Walmart case study from Marketing Management Book by Kotler

2.  Founded By Sam Walton in 1962 in Rogers, Arkansas.
 It’s a 2nd largest Company in the World.
 The giant chain of discount stores.
 Having $400 billion revenue and 2.1 million associates.
 Walton's EDLP Strategy remains the foundation of Walton's
success today.
 Old tagline was “ Always Low Price. Always”.
 New Tagline is “Save Money, Live Better”.

3. Today Wal-Mart has stores in 16 International markets and saves
more then 200 million customers a week.
These Includes Wal-Mart Supercenters, Discount Stores,
Neighborhood market and Sam’s Club.
They are Promoting CSR.
Wal-Mart thrives on three beliefs and values:
1. “Respect for the Individual”,
2. “Service to Our Customer”,
3. “Striving for Excellence”.

4. Sam Walton, eponymous founder
of the world's biggest retailer, Wal-
Mart, spent his life practicing what
he called “the ten-foot rule”. The
rule is simple: if you come within
10 feet of a customer, look him or
her in the eye, smile and ask if you
can help.
 Forbes ranked him the richest
man in the USA from 1985 to 1988.
 Wal-Mart also operate Sam’s
Club warehouse stores

6. The starting of the new campaign and tagline period from 2007.
Wal-Mart one of the campaign is done through TV Commercial in
which they highlighted the company positive impact With this new
tagline, the company focused on decreasing energy costs,
increasing retirement savings, good employee health care
coverage, and increased family savings.
Wal-Mart also starts aggressive price cuts to attract new consumer
affected by the recession.
It decreased prices during holidays on toys and electronics and
implemented a massive store remodeling effort called “Project
Impact”.

7. Environmentally friendly initiative such as recycling materials
,offering customers more green products and cutting
transportation and energy usage. This made Wal-Mart image as
environmental and social responsible company that contributes to
the society and environments.
Wal-Mart change its product mix that focus on 45 percent
consumables (food, beauty, health items)—is a better strategy in
a poor economy than Competitor’s product mix— 20 percent
consumables and 40 percent home and apparel products. This
helped Wal-Mart to increase its stores sales and do better than its
competitor in recession.

8. Wal-Mart introduced its New Tagline in 2007 named “
Save Money, Live Better”.
New tagline creates image of Walmart as a store that
saves customers money by offering products at cheap
rates but giving customer’s quality product that
improve their living.

9. No doubt that the company attain success because of the EDLP
Strategy. But the company also faced multiple lawsuits and
other problems internally Because of EDLP Strategy denoted to
“Always Low Price, Always”.
Old tagline focused on the low price of the product, while no
indication over the product and service offered to customers.
Wal-Mart decided for a new direction and launched series of
new initiatives to help improve sales and its image.
And New tagline “Save Money, Live better” is one of from new
initiatives and decision to dropping The old tagline is so right.

10. Wal-Mart kept Price Lower By reducing
his profit margin.
He sold Its product at Low Price than its
competitor.
Invest on Local Charities through
Good work saves the average family.

11. In the Condition When the economy on the rise Wal-
Mart can protect itself through “few strategies”:
Try to bring in more product and add more variety to
its offering
Bring in more SBUS.
Adopt the strategy of Line Extension and Product
Extension

12. Wal-Mart Invest on promotion activities rather than
cut down or lowering the price.
Introduce LUXARIOUS GOODS & PRODUCTS.
Bring in Innovation launch new products.
To bring product developing strategies
Add more varieties to its offering or adopt
diversification growth

13. The Wal-Mart does best when
economy was sour, So we can say that
when the economy on rise the Wal-
Mart can protect itself by adopting
these strategies.