Wal-Mart’s Marketing in a Nutshell

In: Business and Management

Submitted By reevesj5476
Words 920
Pages 4
Introduction
This paper attempts to focus on a few basic but key marketing terms and successful strategies utilized by Wal-Mart in today’s market. Trying to serve all customers can mean serving none of them well. Wal-Mart, the world’s largest company, has annual revenues greater than the GDP of all but the world’s 21 largest countries. Wal-Mart plans to more than double the number of its Neighborhood Market grocery stores in the United States by fiscal 2016, putting more pressure on traditional brand name grocers. The stores, which are smaller than traditional supercenters and focus on groceries, have become more profitable as Wal-Mart adds more of them. Sales at existing Neighborhood Market stores have grown at a rate of more than 5 percent, or double the rate of the overall Wal-Mart U.S. chain.

E-Commerce Growth
Online spending is growing, but maybe it has an upper limit. Maybe online shopping cannot duplicate the in-store experience. Wal-Mart realizes that it cannot put all of its marbles in one bag in regards to online or brick-and-mortar shopping venues. On Cyber Monday 2012, internet sales skyrocketed by more than 30 percent and the United States online division of Wal-Mart experienced its best sales day ever. Online transactions completed via Wal-Mart’s mobile applications rose to 280 percent above last year’s figures. Same-day delivery combines the convenience of online ordering and home delivery with something approximating the instant gratification of going to the store. Wohlsen (2012)

Wohlsen (2012) explains that this makes sense especially for Wal-Mart, which has actively worked to blur the online/offline distinction. Online shoppers can pick up their Walmart.com orders at the store. They can go to the store and pay for their online order with cash. Increasingly, Wal-Mart is using its 4,000 U.S. stores as de facto warehouses from which they…...

Similar Documents

Wal-Mart’s Financial Health

...As the economy seemed to boom in the United States so too did the fortunes of Wal-Mart, the world’s largest retailer. When the United States, and the world, entered the greatest recession since the Great Depression in 2007-2008, however, consumers stopped making purchases and many feared all retailers would soon face significant financial difficulties. This has not been the case for Wal-Mart. Because Wal-Mart has always promoted low prices customers seemed to flock to Wal-Mart due to the recession. While some have indicated that prior to the recession Wal-Mart was facing slowing sales due to competition with Target, its stores actually increased sales after the recession (Palmeri, 2008). The company’s low prices brought new customers to the store who had not previously considered shopping at Wal-Mart “cool” and increased sales to existing customers (Palmeri, 2008). To see whether the recession continues to help Wal-Mart and how the company is doing overall, however, one needs to review its financial statements. By looking at the company’s financial results over the past two years one can see whether there are positive or negative trends in its financial results. These trends provide a means to determine whether the company is moving toward a positive or negative situation. Past performance is often a good predictor of future performance, so looking at how financial accounts and ratios change over time one can better forecast future results (Managerial accounting,......

Words: 741 - Pages: 3

Wal-Mart's Sustainability Strategy

...forming high degrees of trust with the suppliers, enabling them to secure more business with Wal-Mart gaining greater bargaining power and direct access to specialized expertise. Another challenge for Walmart was how to stimulate development of breakthrough innovations. Walmart solved this problem by encouraging suppliers to license their environmental innovations, minimizing supplier sensitivity. Being increasingly reliant on its suppliers to meet its public goal, Walmart will need to measure suppliers’ environmental performance through the use of scorecards, and implement an audit process in order to stay updated on suppliers’ performance with regard to their health, safety and environmental records Although most of Walmart’s sustainability strategies derive both sustainable and business values, 2 initiatives, the Product Take-Back Programme and the aggressive promotion of Compact Fluorescence Lamps (CFLs), lack profitability. However, there are still justifications for Walmart to continue pursuing them. Both programmes improve the firm’s intangible assets (i.e goodwill and brand image). For the Product Take-Back Programme, it further allows Walmart to obtain a first-mover advantage in anticipation of impending legislation. CFLs’ initiative will also allow Walmart to possibly replace their store space for lighting with newer, more profitable products and their in-store marketing can serve as an educational tool, to create awareness amongst consumers and to increase......

