Company Analysis Project – Part 3 – Target Marketing
Wal-Mart’s Target Marketing
To effectively reach its customers, Wal- Mart‘s management for many years have managed to carry out effectively target marketing that is augmented by strategic market segmentation. As a result, the company has maintained its market share for a long period. It is poised that by the year 2100 the company is to have a third of the US market in its share (Ryan, 2006). Comparatively, the same figures apply to its main rival, Target. Demographically, Wal- Mart ensures that it positions itself strategically in the market by offering products that meet the needs of all the population segments. According to Dixon (2006), Wal- Mart’s target marketing has been based on the fact that different age groups’ demands are catered for sufficiently. Wal-Mart’s product ranges are more diverse than its main competitor, Target Stores. The products are normally categorized into groceries, household items, electronics, stationery, clothing among others. In electronics and apparels segments, Wal- Mart has products which fit every person in the society. As a result, the company has been able to attract many shoppers across the age groups. Statistically, records indicate that among five shoppers in USA, primary target market, who are 18 years above, more than four do their shopping at either Wal- Mart or Target, or both (Dixon, 2006). Evidently, Wal- Mart has managed to carry out sound inventory management by stocking products that are used by many people irrespective of their demographics or economic capabilities. These products are provided both in the primary market and other foreign / secondary markets in its stores or through joint venture partnerships (Yahoo, 2009).
Price discrimination is not a major market segmentation strategy used by Wal- Mart. Instead it charges...