Essay on Case Study 1 Marketing 704 A

By definition a mid-life crisis is in part confusion about whom people are and where they are going, and as an organization Wal-Mart’s recent slow-growth can give the impression that it is having an identity crisis. But if Wal-Mart has done anything since its inception in 1962 is establish itself as the “low price leader”. Wal-Mart knows what their mantra is, and regaining market-share is not an identity crisis, but more of understanding that their size alone has a direct impact on their employees and fixing their internal marketing so they can adapt to the needs of their labor not just consumers. Sam Walton its founder established what he wanted his organization to mean and represent when he took the company and expanded out of Arkansa back in 1969. Walton created a Holistic Marketing approach when he slowly began moving his company from one department store into an international organization that kept the same fundamental views as far as growth and market outreach as when it first began. Walton was known as “both a gifted merchant and a born tightwad, [who] also pinched pennies in every other facet of business, from wages and perks (there were none) to fixtures and furnishings” with the objective to keep low overhead costs and pass the savings to consumers. His internal marketing plan was that “Low costs begat low prices... [Therefore] Instead of relying on promotional gimmickry, Wal-Mart sold at a perpetual discount calculated to make up for in volume what it lost in margin. Walton's philosophy was price it low, pile it high, and watch it fly.” And for the past 50-years Wal-Mart’s approach to low prices has paid off exponentially, what it did not account for was for its competitors to find a way to succeed despite Wal-Mart’s “bullish” approach to pricing.
Slide 1-23: Internal Marketing
Walton’s belief in no perks and low-overhead costs has also carried through the history of the company and has had a significant impact on the image it has as an employer and for consumers as well. While Wal-Mart may be one of the largest employer in the country employing nearly “1.5 million sales associates” it has not done a good job at motivating employees to help build a customer friendly and oriented industry. It is common to instead to see empty shelves in the store or not to be able to find an associate to help answer questions or even provide any kind of assistance. And in response to customer complaints this year Wal-Mart has taken the initiate to add more permanent jobs to improve customer service. “They’re competing more and more for consumers’ dollars and they want to have sufficient employees to get the right product to the right shelf at the right time.”
And “While the move will add an incremental cost on labor, it could help the company “capture additional sales,”. Beyond their customer problems internally Wal-Mart is an ongoing battle with different labor unions that. For example, there is ever an ongoing battle with the UFCW who says they are advocating for better working conditions, equitable pay and benefits for both part time and full time employees. In 2013 “two activist groups filed complaints accusing the retail behemoth and its suppliers of poor labor practices [and] in more than 30 allegations of unfair labor practices filed with the National Labor Relations Board on Wednesday and Thursday, the ‘Our Walmart’ advocacy organization accused the chain of trying to silence protesting workers.
Slide 1-28: Marketing Management Tasks
From its inception Wal-Mart knew what direction it would follow as it was the foundation that allowed Walton to grow from the backwoods of Arkansas and expand nationwide and then internationally. At its core: low-prices. Walton achieved this from day one by targeting “higher sales volume by marking up slightly less than most competitors” meaning that he would keep his margin low and make up for it later with volume sales. And while Wal-Mart may be having a sluggish growth rate of late

Show More

How do men and woman differ in terms of use of unisex products Essay

Essay on Valuation of Airthread Connections

Lecture: Management and Wild Card Essay

Smes in India Essay

Global 200 Business Schools Rankings 2014 15 V2 Essay

Essay on Case Study 1 Marketing 704 A

Related Documents: Essay on Case Study 1 Marketing 704 A

How do men and woman differ in terms of use of unisex products Essay

Essay on Valuation of Airthread Connections

Lecture: Management and Wild Card Essay

Smes in India Essay

Global 200 Business Schools Rankings 2014 15 V2 Essay