Words: 1263 - Pages: 6

Wal-Mart’s Organizational Structure

...Wal-Mart’s Organizational Structure Damaris Medina MGT/230 September 13, 2012 Dan Kassmeier Every company has their own form of organizational structure. Whether the business is big or small, an organizational structure is needed in order to have a successful business. An organizational structure helps put the business in order to make sure there are no problems in the future, but what is an organizational structure? It is how the reporting structure is organized. There are many types of organizational structures. Some examples of organizational structures are, the functional, matrix, and divisional structures (Bateman & Snell, ,  2011). When business owners are planning a structure for their business, it is important to know just how complex the business will be. If the business is a major corporation, such as Wal-Mart, then the structure should be able to support the complexity of the business. When a major corporation does not have a structure that supports their complexity, they are likely to have issues with the organization of the business. Thus causing for the business to lack the proper management and potentially fail. An organizational structure will determine how all employees work together. If the business is not under a strong structure, then there will be confusion throughout the whole business. An organizational structure also determines the decisions that the business will make as a whole (, ,  1991).If there is no structure, there is no business.......

Words: 1398 - Pages: 6

Wal-Mart’s E-Commerce Success

...Wal-Mart’s E-Commerce Success Possibly the single greatest success story of e-business and B2B implementation is that of the rise to dominance by Wal-Mart in the North American retail market. Love them or hate them, you have to hand it to Wal-Mart for their impressive growth in such a short time span. And arguably the single most important factor in this rise was their harnessing of the power of e-business, e-procurement, and the adjustment of internal processes to maximize this advantage. So, why does Wal-Mart think e-business is important? Wal-Mart's focus on its e-commerce strategy not only allows the retailer to reach customers who don't have stores nearby, but, more importantly, the online customer is a significantly better customer than one that only shops at a store. “Wal-Mart believes eCommerce Brings Access to Customers Anytime, Anywhere (eCommerce 1)”. As customers not only do we expect to have great prices; we have grown to consumers who want products anytime no matter where we are.   Can Wal-Mart successfully adapt their model online to challenge Amazon? While Wal-Mart’s total revenue is projected to be over five times greater than Amazon’s, the e-commerce return for Amazon’s all revenue is over seven times greater than Wal-Mart’s e-commerce revenue. Wal-Mart has gone as far as establishing Wal-Mart labs in California in order to prepare to challenge the online retail king, Amazon. These labs are designed to primarily compete against tech companies by......

Words: 676 - Pages: 3

Wal-Mart's Challenges and Success

...Wal-mart was founded in 1962 and since that date has been a household name and has continued to grow from strength to strength through the last four and a half decades. Today the name Wal-mart is not common only in the households throughout the United States of America but also throughout the world. Today there is hardly any part of the world that the store has not penetrated. From the North to South and East to West, Wal-mart is known throughout every nook and cranny of the world. The organisation has been able to penetrate every continent throughout the world and is in existence in India, China, Vietnam, Korea and many South American countries that have contributed to its success in many different ways. Wal-mart has been known for its bargain pricing of the products and services that it sells. Further, it has also been known for a selling and giving access to a wide range of products and services to the consumers from clothing and accessories to household and garden equipment; some of the services provided by the organisation are pharmacy services and even photography services. In this manner Wal-mart has been able to put down solid roots in many different countries, cities, towns, villages and communities and become a household name. Further its motto throughout the years has been to save money for the consumer and help the consumer to lead a cheaper but better and higher living standard. These are the reasons that the organisation has seen phenomenal growth in the last......

Words: 533 - Pages: 3

The Causes and Consequences of Wal-Mart’s Growth

...3—Summer 2007—Pages 177–198 The Causes and Consequences of Wal-Mart’s Growth Emek Basker W al-Mart plays a large and ever-growing role in the U.S. economy. As of January 31, 2007, Wal-Mart operated more than 3,400 U.S. Wal-Mart stores along with more than 550 Sam’s Club locations. Wal-Mart is the largest private employer in the United States, with 1.3 million employees, and the largest retailer in the United States. In 2004, Wal-Mart handled 6.5 percent of U.S. retail sales (8.8 percent if automobile sales are excluded); this number has since increased. Wal-Mart is the top U.S. seller of apparel, groceries, and music, among other products, and is the top retailer in most states. Wal-Mart’s 2005 revenues exceeded those of the next five U.S. retailers combined; these are Home Depot, Kroger, Sears Holding Company (which includes Sears and Kmart), Costco, and Target (Schultz, 2006). Wal-Mart currently accounts for 28 percent of Playtex’s sales, 25 percent of Clorox’s, 21 percent of Revlon’s, 13 percent of KimberlyClark’s, and 17 percent of Kellogg’s (Weinswig and Tang, 2006). Wal-Mart also accounts for over 15 percent of U.S. imports of consumer goods from China. More than 120 million U.S. consumers shop at Wal-Mart every week, and 84 percent of Americans shopped at Wal-Mart at least once during 2005 (Pew Research Center, 2005).1 Wal-Mart is also the largest retailer in the world. From a global perspective, Wal-Mart’s sales are larger than the next three retailers......

