Walmart
Positioning for Parent’s Choice
Tanena Terrell
Positioning Presentation
MTK/421
Kelly Duman
Introduction
This is a Walmart brand that focuses on baby products
The products include diapers and other accessories
It is a product of Wyeth
Parent’s choice is a brand sold by Walmart and it basically deals with baby products. It provides a wide range of products to give parents various options to choose from
*
Target Market
With respect to demographics, the product targets consumers from all societies
Basically, they need to have a stable source of income that will enable them to buy the products
The brand targets consumers who have a stable source of income from which they can purchase the different products for their children
*
Cont’d
Geographically, the product is targeted to parents across the globe
Provided they have children, the products are meant for them
The product is universal
Parents across the world need these products for their children, therefore, Parent’s Choice does not have geographical limitations with respect to who it targets
*
Cont’d
As far as psychographic factors are concerned, the brand products are designed for all parents
They should be interested in high-quality products
The brand’s products are of exceptional quality, therefore, the targeted market should believe in high-quality products
*
Cont’d
As per behavioral segmentation the brand looks at customers who are interested in the benefits of the product
Behavioral segmentation basically looks at the behavior of the consumers
The different products offered by the brand are effective, therefore, it targets consumers that are interested in the benefits that they will get from products
*
Perceptual Map
The perceptual map lists competing products with respect to how consumers look at them. The products’ competitiveness is in the following order; from the most competitive to the least competitive: Pampers, Mee mee, Parent’s Choice, Pigeon, Sebamed, Mothercare, and Biotique
*
Cont’dWith respect to the perceptual map, Pampers is the top competitor in the list as it offers the best quality productsBiotique is the least competitive because it has the lowest quality in the list
The perceptual creates a pictorial representation of how different competing brands and products are viewed in the market
*
ConclusionThe perception of brands greatly depends on the prices that they are offered (Kerin, Roger, Hartley, Steven, & Rudelius, 2015)Most customers assume that the most expensive products are of the best qualityManufacturers need to balance quality and price to create the best perception
The price at which a product is sold determines how it is perceived in the market. Consumers tend to create a relationship between the price and quality of a product (Kerin, Roger, Hartley, Steven, & Rudelius, 2015). The create a direct relationship.
*
References
Kerin, Roger A., Hartley, Steven W., & Rudelius, W. (2015). Marketing, 12th ed. McGra.
WalmartPositioning for Parent’s ChoiceTanena Terrell.docx
1. Walmart
Positioning for Parent’s Choice
Tanena Terrell
Positioning Presentation
MTK/421
Kelly Duman
Introduction
This is a Walmart brand that focuses on baby products
The products include diapers and other accessories
It is a product of Wyeth
Parent’s choice is a brand sold by Walmart and it basically
deals with baby products. It provides a wide range of products
to give parents various options to choose from
*
Target Market
With respect to demographics, the product targets consumers
from all societies
Basically, they need to have a stable source of income that will
enable them to buy the products
The brand targets consumers who have a stable source of
2. income from which they can purchase the different products for
their children
*
Cont’d
Geographically, the product is targeted to parents across the
globe
Provided they have children, the products are meant for them
The product is universal
Parents across the world need these products for their children,
therefore, Parent’s Choice does not have geographical
limitations with respect to who it targets
*
Cont’d
As far as psychographic factors are concerned, the brand
products are designed for all parents
They should be interested in high-quality products
The brand’s products are of exceptional quality, therefore, the
targeted market should believe in high-quality products
*
Cont’d
As per behavioral segmentation the brand looks at customers
who are interested in the benefits of the product
Behavioral segmentation basically looks at the behavior of the
3. consumers
The different products offered by the brand are effective,
therefore, it targets consumers that are interested in the benefits
that they will get from products
*
Perceptual Map
The perceptual map lists competing products with respect to
how consumers look at them. The products’ competitiveness is
in the following order; from the most competitive to the least
competitive: Pampers, Mee mee, Parent’s Choice, Pigeon,
Sebamed, Mothercare, and Biotique
*
Cont’dWith respect to the perceptual map, Pampers is the top
competitor in the list as it offers the best quality
productsBiotique is the least competitive because it has the
lowest quality in the list
The perceptual creates a pictorial representation of how
different competing brands and products are viewed in the
market
*
ConclusionThe perception of brands greatly depends on the
4. prices that they are offered (Kerin, Roger, Hartley, Steven, &
Rudelius, 2015)Most customers assume that the most expensive
products are of the best qualityManufacturers need to balance
quality and price to create the best perception
The price at which a product is sold determines how it is
perceived in the market. Consumers tend to create a relationship
between the price and quality of a product (Kerin, Roger,
Hartley, Steven, & Rudelius, 2015). The create a direct
relationship.
