Wal-mart Summary

Wal-Mart. 3,500 stores worldwide, with over 1,000 outside the United States. $220 billion in annual sales, more than Sears, Kmart, Target, and J.C. Penney combined (Kotler, 442). As the only discount retailer to make Fortune's "“100 Best Companies to Work For"” for four of the last five years (Kotler, 443), how did Wal-Mart's business model become so successful?

Product: Everything, well almost everything
Wal-Mart prides itself of carrying a broad enough selection to make it the ultimate one stop shop. While they do carry tobacco and firearms, they have strict policy about offensive media. Wal-Mart is apparently very sensitive to its working mother target audience, but at what cost?

Price: Every Day Low Prices as Motto and Creed
Wal-Mart's pricing strategy is "everyday low prices," which means day in and day out, Wal-Mart's customers can rest assured knowing the goods they are buying are offered at prices lower than they would be at other stores that use a high-low pricing strategy. Using an everyday low prices strategy, Wal-Mart positions itself as a reliable destination for consumers who want to find products at good value.

Promotion: Wal-Mart on the Defensive, and Using the Web for its Brick and Mortar
Wal-Mart spends well over $100 million annually on marketing and advertising, although the message is not "everyday low prices."” Wal-Mart has focused its well-oiled promotion machine on two key themes: (i) Wal-Mart as a solid corporate citizen that cares about the communities in which it operates and (ii) using online platforms to move virtual Wal-Mart customers into the physical stores.

Place: From Arkansas to South Korea
As of 2005, Wal-Mart has 16 stores in South Korea, whereas E-Mart has 74 stores with only 13% of the annual Korea sales of E-Mart, which posted sales of over $5 billion in 2004. Expert analysis of E-Mart'’s relative success vis-a-vis Wal-Mart shows: (1) Korean customers prefer bright and fancy store designs, with a pleasant atmosphere and good customer service; and (2) they prefer a store not far from home (E-Marts are generally located in easily-accessible downtown shopping districts.