Marketing_Mix_Strategy

Marketing Mix Strategy Week #2 Wal-Mart a well- known corporation was founded in 1962 by James Walton and Sam Walton in Rogers, Arkansas. Sam Walton was franchising for Ben Franklin’s variety store and came up with the idea of discount retailing after the war. There are approximately 5,000 stores in ten countries with 3,000 in the United States. Wal-Mart is known as a profitable company with profits of 14.7% compared to Costco and Target with earnings of 9.4% and 10%. For many years, Wal-Mart has been more profitable than its rivals. Target and Wal-Mart have been operating successfully whereas K-Mart and Woolworth have failed in their operations and declared bankruptcy. K-Mart has merged with Sears to bring both the struggling stores to remain in competition with other retailers. This paper will present the 4 P’s; known as the marketing mix and Wal-Mart a retail organization will illustrate these categories. The marketing mix includes product, price, place (distribution), and promotion. These marketing concepts are important factors when establishing a product or service to the consumer. A particular product is important when meeting the requirements and core objectives of the consumer. Marketing involves a product that a particular customer would want. Many of the product lines carry the Wal-Mart name along with other brand names in their inventory. Commodities consist of home goods, furniture, garden, pharmaceutical goods, retail, and a variety of food items. Pricing and profitability allowed Wal-Mart to be competitive in the market because large volumes were purchased and sold at discount prices. The company was an innovator in information systems, logistics, and human resource practices. Lower costs and higher productivity resulted from these strategies that provide reduced cost and higher profits. A driving force in cost saving was implementing a tracking system that scanned products using bar codes and scanning devices. These devices tracked the inventory so that Wal-Mart could stock inventory based on demand. The excess inventory were shipped back to distribution centers and allocated to other Wal-Mart stores that needed to replenish the inventory supply (N. a., n. d., p.1). The competitive advantage to profitability was the strategic planning Wal-Mart implemented by meeting the needs of the consumer and competitive market. Placement was important and location was one of the key proponents toward Wal-Mart’s success. Rather than establishing their presence in the urban and suburban locations, Wal-Mart decided to do business in small towns not occupied by their competitors. Small businesses were quickly brought out of business because of the lower discounts Wal-Mart provided for their commodities. Distribution of products are delivered to warehouses in strategic locations domestically and internationally to lower shipping costs. Timelines to deliver products on schedule is an important factor in profitability. Wal-Mart partnered with Sam’s Club and employs more than with 2 million associates. Americans spend $26 million every hour at Wal-Mart and has no threats of rivals in the market. There are more than 7800 stores and Sam’s club locations in the United States with 16 markets worldwide. This allows Wal-Mart to rein internationally and reduces the number of competitors internationally in Europe, Asia, and Canada (Pottabathni, n.d.). A factor whether new and existing customers will return back as consumers is determined how Wal-Mart promotes their products and services. Currently, Wal-Mart is advertising roll back prices that gives the perception that their products cost lower than their competitors. Profitability is based on the supply and demand in the market both domestically and internationally. Wal-Mart will remain a major distributor because of the marketing mix the organization has established in the business. The company has survived competition from other competitors because the organizations weaknesses are never revealed to other competitors. The organization displays no fear of competition and is confident of their strategic planning and research that makes the organization profitable throughout the United States and internationally. References Gopal Pottabathni, n.d., Strategic Management: A Case study of Wal-Mart Inc., Retrieved June 1, 2010, (http://www.articlesbase.com/strategic-planning-articles/strategic-management-a- case-study-of-walmart-inc-945260.html) N.A., n. d., Strategic Leadership: Managing the Strategy-Making Process of Competitive Advantage, Retrieved June 1, 2010 http://college.hmco.com/instructors/catalog/walkthroughs/pdf/0618641629_ch01.pdf