*
References
Kerin, Roger A., Hartley, Steven W., & Rudelius, W. (2015).
Marketing, 12th ed. McGraw-Hill Education. New York:
NY.
Running head: STRATEGY AND POSITION ANALYSIS
1
STRATEGY AND POSITION ANALYSIS 3
MTK/421
December 12, 2016Strategy and Position Analysis for Walmart
Stores, Inc. Strategy refers to a course of action that needs to be
followed for the interest of achieving various goals and
objectives (Erica, 2011). Organizations usually have various
goals that should be met. For this to be achieved, they need a
5. strategy. The definition of strategy fits Wal-Mart and its
situation because the company always has a course action in
place. Wal-Mart believes that through the implementation of
relevant strategies, it can achieve its goals and objectives in the
most effective and efficient manner.
Overview of Organization
Wal-Mart Stores, Inc., commonly known as Walmart is an
American retail corporation operating a chain of discount
department stores, grocery stores and hypermarkets. The
company operates in the retail industry. Since its founding by
Sam Walton in 1962, the company has grown to become an
international brand, currently owning 11,593 stores and clubs
spread across more than 28 countries (Hwang, & Park, 2015).
The stores are operated under 63 banners. According to the
Fortune Global 500 list of 2016, Walmart is the largest company
in the world by revenue, which means its growth has been
steady and exponential. Additionally, its growth in the retail
industry has expanded to a position of 2.2 million workers,
which puts the retail giant as the largest private employer
globally. By market value, Walmart has grown to become one of
the most valuable firms in the world by market value, and
topping the list of grocery stores in the United States (Hwang,
& Park, 2015).
Description of Product/Service
Now, benefits of the digital world and the lines between the
physical shopping experiences are converging to create new
retail experience based on excitement, convenience and ease.
There exists four trends in the retail industry which is likely to
make the future of the industry brighter for Walmart and other
companies operating along this line. Firstly, it is important to
consider all-inclusive mobile shopping experiences (Pantano, et
al. 2014). The emergence of personalized shopping trips and
mobile apps are changing retail. The digital personal concierges
are used in welcoming shoppers into stores; with some stores
using the iBeacon technology to as a form of digital messaging
to guide purchases to their favorite goods and services, alerting
6. them of the new deals and discounts (Pantano, et al. 2014).
Mobile shopping apps are increasingly improving the area of
customer service.
Through tablet devices or mobile, sales representative are able
to respond to questions immediately, construct customized
shopping experience and pull up buying histories of customers
that is profitable for the store and convenient for the customers.
The second component of the retail industry making it mature is
digital advertisements sent to the passers-by. Soon, retailers
will start targeting people with digital messages as they walk by
their retail stores (Pantano, et al. 2014). For instance, if a man
passes by men’s grooming store stocked with products
appealing to him, an in-app or email alert can use his past
purchasing habits to notify him of some other products currently
being sold. For customers, personalized advertisements of these
forms are likely to make the shopping experience more
convenient.
Smart shelving and 3-D holograms are making the retail
industry more mature than what we have seen in the past
(Pantano, et al. 2014). Advanced holograms assist the customers
in better visualization of the upcoming products, Retail stores
strategically position the eye-catching 3-D renderings in glass
windows and at checkout counters to engage the customers at
higher levels. For instance, the technology-based intelligent
shelving by Intel positions prominent digital displays close to
new products to increase awareness amongst the customers. The
displays are updated easily to move products efficiently before
their sell-by dates. This innovation can help retail stores
improve sales and revenue on several products.
Lastly, the improved self-checkout experiences are improving
the maturity of the retail industry. When the self-checkout
kiosks were introduced by grocery stores, they got it right there.
The tactic can continually be used on larger scales in several
other retail verticals. For instance the EasyPay self-mobile
checkout by Apple is an important innovation that is helping
revolutionize the customers’ experiences as they grow in their
7. comfort using contactless payments (Sorace, Pantano, Priporas,
& Iazzolino, 2015, November). From these perspectives, the
future of the retail industry is not bleak. The brick- and-mortar
retail stores are continuing to combine the benefits of the digital
and physical world to become mature and hence gain positive
response from the loyal customers.
SWOT Analysis
Strengths
· Wal-Mart brands are available in different countries in North
America, South America, and Europe.
· The company has a large market share in the three continents
thus making it profitable.
· Wal-Mart uses diversified marketing approaches to win the
trust and confidence of every potential customer.
· The firm’s distribution network is relevant in these three
regions.
· The managerial and marketing departments support the
company’s performance.
Weaknesses
· The firm has a small range of products thus being unable to
compete in different market segments.
· The company lacks quality healthy products that can attract
more potential consumers.
