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INTRODUCTION



Wal-Mart Stores, Inc. doing business as Walmart, is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores and grocery stores. Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. As of September 30, 2016, Walmart has 11,573 stores and clubs in 28 countries, under a total of 63 banners. The company operates under the Walmart name in the United States and Canada.



Walmart is the world's largest company by revenue, according to the Fortune Global 500 list in 2016, as well as the largest private employer in the world with 2.2 million employees. Walmart is a family-owned business, as the company is controlled by the Walton family. Sam Walton's heirs own over 50 percent of Walmart through their holding company, Walton Enterprises, and through their individual holdings. It is also one of the world's most valuable companies by market value,



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and is also the largest grocery retailer in the U.S. In 2016, 62.3 percent of Walmart's US$478.614 billion sales came from its U.S. operations.



The company was listed on the New York Stock Exchange in 1972. In the late 1980s and early 1990s, the company rose from a regional to a national giant. By 1988, Walmart was the most profitable retailer in the U.S. and by October 1989, it had become the largest in terms of revenue.Geographically limited to the South and lower Midwest up to the mid-1980s, by the early 1990s the company's presence spanned from coast to coast—Sam's Club opened in New Jersey in November 1989 and the first California outlet opened in Lancaster in July 1990. A Walmart in York, Pennsylvania opened in October 1990, bringing the main store to the Northeast .Walmart's investments outside North America have seen mixed results: its operations in the United Kingdom, South America, and China are highly successful, whereas ventures in Germany and South Korea failed.



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OBJECTIVES The objective of our project is: •



To study the marketing strategies and brand loyalty of Walmart.



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To study the marketing mix of Walmart.



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To study the behaviour of the consumer with respect to attributes such as Brand Loyalty and come up with recommendations as to what all needs to be considered keeping the consumer in mind



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To analyze Walmart competitor and compare their strategies and come up with recommendations for any problem being faced by it.



RESEARCH METHODOLOGY The study is an exercise involving estimation of parameters as regard to organizational requirements- Research was designed so as to get the relevant information that can be used for various organizational purposes.



DATA SOURCE: Research included collecting secondary data. SECONDARY DATA is the is the second hand data collected by someone else with is gathered through internet, publications, articles, company books, etc.



LIMITATIONS 1. As such result may not give an exact representation of the population. 2. Most of the data being secondary can be biased towards the company. 3. Shortage of time is also a reason for incomprehensiveness. 3



VISION OF WALMART



Walmart’s Vision Statement. The company traces its success to the ideals of its founder, Sam Walton. These ideals are emphasized in Walmart’s vision statement: “To be the best retailer in the hearts and minds of consumers and employees.” The company aims to achieve a top position in the retail industry. Based on its current situation, the firm has already fulfilled the best retailer part of the vision. Walmart’s vision statement also points to the minds and hearts of the people that matter most to the business, i.e. consumers and employees. The company has realistically influenced the minds of consumers and employees on the basis of financial benefits. Employees earn wages, while consumers save money through Walmart’s low prices. However, the heart component of the vision statement remains to be proven.



MISSION OF WALMART



Walmart’s Mission Statement. The company’s strategic decisions are also a direct manifestation of its mission. Walmart’s mission statement is “Saving people money so they can live better.” This statement is synonymous to the company’s slogan, “Save money. Live better.” The firm follows and succeeds in fulfilling the saving people money component of the mission statement. Consumers save money through Walmart’s low selling prices. However, it is not yet clear if the company satisfies the live better component of the mission statement. There are criticisms on Walmart’s very low wages that are barely enough for employees to make ends meet. There are also criticisms about the long-term effects of the firm’s continued large-scale sales of cheap and sometimes hazardous imported goods.



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BACKGROUND OF THE COMPANY



Walmart– Wal-Mart's milestones began in 1962 when the first Wal-Mart was opened in Rogers,Arkansas. Seven years later the company incorporated as Wal-Mart Stores, Inc. Then a year later they opened the first distribution center and home office in Bentonville, Arkansas, and also went public on the New York Stock Exchange. Several years later, in 1988, the first super center was opened. Then in 1991, the first international unit was opened in Mexico City.



