Top-Rated Free Essay
Preview

Consumer Analysis

Good Essays
981 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Consumer Analysis
Consumer Analysis

Wal-Mart creates the ideal one-stop shopping experience. Wal-Mart has ten different divisions which are: Wal-Mart stores, SAM 'S CLUBS, Neighborhood Markets, International, walmart.com, Tire & Lube Express, Wal-Mart Optical, Wal-Mart Pharmacy, Wal-Mart Vacations, and Wal-Mart 's Used Fixture Auctions. These ten divisions allow Wal-Mart to offer a lot of diverse products at a wide range of prices. Most Wal-Mart stores contain groceries, clothes, healthcare products, toys, electronics, domestics, housewares, sporting goods, automotive and other merchandise. With this big of variety of products, the usual consumer can go into any Wal-Mart and walk out without having to stop at another store for anything that they need at the lowest price around.
Wal-Mart spends a lot of money in their marketing strategy to make sure they offer the customers the lowest price on their products. Wal-Mart is known by their marketing campaign “Everyday Low Prices”. To even beat this deal Wal-Mart offers Rollbacks on their EDLP: everyday low prices. This increases the number of loyal customers and ensures that Wal-Mart’s prices beat their competitors. Wal-Mart also offers ad matching. Ad matching allows customers to shop at Wal-Mart and get the prices that local competitors are offering. By having this strategy, Wal-Mart is taking customers away from the competition and boosting their own sales. Customers will be tempted to buy other items that are not part of the ad and in this increase the item count for each sale. Customers no longer have to bring in the ad which makes it easier on the customer. “Lee Scott, Wal-Mart Stores’ current President and CEO, observes: ‘Sam was never satisfied that prices were as low as they needed to be or that our product’s quality was as high as they deserved three-quarters he believed in the concept of striving for excellence before it became a fashionable concept’ (Henry Wu).
Everyday low prices are only one of the three key elements that Wal-Mart uses to approach customer service (Henry Wu). The other two are the Sundown rule and the ten foot rule. The sundown rule ensures that management or any associate will get back to a customer with the answer by the end of the day when the question is asked. The ten foot rule is to make sure associates smile and greet any customer that comes within ten feet of the associate. This shows the customer that they are appreciated and can ask for help anytime.
There is more than everyday low prices and great customer service that attracts customers to Wal-Mart. The other element that attracts customers to Wal-Mart is the variety of products that are offered at most stores and the cost of these products. Wal-Mart used to offer a ton of variety of products in their own brand and in name brand. Then they cut back on brands and that made customers upset. They listened to the complaints and have started going back to carrying a lot of name brand items. Wal-Mart noticed that there were customers that were not only coming for the low prices but also for the quality of the products. “Give them what they want — and a little more. Make good on all your mistakes, and don 't make excuses — apologize. Stand behind everything you do” (Walton, 1993, p.230) All four classes of Americans shop at Wal-Mart. However the majority of shoppers are the working class, which comprises thirty-eight percent of the population and the lower class, which comprises sixteen percent of the population (Peter & Donnelly, 2006, p.44). The upper and middle classes buy expensive, “named brand” items. They shop because that is what is expected and they buy what is the newest, greatest, biggest and most popular. They shop to keep up with their neighbors and friends. Their shopping is not done for items that are required but more for items that are desired. The working class looks for help from family and friends and focus on buying items that help them make work and relaxation easier. The lower class shops for quantity, for need and not for pleasure. Every item bought is bought for a reason, not bought on impulse. The reference groups used by all the class shoppers are the same as far as the family reference group goes and the family life cycle would also apply to all classes. But a second reference group of fraternal and professional associations would only apply to the working class, middle class and upper class. The influence of this reference group would be strongest in the middle and upper class for high end goods, vacation spots and college selections. The working class would use this reference group for buying the best tools, lawn goods and recreational items. Product influences would be the most influential on the middle and upper class, but mostly on the upper class, where “name” is the most important. For the working class product influence would be important for providing the best item for their money. Price influences would be the most influential on the working class and most definitely the lower class. The lower class shops by price. They need to purchase their items of need at the lowest possible cost because they have the least amount to spend. Promotional and placement influence would have the least impact on the lower class, but would influence the working, middle and upper class the most.

References
Peter, P. & Donnelly, J. (2006). Marketing management 10th Edition, (pp. 42-54) New York, NY: Mc-Graw-Hill.
Retrieved on Dec. 8, 2012. from http://www.scribd.com/doc/17842761/Walmart-Analysis
Walton, Sam. Sam Walton, Made in America: My Story. Random House. June 1993.
Wu, Henry. Retrieved on Dec. 8, 2012. from http://hwu1207.tripod.com/id1.html.

References: Peter, P. & Donnelly, J. (2006). Marketing management 10th Edition, (pp. 42-54) New York, NY: Mc-Graw-Hill. Retrieved on Dec. 8, 2012. from http://www.scribd.com/doc/17842761/Walmart-Analysis Walton, Sam. Sam Walton, Made in America: My Story. Random House. June 1993. Wu, Henry. Retrieved on Dec. 8, 2012. from http://hwu1207.tripod.com/id1.html.

