Introduction To Retail Marketing
Retail marketing can be described as a different activities that are used by a retailer in order to promote all their services. They can increase awareness among people about all their services. One of the major task of the retailer is to sell different goods at different prices. The present report mainly emphasize on the Wal-Mart's retail mix. It is the largest wholesaler in the globe. They always provide broad range of products to all their customers in low price. It is the retail corporation and they have to et their store location, pricing, merchandise, retail communication according to the customer viewpoint (McGoldrick, 2002). One of the major objective of the company is to provide high quality marketing services to all their customers on low price of products. The present report also tells about the various challenges faced by them and it affects the overall international growth of the company.
Walmart is an American multinational retail corporation and it runs the supermarket chain of large discount departmental stores. It is the world's largest public corporation and they are the multinational retailer. The broad range of product categories include several goods and basic necessities such as movies, crafts, gifts, electronic items, jewelry, home appliances etc. They always add values to the products and services which is sold to consumer for their personal or family use. One of the most important task of the company is to set their retail mix as per their marketing strategy. With the help of this they can easily achieve the target of company. They need to set the clear and definite plan through which retailer outlines to tap the market and build a long term relation with all their consumers. It is the major part which helps them in gaining sustainable competitive advantage (Bradley, 2005). The key aspect of any retail marketing can be described as an attitude of mind. The major consideration of any retailer is to understand the needs of all the customers. Mainly retail marketing encompasses different range of activities and it includes market research, consumer analysis, environmental analysis as well as product planning. The main objective of company while using this concept is to increase their performance level and retailer must achieve to be successful. There are various elements of marketing mix such as:
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Retail mix of the company varies according to the type of market the retailer is in and different types of products and services.
Store location: it is the main concept through in which company needs to decide their location strategy. It is one of the most important strategy which company needs to adopt in the starting phase of planning. Walmart has more than 10,020 retail units. These units are spread into different countries and operates under the 60 banners. All the stores of the company sells the products in two different formats such as traditional stores and e-commerce (Gwynne, 2008). The location of their store should be easily reachable and they have to decide the place whether it is up to the reach or not. The average size of each Walmart store is more than 1 lac square feet. They are required to set out different stores in order to easily manage all their business operations such as Walmart discounts stores, Walmart super centers, Walmart neighborhood markets and Walmart express stores. These all stores are the essential part of the company in order to achieve their target. Organization can easily set out the plan with the target market. It is a retailer sector which provides all the basic necessities of the people. It is much more essential to choose a specific and easily reachable site for their stores. Trading area needs to be choose as per the analysis that shows the number of target customers residing within the draw of facilities (Sivakumar, 2007).
Merchandise assortments: It is the major part which needs to decide with the customers viewpoints. Walmart have to decide that what goods and services they have to offer to all their consumers. It is the basic strategy which set out the market share of company. One of the most important task of any company is to fulfill the overall requirements of all their consumers in order to achieve their target. It is much more essential for them to improve their quality of products in order to attract number of customers. Company needs to decide their stock level, re-order policy, expected inventory turnover and anticipated vendor relationship. It is the major concern of the Walmart to maintain good relations with all their vendors so that they cane easily provide high quality products to their clients (Hallbauer, 2008). In order to gain the trust and loyalty of the customers it is essential to carry out the re-order policy. With the help of this consumer can easily place their order again. It will help them in gaining their market share and they can easily improve their brand image. Walmart has every product and brand as per the customers needs and they could see it into day to day life. The strategy Walmart have chosen for the merchandise assortment is to keep large number of categories for all their products whether few items in each category. It helps consumers to easily understand the category of products.