Wal-Mart Stores (Wal-Mart or ‘the company’) is the largest retail company in theworld; it operates retail stores in various formats including supercenters, discount stores andneighborhood markets. On January 31, 2008, Wal-Mart operated 891 discount stores, 2,612supercenters, 153 neighborhood markets and 602 Sam’s Clubs in the US & units outside theUnited States 3,615. Internationally, the company operated units in Argentina, Brazil,Canada, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, PuertoRico, the UK and China. The company is headquartered in Bentonville, Arkansas andemploys about 2.1 million people.



Wal-Mart creates the ideal one-stop shopping experience. Wal-Mart is organized intoten distinct divisions. These include: Wal-Mart stores, SAM'S CLUBS, Neighborhood Markets, International, walmart.com, Tire & Lube Express, Wal-Mart Optical, Wal-Mart Pharmacy, WalMart Vacations, and Wal-Mart's Used Fixture Auctions. Through thesedivisions, Wal-Mart offers thousands of products. The Wal-Mart stores contain groceries, clothes, healthcare products, toys, electronics, bedding, sports and recreation, automotive, among other items. Because of this conglomeration of products, the typical consumer can go into any Wal-Mart and walk out without having to stop at another store for anything that they could need.



By the turn of the century, Discount Store News had named Wal-Mart "Retailer of the Century" and made Fortune magazine's lists of the "Most Admired Companies in America" and the "100 Best Companies to Work For." They were also ranked on Financial Times' "Most Respected in the World" list. In 2002, Wal-Mart became number one on the Fortune 500 list and was presented 5



with the Ron Brown Award for Corporate Leadership, a presidential award that recognizes companies for outstanding achievement in employee and community relations. Wal-Mart is currently at no.8 at global 2000 companies rating in Forbes magazine.



COMPANY PROFILE Name Company Logo



Walmart



Sam Walton



Founder Headquarters



Bentonville,Arkansas,U.S.



Founded



July 2, 1962; 54 years ago Rogers, Arkansas, United States



Industry No. of Locations Area served



Retail 11,573 (September 30, 2016)



Worldwide



Greg Penner



Key people



(Chairman) Doug McMillon (President & CEO)



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No.of Employees



2.3 million in the world (2016), 1.4 million in U.S.



Electronics movies and music home and furniture home improvement clothing footwear jewelry toys health and beauty



Products



pet supplies sporting goods and fitness auto photo finishing craft supplies party supplies grocery



Walmart-2-Walmart



Services



Walmart



MoneyCard Pickup



Today Walmart.com Walmart Pay



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AWARDS AND DEVELOPMENTS



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Wal-mart rules the Fortune 500 for the second time in a row. The eighth time this decade beating Exxon Mobil.



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"Corporate Patriotism Award", 2004, for supporting os U.S. service members and their family.



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"Top 25 Diversity Recruitment Programs", 2002 to hire and promote latinos.



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It is undertaking several initiatives to increase its footprints globally. Such as it acquired Massmart Holdings to build its presence in Africa, and has a joint venture with Bharti Enterprises to operate in India.



•



Walmart



plans to establish a strong presence in China's commerce market, and



successfully implemented its low pricing strategy in Brazil.



Certifications Walmart’s has the following quality certifications: •



ISO 9002



•



HACCP



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ROADBLOCKS Walmart , has been criticized by many groups and individuals, including labor unions and other groups. They have protested against Walmart and the company's policies and business practices, including charges of racial and gender discrimination. Other criticisms include foreign product sourcing, treatment of product suppliers, environmental practices, the use of public subsidies, and the company's security policies. Walmart denies any wrongdoing and says that low prices are the result of efficiency.



Economists at the Cato Institute say that Walmart is successful because it sells products that consumers want at low prices, satisfying customers' wants and needs. Walmart's critics say that Walmart's lower prices draw customers away from smaller Main Street businesses, hurting local small-town communities. Critics also say that Walmart is hurting the United States economy because of excessive reliance on Chinese products.[citation needed] Walmart is the largest importer in the United States in many categories such as electronics and fast-moving consumer goods. The 2006 book criticism, though it also enumerates Walmart's positive impacts within society.But there were many criticism of walmart with their employees and lobour regarding wages, working condition, and criticism for poorly run and unstaffed stores, allegations of wrongful terminations etc.



There are various Evironmental challenges too faced by Walmart or we can these as roadbloacks to walmart. They had these following challenges regarding environment such as they had to provide 100% revewable energy, to create zero waste, to sell products that sustain people and environment.



