Consumer Analysis

Consumer Analysis

Wal-Mart creates the ideal one-stop shopping experience. Wal-Mart has ten different divisions which are: Wal-Mart stores, SAM 'S CLUBS, Neighborhood Markets, International, walmart.com, Tire & Lube Express, Wal-Mart Optical, Wal-Mart Pharmacy, Wal-Mart Vacations, and Wal-Mart 's Used Fixture Auctions. These ten divisions allow Wal-Mart to offer a lot of diverse products at a wide range of prices. Most Wal-Mart stores contain groceries, clothes, healthcare products, toys, electronics, domestics, housewares, sporting goods, automotive and other merchandise. With this big of variety of products, the usual consumer can go into any Wal-Mart and walk out without having to stop at another store for anything that they need at the lowest price around.
Wal-Mart spends a lot of money in their marketing strategy to make sure they offer the customers the lowest price on their products. Wal-Mart is known by their marketing campaign “Everyday Low Prices”. To even beat this deal Wal-Mart offers Rollbacks on their EDLP: everyday low prices. This increases the number of loyal customers and ensures that Wal-Mart’s prices beat their competitors. Wal-Mart also offers ad matching. Ad matching allows customers to shop at Wal-Mart and get the prices that local competitors are offering. By having this strategy, Wal-Mart is taking customers away from the competition and boosting their own sales. Customers will be tempted to buy other items that are not part of the ad and in this increase the item count for each sale. Customers no longer have to bring in the ad which makes it easier on the customer. “Lee Scott, Wal-Mart Stores’ current President and CEO, observes: ‘Sam was never satisfied that prices were as low as they needed to be or that our product’s quality was as high as they deserved three-quarters he believed in the concept of striving for excellence before it became a fashionable concept’ (Henry Wu).
Everyday low prices are only one of the three key elements that Wal-Mart uses to approach customer service (Henry Wu). The other two are the Sundown rule and the ten foot rule. The sundown rule ensures that management or any associate will get back to a customer with the answer by the end of the day when the question is asked. The ten foot rule is to make sure associates smile and greet any customer that comes within ten feet of the associate. This shows the customer that they are appreciated and can ask for help anytime.
There is more than everyday low prices and great customer service that attracts customers to Wal-Mart. The other element that attracts customers to Wal-Mart is the variety of products that are offered at most stores and the cost of these products. Wal-Mart used to offer a ton of variety of products in their own brand and in name brand. Then they cut back on brands and that made customers upset. They listened to the complaints and have started going back to carrying a lot of name brand items. Wal-Mart noticed that there were customers that were not only coming for the low prices but also for the quality of the products. “Give them what they want — and a little more. Make good on all your mistakes, and don 't make excuses — apologize. Stand behind everything you do” (Walton, 1993, p.230) All four classes of Americans shop at Wal-Mart. However the majority of shoppers are the working class, which comprises thirty-eight percent of the population and the lower class, which comprises sixteen percent of the population (Peter & Donnelly, 2006, p.44). The upper and middle classes buy expensive, “named brand” items. They shop because that is what is expected and they buy what is the newest, greatest, biggest and most popular. They shop to keep up with their neighbors and friends. Their shopping is not done for items that are required but more for items that are desired. The working class looks for help from family and friends and focus on buying items that help them make work and relaxation easier. The lower class shops for quantity, for need and not for pleasure. Every item bought is bought for a reason, not bought on impulse. The reference groups used by all the class shoppers are the same as far as the family reference group goes and the family life cycle would also apply to all classes. But a second reference group of fraternal and professional associations would only apply to the working class, middle class and upper class. The influence of this reference group would be strongest in the middle and upper class for high end goods, vacation spots and college selections. The working class would use this reference group for buying the best tools, lawn goods and recreational items. Product influences would be the most influential on the middle and upper class, but mostly on the upper class, where “name” is the most important. For the working class product influence would be important for providing the best item for their money. Price influences would be the most influential on the working class and most definitely the lower class. The lower class shops by price. They need to purchase their items of need at the lowest possible cost because they have the least amount to spend. Promotional and placement influence would have the least impact on the lower class, but would influence the working, middle and upper class the most.

References
Peter, P. & Donnelly, J. (2006). Marketing management 10th Edition, (pp. 42-54) New York, NY: Mc-Graw-Hill.
Retrieved on Dec. 8, 2012. from http://www.scribd.com/doc/17842761/Walmart-Analysis
Walton, Sam. Sam Walton, Made in America: My Story. Random House. June 1993.
Wu, Henry. Retrieved on Dec. 8, 2012. from http://hwu1207.tripod.com/id1.html.

References: Peter, P. & Donnelly, J. (2006). Marketing management 10th Edition, (pp. 42-54) New York, NY: Mc-Graw-Hill. Retrieved on Dec. 8, 2012. from http://www.scribd.com/doc/17842761/Walmart-Analysis Walton, Sam. Sam Walton, Made in America: My Story. Random House. June 1993. Wu, Henry. Retrieved on Dec. 8, 2012. from http://hwu1207.tripod.com/id1.html.