Market Entry Plan for Walmart Direct Stores(B2C) in India

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 Table of Contents

Market Entry Plan for Walmart Direct Stores(B2C) in India...............................................................1

Introduction...............................................................................................................................................3

Company Background..............................................................................................................................3

Presence of Walmart in India...................................................................................................................4

PEST Analysis...........................................................................................................................................4

Political Factors:....................................................................................................................................4

Economic Factors:.................................................................................................................................5

Social Factors:........................................................................................................................................5

Technological Factors:..........................................................................................................................5

Market Entry Plan....................................................................................................................................6

Competitive Advantage.........................................................................................................................6

Positioning and Branding strategy.......................................................................................................7

Market Segmentation............................................................................................................................7

Marketing Mix.......................................................................................................................................9

Why and how this expansion would benefit Walmart..........................................................................10

Conclusion................................................................................................................................................13

References................................................................................................................................................14
Introduction

This report aims to structure a market entry policy for Walmart in India using a complete PEST

analysis and strategy to enter the Indian market as a B2C business. The report will focus on

evaluating the political, economic, social, and technological factors which can impact the

Walmart's B2C operational entry into India and its appearance through physical stores. By

analyzing Walmart's past competences in India, the report will recognize key encounters the

company has handled due to which it is still not expanded as a B2C and is operating as a B2B

brand and recommend policies to diminish them, while considering the wider market trends and

factors that are highlighted by the PEST analysis. This report will also consider the Walmart's

existing arrangements for retail and product offerings in India and propose methods to

familiarize them to the Indian market so the business can cater the needs of miscellaneous range

of customers directly. Based on these insights and evaluations, the report will present a market

entry strategy for Walmart in India as a B2C business, providing actionable recommendations for

the business to flourish in this dynamic and challenging market.

Company Background

Walmart is a retail corporation which has expanded to various countries but initially it was based

in United States of America. Sam Walton was the founder of company and it started its operation

in 1962 and has since developed as the world's largest retailer, which is operating in more than

26 countries. Walmart is acknowledged for the low-cost, high-capacity business model and has

transformed the merchandizing industry with its state-of-the-art supply chain methods. The

company's mission is to elevate the living standards of the people. This mission is replicated in

Walmart's assurance to offer their wide range of products in low costs such as groceries,
clothing, electronics, and household essentials. Along with the retail business, Walmart also

functions in variety of other markets such as e-commerce, financial services, and real estate

(Vaidya & Apte, 2018). Over the years, Walmart has confronted criticism for its impression on

small businesses and also for the labor practices it is following, but company has been

acknowledged for its charitable efforts and sustainability initiatives. Despite multiple difficulties

and challenges, Walmart has maintained its brand name in the global retail industry and is

helping people enhance their life style through its mission.

Presence of Walmart in India

Walmart has faced frequent difficulties in its attempt to establish direct stores in India. One

major hurdle has been the country's multifaceted governing environment, which has made it

difficult for foreign retailers to operate in India. There has been significant disapproval from

local retailers and traders who fear that the entry of large overseas retailers like Walmart would

hurt their businesses. As a result, Walmart has focused on its B2B wholesale business in India,

rather than opening direct stores for B2C sales. This report will focus on the market entry of

Walmart in India as a B2C business instead of their B2B presence as it will expand the

opportunities of the brand and will create a diverse income stream catering the needs of a

populous country like India (Banga & Bhardwaj, 2014).

PEST Analysis

Entering a new market requires an understanding of the market conditions, and the PEST

analysis can help in this regard. This report will analyze the political, economic, social, and

technological factors that affect Walmart's operations in India.

Political Factors:

The Indian retail industry is regulated by the government, and external corporations need to

follow to certain principles to function in the country. The government has put a cap of 51% on

foreign direct investment (FDI) in multi-brand retail. Walmart has entered the Indian market in a

joint venture with Bharti Enterprises, succeeding the government's rules. The Indian government

also levies high prices on imported goods, which can upsurge the cost of Walmart's products

(Chopra & Meindl, 2007). Political stability is an important factor in the Indian market, as

common changes in government can impact Walmart's processes.