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MARKETING MIX



Walmart’s marketing mix revolves around the nature of the firm’s retail business. The company’s cost leadership generic strategy also defines the marketing mix. The overall behavior of Walmart in the global retail market is linked to its marketing mix strategies. With its continued leadership as the biggest retailer in the world, Walmart expects to use the same marketing mix as it expands globally. The strategies included in the company’s current marketing mix have already shown considerable success. Thus, it is realistic to continue using it as is. However, Walmart can improve its current marketing mix, especially in the place/distribution component. Walmart’s marketing mix is a key success factor in this retail business, although the company can focus more on the place/distribution component of the marketing mix to strengthen its global position.



Elements of Walmart’s Marketing Mix



Product • The company is hosting products regarding electronics, movies, music, books, furniture, all type of baby, men and women wear, sports items, health care products, pharmaceutical products, jewelry, toys, photography, grocery and many more. • A huge facility of online shopping and Safe shipping is provided. . • Their price policy welcomes only those producers who are producing at the huge demand of the company, others being thrown out of the market. 10



Price • Walmart actually is not a producer of any brand, rather an exhibitor but its huge network world wide is purely because of its discount packages that seems very attractive and tempting to the customers. • Along with largest retailer, its also an economic force as it is successfully running the pricing policy that is, providing the customers such low rates which they could not avail any where else. This is the basic policy on which the vast empire of Walmart is standing. • Universal bar code is the bench mark of this company and specifically an achievement of its founder which provided power shifting from manufacturers to retailers. • Prices of the grocery items at Walmart stores are as low as 15% of the local market. • Electronic items and technological market rates are as lower as possible. • The plus one policy for the manufacturers, retailing the items at Walmart made it mandatory for the producers to go one way, either by reducingprices or increasing quality of their product. • Their price policy welcomes only those producers who are producing at the huge demand of the company, others being thrown out of the market.



Place • Sam’s Club, Wal-Mart Stores U.S., and Wal-Mart International are the three divisions in which Walmart is working. • Walmart outlets are marketing with different names in Mexico, Japan, India, Brazil, Canada, United Kingdom, South America, and China



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• Walmart is a huge network of apparel stores, small markets, cash and carry stores, membership warehouse clubs, supercenters, food and drugs, general merchandise stores, soft discount stores and restaurants (Stolberg, 2011). • The outlets are huge buildings with an average covered area of 197,000 square feet. • Thirty eight mega stores are working in different countries with almost 1500 employees serving there.



Promotion • Online orders placing shipment to the desired place is major revenue earning source. • Website of Walmart is very efficiently working and the data base is designed to facilitate the customers and the contents are very well organized and easily reachable. • Basically the Walmart companies started operating at the discount principle, but still apart from routine discount seasonal offers and bulk discount offers are also given, and sometimes products rates are fixed at very low price for a limited period of time.



A. Distribution Channel Structure Wal-Mart’s operations are organized into three divisions: Wal-Mart Stores U.S., Sam’s Club, and Wal-Mart International. The company does business in nine different retail formats:supercenters, food and drugs, general merchandise stores, bodegas (small markets), cash and carry stores, membership warehouse clubs, apparel stores, soft discount stores and restaurants.



Wal-Mart enjoyed a 50 percent market share position in the discount retail industry with its nearly 3,000suppliers. Though Wal-Mart may have been the top customer for consumer product manufacturers, it deliberately ensured it did not become too dependent on any one supplier; no single vendor constituted more than 4 percent of its overall purchase volume. (Achmeyer William F., “Walmart Stores Inc. Case”, Tuck School of Business at Dartmouth, Center for global leadership). 12



The current ratio in the last 5 years is below 1, between 0,8 and 0,9 (Walmart, annual report 2009). This is typical of strong distribution companies that pay their suppliers in 1,2 or 3 months but they cash inmediately from customers. They use this lag as a financial source.



About 85 percent of all the merchandise sold by Wal-Mart was shipped through its distribution system to its stores. Wal-Mart used a “saturation” strategy for store expansion. The standard was to be able to drive from a distribution center to a store within a day. A distribution center was strategically placed so that it could eventually serve 150-200 Wal-Mart stores within a day. Stores were built as far away as possible but still within a day’s drive of the distribution center; the area then was filled back (or saturated back) to the distribution center. Each distribution center operated 24 hours a day using laser-guided conveyer belts and cross-docking techniques that received goods on one side while simultaneously filling orders on the other. The company owned a fleet of more than 3,000 trucks and 12,000 trailers. (Most competitors outsourced trucking.) Wal-Mart had implemented a satellite network system that allowed information to be shared between the company’s wide network of stores, distribution centers, and suppliers. The system consolidated orders for goods, enabling the company to buy full truckload quantities without incurring the inventory costs. (Achmeyer William F., “Walmart Stores Inc. Case”, Tuck School of Business at Dartmouth, Center for global leadership).



