Walmart, the GIANT retailer

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A presentation on Walmart as a giant in the retailing industry. This presentation evaluates the strengths and weaknesses of Walmart\'s marketing strategy and gives suggestions for improvement with regards to problems the organisation is facing. This was done as part of a graded assignment i have worked on for Marketing.

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  • Sells wide range of convenience, shopping and specialty products
  • Sells wide range of convenience, shopping and specialty products
  • Inflation in general have caused a rise in the cost of living in many countries. Thus, consumers tend to go for the cheaper products that Walmart offers in order to save money.
  • Ethical issues: Walmart is currently facing accusations that they are exploiting illegal immigrants and children and that they practise gender discrimination. This affected Walmart so much that there is even a documentary filmed on this. The name of the film is “The high Cost of Low Price” . Thus, these issues pose a real threat to Walmart’s image and expansion plans.
  • Consumers who aregg to buy electronics will choose Target over Walmart because Target is known for offering higher quality goods. In this case, Walmart would have lost profit to target in items such as electronics, which actually have a higher profit margin.
  • Young professional from generation Y25EngagedThese are the ones who will start a family soon- important to target this groupBuild relationship early so that the familiarity with the brand will develop and a long term customer relationship is builtAttitudes: savvy shopper who emphasizes on good quality, usually doesn’t mind paying a bit more for styleUses technology a lot in her daily life, from smart phones, computers, other gadgets
  • First advertisements are good for informing the public about their changes- Get into the minds of the consumersbe different from target-focus on the whole walmart experienceInnovative, humourTo attract the attention of these young professionalsView walmart as being trendy and creative-channel: mass media/ new media:specific channels which young professionals watch
  • Currenly there are policies in place for walmart employees to provide gd customer serviceHowever based on our research, we read articles and visited forums, walmart is known for their bad serviceIt is important for walmart to have good service to attract young professionals because they value the whole experience.Great customer service is vital for building a good brand and retaining customers for a long period of time.
  • Good
  • Walmart has a marketing potential in the service industry and currently, they are already tapping on this potential. This can be seen by them venturing into the healthcare and Financial sectors in the recent years. Next, this is Walmart’s statement of revenue.As we can see,Health and wellness brought in 4B worth of revenue.WhileWalmart stores alone brought in 240 B worth of revenue. However, despite this huge disparity, I would like to draw attention to the marginal benefits that venturing into the service industry will bring Walmart. Providing service is a strong tool that serves to differentiate walmart’s against her competitors such as Target.
  • Our recommendation is that Walmart can further venture into other areas of the service industry and target new market segments in the service industry. Before I move on to further elaborate on our recommendation, I have a question. What is Walmart’s current target market? Please take a look at this commercial and I’m sure the answer will be pretty obvious. *show video.Welcome back. And yes, according to this commercial and their a lot of their past commercials, we concluded that Walmart’s main target market is the general American family.
  • Our recommendation is that Walmart can further venture into other areas of the service industry and target new market segments in the service industry. Before I move on to further elaborate on our recommendation, I have a question. What is Walmart’s current target market? Please take a look at this commercial and I’m sure the answer will be pretty obvious. *show video.Welcome back. And yes, according to this commercial and their a lot of their past commercials, we concluded that Walmart’s main target market is the general American family.
  • Keeping this in mind, we recommend that Walmart venture into the film industry. They can do so with the addition of cinemas in Walmart stores.