Economic Factors:

India is the world's sixth-chief economy, and its financial development is determined by a huge

consumer market. However, the poverty rate of country is very high, and Walmart's plan of low-

cost foodstuffs can entice the consumers within the poverty bracket. Walmart can also advantage

from India's increasing middle class, which has amplified demand for branded products (Rangan

& Bell, 2015). The country's substructure can be a noteworthy encounter for Walmart, as poor

road infrastructure and lack of state of the art cold storage facilities can increase the maintenance

cost of the Walmart.

Social Factors:

India has a varied populace with diverse cultures, religions, and languages. Walmart will need to

familiarize to the local values and offer products that is able to meet the requirements of the

locals. India is also an extremely price-sensitive marketplace, and Walmart's low-cost strategy is

a competitive advantage. However, the company requirements to address the moral concerns of

customers, such as fair behavior of labors and ecological sustainability.

Technological Factors:

Technology is one of the main factors that impact the Walmart's operations in India. The country

has a high diffusion rate of mobile phones, and Walmart can take advantage of this factor by

introducing mobile applications as this will enhance the customer experience and their reach can

increase significantly (Mishra & Khurana, 2015). Walmart can also influence technology to

improve the logistics and supply chain management, such as using data analytics to enhance

records and transport. However, the lack of substructure can be an important trial, and Walmart

may need to invest in developing technology to address the logistics challenges.

Walmart's entry into the Indian market can be impacted by various factors, including political,

economic, social, and technological factors. The PEST analysis provides a comprehensive

framework for analyzing these factors and developing a market entry strategy. Walmart can

leverage its low-cost strategy to attract price-sensitive consumers in India (Mallik & Sahu,

2017). However, the company needs to familiarize to the local culture and address principled

concerns. Walmart needs to invest in emerging technology to address logistics challenges and

provide a seamless customer experience.

Market Entry Plan

Competitive Advantage

Walmart has numerous possible competitive advantages in India. One benefit is its proficiency in

supply chain management, which allows it to competently source and allocate goods in the

country (Chopra & Meindl, 2007). Additionally, Walmart's knowledge in functioning large-

format stores and instigating well-organized inventory management systems could be a new

thing in the Indian market. Furthermore, the company has developed a strong brand recognition

over the time with the low-product strategy and grabs the attention of people within the middle
class which constitutes of a huge number of Indian consumers. However, Walmart would need to

carefully navigate the regulatory environment and local market dynamics in India in order to

successfully establish itself in the country.

Positioning and Branding strategy

Walmart's positioning and branding strategy for its direct stores in India would be focusing on

the local consumer preferences and values while leveraging its global brand reputation. One

approach that can be followed is to signify Walmart's commitment towards their low prices and

value for money, which would be a huge plus for the Indian consumers (Vaidya & Apte, 2018).

Additionally, Walmart could focus on the efforts to deal in the locally produced goods and

support the local business of the Indian suppliers, which could be beneficial in earning the trust

of local market and communities. Another key element of Walmart's branding strategy would be

to create a characteristic store design and spending experience that pleas to Indian consumers'

partialities and culture. This could involve including elements such as vivacious colors,

traditional Indian themes, and modified customer service. To efficaciously locate and brand its

stores in India, Walmart would also need to carefully circumnavigate the complex governing

environment and competition from existing domestic retailers (Rangan & Bell, 2015). The

company may need to partner with local firms or adapt its business model to better align with

local market dynamics and consumer preferences.

Market Segmentation

Market segmentation is the process of separating a marketplace into lesser groups with

comparable needs or features. In the case of Walmart's B2B operations in India, the company

should identify its target market and segment the market based on several key indicators such as

industry, company size, and location. One key segment that Walmart could target in India is the
manufacturing industry. India is home to a hugely growing manufacturing sector, and Walmart

could make use of its proficiency in the supply chain management to offer a diverse range of

products and services to manufacturers (Jha, 2018). By adapting its contributions to the

requirements of the local manufacturers, Walmart could build a strong customer base and create

itself as a foremost supplier to the sector.