The key to Wal-Mart’s supply chain



Wal-Mart is committed to improving operations, lowering costs and improving customer service. But the key to retailer Wal-Mart’s success is its ability to drive costs out of its supply chain and manage it efficiently. Many supply chain experts refer to Wal-Mart as a supply chain-driven company that also has retail stores. Wal-Mart’s company philosophy (‘The Wal-Mart Way‘) is to 13



be at the leading edge of logistics, distribution, transportation, and technology. The Wal-Mart business model would fail instantly without its advanced technology (Wal-Mart has the largest IT systems of any private company in the world) and supply chain (Wal-Mart has made significant investments in supply chain management).



COMPETITION ANALYSIS Introduction To retain and expand its market share for higher profitability a company must understand it’s competitive environment. It must know its competitors, their strategies, the strengths and their weaknesses. The major objectives of this comparison are to: •



Analyze Walmart’s competition from an industry and marketing point of view



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Analyze the intrinsic long run profit attractiveness through Porter’s 5 force model



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Formulation of competitive strategies



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Study the designing of competitive strategies



Competitors of walmart The following are the major competitors of Walmart (in india) : •



Big bazar



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Life style



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Pantaloons



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Shopper's Stop



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Spencer's.



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Levels of Competition This analysis covers all four levels of competition for Haldiram’s: Brand, Industry, Form and Generic.



Levels of Competition Brand



Industry Form



Big bazar, lifestyle, spencer's, pantaloons



Differentiated Oligopoly Diversified merchandise, Apparels, Accessories, Electronics



Generic



Any product competing for the same of amount consumer dollars



A. Brand Competition Brand Competition includes other companies offering similar products and services to the same customers at similar prices. Here, the brand competition would be all the companies selling diversified merchandise along the same lines as Walmart. Because of this brands like Big baza, Spencer's, etc… and the unorganized sector are considered as brand competitors.



B. Industry Competition The Merchadise industry is essentially made up of a few players producing the same product partially differentiated along the lines of quality, styling and services. This means that the Merchandise industry follows the pattern of ‘Differentiated Oligopoly’.



C. Form Competition 15



Form competition essentially means that competitors who produce products that supply the same service. In case of walmart, it faces stiff competition from traditional merchandie such as merchadise produces by locals in villages or small industries.



D. Generic competition Generic competition essentially includes those companies competing for the same amount consumer money. In case of Walmart, it includes all edible products in the same price range



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Porter’sFiveForcesModel



Walmart’s strategic direction is based on the company’s responses to the Five Forces in its industry environment. The firm has succeeded in achieving the leading position in the retail industry. Walmart now stands as the biggest retailer in the world. However, the external factors in the industry environment impose pressure that must be addressed. Walmart needs to develop 17



strategies that address the bargaining power of buyers and suppliers. Effective strategies are also needed for the firm to withstand the threats of substitutes and new entrants. While Walmart has achieved success in this industry environment, Porter’s Five Forces analysis reveals that the company must keep evolving to ensure long-term viability. A Five Forces analysis of external factors in the industry environment of Walmart, based on Porter’s model, shows the implications of the competitive rivalry or intensity of competition, bargaining power of buyers or customers, bargaining power of suppliers, threat of substitutes or substitution, and the threat of new entrants. All of these factors impact Walmart’s success rate.



Overview: Walmart’s Five Forces Analysis In summary, Walmart must focus on competitive rivalry and the threat of new entrants, based on Porter’s Five Forces analysis on the retail industry environment. These two external factors have the strongest force on Walmart’s business:



1). Strong competitive rivalry or competition 2). Weak bargaining power of buyers 3). Weak bargaining power of suppliers 4). Weak threat of substitutes or substitution 5). Strong threat of new entrants



Bargaining Power of Buyers Walmart faces the weak intensity of the bargaining power of buyers in the retail industry environment. The large population of buyers makes it difficult for them to impose significant pressure on retail firms. Walmart must address the following external factors concerning the bargaining power of buyers or customers: 1) Large population of buyers (strong force) 18



2) High diversity of buyers (weak force) 3) Small size of individual purchases (weak force) The large population of buyers exerts a strong force on Walmart and the retail industry. However, the weak force of buyer diversity and the weak force of small individual purchases counteract such condition. In effect, the bargaining power of buyers is weak in influencing Walmart and other retail firms.