Store Ambience: In any business it is necessary to provide high class services to all their customers in order to attract a large pool of consumer. Walmart can provide high quality services to all their consumer. Store environment comprises of ambience, design and social factors . The environment of the store highly affect the customers positive attitude. It is one of the most important element which needs to provide complete shopping experience. Store ambience plays very critical role in enhancing the business with providing high class shopping experience (McGoldrick, 2002). The ambience of any of the retail store needs to provide good atmosphere with visual communications, lightning. It will generate a stimulus among the customer perception and emotions that will highly affect the purchasing behavior of the client. With today's competitive environment Walmart have also changed significantly. They provide the full facilities such as elevators for going on the different floor for shopping. In today's time stores have become hotspots of the entertainment for the major chunk of the population. Its very challenging task for Walmart but they have given the pleasant environment with personality. Further for more appealing products there is a plenty of private-label choices and steady attention to low prices. They have their major focus on the branded items and their smaller stores provide more offers with more variety and choices. In addition to this it is easy to say that store ambience to be designed to make shopping easy and it gives comfortable feeling to all the consumers. It enhances the shopping experience and provide high class services to all the customers. It also assist in enhancing the brand values of the various products. A poor ambience gives negative impression of the brand image whether a good ambience act as a promotional tool used to communicate the store's image (Wedel and Kamakura, 2000). Walmart have their free standing stores and it helps them in gaining larger market share.
Customer service: With providing high class services and high quality services it is very easy to satisfy all the customers. It is necessary to give them high quality shopping experience through which they can make all their customers happy. With the growing trends of modernization interiors can create an impression of distinctiveness. Customers always feels happy and satisfied with all the modernized services. It also creates a warm welcoming feeling which will certainly enhance the consumer's mood and increase the chances to maintain the long term relationship with all their customers. It helps in making more sustainable services and keep the customer satisfied in order to maintain the customer loyalty (Perrey and Spillecke, 2013). Walmart cane easily achieve their vision by providing all the products as per the customers requirements. It is the most important element through which company can attract large pool of customers and increase their market share as well. Walmart needs to become the most admired company and with the use of latest technology. They cane easily keep their cu8stomers satisfied by providing them high quality services.
Price: It is another major element which needs to be set out with full focus throughout the process. All the products and growth of the company depends on its pricing strategy. They needs to plan and sell out the product as per the consumer requirement. It is necessary to set the pricing of the company as per their competitors pricing. Walmart always offers 15% lower price than other retailer. It is the major point which helps them in gaining their market share. Customers are easily attracted towards the services of company. All the merchandise of the company needs to be consist in a group and all are sold at the same price and within the customer group (Krafft and Mantrala, 2009). Walmart uses different pricing concepts in order to focus with all their consumers. The major concern of all their team members is on discount strategies. Electronic products are offered at a very price compare to other retailers. It is the most important factor through which company can easily gain their sustainable competitive advantage. They can beat their competitors with this strategy. Further, they can gain the customer loyalty by providing them low price products and several products on discount rates. There are several process which acquires high budget such as different promotional and advertising tools (Wang, Bell and Padmanabhan, 2009). It may cost high which leads to decrease the financial statement of the company. Organizations needs to set the pre plan of all the budgeting.
Communication with customers: It is the most important factor of the retail mix and each and every organization needs to maintain the good relation with all their customer. It is necessary to provide the significant information to all the customers about the price and products of the company. Communication is an integral part and the process of selling all the products. In any retail industry one of the major concern of the company is to go with the effective communication process through which they cans ell their products effectively. Retail promotion program is also essential to generate sales and retailers can easily achieve their goals by informing about their merchandise and services to all the target customers (Sivakumar, 2007). There are mainly three methods of communicating with customers i.e.
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Paid impersonal communication: Different method such as advertisement, sales promotion, websites etc. are the main example of this. Companies can easily promote all their services with these promotional tools. They can further communicate with customers and take genuine feedbacks from customers about their services and products. Further, they can improve their service quality as per the customer's feedback.
Paid personal communication: retail salesperson needs to provide personal communication to all their customers. Personal selling is a process through which customer can satisfy all their needs with face to face exchanging information.
Unpaid impersonal communication: On of the best example of this process is publicity and it is a communication through which unpaid presentation about the retailer through the personal media. In this method retailers communicate with all their customers at no cost through a word of mouth. They can easily encourage the people or customers by the word of mouth but in some cases unfavourable word of mouth communication can seriously affect the store performance.
From the above discussion different elements of the retail mix have been described. It shows the overall acceptance by the retailer an the attitude of people.
