EVERY DAY LOW PRICING (EDLP) is a pricing strategy that has been a remarkable success for some manufacturers/retailers and a disaster for others. Despite some rather high-profile failures‚ the strategy attracts attention among all types of marketers. Recent reports indicate that 27% of consumer non-durable manufacturers and 23% of consumer durable manufacturers have adopted an Every Day Low Pricing strategy.
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CHAPTER 1 Retailing – a set of business activities that adds value to the products and services sold to the consumers for their personal or family use A retailer is a business that sells products and/or services to consumers for personal or family use A Retailer’s Role Attempt to satisfy consumer needs by having: the right merchandise at the rice price‚ place‚ in the right quantities‚ and at the right time Retailers Role in the Distribution Channel Ex. Manufacturing -> Wholesaler ->
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financial initiative plan that will take the company to the next level in consumer satisfaction‚ market growth‚ and global responsibility. The aim of this paper is to investigate Walmart’s EDLP (Every-Day-Low-Price) strategic initiative plan. Also the creation of other strategic and financial plans that aid in the EDLP plan and the impacts on cost‚ sales‚ and the risks associated with those strategic initiative plans. In today’s business environment‚ companies must design and implement strategic
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Wal-Mart became the youngest U.S. retail company‚ and the only regional retailer‚ to exceed $1 billion in net sales. In 2002‚ Wal-Mart’s revenue equaled 2.3% of U.S. gross domestic product. Wal-Mart’s key strategy lay in its Every Day Low Prices (EDLP) which it achieved through aggressive bargaining with suppliers‚ its efficient
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On the cusp of the 1990’s‚ Randall’s Department stores encountered a quandary surrounding their pricing strategies: Should they continue to pursue Every Day Low Pricing strategies coupled with frequent promotions or determine a narrow focus on one or the other? If this is preferable‚ then which one will reap the biggest benefits for the department store? Competitors were aggressively promoted their established brand promotions with more fervor than ever‚ and Randall’s was slipping in market dominance
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Globalization of Wal-Mart Ye Myint Tun California Mirama University Case Study 1: Globalization of Wal-Mart Please refer to the Mini-Case 9.1‚ “The Globalization of Wal-Mart” on page 251 and answer the following questions: 1. Why has Wal-Mart viewed international expansion as a critical part of its strategy? International expansion is different from the domestic expansion because geography areas‚ culture‚ tradition‚ behaviors and characteristics of the consumers are not similar‚ thus
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• Various type of pasta and packages result in 470 different packaged SKUs; • Sell through various distributors/agents to independent shops‚ supermarket chain‚ and independent supermarkets. Each level of distribution keeps its own inventory; • Long lead time for distributors‚ 1-‐2 weeks to receive delivery from order;
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Discussion Questions: 1. Why did Mexico make such a good proving ground for Wal-Mart’s foreign expansion strategy? There were various strategic reasons why Mexico made such a good proving ground for Wal-Mart’s foreign expansion strategy. Since the early 1990s‚ when Wal-Mart had realized that its U.S. growth prospects were ultimately limited by market saturation‚ they decided to enter Mexico retail market considering the North American Free Trade Agreement (NAFTA) that would lower barriers
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electronics‚ office supplies‚ clothing‚ pharmaceuticals‚ toys‚ photo shop‚ dry cleansing‚ a bank‚ medical clinic‚ women’s-only fitness center‚ gas station (some stores) * Strong private labels‚ President’s Choice brands * Market leader in the supermarket industry with 34.9% * Larger number of stores in Canada with 670 stores when compared with Wal-Mart Supercenters | | Wal-Mart | * Good information technology system‚ that using Electronic Data Interchange (EDI) – vendors can be assure that
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H-E-B OWN BRANDS For over a hundred years‚ the H. E. Butt Grocery Company stores have provided people in Texas and Mexico with superior products and service. Headquartered in San Antonio‚ Texas‚ H-E-B was the 11th largest grocery chain in the United States. Florence Butt founded the company in 1905 with a $60 investment. A few generations later and four failures later‚ Charles Butt became president of the company in 1971 and took the family name to a higher level. Charles Butt was committed to
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