Emphasis on Brand Equity
Wal-mart holds around 8% market share in US retail business which is largest in its industry. Its brand equity is also highest among its competitors due to strong customer base and repeat purchase. But it is critical to understand that Wal-mart brand equity in US market is not always beneficial for its few international operations. Wal Mart branding efforts are not consistent. Although they revolve around a basic notion of low cost stores but the varieties in strategies are also evident in branding efforts of the company. Market Segmentation:
Wal-mart offers various types of stores depending upon their functionality and target market. It offers discount stores, super centers, Sam’s clubs and neighborhood market. At discount stores consumers are capable of buying goods at 12-18% discounted rates than their actual retail prices. Super Centers are also similar to discount stores except they also have a special section for groceries and daily food item. The popularity of these super centers is evident from the fact that now Wal-Mart Super Centers are ranked as 1st in grocery retailer category.
Sam’s Clubs are special types of Wal Mart stores targeting bulk purchasing consumers. Only members of Sam’s club can purchase bulk items at extremely discounted prices from Sam’s Club. Neighborhood markets are smallest type of Wal-Mart stores which are located in small towns and remote geographical areas. Their primary purpose is to sell drugs and food items to small populations. Wal-Mart caters large segment of consumers. Its target market is divided into B2B and B2C for e. g. Sam’s Clubs are targeting small retailers and store owners those purchase goods in bulk quantities.
4 P`S of Strategy 4 P’s of strategy are essential in marketing management. Whenever a new product is launched in international market, companies have possibility to adopt Globalize strategies or Localize strategies. “Globalized strategies or globalization involves developing marketing strategies as though the world is a single entity. This means marketing of standardized products using standardized marketing mix in the same way everywhere. ” (Sushil Kumar, Bharat Goel, 2007: pgs 1) It includes product, price, promotion and placement.
Packaging is also considered as an important tool for marketing management therefore it will also assessed in detail. Process of New Product Wal Mart is selected to launch smart bot because it is having largest market share in retail industry around the Globe. For a new product, it provides a large market to get enter. Simultaneously any product or vendor endorses by Wal Mart got direct acceptance by consumers around the world. Its customer base is huge therefore new product will have maximum exposure to all sorts of market segments.
The newly developed product is a game counselor called “Smartbat” It will be sold in toy section of Wal mart stores. Its target market will be age groups ranging from 7-17 years. This product will bring revolution in toy industry because it provides a real life scenario for players. It will also increase consumer experience as they are playing this game into real life. It is packaged game software which could be sold to as many customers as company want. Due to continuous evolution of new technologies, regular updates will be provided completely free of cost to consumers. Users can download updates from their desktops as well.