Bargaining Power of Suppliers The bargaining power of suppliers has weak intensity in the retail industry environment. There are many suppliers in the retail industry. Large firms like Walmart can easily affect these suppliers. Based on this condition, Walmart and other retail firms must address the following factors contributing to the bargaining power of suppliers: 1) Large population of suppliers (strong force) 2) Tough competition among suppliers (weak force) 3) High availability of supply (weak force) The large population of suppliers has strong potential to impact firms like Walmart. However, there are many suppliers competing for the limited space in retail stores. Also, the high availability of supply makes it difficult for suppliers to impact retail firms. Thus, Walmart and other retailers face the weak intensity/force of the bargaining power of suppliers.



Threat of Substitutes or Substitution The threat of substitutes or substitution has weak intensity in affecting the retail industry environment. Walmart offers a wide variety of goods and some services that have a few or no substitutes. The following external factors are the most significant on Walmart, concerning the threat of substitution:



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1) Considerable availability of substitutes (moderate force) 2) Low variety of substitutes (weak force 3) Higher cost of substitutes (weak force) Some substitutes to Walmart’s goods are readily available. This is a significant consideration in the retailer’s strategic planning process. However, the external factor of the low variety of substitutes makes it difficult for consumers to move away from products available from retailers like Walmart. Also, some substitutes are more expensive than the low-cost goods available at Walmart stores. Thus, in the retail industry environment, the threat of substitutes or substitution has a weak intensity/force on Walmart.



Threat of New Entrants (New Entry) Walmart and other retailers must address the strong-intensity threat of new entrants. New entry of retail firms is easily achieved even in the presence of giants like Walmart. Small retailers can enter the market and compete on the basis of convenience, location, specialty, and other factors. This force is broken down into some of its component external factors, as follows: 1) Low cost of doing business (strong force) 2) Moderate capital costs (strong force) 3) Moderate cost of brand development (moderate force) It is costly to develop a new entrant’s brand. This condition exerts a moderate force on companies like Walmart. However, the cost of establishing a new retail firm and the cost of running it are low to moderate. Thus, new entrants can keep operating and become potential threats to firms like Walmart.



Recommendations.



Walmart must create new strategies that develop and sustain the company’s competitive advantage in the long term. Emphasis on competitive advantage helps address concerns on competitive rivalry and the threat of new entrants. For example, Walmart can invest more in automation of internal processes in its 20



supply chain. Improving human resource development can also boost the company’s competitive advantage.



SWOT ANALYSIS



Introduction a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.



SWOT ANALYSIS TABLE STRENGTHS



WEAKNESSES



1. Being the largest retailer in the



1.Overdependence on sales from the U.S.



world, with unmatched scale of



market



operations and strong market power



2.Highly criticized employment policies,



over suppliers and competitors.



which result in high employee turnover and



2. Cost leadership strategy



poor customer service



3. The combination of a developed



3.Negative publicity and poor brand



distribution system and a well-



reputation



managed information system 4. International presence 5. Large merchandise selection in its many physical stores helps it to develop e-commerce channel sales faster and with lower costs 6. Market Leader 7. Word of mouth publicity 21



8. Quality 9. Exports 10.Wide consumer base 11.Rural penetration 12.Online selling



OPPORTUNITIES



THREATS



1.The e-commerce market is forecast



1.Slowing growth of the China, Canada,



to reach US$2.5 trillion by 2018, a



Brazil, Japan and Chile retail markets



projected growth of 89.1% in 4 years



2. Risk of data breaches.



2.Growing grocery market in the U.S



3. The rising U.S. dollar exchange rate



3.Online U.S. grocery sales will peak



could negatively affect the company’s



over the next few years



revenue and profits



4.Rising popularity of private label



4. Increasing number of lawsuits, which



goods



would further damage brand reputation



5.The usage of mobile grocery apps to order items and to facilitate and enrich the shopping experience will increase significantly over the next few years



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Strength [Internal Strategic Analysis]