Words: 11149 - Pages: 45

How Germany Busted Wal-Mart's Bubble

...How Germany Busted Wal-Mart’s Bubble Reasons and lessons learned behind Wal-Mart’s failed attempt into Germany * Founder Sam Walton opened the first store in 1962 and is now the world’s largest retailer with more than 10,000 retail units under 69 different banners in 27 countries. * 2.2 million employees serving 200 million customers and members every week. * Net sales for 2012 increased 5.9% to $443.9 billion, $125 billion derived from international sales. * Wal-Mart’s 2012 Annual Report…… Five key strategies that are central to Wal-Mart’s future success: 1. Developing their people 2. Driving the productivity loop 3. Winning in Global eCommerce 4. Reinvigorating their customer–focused culture 5. Being the lead on social and environmental issues Wal-Mart’s History in the German Market * Entry began in 1997 with the acquisition of 21 hypermarkets from Wertkauf GmbH, then another 74, which included sites which previous owners had failed to make profitable. * Wal-Mart Germany was initially lead by an American (who didn’t speak a word of German.) Lacking an understanding for German culture, Wal-Mart misfires a second time by replacing the CEO with a Brit to take the helm. * Unable to find what makes German consumers “tick”, Wal-Mart exits the $370 billion German retail market and sells its 85 operations to rival Metro AG, incurring a pretax loss of $1 billion *Wal-Mart’s largest global competitor Carrefour SA......

Words: 899 - Pages: 4

Wal-Mart's Sucess

...In the video segment of The Secrets of Wal-Mart’s Success it talks about Wal-Mart and how it runs. It talks about how to run the store properly and what actions should be taken. In the video it has the senior vice president flying to different Wal-Mart’s to see how it runs. One she gets to the Wal-Mart she asks questions to the employees asking them if they like working at Wal-Mart. The employees say they like working at Wal-Mart. I think it is a good thing that the employees like working there. If they don’t, then you have unhappy workers selling merchandise to your customers. Customers can tell if there are unhappy people working. Sometimes the customer won’t even want to come back to the store and shop somewhere else where the service is happy, maybe Target or Meijer’s. If the customers leave then Wal-Mart is losing some of its demand which in return will lower its supply. If it lowers the supply and demand then the maximizing profit and revenue would be lower as well. Sometimes happy employees are the best way to go. Later on in the segment it talks about how Wal-Mart even keeps track of the weather. It states that one time with a bad storm a lot of people purchased strawberry pop tarts. Now whenever a storm is coming Wal-Mart stocks up on the strawberry pop tarts because the demand for them is so high. I think Wal-Mart has a good eye on their company and what action is necessary. The way Wal-Mart monitors there stores and the way they watch their competitors. They know...

Words: 344 - Pages: 2

How Strategic Management Handled Wal-Mart's Reputation

...! ! ! !!!!!!!!!!! ! ! Did Wal-Mart Wake Up? How Strategic Management Handled Wal-Mart’s Reputation [ABSTRACT] The nation’s largest private corporation and retail giant Wal-Mart has faced multiple opposition from labor unions, grassroots organizations, religious groups, and even from its own employees, impacting its corporate reputation and ultimately its bottom line. This case study will demonstrate the strategic communication Wal-Mart used for its corporate reputation management (CRM). In particular, the case describes the company’s response to criticism regarding its current business policies and practices. Table of Contents Introduction………………………………………………………………3 1. Company History……………………………………………………..5 1.1 Wal-Mart’s Early History: 1960s to 1970s…………………………….5 1.2 Wal-Mart Expands and Goes International: 1980s to 1990s…………...6 1.3 Attack of the Advocacy Groups: 2000 to present……………………....7 1.4 Repercussions…………………………………………………………...8 2. The Issue: Employee Relations and Workers’ Rights…………………9 3. Opposition…………………………………………………………….10 3.1 Labor Union-Funded Groups…………………………………………...11 3.2 Gender Discrimination………………………………………………….12 3.3 Wal-Mart: The High Cost of Low Price……………………………………..13 4. Wal-Mart’s Response……………………………………………………15 4.1 Response to Labor Union-Backer Groups………………………………...16 4.2 Response to Gender Discrimination Lawsuit……………………………..17 4.3 Response to Greenwald’s Film……………………………………………18 4.4 Wal-Marting Across America: Jim and......

