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Walmart
Founded in 1962 by Sam Walton Largest Global Corporation by Revenues Largest Market Share of total Global Retail One of the top 5 largest Public Corporation
according to Forbes
Operates in 16 Countries Globally
Marketing Strategies
1. Non-food
Penetration Strategy
Advertising Expenditure : 1.5% Of Sales Revenue Only
Price
Merchandising: Max. In-store Merchandise Display Market-broadening: Store-type Adaptations To Local
Culture
Self-branding: Brand-name Is Extended To Popular Items Ancillary Business: Utility Payment Services
Marketing Mix
Product
Food
Stationery Automative
Furnishings
Home
WALMART
Sporting goods
Marketing Mix
Price:
Always low prices-Always
- Between 2008-2009:
Marketing Mix
Place:
Small towns Rural areas
- pattern of expansion:
Marketing Mix
Promotion:
Everyday-low-prices
- Few Promotion:
Cost Leadership
Single segment
Focus
LOW PRICE
Operation Management
Efficient
Pilferage
The Sundown Rule The Ten Foot Rule Sam Waltons Pricing Philosophy
use RFID
No dependence on a single Supplier Saturation Strategy for Store Expansion Implemented the Satellite network System
Operations Strategies
Cross-docking
Wal-Marts Procurement
Emphasized on reduction of purchasing costs
Directly procured from manufacturers, by
Inventory Management
Heavy investment in IT and
computer
Each store allowed to manage their own
stocks
RFID Technology
(Radio Frequency Identification)
Wal-Mart planned to replace bar-code
technology with RFID technology for reduction of SCM cost & increase efficiency
In 2003, Wal-Mart asked its top 100 suppliers
Financial Analysis
-10 -15
-20
Standalone (2004)
25
20 15
10
5 0 Wal-Mart Home Depot -5 Kroger Costco Target
FY 2011
25.00%
20.00% 15.00% 10.00% 5.00% 0.00% Sales Op. Inc. ROI
Conclusion
Sam Walton believed in being frugal Flew economy class and drove an old beat-up
truck
Instilled frugality as part of Wal-Marts DNA
Thank You
Presented By:
Swapnil Satwaji - 132 Ayush Varshney - 178 Sahil Mulaokar - 179 Aashish Agarwal - 180