Wal-Mart: Success in Marketing

3019 Words Jan 26th, 2008 13 Pages
As an avid shopper and consumer that frequents Wal-Mart, I chose to do my paper on the Wal-Mart Corporation to explore their marketing strategies and their efforts to compete in today 's economy. Our economy, which is characterized by sophisticated technology and global communication, demands a great deal from organizations that intend to remain competitive. Wal-Mart Corporation does not just compete in their field, they dominate it.

Wal-Mart, which was founded in 1962 by Sam Walton, is the largest retail operation in the world today. According to the Wal-Mart corporate website (http://www.walmartstores.com), the company 's net sales totaled $344,993 million for the fiscal year ending January 31, 2007, which was an increase of 11.7
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Also, because K-Mart has been closing hundreds of stores, Wal-Mart has a distinct advantage of controlling markets where both Wal-Mart and K-Mart are located. Because of Wal-Mart 's success against its rivals, they have the power to influence markets in their direction.

The company culture is also well suited for this type of strategy. The management of Wal-Mart has ingrained in the employees the core values needed to excel at increasing their market penetration. Their "Every Day Low Price" and Rollback campaigns can be implemented into markets where they do not have as much of a market share as they want. This will also have a positive impact on the company culture because of the increased opportunities available to current employees. As their market share increases, they would also probably begin to add to their product offerings in that area. This will allow employees the ability to grow with the company and be promoted into higher positions.

The costs involved with market penetration are not nearly as great as with market development. Wal-Mart only needs to increase its marketing campaigns in the target areas. Again, with K-Mart 's unfortunate exit in many of the same markets as Wal-Mart, they have an even better chance of success because they will be the largest discount retailer in the area. They may not even have to increase any costs in this type of situation because of the natural reaction of consumers needs. If they were

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