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Abstract
Explores the marketing strategies employed by Wal-Mart Corporation and their efforts to compete in the “new” economy.
Includes an assessment of Wal-Mart’s expressed and apparent positioning and value proposition based upon internal documents, public relations statements, web page and advertising.
Includes an assessment of Wal-Mart’s competitive position and strategy.
Includes an assessment of Wal-Mart’s marketing mix. ... Wal-Mart corporation does not just compete in their field, they dominate it.
Wal-Mart is the largest retail operation in the world today. According to the Wal-Mart corporate website at http://www. ... This makes Wal-Mart the fourth largest company in the United States of America. The size and consistent profit generation of Wal-Mart Corporation make it a logical choice for the study of marketing techniques employed by successful businesses. ...
Wal-Mart’s Value Proposition and Expressed Position
Value Proposition
The retail world is tough. Wal-Mart competes with stores like K-Mart, Target, Caldor, Bradlees and Woolworth. The last three of those operations are out of business and K-Mart is presently undergoing Chapter 11 reorganization. Target has managed to remain afloat, but has not seen growth anywhere near that of Wal-Mart. ... Yet, Wal-Mart consistently outperforms all of the others. The answer lies in the Wal-Mart value proposition and marketing activities.
The Wal-Mart value proposition is really simple – the key to the market is price (Treacy, 1995). Wal-Mart calls this policy EDLP which stands for Every Day Low Price. ... Consumers don’t need to wait for a sale to shop at Wal-Mart because they are getting the lowest price available there every day (Gilliam, 1993). Anyone who has ever visited a Wal-Mart store knows that they are huge and carry a wide variety of merchandise. Thus, people find shopping at Wal-Mart to be very efficient. ...
Discussion (continued)
Wal-Mart’s Value Proposition and Expressed Position (continued)
Expressed Position
Wal-Mart’s Value Proposition becomes their Expressed Position through every interaction they have with the public. Their few television and radio commercials, magazine ads, even the signs in their stores proclaim EDLP. Since Wal-Mart’s stated strategy is to have the lowest price everyday, the company does not need to spend a great deal on advertising. Wal-Mart does not need to run sales regularly or have specially priced items in its weekly circular. In fact, Wal-Mart’s advertising budget is generally one-third of the industry standard (Sparks, 1994). A quick check of the past few Sunday papers in my recycling bin notes a number of K-Mart and Target circulars, but nothing from Wal-Mart. ... However, Wal-Mart is incredibly successful by making itself into a commodity. Wal-Mart does not want to have a strong relationship with its customers. ... Wal-Mart is simply recognized as the place to go for the best price.
Discussion (continued)
Wal-Mart’s Value Proposition and Expressed Position (continued)
Realizing the Dream
When working with its suppliers, however, established relationships need to be much stronger. To Wal-Mart, a supplier is not merely a commodity provider, but a true partner that helps contribute to the company’s business issues. ... Wal-Mart markets itself to the consumers one way and markets itself to the suppliers another. Wal-Mart is known among suppliers for negotiating tremendous price breaks. Wal-Mart does this by researching every aspect of a supplier’s product. ... The price Wal-Mart will pay for it is negotiated from there.
Wal-Mart can handle suppliers in an aggressive manner because it sells a huge volume of each supplier’s product. Suppliers know this and realize that they are reaching a very broad audience by having their products on Wal-Mart’s shelves. Even though a supplier may not make its usual margin when dealing with Wal-Mart, they will almost certainly make up for it in volume.
Approximate Word count = 3189
Approximate Pages = 12.8
(250 words per page double spaced)
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