Marketing plans are compiled by companies that have incorporated a solid marketing research strategy in order to better understand the industry, competition, and customer.
Explain the research strategies that will be used by your company. Finally, analyze the macro environment using a PEST analysis. This will lead to a better understanding of how changes in the political/legal, economic, socio-cultural, and technological environment will affect your company.
A perfect marketing plan can increase the sales of an organization and the profits enjoyed. Every day business organization develop marketing strategies to promote sell their products and increase the company market share. To develop a perfect marketing plan, one has to have a clear picture of the business environment, competitors and customer’s tastes and preferences. A marketing plan can be defined detailed plan that combines all the marketing goals of an organization into a single detailed plan (Hair et al., 2008). To develop a good marketing strategy, one has to do a market research which focuses on the right product mix that can enable an organization enjoy maximum profit potential whilst business sustainability. However, this paper focuses on Wal-Mart supermarket marketing plan and explains the research strategies that will be used by the organization. On the same note, the paper analyzes the macro environment using PEST analysis.
Background history of Wal-Mart
Wal-Mart is a supermarket which was founded by Sam Walton in the year 1962. It is an American company with large warehouse stores and discount department stores. The organization focuses on improving the living conditions of their customers, and communities. Wal-Mart offers their clients a seamless shopping service through their chain stores, online purchasing or purchases made through a mobile phone. Though the business underwent challenges with environmental problems among other complaints, the business is able to come up with strategies to rise above these challenges and boost its business services (Gopinath & Kalpana, 2011).
The Fortune Global list ranks Wal-Mart as the world’s second largest corporation in the world. The company serves more than 20million customers across the globe. Currently, the organization has more than 10,000 stores in 27 countries across the world. The organization focuses on providing their customers what they demand, at the exact time they want and at the desired value.
Research Strategies Employed by Wal-Mart
The success of Wal-Mart marketing plan is as a result of developing in-depth research strategies to identify opportunities and strengthen the organization market share. Wal-Mart implemented the following strategies to ensure business sustainability and improve their marketing plans:
Business level strategies
Wal-Mart developed an effective and well laid out research a strategy that focuses on differentiation and cost leadership. Wal-Mart provides a wide variety of goods and services which are of better quality at a cheaper price (Ferrell & Hartline, 2012). The organization research and develop strategies that help in lowering their production cost and hence sell their products at a cheaper price.
Corporate Research strategy
Wal-Mart concentrates on developing a single line of business dedicated in providing customers with the best services. It is paramount to note that more than 95% of Wal-Mart revenue is as a result of trading in grocery business (Gielens et al., 2008). Wal-Mart never believed in diversification of core business activities to sustain growth or competitive advantage
International level research strategies
Wal-Mart focuses on researching the global market with an intention of infiltrating the global market. The organization develops strategies to help in treating customers from different background differently leading to their success in the global market. The organization develops region product differences and preferences to attract a wide base of customers.
PEST analysis of Wal-Mart Macro Environment
This section provides detailed information of the general environment focusing on the legal, social, demographic and economic environment. Wal-Mart exists in a multifaceted social environment its major social trend is the ever increasing sub urban communities which requires the organization to expand. Wal-Mart is also faced with the legal law which requires them to employ women and not discriminating them in giving job positions.
The demography is analyzed by Wal-Mart on global basis because of the tendency of the organization to operate intentionally. And finally, Wal-Mart also puts a lot of emphasis on economic growth and technology. The organization develops a sales model focusing on high volume of sale with low profit delivered with advanced technology. Technology helps the organization in tracking inventory and stock taking.
Gopinath, R., & Kalpana, R. (2011). A STUDY OF SELECT DISCOUNT STORE RETAIL FOR THE PURPOSE OF IDENTIFYING FACTORS IN REGARDS TO SHOPPING MOTIVES IN TAMIL NADU. Inventi Rapid: Retailing & Consumer Services.
Ferrell, O. C., & Hartline, M. (2012). Marketing Strategy, Text and Cases. Cengage Learning.
Gielens, K., Van de Gucht, L. M., Steenkamp, J. B. E., & Dekimpe, M. G. (2008). Dancing with a giant: The effect of Wal-Mart’s entry into the United Kingdom on the performance of European retailers. Journal of Marketing Research, 45(5), 519-534.
Hair, J. F., Wolfinbarger, M. F., Ortinau, D. J., & Bush, R. P. (2008). Essentials of marketing research. McGraw-Hill/Higher Education.