Wal-Mart – Competing in the Global

Market

Presented By: Batch 17th

•Nishant Gaikwad (16)
•Yogesh Kende (20)
 CONTENTS

1. Introduction
2. Key Statistic on Wal-Mart
3. Products
4. Global setup of Wal– Mart
5. Wal-mart entry in India
6. Wal-mart Operation
7. Marketing strategies adopted by Wal- Mart
8. SWOT analysis
 Introduction

• Largest Retail Store in the United States.

• Dominant Retail store in Canada, Mexico, and United Kingdom.
• Largest Retail Chain in the world.
• No.1 rank in Forbes 2010.
• No.1 rank in total sales and most powerful corporation in the world.
• No. 1 Retailer in various other countries.
• 8,446 stores and club locations in 15 countries employ more than 2.1
million associates, serving more than 176 million customers a year.

Source : http://www.walmart.com
 Key Statistics on Wal-Mart

• Founder Sam Walson & Family – owns 40% of Wal-Mart

• Headquartered at Bentonville , Arkansas , US

• Total No. of Stores – 8446 Stores

– Stores in US – 4381Stores in US
– Outside US – 4065 Stores in 14 Countries

• Total Employees – 1.9 Million

• Total Sales – 348.6 billion in 2008
• Net Income – 11 billion in 2008

Source : http://www.walmart.com
 PRODUCTS OFFERED BY WAL-MART GLOBALLY

•   Family apparel
• Healthy and beauty aids
• Household needs
• Electronics
• Toys
• Lawn and garden items
• Jewelry
• Automotive products
• Home furnishings
• Hardware
• Sporting goods
• Pet supplies
• Housewares
Source : http://www.walmart.com
WAL-MART’S PRESENCE ACROSS GLOBE
COUNTRY NO. RETAIL OUTLATES
   
USA 4,381
MEXICO 1,469
BRAZIL 434
JAPAN 371

UNITED KINGDOM 371

CANADA 317
CHINA 279
CHILE 252
COSTA RICA 170
GUATEMALA 164
EL SALVADOR 77
PUERTO RICO 56
NICARGUA 55
HONDURAS 53
ARGENTINA 43
INDIA 3
GRAND TOTAL 8446
Source : http://www.walmart.com
 WHAT BRINGS WAL-MART TO INDIA?

• A tremendous market
• Emergence of middle class – 300 million
• Consumer class of 105 million growing at rate of 10% & with an annual
avg household income of $3000
• Demographics – 60% of Indian population is in age group of 20-30 & is
more inclined towards modern shopping.
• Consumer spending growing rapidly –credit card
• GDP growing about 6-8%

Source : http://www.walmart.com
 OPPORTUNITIES IN INDIA

• India’s retail trade is estimated at $206 billion & growing at 5% annually

• Only 3% of market organized – shopping malls
• India as fastest growing sourcing market
• India’s vast market for food retailing
• Cold chain - Refrigerated distribution of fruits n vegetables
• Can add value to customers by means of low price and wide range of
merchandise
 Wal-mart’s entry in india

• Indian Retail industry to grow from US $427 billion to 637 in year 2015, out
of which only 3% is organized sector.
• Govt. FDI Policy does not permit 100% FDI into multi-brand stores.
• In 2007 – Bharti Enterprises and Wal-Mart Stores, Inc. signed an agreement
to establish Bharti Wal-Mart Private Limited with 50:50 JV.
• A B2B joint venture for wholesale cash-and-carry and back-end supply
chain management operations in India to serve: Small Retailers,
Manufacturers, Institutions, and Farmers.
• Bharti group will lead and manage the front end operations. Wal-Mart will
power the logistics and back end operations.

Source : http://www.walmart.com
 Wal-mart operation

Logistics - Heart of Wal-Mart’s operations.

Procurement and Distribution

• 40 Regional Distribution Centers.
• Each one is over 1 million square feet in size.
• Each DC supports between 75 and 100 stores within a 250-mile radius.
• Procured goods directly from manufacturers bypassing all intermediaries.
• Tough negotiator on prices.
• Wal-Mart own warehouses directly supplied over 85% of the inventory as
compared to 65% by competitors.
• Distribution center to be divided on the basis of quantity of goods
received.

Source : http://www.walmart.com
Wal-Mart Marketing Strategy
Mission/Vision : To give ordinary folk the chance to buy the same thing as rich people.

Product Strategy:
Lowest prices across-board the product lines
Product USP: core competency
Low prices, In-stock positions, Customer service

Service Strategy:
Respect for the individual, High standards of service and Constant strive for excellence

Segmentation: middle-class, lower middle

Positioning: Consistent positioning- “Always low prices”

Activities: Food retail, Non-Food retail and On-line food retailer

Intangibles: Personalized customer service

Sector Strategy: Diversification
 SWOT ANALYSIS OF WALMART
Strength
• Efficient supply chain management
• Service innovation and technology
• Large convenience stores, which offer one
stop solution for all the customers needs
• Least cost of packaging
• strong penetration strategies
• Infrastructure (financial strength)
Opportunity
•Many countries are still left
• Unorganized retail
• Globalization (diminishing trade barriers)
• Cold Storage market
• Increase in consumer purchasing power
• E-business
• Unemployment
Weakness
•Poor public image
• Late entrant in international market.
• Unable to adapt to different countries
• Ununionised & Strict labor laws
• Were unable to handle media
• High law suits against the company.
• Greater global footprints makes for difficulty in
inventory management
Threats
•Competitors
• Anti- outsourcing laws coming into force
•An increasingly environment conscious
consumer base
•Exposure to the political and socio- economic
upheavals across the world
 Thank You

Source : http://www.walmart.com