Globally Recognized It is globally a recognized brand. People from all over the world knows the brand, therefore, it does not take much time to make trust over the brand Wal-Mart. Global Organizational Size As the size is big, it brings many benefits for the business which work as an internal strength for Wal-Mart. It can hire people from any country it wants. So, for hiring skill people and people from other culture, it can easily do it. Second, it can set-up new retail shop in a new place easily. Cost Efficiency As it produces a large scale, it can achieve economies of scale. As a result, it can produce goods at a price much lower than its competitors. Efficiency in Supply Chain Efficiency in supply chain takes place when you can have all of the information of your business in an efficient way. By that, you can conduct your business efficiently. Wal-Mart has developed a strong network among its global retail shops. It can efficiently control and monitor its goods.



Weakness [Internal Strategic Analysis]



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Thin profit margin The products of Wal-Mart are known as low priced products. And for this low price, it has been dominating the industry. If the price goes up, people will start leaving the products of Wal-Mart. That’s why the company cannot offer bigger price and make more profit. Easily copied strategic business model The business model of Wal-Mart is easily understandable. The model can be copied by anyone, even by the new companies who want to enter the market. As a result, it can make more competitors in the market which may lessen the profit margin.



Opportunities [External Strategic Analysis] Economic Expansion of Developing Countries The developing countries are being developed. People will be more dependent on standard products rather than low-quality products. So, the economic expansion will improve the life-style of the people in developing countries which may result in better sales. Expansion in Developing Country Wal-Mart does not have its retail shops in many developing countries. These are opportunities knocking at the door. It increases the profit margin in future. Improvement in quality standards People are being concerned more nowadays. They believe in quality. Though following cost efficient ways, Wal-Mart still provides better quality to its customers.



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Threats [External Strategic Analysis] Aggressive Competition [locally] The competition is increasing day by day. With the developing nations, new retails shops from other companies are being introduced. As they are from locally owned companies, they can provide products at much lower price. It increases new competition in the market. Healthy lifestyle trend Equally important, most of the company’s products are not organic or healthy. It is a threat for Wal-Mart to have a lower number of customer in future if a lower quality is provided. This factor is a threat. The reason behind it is, the firm does not prioritize healthy products in its retail shops.



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FUTURE PROJECTIONS Walmart strategy drives growth and sustainable returns, Plans $20 billion share repurchase program over two years



* The company provided a three-year strategic framework intended to strengthen its U.S. and e-commerce businesses. * Net sales growth is expected to range between 3 and 4 percent annually over the next three years, translating to $45 to $60 billion over the period. * Investments in people and technology to drive strong shareholder returns over time. * Capital investments will be approximately $11.0 billion for fiscal year 2017 and will remain flat in fiscal years 2018 and 2019. This is below the revised fiscal year 2016 estimate of approximately $12.4 billion, primarily due to a moderation of physical store expansion. * Investments in e-commerce and digital initiatives are expected to total approximately $1.1 billion in fiscal year 2017.



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FINDINGS



‘Consumer Behaviour Analysis' Consumer behaviour analysis of Walmart divided into 3 categories. They are explained below: 1) THE GENERAL PUBLIC-For a store like Walmart the general public is the biggest consumer. Almost everyone needs items for their household no matter they want to cook or they want to purchase clothes, etc. the general public is divided into many categories based on the income. Not all of the people have large income so that they can buy expensive products. It is why Walmart offers many promotions and deals. The communes use these deals and promotions to purchase items at a low price. The general public wants the price to be as low as possible. For example the consumers look for offers during the Christmas season or the New Year. The consumers also look for seasonal offers such as summer, winter or spring sales. They also look for coupons and gift cards. For example, the consumers look for the offers which include gift cards and coupons, etc these coupons let the consumers purchase the products either for free or at a larger discount. The consumers also look for mobile apps and online stores. Most people today prefer to purchase products online and via the cell phones. It is why Walmart has online stores where they can purchase quickly and also the Walmart App. Using this app the consumers can search, compare and purchase any product from the store quickly.



