Wal-mart

Assignment # 1 Submitted By: Tayyeba Mazhar

Registration ID: 3822

Course ID: 9052

Course: Marketing Management

Submitted To: Mr. Mirza Shakeel Baig

Wal-Mart Brief history of Wal-Mart The very first store was opened by Sam Walton in 1962 in Rogers, Arkansas. There were 25 Wal-mart stores within 5 years of the first Wal-mart, and they were earning total revenue of $12.6 million in sales. Finally in 1972, Wal-mart was listed in the New York Stock Exchange. In 2009, Mike Duke became the president and chief executive officer. Currently there are 7,800 stores and Sam’s Club locations in 15 markets employ more than 2 million associates, serving more than 176 million customers a year. Wal-mart’s major international operations are in Argentina, Brazil, Canada, Central America, Chile, China, India, Japan, Mexico, Puerto Rico, and UK. The purpose is best stated by Sam Walton: “If we work together, we’ll lower the cost of living for everyone…. We’ll give the world an opportunity to see what it’s like to save and have a better life.”

Vision Statement “Saving people money to help them live better.”

Mission Statement “Offers the best quality merchandise at the lowest prices in all their stores, from school supplies, to household items and top quality groceries.”

Objective Wal-mart is based on two main objectives that have guided the firm through their growth years. The customer is featured in the first objective; "Customers would be provided what they want, when they want it, all at a value". Team spirit was emphasized in the second objective, "Treating each other as we would hope to be treated acknowledging our total dependency on our associate - partners to sustain our success".

Strategies Wal-mart contains two set of strategies; Business Strategies and Marketing Strategies.

Business Strategies include:  Same good for less and still earns profit  Very good operational efficiency  Use of IT in all verticals of business  Effective use of logistics management  Global Expansion for new market opportunity  Bargaining power over suppliers  Data used to profile each market  Predicts demand, optimizes stock, and  Networked to HQ via private satellite

Marketing Strategies include:  Thinking globally, serving locally  Saving people money so they can live better

“Every Day Low Prices” is the epicenter of the Wal-mart marketing strategy.

Marketing Mix Product - is everything basically. They have a wide variety of products, all are what can be termed as 'general use' meaning they sell items that any household would need, from food to sporting goods. Price - always low prices. Placement - general merchandising and one-stop shopping is part of their placement issues. The store locations make people feel convenient. Promotion - TV and print ads.

Brands The major names Wal-mart carries in brands are:  Sam’s Choice  Great value Other brands that Wal-mart carries are:  Apparel

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Athletic Works Faded Glory Kid Connection Life Metro 7 No Boundaries Puritan Simply Basic

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Lei

 Homelines

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Get It Together HomeTrends Mainstays Canopy

 Hardlines

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Color Place Durabrand EverStart Holiday Time ilo Kid Connection Ol' Roy Ozark Trail ReliOn Spring Valley Special Kitty SuperTech

 ASDA private Label

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George Smart Price Extra Special Pacific Onn Baier

SWOT Analysis  Strength • Cost advantage • Low price and customer oriented • Focused strategy • Strong supply chain management

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People are key to success

 Weakness • Ignore store decoration • Wal-mart sell products across many sectors, it may not have the flexibility of some of its more focused competitors • Managing huge span of control  Opportunity • Strong brand equity • Put efforts on social welfare – better image • New locations, and store types • Oversees markets  Threats • Other competitors • Intense price competition

Key Success Factors (KSF) The company’s “Low Price” image, backed by the strong integrated marketing strategy is the key success factor of Wal-mart. People at Wal-mart believe that, “saving money is a good news in any language.” Sam Walton’s 10 commandments are still being followed by the management of Wal-mart, and that is the key to their success. The 10 commandments are as follow: 1. Commit to your business 2. Share your profits with your associates, and treat them like your partners 3. Energies your colleagues 4. Communicate everything you possibly can with your partners 5. Appreciate everything your associates do for the business 6. Celebrate your success 7. Listen to everyone in your company 8. Exceed your customers expectations 9. Control your expenses better than your competition 10.Blaze your own path.