wall mart_pratham grp

8/14/2019 Wall Mart_pratham Grp

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Wal-Mart

Save money. Live better

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Wal-Mart customers demand lowprices and value for their money andthats our promise here at Wal-Mart

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Origin Of Wal-Mart

Milk boy

Part time job with retail outlet

Working with Butler Brothers Sales increased

Importance of retail outlets

Lease not renewed 1950 birth of Wal mart store

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Statistics

Created 125000 new jobs.

Total international stores 3000

60% sales from middle class family Families visit the stores 50 to 60%

times a year.

84% of the Americans have visitedWal-Mart stores.

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2 to 3% increase in consumers everyyear.

Growth of 13% in the next 5 years.

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Customers

It has a positive impact.

Some say it has a negative impact

Main competitors are K-mart, TargetKroger Publix, Giant Eagle, Safeway

Advantage over price

3 Environmentally DemonstrationStores.

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Wal-Mart

TopShoppers

HeavyShoppers

LowShoppers

LightSpenders

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Demographics

Latino and African American

Older Shoppers

New challenges

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Technology

Satellite communication.

Radio frequency identification tags

Up gradation of its system Designing 1st economical and

environmental friendly stores

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Micro-environment Audit

o Market: Global retail industry touched $9,498 billion

in 2004. The estimated sales in the year 2009 will be

more than $12,000 billion.

The US dominates the world retail,accounting for 32.3% of the global retailing.

Europe generates 30.8% of the total value,Asia pacific-25.6% & rest of the world-

11.20% Wal-Mart revenue-US$ 404.16 billion(2009) Company growth: In 1975, sales $340.3

million

In Jan 31-2009,sales $401.2 billion 10


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2) Customer: Customer needs & buyingbehavior

3) Competitors: K-Mart, Target, Kroger, Albertsons, Publex,

Giant Eagle, Safeway, Winn-Dixie.

Future competitors trends

4) Distribution & Dealers

5) Suppliers

6) Facilitators & Marketing Firms 11


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Marketing Strategy Audit Business Mission: Wal-Mart is guided by service

to our customers and striving for excellence.

Marketing Objectives & Goals:

To bring low prices to their customers and alsorelaying value to their customer for every dollarthey spend with the company.

Strategies:

7. Operational Promotional Strategies.

8. IT Systems.

9. Some Stores open for 24X7 days.

10.To cover all segments from the low-income to theupper income segments.

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Wal-Mart's Performance

Increase in overall profits for past 4 yrs.

US households buy abt 22% of groceries from

Wal-Mart

A profit Margin of 9.3% in 2005 as compared to8.4% in 2002

Its revenues represent 2.3% of US GDP.

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PRODUCTS:

3 retailing subsidiaries: Wal-Mart DivisionUnited States, Sam's Club and Wal-MartInternational.

Wal-Mart does business under nine differentretail formats: super centers, food and drugs,general merchandise stores, small markets,cash and carry stores, membership warehouseclubs, apparel stores, soft discount stores and

restaurants

Neighborhood Market product line should bediscontinued

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Wal-Mart should consider test openings ofhardware and tool stores

AC Nielsen and Pew Research conduct a pollaccording to which- Working families believeWal-Mart is a good place to shop and a valuedmember of the community. 84% of Americans

have shopped at a Wal-Mart in the past yearand 69% of those familiar with Wal-Mart havea favorable opinion of Wal-Mart." (Wal-Martfacts, 2006)

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PRICE

Wal-Mart's main competitors are Target, Costco andK-Mart.

Wal-Mart -$46.36.($48.94)

Costco -$52.39, ($49.13)

Target - $ 57.06 ($42.71)

K-Mart - $ 175.61. ($13.55)

Distributors feel that Wal-Mart share will increaseby 13% in the next five years.

Customer believe that by ending with a lack lusterthird quarter and continued negative press Wal-Mart will only see an increase of 5% or less in shareprice

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PLACE

Wal-Mart clearly has a distribution policy that ismonitored and regulated by the Security ExchangeCommission and shares distributed by NYSE

With 50 distribution points globally, there is no

need for further distribution points.

