Analysis of Marketing Mix Strategies for Wal-Mart Stores Company
Wal-Mart Stores Inc. is an American multinational retailing corporation that was formed in 1962 and incorporated in 1969 and therefore has over 30 years of operation in providing retail services. It operates as a chain of discount department stores, hypermarkets, and grocery stores and it’s the world largest company in terms of revenue with an annual return of over $ 480 million dollars.
The understanding of a company marketing mix is important as it helps understand what the product or service can offer to the customers as well as the plans for offering successful products. In this case, the company marketing mix revolves around the company nature of retail business in which the firms cost leadership generic strategy defines its marketing mix.
A company marketing mix is best understood using the 4Ps strategy which consists of product, prices or pricing strategy, the promotion strategy as well as the place or distribution strategy of the company.
- Company product component
Wal-Mart company operates as a retail service firm and attracts its large pool of customers through the provision of convenient and effective services. These product retail services are provided by the company-wide range of trained personnel who help their shoppers in finding the goods and services they need. Their stores are one-stop shopping centers and the company sales personnel directly by influencing how the customers feel when they visit their stores.
- The prices market mix component
The company has developed an Everyday Low Price strategy which has been the basis of the company competitiveness in the industry. Advertisements run through the stores with the readings Everyday Low Price. This strategy has been developed and used to attract a large population of customers and has been found to support the company generic strategy of cost leadership in the retail industry. Therefore the company pricing strategy or component acts as the main contributor to its competitiveness in the market.
- Promotion strategy
The company employs a number of promotion strategies including advertisements, sales promotions, personal selling as well public relations. The company advertisements are done through the use of newspapers and through websites where customers can find information related to the retailing products. The company also does sales promotion of their products through giving special deals and discounts. Personal selling also occurs as a promotion strategy in which the sales personnel persuade customers to buy new products or package deals. The company has also successfully used the press releases to inform their customers and potential investors about the company policies, programs, and strategies as well as sponsoring various charity programs to give back to the society. This promotion strategy has helped improve the company ability to attract its customers to its stores and also help build brand recall.
- The place or distribution strategy
This strategy describes how the product will be provided to the customers and helps to assess which channel is the most suited to a product. Wal-Mart Company, therefore, uses an intensive distribution strategy or intensive distribution channel design. The company stores offer the same variety of goods and services and therefore provide an opportunity to customers to do their shopping in any location where the company has stores. The company has also continued to open new stores to reach more customers. This strategy has therefore helped the company to attract customers by making their shopping convenient in terms of stores location.