[Name of the Writer]
[Name of the Institution]
The company that has been chosen is Walmart
Introduction to Company
The company started the operations in 1962 and the incorporation was given to the company in 1969. The company runs a large chain of departmental stores. With sales over $300 billion a year, the company is one of the most valued companies of the world CITATION Lau19 \l 1033 (Marcilla). The company is highly ranked on the world famous business website, Forbes. The company has more than 11000 stores in more than 55 countries around the world. The company was awarded the largest corporation of the world in 2010 by Forbes CITATION htt19 \l 1033 (https://www.forbes.com). It is the largest retailed in the USA. It also owns and operates the Sam’s club warehouse situated in the North America. The competitors are Sears, Kmart, and Safeway. The company makes more business than done all the competitors cumulatively.
The main feature of the business strategy of the company is that it wants to earn the profit with the help of huge sales as well as huge purchases. The company wants to transfer the discounts earned by huge purchases on to the customers. The company buys in bulk from the suppliers and gets discounts. The company then sells the products to the customers and transfers the savings from buying in huge volume to their customer. The company has managed the cost of inventory and kept it on a low by linking the stores and the warehouses with the help of computers. The company operates in three segments namely the Walmart US segment, the international segment and the Sam’s club segment. The company caters the needs of the customers in six sectors namely grocery, entertainment, health and wellness and apparel and home.
In order to achieve the task of passing on the discounts to the customers, the company adopts the following techniques:
The everyday low price is used on the daily basis. The customers have the confidence that the company will not raise its prices. Thus the target market of low income people will not be affected.
Everyday low cost is the strategy to keep the expenses under control and thus transfer these savings on to the customer.
Rollbacks are used to further lower the prices of selected goods.
The other strategies include the online option of booking an order and picking up within a stipulated time.
Four types of the B2C segmentation
The geographic segmentation includes the basis such as countries, cities or regions. The company does it on the basis of countries as it works in the US and other countries. The company also segments the market according to the location of the city by opening large chain stores and small stores in the near to home markets.
The demographic segmentation is done on the basis of various characteristics of the population. The company does it on the basis of all aspects of the demographics. The company caters all age groups, all genders. The difference comes in the income groups where the company caters the low income individuals and families. The work type is also a base used to segment the market. The company targets the students, workers and middle level managers of private and public offices.
This aspect of the segmentation involves the division of market according to the level of loyalty shown by the customers, the benefits that the customers want to take form the product and type of personality. The company has very loyal customers. The customers see the low cost advantage when they shop at the stores. Generally the people who shop at Walmart are cost conscious.
Psychographic: This aspect includes the social class to which the person belongs and the type of life style that he is taking on. The company caters the lower and lowers middle class people. The company also targets those who are struggling in their lives.
The primary strategy that the company takes on is based on the lowest price offered to the customers. The company is known to spend the least amount on the advertising as compared to the rivals. The following promotion strategies are used by the organization:
The company offers a particular set of products to the customers at discount rates that change every week. This will affect the target market as it includes the lower income people who seek discounts.
The Company lessens the price further if the competitor is found to sell the product at a lower price than offered by the company. This will attract the customers from the competitors who want the lowest price offered. This matches the target market as the company focuses on the customers who cannot spend more.
This is the day after thanks giving in the United states. On this day various retailers offer special discounts to the customers.
For the online shoppers, there is a technique named how you browse and shop is used. This allows the customers to see the advertisement that suits their past shopping experiences. This matches those people who are easy shoppers. They will pick the required things online and then go and pickup from the store.
A lot of resources have been put in the social media aspect of the marketing by the company. The company uses a large number of ways to market itself on the social media. These include circulars, website publicity, electronic newsletters and yellow pages. All these methods are used in addition to the formal ways of advertising.
BIBLIOGRAPHY https://www.forbes.com. (n.d.). Retrieved March 17, 2019, from https://www.forbes.com: https://www.forbes.com/companies/walmart/#2d30b4f3b03d
Marcilla, L. B. (n.d.). https://riunet.upv.es/bitstream/handle/10251/44289/Business%20analysis%20for%20Walmart%20FINAL%20TFC%20Laura%20Barber%C3%A1%20Marcilla.pdf?sequence=1. Retrieved March 17, 2019, from https://riunet.upv.es/bitstream: https://riunet.upv.es/bitstream/handle/10251/44289/Business%20analysis%20for%20Walmart%20FINAL%20TFC%20Laura%20Barber%C3%A1%20Marcilla.pdf?sequence=1
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