2) THE CONSUMERS OF WALMART WITH FAMILY: Most of the consumers who buy products from Walmart are married. These consumers are the ones who have the need to buy family products. These consumers like to purchase the products at a low price and also like to find out family deals. For example the consumers want to buy bulk products and get a discount. For example, Walmart offers a family mobile. It is a discounted mobile with a preinstalled data plan with unlimited text and calls. It is a perfect match for a person who has a family and wants to stay intact. 3) THE CONSUMERS OF WALMART BASED ON RELIGION: Walmart is an international retail store. It has consumers from all kinds of religious background. It is why to 27



stay up to date and to make sure that the consumers from all religious backgrounds are satisfied they offer separate deals. For example in the UK, Canada or the US there are several Muslim consumers. The Muslims do not eat the meat which is Haram for them, i.e. dead meat or pork. Also they will try and find a store which has fewer number of alcoholic prosecutes. It is why Walamrt has a different strategy for such consumers. These are the promotions which the consumers look for. The consumers worldwide have a different way of thinking. Walmart tries to satisfy the needs by offering various promotions and deals.



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‘Competition Analysis’



Walmart’s largest merchandising category is groceries. It accounts for 56% of sales—or $188 billion1. According to the USDA (U.S. Department of Agriculture), Walmart was the largest seller of grocery items in the US in 2013. It was followed by Kroger (KR), Safeway (SWY), and Publix Super Markets—in that order.The grocery industry is fragmented. It has many players. The industry also has few barriers to entry. Competition is fierce. The margins are low because firms seek to offer lower prices than other companies in the industry in a bid to spur sales. Player concentration



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As a result, scale is important. Larger players—like Walmart, Kroger, Costco (COST), and Safeway—enjoy economies in purchasing, supply chain management, and other fixed costs. They can offer lower prices than smaller companies.



Walmart’s everyday low price, or EDLP, strategy stems from these economies. It also helped the retailer garner market share from other companies by strategic pricing. It has strategic pricing through programs like the Savings Catcher, Save Even More, Ad Match, and price rollbacks.



The trend of favoring larger chains over smaller players firmed over the years. In 2013, the market share for the top four players rose to 36% of industry sales—from just 16.8% in 1992. The market share for the top 20 players spiked from 39.2% to 63.8% over the same period. The USDA partially attributed the increased concentration to the growth of Walmart supercenters over the years.



Walmart and other retail companies—Costco, Safeway, and Kroger—are included in the portfolio holdings of the Consumer Staples Select Sector SPDR ETF (XLP). Together, they account for ~13.5% of the portfolio’s holdings. Walmart is the third largest holding in XLP. It’s weight is ~7.5%.



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CONCLUSION In conclusion, Wal-Mart is the number one retailer in the United States and is at the top of the Fortune 500 listing. Wal-Mart operates in many countries world-wide and is moving into new countries every year. Wal-Mart is also expanding as a retailer. They have expanded into many other sectors of the marketplace, including groceries, gas stations, electronics, and auto maintenance. Each year, Wal-Mart finds new ways to grow and offer more services to their customers. Each year, the number of people who have a stake in Wal-Mart also grows. Each year, more claims are made against Wal-Mart by the unions and other businesses that have been forced out of business. Wal-Mart is often able to uncut many other local industries and more and more local businesses are shutting down when Wal-Mart moves into town. The unions are filing more court claims against Wal-Mart because they encourage their workers not to join unions. As a result of Wal-Mart's ever growing size and variety of services they offer, their public affairs department is going to become more and more important. And as the animosity against Wal-Mart becomes more widespread, here and in foreign countries, Wal-Mart is going to have to work harder to maintain their good reputation. Wal-Mart's foundation will become increasingly more important for giving things back to the community.



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RECOMMENDATIONS



Walmart’s marketing mix has proven effective in supporting the company’s success. However, there are still many locations where Walmart stores are absent or difficult to reach. This is especially true in the markets of developing countries. Therefore, based on the characteristics of its marketing mix, Walmart should improve on the place/distribution component. Specifically, the firm can enter new markets and penetrate current markets through foreign direct investments and joint ventures. In this way, the place/distribution element of Walmart’s marketing mix can provide stronger support for the company’s competitive advantage and continued success in the global market..



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BIBLIOGRAPHY Book Material •



Marketing Management by Philip Kotler



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Sales & Distribution Management by Tapan K Panda & Sunil Sahadev



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Service marketing, Pearson Education Pvt Ltd., New Delhi by Lovelock, Christopher H.



Websites •



www.Indianfoodindustry.



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www.bikaji.com



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https://www.google.co.in



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The Hindu(www.hinduonnet.com)



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https://en.wikipedia.org/wiki/Walmart.



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http://www.marketing91.com



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https://www.walmart.com



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