Wal-Mart has started distributing via the Internet,

such as E-Trade.

Wal-Mart could ill afford to lose any of itsdistribution channels.

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PROMOTION

Advertising campaign always has focused on Everyday low Prices.

Recently, Wal-Mart has slashed prices on 10,000products for the holiday season.

Wal-Mart has an in store television network that alertcustomers to sales and promotions going on withineach store.

if there is a price in a competitor's flyer ad that ischeaper than their price show the competitor's ad

during check out and Wal-Mart will beat the price inthe competitor's ad.

Logical advertisement and promotional campaigns

No wrong promises.

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Wal-Mart spent $841 million on advertising in 2004,a 21 percent increase from 2003 when Wal-Martspent $694 million."

Currently Wal-Mart has earmarked 978 milliondollars for it's advertising campaign for 2007.

In 2002 , shifted its advertising and marketing

focus budget in getting to know the customerspersonally and marketing to them accordingly.

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Marketing Information Systems

Wal-Mart's vast marketing information system isheadquartered in Bentonville, Arkansas.

Timely and accurate information for use by the marketingmanagers to improve their marketing planning,implementation, and control

Wal-Mart's constantly monitors consumer data via purchasesmade at register and items purchased via their online store.

Wal-Mart has accurate sales forecast but over the last severalmonths Wal-Mart has seen a decrease in sales due to incorrectcoding on some 234 stores.

Wal-Mart executives have corrected this current error and haveimplemented procedures to prevent this same type of codingarea in the future.

The large sums of data collected are collected in efficientmanners, which allow managers to make instant, decisions

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SWOT Analysis

Strengths

Wal-Mart is a powerful retail brand. It has a reputation forvalue for money, convenience and a wide range of products allin one store.

Wal-Mart is the largest employer in the United States.

Wal-Mart also has the second largest net sales in the world.

Wal-Mart has a remarkable MIS and logistics system in place.

Technology in general is an unbelievable strength that Wal-Mart is able to invest in to improve their company.

By having on-line shopping, Wal-Mart has allowed forincreased sales all over the world.

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Weeknesses

Wal - Mart has made it extremely difficult for smallretailers to survive. And hence people who are angrywith wal-mart for monopolising the retail industry refuseto shop there.

Since Wal-Mart sell products across many sectors (suchas clothing, food, or stationary), it may not have theflexibility of some of its more focused competitors.

The company is global, but has has a presence inrelatively few countries Worldwide.

There are negative feelings towards Wal-Mart as aretailing-giant because of issues concerning wages,heath care and the environment. 22


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Opportunities

To take over, merge with, or form strategic allianceswith other global retailers, focusing on specific marketssuch as Europe India or the Greater China Region.

Also, Wal-Mart has the opportunity to work on improvingthe environment. They have such a large image that anyprograms they support have the ability to producetremendous results.

Other growth opportunities include area specific andculture specific stores via the Internet and improvedsupply chain management through radio-frequencyidentification (RFID).

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Threats

Being number one means that you are the target ofcompetition, locally and globally.

Being a global retailer means that they are exposed to

political and economic problems in the countries thatthey operate in.

Another threat is the rapidly growing chain of DollarGeneral discount stores. These stores are able to open in

smaller areas where there are not enough customers tosupport Wal-Mart.

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Conclusion

Always low prices always have become synonymous to whatWal-Mart stands for in bringing customers low prices withvalue.

Wal-Mart must focus on issues that it faces and find ways tocorrect the problems by giving those problems 100 percentexecutive attention.

Continue expansion of stores on a domestic and global scale.

The implementation of RFID technology should be increasedbeyond the 1000 warehouse distribution points. Wal-Martshould increase those ID tags beyond every pallet to every

piece of product the company receives from suppliers. In doingso there would be a dramatic reduction in theft fromemployees and customers.

Wal-Mart must remember the customers that allowed them tobecome the number one retailer globally; losing focus of thiswill cause sales to plummet.

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Thank You

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