You May Also Find These Documents Helpful

  • Powerful Essays

    Kotler, P., Adam, S., Denize, S. & Armstrong, G. 2009, Principles of marketing, 4th edn, Pearson Prentice Hall.…

    • 2617 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Mkt 421 Week 1 Paper

    • 673 Words
    • 3 Pages

    References: Kotler, P. & Keller, K.L. (2009). Marketing management (13th ed.). Upper Saddle River, NJ: Prentice-Hall. Available from the University of Phoenix eBook Collection.…

    • 673 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Wal-Mart Fiscal Year 2011

    • 545 Words
    • 3 Pages

    There are several primary assets held by Wal-Mart. Their absolute primary asset is their Supercenter. They offer the same variety as other Wal-Mart’s, and also have a full service supermarket. This gives the customer the convenience of shopping for everyday low price items grocery and non-grocery. Their next top asset is the Wal-Mart…

    • 545 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Wal-Mart doesn’t limit its products to one specific need, but to any kind of need. When setting foot Into a Wal-Mart it may be overwhelming to see all of the products to choose from. “A quick look around at the store in Paris makes clear what an employee is up against: thousands of items (90,000 in a typical Wal-Mart)” (Olsson 612). To list a few items, Wal-Mart carries hardware, food, toys, and school supplies. Other stores that specialize in selling these products will lose a good percentage of customers that are needed to keep their business running. This variety can also potentially discourage customers from ever using different businesses. Nonetheless, these different areas of goods will satisfy the needs of many people when located in one area. People may come in for a specific item, simply because they are able to purchase it at the lowest price possible. Another common scenario is that someone may go there for multiple purposes instead of just one. For example, one can complete his or her grocery shopping, while purchasing a computer that is needed for school. Instead of traveling through town to find the same type of a computer for a lower price they can do it all at Wal-Mart because of the convenience the store offers. Not only small businesses but also larger companies can be hurt from this type of convenience. “The average Wal-Mart customer earns thirty-five thousand dollars a year” (Mallaby 621). Best…

    • 888 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Target Case Study

    • 996 Words
    • 4 Pages

    References: Armstrong, G., & Kotler, P. (2012). Principles of Marketing (pp. 94-95). Upper Saddle River, New Jersey: Prentice Hall.…

    • 996 Words
    • 4 Pages
    Better Essays
  • Better Essays

    Market Analysis

    • 1434 Words
    • 6 Pages

    References: Kotler, P., & Keller, K. L. (2012). Marketing management. (14 ed.). New York, NY: Prentice…

    • 1434 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Wal-Mart’s website is a great reflection on the company’s brand image. The store is a one-stop shop store and the company has designed the website as a direct duplicate of the store. In the store the customer can actually see an item unlike the website where the customer has to rely on a picture of the item. The website also carries an advantage over the store because a customer can do his or her one-stop shopping from home, work or wherever there is a computer, which is easy shopping during the holiday season. The website is worthy on the company because the website allows the customer to see what is in stock either online or at a store near the customer. Wal-Mart’s website offers their customers free shipping from website to a store near the customer unlike Target’s where the customer have to spend $50 to get free shipping.…

    • 1050 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Hubspot - Case Analysis

    • 5045 Words
    • 21 Pages

    References: Kotler, P., & Keller, K.L. (2009). A framework for marketing management (4th Ed.). Upper Saddle River, NJ: Pearson Education, Inc.…

    • 5045 Words
    • 21 Pages
    Powerful Essays
  • Powerful Essays

    Apple Brand Equity

    • 1447 Words
    • 6 Pages

    References: Keller, K., & Kotler, P. (2012). Marketing management. (14 ed., p. 243). Upper Saddle River: Prentice Hall.…

    • 1447 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Customer Analysis

    • 560 Words
    • 3 Pages

    • Two supporting benefits are: Past positive experiences with our innovation and commitment to past projects.…

    • 560 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    References: 3) Bearden, Ingram, Laforge, 2001, Marketing Principle & Perspectives, 3rd ed., United States: McGraw-Hill Higher Education. P. 276…

    • 3354 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Consumer Analysis Project

    • 1446 Words
    • 6 Pages

    Starbucks Coffee Company, Starbucks was named after the first mate in Herman Melville’s Moby Dick, Starbuck established their business in 1971 by Howard Schultz with the first store in Seattle's in 1982, Starbucks become a leader coffee retailer market specialize in providing premium coffee brand around the world through more than 15,000 locations across the world serving more than millions of customer during the week through more than their stores in North America, Europe, Middle East, Latin America and the Pacific Rim.…

    • 1446 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Consumer Behavior Analysis

    • 629 Words
    • 19 Pages

    Consumer Buying Behaviour Group Members Name Id Md. Shafkat Islam 18 A.N.M Shamsul Arefin 23 A.M.M. Habibul Mustafa 37 Md. Delwar Hossain Mazumder 38 2 About WRIST WATCH market in Bangladesh… • Watches are no longer just time-keeping devices. • Going beyond its generic role, wrist watches now focus on performing a voguish role as a fashion accessory that help in making a self-expressive style statement. • From being a “Need”, wrist watch has turned to become a “Demand”.…

    • 629 Words
    • 19 Pages
    Satisfactory Essays
  • Good Essays

    Consumer Analysis

    • 1038 Words
    • 5 Pages

    Customer analysis is the process of determining customer segmentation, value, purchasing behavior and motivation in order to better target marketing and increase sales. Well, that sounds ok in theory but is perhaps a bit too abstract for practical use. Practically speaking, what is customer analysis, really?…

    • 1038 Words
    • 5 Pages
    Good Essays
  • Good Essays

    I have been longing for one sunglass for a long time after I accidently stepped on my old one and broke it. Since summer is on the way, nice and sunny weather has always reminding me to think about consumption. Unfortunately, I am such a picky person that I determined to get the perfect fit only for my special. My criteria are primary focused on the quality, brand, and the style. Probably style can be considered as the most important one because I want everything I possessed to reflect my personal conception. Price is an important but not most significant element for me because I tend not to use budget to restrict my preference. Apparently, around Bellingham area, the only place I can think of purchasing a good quality sunglass is in Bellis Fair Mall. Also, my observation told me that there are several store in the mall selling sunglasses. I didn’t think too much and decided to check it out.…

    • 975 Words
    • 4 Pages
    Good Essays