· Water and waste management are critical concerns affecting
the firm.
· Wal-Mart has failed to maximize its penetration in different
continents.
Opportunities
· Many customers purchase and consume a wide range of Wal-
Mart’s products and services.
· The developing world presents a new marketing opportunity.
· The firm can diversify and produce other products and
services.
· An improvement in its supply chain can deliver positive
results.
Threats
8. · Direct competitors are making it impossible for Wal-Mart to
emerge successful.
· The health issues raised by consumers can affect the firm’s
sustainability.
Competitive Analysis
Current company’s strengths and weaknesses
Potential Competitor’s strengths and weaknesses
Competitive Rival’s strengths and weaknesses
Target Market
General Population
Product
· Selling natural products
· Extensive marketing
· The use of extensive marketing provides the competitors with
the chance of having their products known faster.
· There innovations also tend to get to most people faster than
that used by Wal-Mart.
Place
· Will be implemented across all of the organization braches in
the world
Promotion
· Vertical Integration
· However this technique has capacity-balancing challenges
· Outsourcing Strategy
Price
· Will be variable depending on the nature or type of service
sorted.
9. · Will be standard across the globe.
Competitive Barriers
· There are a lot of difficulties associated with acquiring
reliable suppliers hence may affect the business
· Majority of the natural products are known for the change they
have on their prices, hence may prove difficult to convince the
consumers.
· When the prices of the natural products rises, the consumers
may decide to embark on substitute commodities.
Capabilities and resources for the organization
· One of the most significant capabilities that the organization
has shown over the last couple of years is its ability to bring in
fresh blood into its mainstream. This has enabled it to
incorporate fresh talent and hence leading to an improvement on
the product quality for the organization.
· Further, the use of Torbit by the organization has enabled the
acceleration of its website and ensure that the site is made
faster.
Target Market Segments
Demographic
Wal-Mart doesn’t have a specific category of individuals that
they market to, all of the shopping-lovers are always welcome
to come ad experience the wonderful experiences at Wal-Mart
Stores.
Psychographic
The most suitable strategy that Wal-Mart can apply is ensuring
that all products sold are natural (Leshmik, 2011). Wal-Mart has
been in a scandal before whereby most of the customers
complained that the organization was not selling a hundred
10. percent natural products. If the organization made the same
mistake today, it would lose a lot of clients and trust from the
stakeholders. The company can ensure that it has produced
quality products by making sure that the suppliers observe the
standard of goods that the firm wants.
Geographic
The strategy of providing a new service will be applied across
all of the organization’s branches in the world.
Behavioral Factors
If the company made sure that all the products sold are natural
and chemicals free, customers would flock in its shops and a
case of any weaknesses; the customers will not have the time to
observe it. On top of that, the company will be ahead of its
competitors since it will have won the hearts of many
customers.
Positioning Statement
The first case being considered in positioning by the
organization are the performance goals.When a business is
established, its major purpose is to grow from one level to
another. To achieve this, performance goals are usually set and
they determine whether or not the business is growing on not
depending on their level of achievement. In the next one year,
Wal-Mart has three specific goals that should be achieved. The
first goal is an improvement in customer service. The company
understands that customers are important assets that should be
focused on. Improvement of service provision to them is
necessary. Better customer service makes the customers feel
important to business and they will remain loyal because they
like the services provided to them. The second goal is employee
satisfaction. In the next one year, the company intends to
improve the overall conditions under which employees work.
This is intended to boost job satisfaction as well as
performance. Better working conditions improve the level of
employee satisfaction. The last performance goal in the next
one year by Wal-Mart is to ensure that there is a remarkable
11. improvement in terms of sales. To achieve this, the business
intends to boost its marketing so that it creates awareness and
demand for the different products that it offers. Through this,
sales will be more frequent and there will be more revenues
realized (Adekola & Sergi, 2012).
One of the goals of Wal-Mart in the next 5 years is the
achievement of corporate social responsibility. The business
intends to expand its services to the surrounding communities
by enabling them to meet their objectives. This will also be
achieved through the application of environmentally friendly
strategies. The second goal is to build a positive organizational
culture. This is intended to boost the overall performance of the
business. The last goal for Wal-Mart in the next five years is
about brand recognition. The business intends to boost the
recognition of its brand across the world especially in the most
remote areas in which it is not yet present.
The organization will also continue to use vertical integration
over outsourcing for the production of its services. Firstly,
vertical integration is cost effective. Because of the eliminated
market transaction cost, implementing vertical integration at
Walmart will control costs using their own supply and
distribution strategies and channels. More importantly, by
setting the goods and services directly to the consumers without
third party involvement, Walmart is able to minimize the
distribution costs and hence increase their profits. Secondly,
vertical integration is important for Walmart since it is a
weapon against competition and the competitors. Components
business can be applied as a competitive weapon (Markusen, &
Xie, 2014). Using vertical integration, and according to Porters
force of threat of new entrants, high barriers can be set by
Walmart for those newly entering the market.
