-mortar stores have been around much longer than online stores, but we cannot deny that online shopping is giving the traditional stores competition. Many consumers still choose to shop at regular brick-and-mortar stores because they like to see and

The emergence of high-low pricing tactics materialized out of an earnest desire to retain a profitable margin of sales. Usually, this pricing strategy involves a period of high, often subjective, initial prices followed by a period of low discount prices. One can attribute the effectiveness of using the

Retail businesses and other small businesses have seen a huge drop in sales due to the convenience and simplicity of shopping online when and where the customer wants too. According to Market Line’s 2015 Industry Profile, Table 4 and Figure 4 show the expected percent of the retail sector value to grow 10.5% by the year 2019 and to reach a projection of 574.5 million dollars. (Market Line) The retail businesses and other small businesses see less shopping traffic and therefore have slower days especially during times such as Christmas. Many people question if whether they should face the hassle of fighting others for items when it’s already in the convenience of their hands. Many online stores offer phone applications linked to their stores for both Apple and Android users that allow the customers to purchase an item with the click of a button. As technology continues to improve, so will the online shopping industry.

The final alternative—and my ultimate recommendation—of implementing an everyday low pricing strategy across-the-board with an increase in Superior Supermarkets’ advertising budget is the most logical and cost-effective option with immense potential for Superior Supermarkets. The Superior Supermarket Controller estimates that an everyday low pricing strategy would save the company 50 basis points (0.5% of sales) by lowering inventory and handling costs, in addition to a savings of 60 basis point (0.6% of sales) by eliminating the need to remark merchandise and their shelf tags. These significant savings could be added to

The business challenge retailers are coming to terms with is that the supply chain model was based on fulfilling consumer demands within stores (Baird & Kilcourse 2011). With the entrant of virtual technology increasing the knowledge and expectations of consumers, traditional strategies are largely missing out on consumer demands. The opportunity for the retail industry is to develop a clear pathway for consumers through the infinite channels to ensure the end result is a purchase within its stores. As studies show that 95% of all purchases by the consumer are still within a ‘bricks and mortar’ store (Baird & Kilcourse 2011).

The bargaining power of customers is high. First of all, the customer size is tremendous globally, which also has an accelerating growth rate in recent years. Customers’ leverage is strengthening as a result of this. Another inevitable factor is that with countless retailors online, there is low switching cost for customers to find other alternative companies that suits their desire to conduct purchases. Moreover, consumers today are more sophisticated. Consumers are less commit to impulsive-buying, yet are more willing to study about product features and evaluate their options before purchasing online. Their purchase pattern can also be hard to learn too.

Technology is playing a vital role in the expansion of global retail. Consumers can find most of the products they buy online, through various retailers, compare prices, thus choose the best offer. Companies like Tesco must have a large online presence if they want to be successful over a long period of time. Tesco must compete with other retailers on price and/or try to provide benefits in other ways. This lead to

The digital revolution has been instrumental in reshaping entire sectors, categories and industries- one of the most heavily affected is the retail sector. In the changing digital landscape, new opportunities to innovate through the embracing of e-tailing have meant that retail stores are no longer geographically limited, but the rise of e-tailing provides it’s own set of unique challenges to bricks and mortar retailing. This literature review will succinctly analyze and evaluate the effect that e-tailing has had on traditional bricks and mortar retailing, by looking at the ways in which the bricks and mortar retail stores have had to develop their retailing strategy in an increasingly digital world. Across the extant literature three themes were consistently detected around the effects online retailing has had on traditional bricks and mortar retailing, in the forms of the responses of physical retailers to this digital shift in the sector; fight it, use it or embrace it by fully integrating it into an ongoing strategy. Each of these themes is discussed below.

The future of shopping is all about technology. Retailers are investing in all sorts of new technology to try and help their business make more profit. Robot assistants, a virtual you, digital butlers and drone deliveries are a few of the new inventions that companies are trying to make to advance their business (The Guardian, n.d.). Online shopping retail sales are predicted to grow to around $370 billion in late 2017, up from $231 billion in 2012 (CMO, n.d.), it is estimate that this number will keep going up as advancements in technology keep improving. It is also estimated that 72% of people aged between 13 and 35 research and shop their options online before going to a store or mall. These statistics show that every year young people usages of technology to buy a goods or service through technology is getting higher and higher. An example of a company using new technology is Dominos. Dominos have decided to add drone deliveries to their already successful business. “We invested in this partnership, and technology, because we believe drone delivery will be an essential component of our pizza deliveries, so even more customers can receive the hottest, freshest pizza we can offer” said by managing director Mr Meij. Dominos have taken a calculated risk using modern technology to try and give them that boost they want. This is an example of a business trying to gain a competitive advantage over there rivals (pizza hut). As technology is becoming the new way for the casual

No matter how notable or useful a product is, if customers cannot purchase it, it has no value to the company (Ruskin-Brown, 2006). It is, therefore, essential for companies to offer customers multiple channels for purchasing their products. That means, customers should be able to purchase the products of their liking using their preferred method of shopping, be it in store, online, by phone, or by mail.

Supermarket e-commerce stores that have altered business practice grow very fast. The popularity of online supermarket increases every year. Keynote’s study (as cited in Hand, Riley, Harris, Singh, and Rettie, 2009, p. 1205) explain that in 2006, the percentage of online supermarkets are higher approximately 35% than previous year. It could be that customers will shop online only in the future if the popularity of traditional stores go down. In addition, many supermarkets such as Walmart, Coles, and Giant are starting to build e-commerce. Online supermarket grow