taget_vs_walmart

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THE RETAIL WAR HAS JUST BEGUN-A RING SIDE VIEW.


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Referees :

Satish Shetty MMM -09-30

Sangeet Chikhlikar MMM-09-01

Digesh Vanjara MMM-09-26

Rupesh Jadhav MMM-09-08

Bhavesh Patel MMM-09-13


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Shuruvaat

Wal-Mart Facts

Type of Organization: Public Company

Foundation: Rogers, Arkansas, United Statesof America

Founder: Sam Walton. Started Walmart in1962

Current Headquarters: Bentonville, Arkansas,United States of America


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Target opened its first store in Roseville, Minnesota,in 1962.

Is an upscale discounter with a focus on the high-quality, on-trend merchandise guests want, plus the

everyday basics all families need, all at affordableprices. Its combined emphasis on style, quality,affordability and clean, attractive stores makes it aone-of-a-kind.

Target operates 1,683 stores in 48 states, including239 Super Target stores, 1,519 pharmacies, 325optical centre, 186 portrait studios, 916 Starbucks,1,165 one-hour photo processing labs and 28 healthclinics.

Targets total store square footage is 222,420,000square feet.


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WALMART TARGET

Position Ranked No. 1 Ranked No. 2

Employment 2.1 million employees 351,000 employees

Presence 8,986 retail units in 15

countries

1,684 stores in 48 states

Revenue $405.6 billion annual revenue $64.9 billion annual revenue

Equality Score of 40 on the HumanRights Campaign equalityindex

Score of 100 on the HumanRights Campaign equalityindex

Customer Type The average US Wal-Martcustomer's income is belowthe national average, andanalysts recently estimatedthat more than one-fifth ofthem lack a bank account,twice the national rate

Target stores tend to attractyounger and more educatedand affluent customers thanits competitors

Health

47.4% of Walmart associatesget health-care coverage fromWalmart; Customersatisfaction: 68% to 70%

depending on store category

Target offers full benefits toeligible managers and scaledbenefits for hourly workers;customer satisfaction: 77%


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Marketing Wallmart

Every Day Low Pricing:

From the start, Wal-Mart's focus was all aboutEvery Day Low Pricing, and it remains true eventoday. "What we were obsessed with was keeping ourprices below everybody else's," said Sam Walton.

Simplicity:

The beauty of Wal-Mart's marketing program is it'ssimplicity. It has engendered a trust with customersthat they will always find that low price, and chancesare good that a product will always be in stock.

Reputation:

Wal-Mart's everyday low price program, abetted bylow operational costs and tight control on expenses,has resulted in Walmart earning a nationwidereputation.


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Advertising Wallmart

Walmart Success Mantra

Customers should be provided what they want,when they want it, all at a value & Treating eachother as we would hope to be treated acknowledgingour total dependency on our employees to sustain oursuccess

Advertising Cost

Wal-Mart spend a mere one third of one percent inadvertisements--well below the industry average ofapproximately 2% of sales

Change Management

Walmart is always willing to try new things. Evenemployees are continually challenged to look for waysto improve store formats, merchandise displays,services and technology


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Strengths

- Brand- Market Presence- Design-Innovative Marketing

Techniques

Weaknesses

- Geographic Locations- Lack of Vision Statement- Litigations

Opportunities

- Global ExpansionEntering untapped US

MarketsContinued growth in privatelabel products

Threats

CompetitionEconomy

SWOT Analysis (Target)


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Target Ka Marketing

Pay Less + Expect More:

Pay Less + Expect More- is how Target sets itsself apart from its competitors

Logo:

Target has a famous red bulls-eye symbol thatmost consumers know; and research shows that 96%of people recognize the Target bulls-eye over Apple

and Nike.

Positioning:

Target decided to reposition itself as a massmerchandiser of affordable chic goods, instead of


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Continued

Customer Profile:

Target customers fall into the category of esteembased on Maslows Need Hierarchy, looking for status,superiority, self-respect and prestige.

Product Display:

Target developed an image and displayedproducts that matched its customers lifestyles and

created enhanced merchandise displays. It offered amix of private labels and national brands in creativeand innovative layouts and displays.


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AD- Baazi

watch (1).htmwallmart advt.htm


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What Target is already doing.

Novelty

The idea of providing Target Smart Visa cards to its

customers, Running the Stores in a Boat & openingSpecial Summers Stores (Bulls eye Inn) surprised &delighted & helped in strengthening the Brand &deepen relationship with Customers.

AdvertisementAn ad Circular every Sunday, was able to project

an image of Style & sophistication to the customers.Target positioned itself as being stylish, affordable &trendy.

Promotions

Initiatives with AOl, Amazon.com &Collegestudent.com offering customer friendly onlineshopping with personalized & unique shopping

experience was a major hit among Target customers.


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Target for target

Expansion

Target has anexcellent

reputation with

their brands at


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Target for targetNew Territory

Expand into the three remaining states where there arecurrently no Target stores.

Private Labels

Target should also continue expanding their private labelbrands. One in Five products purchased in retailestablishments are private label products.

Sell off Non profitable divisionsTarget should consider selling off their financial services

division. They are currently holding $7 billion in credit cardreceivables. With the current credit crunch occurring in theUS it may be prudent to avoid suffering defaults on thesecredit cards


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Target markets for target Gender Bender

Being that 93% of Targets regular shoppers are women,it would make sense to market their stores to the malepopulation.

Age

The median age of the Target shopper is 41 years of age.

Since Target is a trendy, hip place to shop they need tomarket themselves to the younger generations.

Income

Target a lower income bracket. The average income forTarget shoppers is $63K. Considering income levels aredropping and other economic woes, Target would be wise tomarket their Expect More-Pay Less philosophy even further

New Born

Target should target the new parents. It currently has a

baby registry for expecting parents. They should considerrunning promotions for the new parents once the baby is


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