Walmarts Winning Marketing Strategy for Success Essay

798 WordsDec 8, 20064 Pages
WAL-MART'S MARKETING STRATEGY Wal-Mart was founded by Sam Walton, the first Wal-Mart store opened in Rogers, Arkansas, in 1962. Seventeen years later, annual sales toped $1 billion. By the end of January 2002, Wal-Mart Stores, Inc. was the world's largest retailer with $218 billion in sales. Wal-Mart's winning strategy in the U.S. was based on selling branded products at low cost, which enables the lower class and middle class consumers to shop for products and save. Due to the advances in technology over the years Wal-Mart has been able to achieve tremendous success. Wal-Mart's success has allowed the company to expand out of the United States. About 100 million customers visit a Wal-Mart store somewhere in the world.…show more content…
Stores were built as far away as possible but still within a day's drive of the distribution center; the area then was filled back for saturated back to the distribution center. Each distribution center operated 24 hours a day using laser-guided conveyor belts and cross-docking techniques that received goods on one side while simultaneously filling orders on the other. The company owned a fleet of more than 3,000 trucks and 12, 000 trailers. (Most competitors outsourced trucking.) Wal-Mart had implemented a satellite network system that allowed information to be shared between the company's wide network of stores, distribution centers, and suppliers. The system consolidated orders for goods, enabling the company to buy full truckload quantities without incurring the inventory costs. Wal-Mart's strategy was to build large discount stores in small rural towns. By contrast, competitors such as Kmart focused on large towns with populations greater than 50,000. Wal-Marts utilizes the pulling strategy, pricing strategy, and product strategy is the promotional effort by the seller to stimulate final user demand, which then exerds pressure on the distribution channel. Wal-Marts strategy is to provide everyday low prices and superior customer service. This allows Wal-Mart to replenish the shelves 4 times faster than its competition. Wal-Mart's ability to replenish their shelves four times faster than its competition is

More about Walmarts Winning Marketing Strategy for Success Essay

Open Document