Walmart Stategic Marketing Plan

Walmart Marketing Plan

I. Marketing Objectives

This marketing plan aims to increase Wal-Mart's inventory turnover ratio but at the same time, making sure that sufficient inventory would be available to meet demand, leading to increase in sales, particularly in the apparel category, by 5% in one year.

Aside from that, this marketing plan aims to aid Wal-Mart:

* To develop Wal-Mart's own brand of new cheap chic apparel line

* To improve advertising and merchandising support of the apparel category

* To spruce up the store design concept in the in order to attract more customers

II. Situational Analysis

A. SWOT Analysis

Strengths

* Largest Retailer in the World

Wal-Mart is considered the largest retailer in the world. It is the pioneer in the retail industry with the wide spread network of stores.

* Loyal Customer Base

Wal-Mart has a loyal customer base because it meets the expectation of customer by always delivering the goods at lower prices at compare to its competitors. It is a store where most individuals, who are on a low budget, still get to buy what they set out to buy. Wal-Mart's low prices made the store a hero of some 45 million low-income Americans. Their loyalty, in turn, made the store a leader in almost every consumer category.

* Everyday Low Pricing

Wal-Mart is able to shift the low cost advantage to its customers and make the products available at lower prices, everyday. Lower prices were made possible by the company's mastery of back-end operations and its cutting edge distribution system.

* Established Brand Name

Wal-Mart has a very well established brand name that is identified with reasonable to cheap pricing and bargain pricing.

* Supply Chain and Logistics Capability

One of Wal-Mart's competitive advantages is their remarkable logistics system. They are able to ship merchandise from any of their numerous distribution centers in order to provide the cheapest and most efficient route. It is able to move goods from factory loading dock to store cash register faster and cheaper than competitors are. At the same time, it added to its cost advantage by refusing to accept routine increases in wholesale prices and continually pressing suppliers to charge less.

* Wide Network of Stores

Wal-Mart has a wide network of stores and therefore it is accessible to all types of individuals whether they are of wealthy means or not.

* Buy in Bulk

Wal-Mart buys its products in bulk from a supplier. Because of this, they are able to sell the product at a cheaper price.

* Caters to a Wide Range of Needs

Wal-Mart offers numerous product from different categories. Due to the diversity of its product lines, it could cater to consumer's wide range of needs. Today, Wal-Mart controls 20% of dry grocery, 29% of nonfood grocery, 30% of health and beauty aids, and 45% of general merchandise.

* Continuous Opening of New Stores

To fuel its growth, Wal-Mart has relied on the strategy of opening stores, which it does at the rate of almost one store a day.

* Immediate Acceptance of George in Canada

Wal-Mart entered the Cheap Chic category with George, a brand acquired with its acquisition of Asda, the largest clothing chain in the U.K. There was international expansion of the brand to Canada. The Canadians' sense of fashion, coupled with lower discretionary incomes than their American counterparts, helped bolster an immediate acceptance of George.

* Trend Office in New York

The opening of a Trend Office in New York allows Wal-Mart to stay ahead of the fashion curve. Ten people were recruited from West Elm, Nautica, Levi Strauss, Van Heussen, and OshKosh B'Gosh. This team is charged with divining what is hot and forecasting future trends in clothing and home décor.

* Positive Reviews of Wal-Mart Collection Apparel at New York's Fashion Week

To lend cachet to the George line, Wal-Mart reached out for help from designer Mark Eisen. Eisen developed a collection of women's sportswear, under the label George M.E. Wal-Mart showed the collection at New York's Fashion Week where it received positive reviews.

Weaknesses

* Growth in the Cost Structure

As Wal-Mart has grown, so has its cost structure. This would affect their promise of low everyday pricing.

* Large Inventories

Wal-Mart's inventory jumped to $35.2 billion, a 10.3% increase from the previous year. The surge in inventory was driven by approximately $2 billion in unsold apparel, home décor and outdoor products.

* Negative Publicity

Wal-Mart has been hurt by negative publicity over its treatment of workers, its impact on competitors, and even its influence on the over-all economy.

* Increase in Overhead Expense

Due to the negative publicity that is has created, hundreds of staff jobs have been created in PR and in the legal department to control the damage to Wal-Mart's reputation. Overall, in 2006, overhead increased 14.8%.

* Lackluster Sales

At the same time, Wal-Mart's sales have been lackluster. By its own admission, same-store sales - a critical benchmark for retail stores - increase only 1.9% in 2006, its worst performance ever.

* Selective Purchases of Middle Class Customers

Middle class customers were more selective in their purchases, shopping Wal-Mart almost exclusively for grocery items and health and beauty aids.

* Low Impact of the George brand in the US

In the U.S. where the most expensive women's jacket sold for $25, George initially failed to have much impact despite its low price tag. Most fashion observers blamed George's lackluster sales on Wal-Mart's failure to give