BY - :

RAHUL RAMAN
VIPIN KUMAR
SATYAJIT
• The world's largest public corporation by revenue,
according to the 2009 Fortune Global 500.
• The largest private employer in the world and the
third-largest utility or commercial employer.
• The largest grocery retailer in the United States, with
an estimated 20% of the retail grocery and
consumables business.
 History of Wal-Mart
o Sam Walton opened the first store in 1962 .
o Within 5 years there were 25 Walmart stores
earning a total revenue of $12.6 million in sales.
o In 1972 Wal-mart was listed in the NYSE.
o In 2005 Wal-mart incorporated sustainability in
it’s business under their CEO H Lee Scott Jr.
 History of Wal-Mart
o In August 2007, Wal-Mart and Bharti
Enterprises announced an agreement to
establish Bharti Wal-Mart Private Limited.
o Mike Duke succeeded Lee Scott as president and
chief executive officer onFebruary 1, 2009.
o Presently 7,800 stores and club locations in 14
markets employ more than 2 million associates,
serving more than 176 million customers a year
 Purpose

Sam Walton said,

“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.
 Their Mission Statement
• They don’t have a formal mission statement
• They are most interested in the customers needs
• The culture consists of
– Respect for the individual
– Service to our customers
– Strive for excellence
 Vision Statement
• To provide good quality and services to
our customers while remaining the market
leader and striving daily to be the most
admired company.
 Important People
• Co-founders, Sam and James “Bud” Walton started 1st Wal-Mart .
• David Glass was named president 1984, in 1988 he became chief
executive officer
• S. Robson Walton named chairman of the board in 1992
 Products offered
• Family apparel
• Automotive products
• Health and beauty aids
• Home furnishings
• Electronics
• Hardware
• Toys
• Sporting goods
• Lawn and garden items
• Pet supplies
• Jewelry
• House wares, etc.
 Services offered
• Vision centers
• Health clinics
• Fast food restaurants
• Hair salons
• Portrait studios
• one-hour photo centers
• Pharmacies, etc.
Strength: Weakness:

Distribution Centres High dependency on technology

Use of technology
Supplier support and networking
Inventory control and distribution
Corporate culture
Standardization of stores
Low margins
High cost of distribution
Non personalized purchasing

Opportunities: Threats:

Backward expansion Economic environment

Catalog shopping Many discount businesses
Product packaging Competition from other discounters
Expanding store format Cable “home shopping”
Potential technology for home
shopping
Operations Strategy at Wal-Mart
Service Processing at Wal-Mart Retail
Stores
Exterior Submission Basket Products Product Selected Payment Payment Purchased Exit and
of the counter Trolley and display Products Slip products product
Counter
retail Other Counters withdrawal
stores interiors counters

Arrive at Get your Get a Go inside Select Put down Go with the Pay money Get your leave with
things pulling the products the the basket according purchases your
Wal-Mart
(which you basket gallery products selected trolley to the to the bill with you purchases
retail store brought) payment and other
trolley which are products in
submitted, if counter brought
any needed the basket things

Customer
Counter staff Customer cashier Cashier Security
Support
Support staffs support
Staffs
staffs

Staff
Finance
management
Department
Committee
persons

Staff
Cost and
Trainers Security
Selling Price
Department
calculating
staffs
 Divisions of WAL-MART
• McLane’s
• Neighborhood
Markets
• International
• Sam’s Club
• Supercenters
• Distribution Centers
 McLane’s
• Nations largest distributor of food and
merchandise to convenience stores.
• In 2003 was sold to Berkshire Hathaway,
Inc. so Wal-Mart could focus on core retail
business.
Neighborhood Markets

