MKT slp 4

MKT slp 4

Promotional Mix

The advertising move will thus affect all facets of the Wal-Mart division, both offline and online. As its online sector is essential to Wal-Mart's profit base, it is important to recognize the impact this strategy will have from the “clicks” perspective. Wal-Mart Stores Inc., the world's number one retailer and largest corporation by sales, launched its web storefront (www.Walmart.com) initially in June of 1995. Having re-launched a second and third time, both in July 1996 and the fall of 1999, the store's website ultimately seeks to “serve customers in a way they want to be served where they want to be served,” as stated in our text. Striving to integrate the online storefront with the offline store, Walmart.com hopes to position itself as ecommerce for the masses. This bricks-and-clicks business, implements channel cohesion giving it a considerable advantage over its competitors. By using its name recognition, this multi-channel retailer has used its clout to expand and tailor to international markets, both online and offline.

Historically, Wal-Mart built its business around an every day low price strategy.  Customers learned to trust the company's pricing.  When they bought something from Wal-Mart, they new two things, first, the price they paid would likely be the price they would pay tomorrow.   Second, it was the best price or very near the best price in their trade area.  That mind set benefited Wal-Mart as million of consumers headed to Wal-Mart first, day end and day out; trusting their price was “always low”.  But no longer.  

Today, many of the company's former consumers have much less loyalty to Wal-Mart.  They shop a variety of retailers often with low price top of mind, especially for branded products.  That benefited Wal-Mart over Christmas, in part because shoppers traded down as they spent less than in ...