Walmart Target Groups
Wal-Mart Target Groups
Wal-Mart’s purpose according to Sam Walton is “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life” (Wal-Mart About Us, 2008). Wal-Mart was established to help save customer’s money. The customer’s that they target are considered “value price shoppers”. These shoppers include men, women, and children. They have so much merchandise to offer in so many categories. They carry grocery items. Some of it even caters to different ethnic groups, for example an isle of Mexican Food in the Spanish language. They have also started carrying more products that are organic. Then if children need toys, clothes, school supplies, clothes or medicine, Wal-Mart is your one stop shop. Women can buy clothes, jewelry, beauty supplies, fragrances, kitchen items and storage items. And men are able to find lawn and garden supplies, exercise equipment, hunting and fishing gear, clothes, electrical and hardware supplies. In other words, Wal-Mart has all bases covered. Wal-Mart had a market research study conducted, and the results concluded that there are three groups of shoppers for Wal-Mart stores. The first group is considered the “brand aspirationals – low income shoppers who are obsessed with names like Kitchen Aid. Second, there are the “price sensitive affluents”, wealthier shoppers who love deals. Third, Wal-Mart maintains it’s traditional “value-price shoppers”, folks who like low prices and cannot afford much more” (Barbaro, 2007). “Wal-Marts grand strategy is a Cost Leadership Strategy. They maintain that they can buy goods cheap, sell them for less than their competitors, and turn a profit on volume and turnover” (Blade, 2008). With Wal-Mart’s game plan to have the lowest prices, this is good news even for the struggling middle class. “The middle class, which once seemed to include almost everyone, is no longer growing in terms
Wal-Mart’s purpose according to Sam Walton is “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life” (Wal-Mart About Us, 2008). Wal-Mart was established to help save customer’s money. The customer’s that they target are considered “value price shoppers”. These shoppers include men, women, and children. They have so much merchandise to offer in so many categories. They carry grocery items. Some of it even caters to different ethnic groups, for example an isle of Mexican Food in the Spanish language. They have also started carrying more products that are organic. Then if children need toys, clothes, school supplies, clothes or medicine, Wal-Mart is your one stop shop. Women can buy clothes, jewelry, beauty supplies, fragrances, kitchen items and storage items. And men are able to find lawn and garden supplies, exercise equipment, hunting and fishing gear, clothes, electrical and hardware supplies. In other words, Wal-Mart has all bases covered. Wal-Mart had a market research study conducted, and the results concluded that there are three groups of shoppers for Wal-Mart stores. The first group is considered the “brand aspirationals – low income shoppers who are obsessed with names like Kitchen Aid. Second, there are the “price sensitive affluents”, wealthier shoppers who love deals. Third, Wal-Mart maintains it’s traditional “value-price shoppers”, folks who like low prices and cannot afford much more” (Barbaro, 2007). “Wal-Marts grand strategy is a Cost Leadership Strategy. They maintain that they can buy goods cheap, sell them for less than their competitors, and turn a profit on volume and turnover” (Blade, 2008). With Wal-Mart’s game plan to have the lowest prices, this is good news even for the struggling middle class. “The middle class, which once seemed to include almost everyone, is no longer growing in terms
References: Barbaro, Michael. (2007). Defining 3 Types of Shoppers and Finding the Cost-Brand Mix That Sells. The New York Times. Retrieved online November 20, 2008 from http://www.swlearning.com/marketing/marketing_news/market_segmentation_0307_001.html Blade31. (April 27, 2008) Is Walmart Good for America? Retrieved online November 23, 2008 from http://www.bizcovering.com/Business-and-Society/Is-Wal-Mart-Good-for-America.114702 Dixon, Neil. (2006) University of Wisconsin. Let’s Talk Business. Issue 120. Retrieved online November 24, 2008 from http://www.uwex.edu/ces/cced/downtowns/ltb/lets/LTB0806.pdf Leonhardt, David. (March 17, 2007). Segmentation and Targeting. Business Week. Retrieved online November 22, 2008 from http://www.kellogg.northwestern.edu/faculty/sterntha/htm/module2/2.html Wal-Mart. (2008) Retrieved online on November 20, 2008 from http://walmartstores.com/AboutUs/