October 2nd, 2012
Wal-Mart’s Promotion Mix and Integrated Marketing Communications
Wal-Mart ranked one of the top ranked companies with high financial performance. The giant is a none other-than but a retailer of general and consumable goods. They are an envied company that seem to do everything right. As a company, they position themselves to address the needs of customers by operating retail stores around the world focusing saving people money so people so can have additional financial resources for other things. Combined efforts in Advertising, Direct marketing, internet marketing, sales promotion public relations and personal selling investigated to learn about their success. Wal-Mart operation is broken in three areas Wal-Mart US, Wal-Mart International and Wal-Mart international they also have Wal-Mart.com to shop and use free shipping. “The Wal-Mart International segment consists of the company’s operations outside of the United States and Puerto-Rico. The Sam’s club segments include warehouse membership clubs in the United States and Puerto Rico as well as Sam’s Club.com” (Arkansas, 2011). Wal-Mart international net sales, US sales and Sam’s sales were $109 billion, $260 billion $49 billion respectively for fiscal year 2011; Wal-Mart plan on growing stronger by opening new stores and selling more items. Wal-Mart is currently No 1. On the fortune, 500 companies; in 2010, sales were $ 422 billion, and they increase profits during the recession competing retailers struggling. Wal-Mart provides awareness about direct marketing because less that 20% of folks buy items advertised in infomercials and 80% of folks buy items from the local retail. Wal-Mart stores offer “Direct Response products that are advertised on Television as “As seen on TV” products. The distribution efforts are good for the marketers because customers have direct access to those items in the Wal-Mart stores (Frazier, 2005). What’s the secret behind Market success; its long lasting relationships with the supplier and market power? For example, small suppliers are dependent on Wal-Mart and large suppliers and better positioned with a market share, display and promotions. Wal-Mart does not accept “slotting fees, display allowances or deal money from its suppliers" (Mottner & Smith, 2009). . A long term sustainable relationship with suppliers is Wal-Mart practice and benefits these benefits small-midsized suppliers”. “Wal-Mart is not only looking to be cost conscious and efficiency minded in its operations, but works with suppliers to foresee the demand, to negotiate prices with- out special deals and investigate ways to identify supplier’s shortcomings. As a result, Wal-Mart gets it benefits from weaker smaller suppliers. A supplier become dependent upon more powerful retailer like Wal-Mart because of Wal-Mart's reputation resulting in the supplier giving financial concessions to maintain their position with Wal-Mart and long-term relationship lead to better financial performance for both the supplier and retailer (Mottner & Smith, 2009). Walt-Mart on their terms providerr larger market share that gives them more leverage. For example, Wal-Mart sell a lot of GE’s products and GE has won and lost many battles and forced them to look to see how they can improve on lower their costs; whether lowering manufacturing costs or showing more flexibility in their packaging. As results Wal-Mart represent the customer keep them happy so rarely increase (Welch & Welch, 2006).Wal-Mart feeling that brand is important has to mean something the brand live true to the company that they are.
Wal-Mart brand awareness in big cities is important; For example, Proctor Gamble and Wal-Mart launched a joint initiative to bring awareness to Wal- Mart in large cities as New York and Chicago. This was a thirty day...