  • Why the Film industry? This is because Movies are a universal form of entertainment among Walmart’s target market, the American families. Furthermore, with the provision of such a service product, Walmart will be an even more complete One-stop store. They offer fast moving consumer goods and in addition, services such as healthcare, financial services and MOVIES for entertainment. Next, how will this recommendation be implemented? Firstly, Walmart will offer cheaper prices for their movie tickets and snacks. This is in line with their value proposition, “Save money, Live Better”.Secondly, Walmart can also provide e bookings online. This will bring even more convenience to consumers.Thirdly, We also recognize that this might be a risky venture because the cost price of building cinemas in Walmart stores will be v high.Thus, we suggest that Walmart should carry out test marketing first. They can build cinemas in 2 Walmart stores first. This will enable them to better gage consumer’s response to this idea. Another advantage is that Test marketing will greatly reduce the risk of a failed investment.Next, WALMART can also adopt horizontal marketing systems and parther with AMC theatres. Basically, they will join together in this venture and combine their financial, production and marketing resources. Since Walmart is still new in this industry, this will greatly benefit Walmart. We expect crowd influx to be higher and Walmart will enjoy the marginal benefit of increased salesin her stores as well.http://www.amctheatres.com/AMCInfo/Accessibility/
  • With new cinemas being built in Walmart, Jane can now spend her whole Sunday in Walmart alone. She will book her movie tickets online in order to get good seats. This weekend, she’s going to watch HP7 and this decision is mainly influenced by her children. Now, her children will not be bored anymore and is even excited to visit Walmartevrery Sunday with their parents because that meant a movie session for them! Jane will also save money because of the cheaper ticket prices and she does not need to travel to another place to watch movies with her family, thus saving petrol. Walmart is an even more complete one stop store in this sense. SAVE MONEY LIVE BETTER
  • Suppliers have B2B relationship with Wal-Mart.-Example: PepsiCo, Coke Cola, Miley Cyrus Clothing, Hanes, Fisher Price Toys Wal-Mart mainly deals with B2C.-Wal-Mart stores sells directly to final customers.
  • Supplier: One of the largest office services and products suppliers to UK businesses.-Supplying 21,000 customers nationwide.Retailer: OfficeTeam Stationery Store-Over 6000 products
  • In general, Walmart‘Save Money, Live Better’1. Ethical issues, help disadvantaged live better- link to threats2.potential- american families save more in money spent on service industry- build on strengths3.help young professionals to live better- overcome weaknesses4. Elise's part- help ppl live better when companies save money, translate into pay for people-Tap into strengths.At the same time., we cannot neglect Walmarts main revenue: groceries and stuff. All these recommendations are done in addition to the marketing strategies they have currently. our recommendations aims to strengthen walmart's position as market leader.smt along this line. you can free style.haha Reply ForwardReply by chat to esti
  • In general, Walmart‘Save Money, Live Better’1. Ethical issues, help disadvantaged live better- link to threats2.potential- american families save more in money spent on service industry- build on strengths3.help young professionals to live better- overcome weaknesses4. Elise's part- help ppl live better when companies save money, translate into pay for people-Tap into strengths.At the same time., we cannot neglect Walmarts main revenue: groceries and stuff. All these recommendations are done in addition to the marketing strategies they have currently. our recommendations aims to strengthen walmart's position as market leader.smt along this line. you can free style.haha Reply ForwardReply by chat to esti
  • Walmart, the GIANT retailer

    1. 1. Almost Unimaginably Big<br />Presented By:<br />Chew Shih Hui<br />Chew Min<br />Goh Qian Yi Tricia<br />EstiJenita<br />Chua JiaHui Elise<br />
    2. 2. Corporate Profile <br />Market leader<br />Wide range products<br /><ul><li>8500 stores in 15 countries</li></ul>Generate billions of sales yearly <br />
    3. 3. Current Marketing Strategy <br />Practices local marketing at Store Level <br /> Practices Mass Marketing <br />at Corporate Level <br /><ul><li> Practices Local Marketing at Store Level </li></li></ul><li>Weaknesses<br />Threats<br />Strengths<br />Opportunities<br />SWOT Analysis<br />
    4. 4. Strengths<br /><ul><li>Strong Brand Equity
    5. 5. International Growth
    6. 6. IT infrastructure</li></li></ul><li>Weaknesses<br /><ul><li> Competitive disadvantage
    7. 7. Ageing image </li></li></ul><li>Opportunities<br />Expansion into global market<br />Demand increase<br />New market segments<br />
    8. 8. Threats<br />Ethical Issues<br />Trade war <br />
    9. 9.
