Running head: Company analysis Project – Part 3
Company Analysis Project – Part 3 – Target Marketing
Davenport University
BUSN520
12/05/09
Wal-Mart’s Target Marketing To effectively reach its customers, Wal- Mart‘s management for many years have managed to carry out effectively target marketing that is augmented by strategic market segmentation. As a result, the company has maintained its market share for a long period. It is poised that by the year 2100 the company is to have a third of the US market in its share (Ryan, 2006). Comparatively, the same figures apply to its main rival, Target. Demographically, Wal- Mart ensures that it positions itself strategically in the market by offering products that meet
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As such, Wal- Mart strives to develop new products that meet the requirements of new markets while also striving to retain its regular customers. Finally, Wal-Mart’s as Target Stores has age based target marketing. In this kind of target marketing, the goods or products are classified acceding to the customers’ gender and ages. As such, Wal- Mart stocks toys and video games which are specifically meant for children. On the other hand, there are jewelries which are specially meant for women, wedding or fashion bogged youth.
References
Dixon, N. (2006). Wal- Mart Unveils Community Store Design Strategy. Retrieved December 7, 2009, from http://www.uwex.edu/CES/CCED/downtowns/ltb/lets/LTB0806.pdf.
Ryan, T. (2006). Analysts say, Wal- Mart and Target could hold approximately a third of the of the Market by 2010. Retrieved December 7, 2009, from http://apparelmag.com/ME2/dirmod.asp?sid=&nm=&type=news&mod=News&mid=9A02E3B96F2A415ABC72CB5F516B4C10&tier=3&nid=1F20C1DC772D48EFBCE873D1422B266D
Yahoo Finance (2009). Wal-Mart. Retrieved December 7, 2009, from
Wal-Mart is an American multinational retail corporation and one of the leading discount department retail stores (Wikipedia). It is the highest- grossing company in the United States (Fortune 2008a), and is by far one of the most successful companies worldwide. Wal-Mart offers a place to buy the majority of our goods under one roof like electronics, furniture, clothing, pharmacy, sports, food, books etc. Wal-Mart sells good at lower price than the others and this is even shown by its slogan “save money, live better”. It drives out smaller and sometimes even the expensive stores out of business due to its lower prices. Wal-Mart provides jobs for thousands of
This reflects the three groups into which Wal-Mart groups its 200 million consumers: "People with low incomes love name brands, richer shoppers who love good deals, and people who like low prices.” They’ve also making steps to attract more liberal consumers.
Wal-Mart is at current encountering proceeding with development as it has since its creation. Enact for this kept going development is that during that time the trade has stayed reliable with its central goal of serving both its clients and aides furthermore keeping up its point of being the absolute best in markdown retail locations. At present Wal-Mart is the figure one rebate retail location in the United States pursued by means of Sears, K-Mart, Target and Kohl 's, deferentially, working in each of the 50 states. Wal-Mart is looking for different types of target markets within the Wal-Mart stores, Neighborhood Markets, Sam 's Clubs and widespread Division. The
Market Penetration. Walmart uses market penetration as its main intensive strategy for growth. Market penetration involves selling more goods and services to the current target market. Walmart sells more goods and services to its current consumers by offering discounts, promotions, and special packages.
Wal-Mart is known for its low prices and variety of goods and services at low prices but in 2006, Wal-Mart faced a very murky turn financially. The competitors for Wal-Mart closed in on their consumers by offering more competitive pricing for groceries, clothing, and household commodities. Kroger closed the gap based on the grocery pricing and Target was one of two that closed the gap on household and clothing prices.
Regarding the target segment Walmart.com is trying to reach; recent research indicates that profitability is closely related to local strategy. (Harvard Business Review, September 2005) Local environments still have different tastes, business practices, cultural norms and other characteristics. Simply offering internet connection to those customers may not be enough to create consistent online sales form them. Local retailers may server these segments better and offer customized services due to their small customer base. Therefore, Walmart.com is facing two obstacles: local retailers and customer buying habits. Changing them may prove to be a difficult undertaking.
Wal-Mart is the world's largest retail and departmental store chain. Having business operations in 27 countries with 69 different brand names, Wal-Mart is able to serve a huge number of customers per day. Wal-Mart is the fastest growing and the most successful retail brand in the world. The factors which make it the strongest brand in its industry include large customer base, sound financial strength, strong brand image, and huge supply chain network. Wal-Mart has certain weaknesses in its operations and business setup like low acceptability of certain products, high employee turnover, and less recognition of newly introduced brands. These weaknesses can be overcome by availing attractive opportunities from the market and investing more in the most profitable areas. Wal-Mart faces the biggest threat from its competitors and ever-changing customer preferences.
The success of Wal-Mart is due in large part to its ability to consistently produce high quality products at a low cost. This is very critical to the future success of Wal-Mart because it provides consistency to customers who are price sensitive. By committing themselves to "Everyday low prices," Wal-Mart assures customers that the products sold within their stores are competitive in reference to its retail competition. This low price strategy also provides Wal-Mart with a
Walmart serves nearly 260 million customers weekly across 27 different countries, both in stores and through its websites (“Fortune”, 2015). Walmart relies heavily on its proper and effective marketing strategies; Walmart would not be able to achieve the level of success without these strategies. Low prices, easy access for its customers, and social media campaigns are a few of the vital tactics Walmart has used in its marketing plan. “Save Money. Live Better” is Walmart’s mission in delivering customers products at the lowest prices. This low price strategy plays a marketing role that caters to customers who seek the lowest prices and with grocery stores that provide great deals (Brown, 2017). Walmart’s low cost business model is protected by its powerful supply and distribution chains throughout the world. Customers can expect the same cost efficient style in every Walmart store worldwide.
Wal-Mart is arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail
Ans:Wal-Mart,Inc runs a chain of large, discount department stores.it is the world’s largest public corporation by revenue. Walmart is the largest private employer and the largest grocery retailer in the United States. Walmart is one of the best known industries all over the world. Its concentration of a single business strategy is the basis of its success over the decades by this strategy without having to rely upon diversification to sustain its growth and competitive advantage. The leading marketing strategies of Wal-Mart are low prices, service and smile. However by adapting this strategy, it has risked itself by putting all of a company’s egg in one industry basket. While its global strategy worked elsewhere, the results were bad in Germany and Korea that Wal-Mart withdrew from those countries.
Mission: Wal-Mart is an American based discount retailing store that implements that lower prices will result in higher sales volume, so to continue to provide customers with quality goods at everyday low prices will keep our customers satisfied and coming back.
Like all departmental and/or discount stores, Wal-Mart's strategies are focused around achieving the goals such as building a large and strong customer base, under-cutting competitors, and organization of its supply chain in the most efficient and effective manner and above all, market growth.
In Wal-Mart’s strategic planning stage, they are highly regarded as visionaries. One thing that Wal-Mart prides themselves in is the fact that they develop
The global player Wal-Mart operates in 14 different markets all around the world, serving 176 million customers every week. Today, the second biggest company of the world, concerning turnover which amounts to 312,427 million US-$, categorizes its operational facilities into five divisions. Among those divisions are the Wal-Mart discount stores, offering convenience and low-priced goods. Wal-Mart supercenters are the biggest stores, being open 24/7 hours and employing a workforce of 350 people, selling all kinds of groceries and general merchandise at the lowest possible price. Wal-Mart neighborhood markets are specified in