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Wal Mart And Tesco Study

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In March, 2008, my group was assigned to do the marketing strategy for a small retailer in Vietnam (called Fivimart) to again the leaders in retailing industry such as Wal-Mart, Tesco, Metro…when they come to Vietnam in 2009.

The purpose of my collection is just for every people in my group understand the model & the strong points of those gains retailers but not for the up-to-date statistic numbers.

Published in: Business, Technology
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Wal Mart And Tesco Study

  1. 1. Summary of Wal-Mart & Tesco March, 2008 Marketing strategy Group: 6 – MBM7 Prepared by Pham Tuan Ngoc
  2. 2. I. Introduction <ul><li>In March, 2008, my group was assigned to do the marketing strategy for a small retailer in Vietnam (called Fivimart) to again the leaders in retailing industry such as Wal-Mart, Tesco, Metro…when they come to Vietnam in 2009. </li></ul><ul><li>Under the pressure of my team leader I do this collection of the critical mental :D. </li></ul><ul><li>The purpose of my collection is just for every people in my group understand the model & the strong points of those gains retailers but not for the up-to-date statistic numbers. </li></ul>
  3. 3. Agenda <ul><ul><li>Analysis dimensions </li></ul></ul><ul><ul><ul><li>Retailer formats </li></ul></ul></ul><ul><ul><ul><li>Retailing processes </li></ul></ul></ul><ul><ul><ul><li>Positioning factors </li></ul></ul></ul><ul><ul><li>Wal-Mart </li></ul></ul><ul><ul><li>Tesco </li></ul></ul>
  4. 4. Retailer formats <ul><li>5 formats: </li></ul><ul><ul><li>Supermarket </li></ul></ul><ul><ul><li>Superstore </li></ul></ul><ul><ul><li>Hypemarket </li></ul></ul><ul><ul><li>Convenience store </li></ul></ul><ul><ul><li>Hard discounter </li></ul></ul><ul><li>Formats that popular in Vietnam: </li></ul><ul><ul><li>Traditional market </li></ul></ul><ul><ul><li>Supermarket (BIG-C, Metro…) </li></ul></ul><ul><ul><li>Convenience store (HaproMart, Fivimart, Coop Mart, G7…) </li></ul></ul>Dimensions Wal-Mart Tesco
  5. 5. Retailing Processes <ul><li>This is a very simple processes of retailer. </li></ul><ul><li>Normally, Not any retailers hold all those processes </li></ul><ul><li>Wal-Mart: Producing, Selling, Supporting </li></ul><ul><li>Tesco: Selling, Delivering, Supporting </li></ul>Producing Purchasing Selling Delivering Supporting Dimensions Wal-Mart Tesco
  6. 6. Positioning Dimensions <ul><li>Positioning dimensions, or marketing mix, of retailing industry are: </li></ul><ul><ul><li>Store location </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Services & added-value services </li></ul></ul><ul><ul><li>Merchandise & category management </li></ul></ul><ul><ul><li>Instore marketing </li></ul></ul><ul><ul><li>CRM </li></ul></ul>Dimensions Wal-Mart Tesco
  7. 7. <ul><li>History of Wal-Mart: </li></ul><ul><ul><li>1.8M worldwide employees </li></ul></ul><ul><ul><li>6,150 stores </li></ul></ul><ul><ul><li>EDLP strategy </li></ul></ul><ul><li>Categories: clothes, shoes, toys, home appliances, consumer electronics, sporting goods, bicycles, groceries, and food (Smith 2004). </li></ul><ul><li>Multi-format: </li></ul><ul><ul><li>Neighborhood market </li></ul></ul><ul><ul><li>SuperCenter </li></ul></ul><ul><ul><li>Online Store </li></ul></ul><ul><ul><li>Discount Store (Convenience store): non-food store </li></ul></ul><ul><ul><li>SAM's club: member only </li></ul></ul><ul><li>Positioning in Price & Technology </li></ul>Wal-Mart Dimensions Wal-Mart Tesco
  8. 8. Wal-Mart, The price leader Dimensions Wal-Mart Tesco
  9. 9. Why Wal-Mart sell things cheaper than others? <ul><li>Wal-Mart is not only a retailer, it’s also a producer. </li></ul><ul><li>Powering itself by Added-value Supply Chain system. </li></ul><ul><li>Using technology to reduce cost: </li></ul><ul><ul><li>RFID </li></ul></ul><ul><ul><li>Supply Chain System </li></ul></ul><ul><ul><li>Data mining </li></ul></ul><ul><li>Recruit employee at a low salary; no union; less insurance. </li></ul><ul><li>Less social contribution </li></ul>Dimensions Wal-Mart Tesco
  10. 10. <ul><li>History: </li></ul><ul><ul><li>Founded in 1919; </li></ul></ul><ul><ul><li>From 1960 developed as a seft-service market (supermarket) </li></ul></ul><ul><ul><li>400,000 employees  (250,000 in 2005) </li></ul></ul><ul><ul><li>(1800 stores in 2005) </li></ul></ul><ul><li>Category: Non-food </li></ul><ul><li>Multi-format: </li></ul><ul><li>Positioning: </li></ul><ul><ul><li>Customer Relationship </li></ul></ul><ul><ul><li>Service </li></ul></ul>Tesco, the leading CRM Dimensions Wal-Mart Tesco
  11. 11. Market position Dimensions Wal-Mart Tesco
  12. 12. Positioning <ul><ul><li>Slogan: “To create value for customers to earn their lifetime loyalty”. </li></ul></ul><ul><ul><li>Values: </li></ul></ul><ul><ul><ul><li>no-one tries harder for customers and </li></ul></ul></ul><ul><ul><ul><li>treat people how we like to be treated </li></ul></ul></ul><ul><ul><li>Tesco’s positioning are: </li></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Added-value services: Finance, Telecom & Express </li></ul></ul></ul>Dimensions Wal-Mart Tesco
  13. 13. Tesco Clubcard <ul><li>FACTS: </li></ul><ul><ul><li>Launched in 1995 </li></ul></ul><ul><ul><li>cost 300Mi in the first year (appro. 4.5% sale) </li></ul></ul><ul><ul><li>Update POS & Software </li></ul></ul><ul><li>How it worked: </li></ul><ul><ul><li>Like a general loyalty card </li></ul></ul><ul><ul><li>Multi partners, Multi-channel </li></ul></ul><ul><li>How it done: </li></ul><ul><ul><li>psychological lens: </li></ul></ul><ul><ul><ul><li>low fat & high fat    </li></ul></ul></ul><ul><ul><ul><li>low price & high price </li></ul></ul></ul><ul><ul><ul><li>fresh </li></ul></ul></ul><ul><ul><ul><li>Exotic </li></ul></ul></ul><ul><ul><ul><li>needs preparation </li></ul></ul></ul><ul><ul><ul><li>ready to eat </li></ul></ul></ul><ul><ul><li>Segmenting: </li></ul></ul><ul><li>Outcome:      </li></ul><ul><ul><li>only two months to become a market leader in UK. </li></ul></ul><ul><ul><li>Haft of UK households hold Clubcard </li></ul></ul>Dimensions Wal-Mart Tesco

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