Retail mix provides a basis for sustainable competitive advantage. It is much more essential that retail marketing is much more influential. There are wide range of activities which includes overall market research through which company can gain their overall sustainable competitive. Walmart have set their retail mix in order to achieve their target. Marketing is very important tool for each and every retailer and they needs to understand the overall requirements of their customers (Berman, Evans and Mathur, 2010). It can ensure the complete satisfaction and customer loyalty. It is depend on the efficient co-ordination of consumer prediction and product development. Walmart have set their retail mix through which they can provide the free standing stores. There are several factors such as products and pricing needs to be set according to the customers requirement. mainly objective of the retail mix is to define the retailers long term purpose. It is necessary that marketing mix should be consistent with the expectations of target customers. It should be responsive to competitive strategy.
Walmart needs to provide good quality and services to their customers and one of the main target of the company is to be the most admired company in retail industry. They provide different services such as health clinics, hair salons, fast food restaurants etc. These services fulfill the overall basic necessities of the consumers. One of the major target of the company is to achieve higher competitive advantage (Hallbauer, 2008). They have set their standardization of stores and it is the major factor which attract large number of customers. They always provide high class shopping experience to all their customers with very good ambience. There higher standards of store which gives different facilities to clients. It will help them in managing the overall service as well as product quality. They provides good ambience with visual communications and it helps them in gaining higher market share. In any retail industry the major priority can be given to their consumers. It is essential to feels them satisfy and organization cane easily gain the loyalty of their customers. With using advanced technologies they can easily communicate with them and further enhance their service quality. Company can provide better shopping experience to their customers and it makes them happy. Happy consumers go back to their stores and re use their services. Repeat purchase helps them in gaining their market share. Walmart have adopted the strategy through which they can buy more variety of merchandise with other countries. Basic and special displays for all their products provides the facility to all consumers through which they can easily understand the categories of all the products. Walmart offers lowers price then their competitors. There is an set percentage of the company in which they can attain higher market share. It is one of the best strategy through which larger pool of consumers attracted towards their services (Gwynne, 2008). The company also provides discounts on all their services to all the loyal and regular consumers. With the help of proper communication they can maintain the good relations with all their customers and provide them brief information about their services. It is essential for company to provide high quality services to all their customers with good store location. It will help them in gaining higher competitive advantage and company can easily achieve their target.
Walmart is an international store that offer various products varies from different categories and product range. It is a retail industry and they are the largest wholesaler in the globe. Walmart stores provide a large variety of general products. One of the major priority of this company is to keep all their consumers happy. But there are several competitors of the Walmart in UK such as Tesco, Sainsbury etc. It is much more essential for Walmart to adopt various strategies in order to compete with their rivals. They are facing several challenges in their international growth such as political, social, economical, environmental and technological factors. It reveals the positive and negative effects of come factors towards the business.
Political Factors: In any country the major challenge they are facing is its political factors. It will affect the organization in both the formal and informal rules. These factors determines the political stability as well as employment law and regulations. Retail industry needs to face several trade restrictions which lower down the performance of the company (Krafft and Mantrala, 2009). There is an various environmental regulations and protections for the company which needs to be followed by the company. Different tax policies hamper the performance. Walmart have been subjected to the law that suits for the gender discrimination.
Economic Factors: It will mainly affects the business operations and decision making capability of the company. Walmart needs to provide quality services to all their customers and poor services affects the purchasing power of potential customer and firm's cost of capital. The overall economic growth of the company highly affected by the interest rates and inflation rates of country (Orr, 2007). The US has its plan to moderate the increase the supercenters. Overall US stores can leverage the capital assets which increase the return and sales of the US stores. It will highly affects the Walmart.
Social: Walmart is the best place to go on shopping and it is the first choice of all the customers. Social factors affects the cultural and demographic aspects of the environment.
Technological: It will highly affects the cost and quality of the products. In today's globalized environment there are various factors which highly affects the performance of company. Walmart needs to adopt latest technological equipment in order to gain higher market share (Bradley, 2005). It mainly determines the barriers to entry and minimum efficient production level. Walmart use modern technology for the core purpose of their marketing. They mainly use the social media and internet for advertising and selling of their products.
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From the above report on retail marketing it is concluded that organizations can easily achieve their objectives and goals by setting up their retail mix. There are mainly six elements of retail mix which shows overall consistency of the company. Walmart provides best shopping experience to all their customers with the help of all these elements i.e. store layout, pricing, retail communication etc. The company also facing various challenges such as political, social, economical and technological.
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