Words: 18508 - Pages: 75

Wal-Mart's Purchasing Process

...Title: Wal-Mart’s Purchasing Process To: Dr. Franklin Mitchell From: Mark Bieker Class: Class: AC 550 Accounting Information Systems Date: October 10, 2011 Introduction Wal-Mart was founded by Sam Walton in 1962 with the first Wal-Mart discount store opening in Rogers, Arkansas. The company was officially incorporated as Wal-Mart Stores Inc. on October 31, 1969. Currently, Wal-Mart has stores in 50 states in America and 15 countries worldwide, including Argentina, Brazil, Canada, Chile, Costa Rica, El Salvador, Guatemala, Honduras, India, Japan, Mexico, Nicaragua, Puerto Rico, and the United Kingdom. The growth of Wal-Mart over a period of 49 years is remarkable and has lead Wal-Mart to become the biggest retailer in the world. Wal-Mart also has a strong community presence in the areas the stores are located. Wal-Mart’s purpose is to save people money and to help them live better. In 2007, Wal-Mart changed its slogan from “Always low prices” to “Save money. Live better.” This slogan is demonstrated in the products that Wal-Mart sells. Wal-Mart will not be undersold. Wal-Mart caters to the low income and middle income people by offering goods at low prices. These low prices are demonstrated in the products Wal-Mart sells. The products include: food, drink, clothing, jewelry, electronics, automobile supplies, sporting goods, toys, and furniture. Basically, Wal-Mart offers customers a one stop shopping experience. In order to provide this variety of...

Words: 5069 - Pages: 21

Wal-Mart’s Foreign Expansion Case Study

...Wal-Mart’s Foreign Expansion Abstract Wal-Mart is the world’s largest retailer because it learned to successfully translate its merchandising strategy into foreign countries. Initially they tried the same techniques that worked in the U.S. They quickly learned that in order to be successful, they’d have to change their strategy to support the local market. Although some may not agree with their method of entering into joint ventures with local competitors and then taking over their companies, they must agree it was a successful strategy that made Wal-Mart the power house company it is today. Their strategy allowed them to learn the culture while establishing a bond with the community. They gained full access to the competitors’ way of doing business along with their resources. Wal-Mart’s Foreign Expansion How did Wal-Mart become the largest retailer in the world? It started out on a small scale level in Rogers, Arkansas. Sam Walton put his mind and his savvy business practices to work on a vision that most of us never even dream of. Even after his death, Wal-Mart’s financial status continues to climb higher every day. Due to its rapid expansion in the U.S, it quickly ran out of room to grow. The U.S. has 260 million shoppers, but expanding globally allowed Wal-Mart to reach 6 billion shoppers (Kavilanz, 2007). It did not take a rocket scientist to realize it was time to develop a plan to expand globally. The issue was could they translate their merchandising strategy......

Words: 1354 - Pages: 6

Global Marketing Wal-Mart

...Wal-mart A global organization that has been unsuccessful in transferring their successful products or ideas from their home country to foreign markets is Wal-mart. Wal-mart has failed to do this in many countries. For example, in Brazil and Germany, Wal-mart did not understand the local culture, and failed to transfer their products into these countries. In Brazil, there were many other discount stores in which food was available at cheaper prices. Wal-mart’s business model of selling low prices, having obsessive inventory control, and a having a large variety of merchandise failed in this market because Brazil already had their own discount chain stores which were successful there. As we have established, there are some companies that experience "issues" when deciding to move their products or services to a changing consumer market. Although these companies have shown success in domestic locations, it is evident that without consideration of the changing consumer, and the ability to adapt product and services, companies, as large as they may be in some locations, have an increased failure rate internationally.  “US based Wal-Mart, the world's largest retailer, entered Brazil in 1995 by forming a 60:40 joint venture with one of the country's leading business conglomerates, Grupo Garantia (icmrindia.org).” The entry mode would be in association with Lojas Americanas, which is controlled by Grupo Garantia. Wal-Mart’s intention was to achieve the number one retailer......