Thirdly, for Walmart, vertical integration is important because
of secured supply. With vertical control, Walmart is able to take
more control over the supply and distribution. When the
company outsources from other firms, several uncertainties
come up especially when the outsourcing company is also a
12. competitor. Once Walmart’s supply chain is controlled by itself,
it is able to ensure their own sufficient supply. The other
strength of vertical integration is its ability to allow for positive
differentiation. Positive differentiation can give Walmart access
to more process and retail channels, more production inputs and
distribution resources (Markusen, & Xie, 2014). However,
vertical integration has weaknesses such as: capacity-balancing
challenges when Walmart needs to create excess upstream
capacity to ensure the downstream operations get sufficient
supply; decreased feasibility; can create barriers to market
entry; and requires extensive capital used in investment
(Markusen, & Xie, 2014). On the other hand, outsourcing
according to the pyramid, has some setbacks. Loss of
managerial control of the outsourced roles is top of the list.
Secondly, Walmart is likely to suffer hidden costs in the
implementation of outsourced roles (Markusen, & Xie, 2014).
The third challenge is that outsourcing can be a threat to
confidentiality and security especially on customer information.
Since the retail market is growing, investment is required in the
assets to increase capacity and hence lead to consumption of
cash. The four categories of the matrix are: dogs, question
marks, stars and cash cows. Dogs have low growth rate and low
market share, and hence neither consume nor generate large
cash amounts. As of 2013, Walmart business units were in this
category. Secondly, question marks grow rapidly and hence
large amounts of cash are consumed but since they have low
market shares, much cash is not generated. The net cash
consumption is therefore larger. Stars on the other hand
generate large cash amounts owing to their strong relative
market shares, but large amounts of cash are also consumed
since the growth rate is high; and therefore the cash in each
direction nets out approximately. As of 2013, the strategic
position of Walmart was that of cash cows (Palia, De Ryck, &
Mak, 2014). Since Walmart has been a leader in the mature
retail market, it exhibits a return on assessment that is larger
than the market growth rate.
13. Decision making remains a key pillar of Walmart’s success, not
today, but even tomorrow. Therefore, effective changes should
be implemented aimed at improving results and efficiency of
operations both in the United States and other stores offshore.
Making effective decisions require the input of a lot of
information on the issue at hand. The management of the
organization should involve employees more regularly and
deeply in decision making process. Business analytics and
technology should also be integrated in the decision making
process.
Conclusion
The planning structure should be leaner and effective; and this
means incorporating best planning strategies such the teamwork
and development. The planning structure is very important for
the success of Walmart and hence it should be transparent,
invest in knowledge and skills. The planning structure should be
more focused on the philosophy of Walmart and the goals or
objectives of the organization. The other change is
incorporating the industry and environmental analysis of
Walmart into the planning structure and conducting a SWOT
analysis regularly. Measures of success include: financial
viability of Walmart, which can be determined by its
profitability; customer satisfaction which is indicated by
performance on customer satisfaction surveys; employee
satisfaction and the firm’s contribution to the society.
References
Adekola, A. & Sergi, B. (2012). Global Business Management:
A Cross-Cultural Perspective. Hampshire: Ashgate Publishing.
Berg, N. (2012). Wal-Mart: Key Insights and Practical Lessons
from the World’s Largest Retailer. Philadelphia: Kogan Page
Publishers.
Don, S. (2005). The Wal-Mart Way. Nashville, Tennessee:
Thomas Nelson Publishers.
Erica, O. (2011). Strategic Planning. Indianapolis: Wiley
Publishing.
14. Fainshmidt, S., Smith, A., & Judge, W. Q. (2016). National
Competitiveness and Porter's Diamond Model: The Role of
MNE Penetration and Governance Quality. Global Strategy
Journal, 6(2), 81-104.
Freeman, E. (2010). Strategic Management: A Stakeholder
Approach. Cambridge: Cambridge University Press.
Hwang, M., & Park, S. (2015). The Impact of Walmart
Supercenter Conversion on Consumer Shopping Behavior.
Management Science, 62(3), 817-828.
Leshmik. (2011). Wal-Mart- Innovation Case Study. Retrieved
from http://www.slideshare.net/lekshmik/walmart-innovations-
case-study
Markusen, J. R., & Xie, Y. (2014). Outsourcing versus vertical
integration: Ethier–Markusen meets the property‐rights
approach. International Journal of Economic Theory, 10(1), 75-
90.