PRODUCTS AND BRANDING STRATEGIES

PRODUCTS AND BRANDING STRATEGIES



The Marketing Mix: Products and Branding Strategies

INTRODUCTION

Wal-Mart, a discount store was founded in 1962 by Sam Walton and his brother who opened the first outlet in Arkansas. Wal-Mart store was constructed as a big, flat, warehouse like store that sold everything from apparel to automotive supplies to small appliances at very low prices which allowed the company to cater to the masses. In today's day and age Wal-Mart's annual sales now exceed $288 billion more than 1.7 times the sales of Target, Sears, JCPenney, and Costco put together, therefore making it the world's largest company.

Discussion:

Moreover, once Wal-mart's sales of $1.52 billion on one day in 2003 exceeded the GDP's of 26 countries. The Company now is well established in larger cities and has tapped into the international market, where it is gained popularity and is expanding on a rapid pace. Wal-Mart is a globalized company with more than 1.9 million associates worldwide and nearly 6,500 stores and wholesale clubs across 13 countries in the world. Their mission statement is “Lower the world's cost of living” as it is passionately dedicated to its value proposition of “Always Low Prices, Always”. They believe that everyone is entitled to some sort of luxury. That is why they carefully segment the market and therefore, target those who need the most, offering them a larger variety of things under one roof.

However, the company has competitors spread almost all over the world. The primary competition includes department stores like Kmart, Target which are based in America, ShopKo and Meijer, Canada's Zellers, Hart the Real Canadian Superstore and Giant Tiger, and Mexico's Commercial Mexicana and Soriano. There are many competitors in Europe and now Wal-Mart has tapped into the whole foods market, which means capturing another segment and making its presence felt. It is in fierce competition with Aldi a German store which holds about 20% of the market. Wal-Mart is the number one seller in multiple categories of consumer products, including groceries, toys, CDs, and pet-care, 30% of the hair-care products, 26% of the toothpaste, and 20% of the pet food. Wal-mart believes that life can change for the better considering if opportunities and options are available for the people.

Moreover, key part of Wal-Mart's competitive advantage is its relationship with its suppliers. Wal-Mart has made specific supplier choices along the way that are geared towards ...