Words: 1712 - Pages: 7

Wal-Mart's Competetive Advantage

...Wal-Mart’s competitive advantage is driven by its low-cost, high volume strategy which aims to increase profits and customer satisfaction. Sustainable competitive advantage indicates a company’s future success and is determined by different factors. These factors include organizational capabilities such as tangible resources, intangible resources and human resources. One main component of sustained competitive advantage is having superior returns sustained over a long period of time. Wal-Mart has had superior returns and has achieved competitive advantage in the market by making industry key success factors advantageous; they are committed to being cost-leaders and achieving ultimate customer satisfaction. However, their low-cost strategy alone does not give them complete advantage over its competitors. It distribution capabilities, supplier relationships, advanced R&D, and culture, added to their low prices, make up the core of Wal-Mart’s competitive advantage. Their efficient distribution, aided primarily by the company’s own distribution centers, creates economies of scale which mesh with the high volume strategy. Wal-Mart’s impressive supply chain management involves dealing directly with suppliers and integrating them into their strategy. This eliminates the middleman, reduces distribution costs and strengthens their relationship with their partners. Wal-Mart’s innovative processes, along with their active collection of customer purchase behavior aid their R&D...

Words: 812 - Pages: 4

Wal-Mart's Globalization Efforts

...Wal-Mart's Globalization Efforts Over the years Wal-Mart has grown by leaps and bounds. Their presents has now been seen in "thirteen international markets" (Ball, Donald A.; Geringer, J. Michael; Minor, Michael S.; McNett, Jeanne M. 395). They began in Mexico, in 1991. From there they moved into Canada (1994), Hong Kong (1994), Brazil (1995), Argentina (1995), China (1996), Indonesia (1996), Germany (1998), South Korea (1998), the United Kingdom (1999), Japan (2002), Guatemala (2005), El Salvador (2005), Honduras (2005), Nicaragua (2005), Costa Rica (2005) and India (2007). Although they were not successful in every market, Wal-Mart is looking towards the future and the possibility of moving into Russia and South Africa. 1991 Wal-Mart made its first appearance in the international market in Mexico City. "The company used a 50-50 joint venture" (Ball, Donald A.; Geringer, J. Michael; Minor, Michael S.; McNett, Jeanne M. 396). Although they were not a new chain, Wal-Mart still made a few mistakes when entering a new country. "They had a huge American-style parking lot… [however] customers came in via buses not cars" (Mahajan-Bansal). They also made mistakes with product mix, trying to sell products that were not needed and sometimes not usable. They quickly figured out how to solve these small problems and Wal-Mart is now the number one retailer in Mexico (Mahajan-Bansal). 1994 Wal-Mart "entered Canada by acquiring 122 Woolco stores" (Ball, Donald A.;......

Words: 1626 - Pages: 7

Wal-Mart’s Supply Chain
 Management

...The SCM of Wal-Mart Wal-Mart is one the largest retailing companies in the world. Due to its proficient supply chain management practices, Wal-Mart has been recognized by analysts for its ability to achieve leadership-status. Its supply chain management is backed by the need to meet the demands of customers while reducing costs. The company's success is its ability "to offer a vast range of products at the lowest costs in the shortest possible time. It was all made possible due to Wal-Mart's highly automated distribution centers, which significantly reduced shipping cost and time, and its computerized inventory system, which speeded up the checking out time and recording of transactions (ICFAI 2004)." Wal-Mart was able to achieve a leadership status in the retail industry because of its efficient supply chain management practices. 5 areas where Wal-Mart manages the supply chain: Procurement & Distribution Wal-Mart procured goods directly from manufacturers, bypassing all intermediaries. It was a tough price negotiator which will only purchased when it was fully assure that the products bought were not available elsewhere at a lower price. Wal-Mart also spent time meeting vendors and understanding their cost structure. By making the process transparent, it would know which manufacturers were doing their best to cut down costs and then it will establish long term relationship with that vendor. Besides, Wal-Mart had over 40 distribution centers at various locations......

Words: 877 - Pages: 4

De publicación más reciente | Tweak-SSD Pro | Watch now!