    10. 10. PROBLEM 1:<br />Wal-Mart’s Image<br />Ageing Image<br />Ethical Image<br />
    11. 11. Ageing Image<br />
    12. 12. Presence of Competitors<br /> In the grocery retailing market<br />
    13. 13.
    14. 14. VS<br />
    15. 15.
    16. 16. RECOMMENDATIONS<br />
    17. 17. Target profile: Katie<br />Generation group: Gen Y (14-30 years old)<br />Age: 25<br />Marital status:Engaged<br />Income/job: Fresh graduate, Accountant<br />Attitudes: Savvy shopper, emphasizes on quality, willing to pay a bit more for better quality goods<br />Technology knowledge: Technology literate<br />
    18. 18. MarketingMix: 4Ps<br />
    19. 19.
    20. 20. Innovative<br />New and Specific Channels<br />Clear Message<br />Youtube contest<br />
    21. 21.
    22. 22. Loyal Member<br />
    23. 23. <ul><li>Endorse Young professionals who also shop at Walmart!</li></li></ul><li>
    24. 24. Ethical Image<br />
    25. 25. Threat<br />Wal-mart is constantly accused of being unethical in their practices.<br />
    26. 26.
    27. 27. Why should Wal-mart bother?<br />
    28. 28. Achieve Sustainability<br />
    29. 29. RECOMMENDATIONS<br />
    30. 30. Why Them?<br />
    31. 31. What Can Walmart Do?<br />Help with distribution of food supplies<br />
    32. 32. What Can Walmart Do?<br />One-for-one Campaign<br />
    33. 33. What Can Walmart Do?<br />‘Wal-Mart Cares’ Day<br />
    34. 34. How Does It Help Walmart?<br />Shows LT commitment towards CSR<br />
    35. 35. Marketing Potential 1<br />Service Industry<br />
    36. 36.
    37. 37. New market segments<br />
    38. 38. Target Market?<br />
    39. 39. New market segments<br />Target Market?<br />
    40. 40. Movie theatre Industry !<br />
    41. 41. Movie Theatre Industry<br />
    42. 42. Profiling: Jane’s Family<br />Age: 32<br />Occupation: Housewife<br />Family: Husband of 35 2 children<br />Lifestyle: Regular <br /> shopper<br />Problem: Bored kids<br />
    43. 43.
    44. 44. Marketing Potential 2<br />Business-to-Business (B2B)<br />Wal-Mart as Suppliers<br />
    45. 45. Current Situation<br />Suppliers have B2B relationship with Wal-Mart.<br />Wal-Mart mainly deals with B2C.<br />
    46. 46. Wal-Mart’s Potential as Supplier<br /><ul><li>Strong brand equity
    47. 47. International
    48. 48. Large network
    49. 49. Experienced and strong in Supply Chain Management
    50. 50. Large potential customer base.
    51. 51. Low cost  Low prices, High volume</li></li></ul><li>Wal-Mart’s Potential as Supplier<br />Possible Target Markets:<br /><ul><li>SMEs
    52. 52. New businesses
    53. 53. Restaurants
    54. 54. Schools
    55. 55. Others </li></li></ul><li>Simple Example: OfficeTeam(UK)<br />Supplier<br />Retailer<br />
    56. 56.
    57. 57. CONCLUSION<br />
    58. 58. In Closing:<br /><ul><li>Recommendations are done in addition to Walmart’s current marketing strategies.
    59. 59. Recommendations aim to strengthen and sustain Walmart’s position as market leader.
    60. 60. Everything is linked back to thevalue proposition of Walmart: ‘Save Money, Live Better’</li></li></ul><li>

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