Another key segment that Walmart could target is small and medium-sized enterprises (SMEs).

India is a hub of SMEs, many of which are working in disjointed marketplaces and skirmish to

access the foodstuffs and facilities they need to enhance their businesses (Kotler & Keller, 2016).

Walmart could influence its scale and logistic expertise to offer a wide range of products to

SMEs, helping them to recover their processes and contest more efficiently in their individual

markets. Walmart could also segment the market based on location, targeting customers in major

metropolitan areas such as Mumbai, Delhi, and Bangalore. These cities are home to large

number of businesses and represent well-operating markets for Walmart's B2B operations.

Apart from other segments, Walmart could also reflect segmenting the market based on factors

such as manufacturing verticals, company size, and buying behavior. By prudently examining

client data and tailoring its contributions to the precise needs of each segment, Walmart could

recover its customer assignation and build a loyal customer base.

Walmart's B2B processes in India would necessitate vigilant market segmentation to positively

target the right customers and meet their detailed needs. Walmart could adapt its contributions to

the sole needs of each section and build a strong client base in India (Singh, 2017). Ultimately,

Walmart's success in India would be contingent on its aptitude to execute a well-designed

marketing strategy that influences its assets as a global retailer and discourses the unique features

of the Indian market.

Marketing Mix

The marketing mix for Walmart's shortest stores in India would need to take into explanation the

sole characteristics of the Indian retail market and customer partialities. This would include the

four key elements of the marketing mix: product, price, promotion, and place.

Product: Walmart would want to cautiously select goods that are applicable and attractive to

Indian consumers. This could contain a combination of nearby sourced properties and global

products, with a focus on contribution of high-quality products at modest prices (Mallik & Sahu,

2017). Walmart could also distinguish its product donation by providing a wider variety of

choices and modified products that meet local consumer needs and preferences.

Price: Price is a serious factor in the Indian retail market, and Walmart would need to guarantee

its pricing strategy is modest and associated with local market circumstances. The company

could influence its global scale and supply chain competences to offer low prices that are good-

looking to cost-conscious Indian consumers. Moreover, Walmart could instrument lively pricing

policies and discounts that cater to Indian consumers' partiality for value-driven shopping

experiences (Banga & Bhardwaj, 2014).

Promotion: Walmart would need to tailor its advertising activities to reach Indian customers

effectively. This could comprise a mix of traditional publicity networks such as television and

print media, as well as digital advertising networks such as social media and e-commerce

platforms (Mishra & Khurana, 2015). Walmart could also leverage strategic partnerships with

local influencers and brand ambassadors to build consciousness and trustworthiness among

Indian consumers.
Place: Walmart would need to prudently select store sites and supply channels that are expedient

and available to Indian consumers. This could include initial stores in high-traffic urban areas, as

well as leveraging e-commerce and distribution platforms to reach clients in more distant

locations. Walmart could also differentiate its store project and plan to application to Indian

consumers' preferences and culture (Bhattacharyya & Mehta, 2019).

In summary, Walmart's marketing mix for its direct stores in India would need to be custom-

made to the sole features of the Indian retail market and customer partialities. By prudently

selecting relevant products, offering modest pricing, applying effective publicity strategies, and

leveraging reachable distribution channels, Walmart could successfully establish itself as a

leading retailer in India.

Why and how this expansion would benefit Walmart

Extending through direct stores in India would help Walmart in more ways than one, including

extending its worldwide presence, utilizing its skill in retail tasks and production network the

board, and taking advantage of a quickly developing business sector with a huge customer base.

Walmart's extension system through direct stores would empower it to lay out an actual presence

in India and contend with nearby retailers.

One of the critical advantages of extending through direct stores in India is that it would permit

Walmart to use its skill in retail activities and production network the board. Walmart has gained

notoriety for effective store network the board and coordinated operations, which brings

empowered it to the table for many items at serious costs. By utilizing its current production

network foundation, Walmart could rapidly secure itself as a key part in the Indian retail market.

