ID : 006001519
Course : Retail Marketing
Wal Mart VS Target
Battle of the Retailers
Over the last 15 years, Wal-Mart has become a retail giant, changing forever the retail landscape in the US. Wal-Mart is a national leader in virtually every retail category in which they compete. However, at about the same time, Target has emerged as a major competitor and with an almost equal presence in the American Market.
Before I start talking about both in more details, and on how they utilize the retail marketing mix in either their benefit or loss, let’s take a look at the result of my survey.
The survey has been given to a hundred subject all over the world who has either lived or travelled to the States, whether from an American background or not, to a diverse age group and different sexes. Please not that any survey that answered NO to the question “Are you familiar with both Wal Mart and Target stores?” has been discarded. Most of my surveys were distributed via email, some by hard copy and others over the phone.
The result are portrayed below.
Out of the 100 shoppers, 40 chose that they shop at both Target and Wal Mart, 17 chose they shop at neither, 31 chose they were Wal Mart exclusive shoppers and 12 were Target exclusive.
Figure [ 1 ] Shoppers preference By studying the exclusive shoppers of each retailer, I found the following
The 12 exclusive target shoppers had the following demographics:
* 4 aged 18-34, 3 aged 35 to 49 and 5 aged above 50
* 9 were female and 3 were male
* 7 earned 80-90 thousand dollars per year, 2 earned 70-80, 1 earned 60-70 and 1 earned 50-60. The 31 exclusive Wal Mart shoppers had the following demographics:
* 9 aged 18-34, 8 aged 35 to 49 and 14 aged above 50
* 14 were female and 17 were male
* 1 earned 80-90 thousand dollars per year, 1 earned 70-80, 1 earned 60-70 and 27 earned 50-60.
Figure 2 The Age group of shoppers
Figure 3 Male and Female Shoppers at both Stores
From the above I concluded that Target shoppers are more likely to be females, younger in age and from an upscale class. Thus Wal Mart shoppers tend to be more males, older shoppers and from downscale classes. In my opinion that gives Wal Mart a massive advantage. I believe when it comes to mass retailers like both Wal Mart and Target, earning the female shopper is not a challenge, women always shop! They are responsible for cooking, dressing the kids, cleaning supplies and so on, so they always have the need for the stores, however earning a majority in the male shoppers gives a competitive advantage, as men go shopping for more specifics, spend more money and tend to be loyal, if they find it here they will always go here! The age groups also is in Wal Mart benefit, having older shoppers means more experienced shoppers, more parents, more spending patterns, more loyalty as well, in Wal Mart 45% were above 50 years of age which shows high loyalty to the shop. Having more people with less income visiting Wal Mart rather than less people with more income in Targets case, could be a disadvantage, but don’t forget that we are studying 2 of the cheap priced retailers, who sell their products for as low in prices as they can, so their target market in general is people who don’t like to spend much, thus people with little income. I believe if the majority of the shoppers to Wal Mart were of richer backgrounds they would have gone to better brands and exclusive shops that offer more expensive items, but both Target and Wal Mart are known for their discount shopping and low prices. Now let’s study the rest of the finding of the survey, as answers varied I won’t be discussing the exact numbers of answers to each question but more of the conclusion I came to. I tried to examine specific aspects of each retailer...