Also, Walmart's online business abilities could empower the organization to arrive at shoppers in
distant areas, growing its client base past conventional metropolitan communities (Mallik and

Sahu, 2017).

One more benefit of extending through direct stores in India would be the chance for Walmart to

take advantage of a quickly developing business sector with a huge purchaser base. India's retail

area has seen quick development as of late, with a CAGR of 10.7% from 2014 to 2019 (IBEF,

2020). Also, the retail area is supposed to reach $1.1 trillion by 2025, driven by expanding

purchaser spending, urbanization, and evolving ways of life (IBEF, 2020). This presents a

critical chance for Walmart to catch a portion of this developing business sector.

Moreover, Walmart's development through direct stores in India could assist the organization

with expanding its income streams and lessen its dependence on the US market. Presently,

Walmart creates most of its income from the US market, with global tasks representing a more

modest extent of its general income. Venturing into India would empower Walmart to lay out a

presence in one of the world's biggest and quickest developing retail showcases, lessening its

dependence on the US market and assisting with driving future development (Bhattacharyya and

Mehta, 2019).

To effectively extend through direct stores in India, Walmart would have to fit its advertising

system to the one of a kind qualities of the Indian market. Walmart could use its current

memorability and notoriety for quality to construct areas of strength for a picture in India. Also,

Walmart could collaborate with nearby providers and makers to source items that meet

neighborhood tastes and inclinations, further upgrading its enticement for Indian buyers (Mallik

and Sahu, 2017). At last, Walmart could use its current memorability and notoriety for quality to

fabricate areas of strength for a picture in India.

To fabricate serious areas of strength for a picture in India, Walmart would have to consider its

special technique cautiously. In India, verbal exchange publicizing and powerhouse showcasing

are famous special methods, and Walmart could use these methodologies to construct brand

mindfulness and drive deals. Also, Walmart could put resources into publicizing efforts that

accentuate its obligation to quality, worth, and client care, assisting with separating it from

nearby contenders. Walmart could likewise think about utilizing virtual entertainment stages like

Facebook, Instagram, and Twitter to draw in with Indian buyers and fabricate a reliable client

base. By making convincing substance that reverberates with Indian customers, Walmart could

fabricate serious areas of strength for a media presence and drive deals through web-based

channels.

One more key thought for Walmart in extending through direct stores in India would major areas

of strength for construct with nearby providers and producers. Walmart could work intimately

with nearby providers to source great items that meet neighborhood tastes and inclinations,

further upgrading its enticement for Indian buyers. Moreover, building solid associations with

neighborhood providers could assist Walmart with exploring the complex administrative climate

in India and guarantee a dependable stock of items.

Extending through direct stores in India would offer Walmart a few advantages, remembering

utilizing its mastery for retail tasks and production network the executives, taking advantage of a

quickly developing business sector with a huge customer base, and lessening its dependence on

the US market. To effectively extend in India, Walmart would have to fit its showcasing

technique to the novel qualities of the Indian market, including building areas of strength for a

picture, offering a great many items, evaluating seriously, cautiously choosing store areas, and

building solid associations with neighborhood providers. By executing a very much planned
promoting blend and fitting its procedure to the nearby market, Walmart could effectively secure

itself as a central part in the Indian retail market.

Conclusion

In conclusion, Walmart's direct store expansion in India would bring significant benefits to the

company. By tapping into a rapidly growing market with a large consumer base, Walmart could

reduce its reliance on the US market and increase its revenue streams. The company's expertise

in retail operations and supply chain management would help it establish a strong foothold in the

Indian market and compete effectively against local players.

To succeed in India, Walmart would need to carefully consider its marketing mix and tailor its

strategy to the unique characteristics of the Indian market. For this purpose, extensive research as

well as human effort will be required by the organization to work in the Indian market. This

would involve building a strong brand image, offering a wide range of products, pricing

competitively, carefully selecting store locations, and building strong relationships with local

suppliers. By executing a well-designed marketing mix and leveraging its strengths as a global

retailer, Walmart could establish itself as a major player in the Indian retail market, driving

growth and profitability for the company in the long term.

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