• Began in 1998
• Located in market with
Wal-Mart Supercenters
• Offers customer
groceries,
pharmaceuticals &
general merchandise.
• Provides 28,000 items to
customers.
International
• Wal-Mart expanded so
that customers
everywhere would
associate its name with
low cost, best value,
greatest selection of
quality merchandise and
highest standards of
customer service.
• Wal-Mart focused on
Global Positioning.
 Sam’s Club
• Membership-only, cash-and-carry operations.
• Financial service credit card program (Discover
Card) available at all clubs.
• Annual membership fee is $35; the Elite
Membership is $100.
– Elite membership has additional benefits like
automotive service contracts, roadside assistance,
home improvement, auto brokering and pharmacy
discounts.
• Bulk displays and name brand merchandise.
 Worldly Stores
DISCOUNT SUPERCENT SAM'S NEIGHBORHOOD
Country STORES ERS CLUBS MARKETS
Argentina 0 11 0 0

Brazil 0 12 8 2
Canada 213 0 0 0

China 0 20 4 2
Germany 0 94 0 0
Korea 0 15 0 0

Mexico 472 75 50 0
Puerto Rico 9 1 9 33
United Kingdom 248 10 0 0
International
Totals 942 238 71 37
 Business Mantra
Wal-Mart operated according to 10 rules :
1. Commit to the business;
2. Share the profits with all associates;
3. Motivate your partners, vendors, and suppliers;
4. Communicate everything about the business to
everyone in the company;
5. Appreciate the associates and let them know
they are appreciated;
6. Celebrate success;
7. Listen to everyone;
8. Exceed expectations;
9. Control expenses; and
10. Swim upstream.
 Different Strategies
• Add more hypermarkets and
supermarkets to establish more growth
• Buy products from other countries to have
more of a variety of merchandise and
better quality merchandise for customers
 Wal-Mart’s Retail Mix

Customer Location
Service

Store Design Merchandise

And Display Retail Strategy Assortment

Communication Pricing
Mix
 Wal-Mart’s Retail Mix
Location Strategy

Free-standing Stores

Customer
Service

Store Display Merchandise

And Design Assortment

Communication
Mix Pricing
 Wal-Mart’s Retail Mix
Assortment Strategy

Customer
Service Location

Large Number
Store Design
and Display
of Categories
Few Items
Communication in Each Category
Mix Pricing
 Wal-Mart’s Retail Mix
Location
Pricing Strategy
Customer
Merchandise
Service
Assortment

Store Design
and Display

Communication
Mix Low, EDLP
 Wal-Mart’s Retail Mix
Customer
Service Location

Communication Mix
Store Design Merchandise
and Display Assortment

Pricing

TV and Newspaper
Insert Ads
Wal-Mart’s Retail Mix

Store Design and Display

Customer
Service Location

Basic, Special
Merchandise
Displays Assortments
for Products
Communication
Mix Pricing
Wal-Mart’s Retail Mix

Customer Service

Limited

Location

Merchandise
Assortment

Store Design
and Display Pricing

Communication
Mix
 What brings Wal-Mart to India?

• A tremendous market
• Emergence of middle class – 300 million
• Consumer class of 105 million growing at rate of
10% & with an good annual avg household income
• Demographics – 60% of Indian population is in age
group of 20-30 & is more inclined towards modern
shopping.
• Consumer spending growing rapidly –credit card
 Opportunities in India
 India’s retail trade is estimated at $206 billion
& growing at 5% annually
 Only 3% of market organized – shopping malls
 India as fastest growing sourcing market
 India’s vast market for food retailing
 Cold chain - Refrigerated distribution of fruits
n vegetables
 Can add value to customers by means of low
price and wide range of merchandise
 Challenges in India
• Protests from small businesses (kirana )
• India’s poor infrastructure
• Poor public image – predatory pricing ,
unemployment
• Competition from Indian Retailors including
Pantaloon,Shopper’s Stop ,Piramals
• Regional governments are very strong
politically
 Present Scenario
Wal-Mart joint venture with Bharti
15 large wholesale outlets over the next seven years
Entering as a wholesaler, because Indian law does
not allow multi-brand foreign retailers to sell
directly to consumers
Govt. of U.P forced several top retailers to shut shop
after local kirana stores triggered unrest.
Other foreign retailers : Carrefour - Wadias
,Debenhams - Future group
 Recommendation
 Understand Consumer behavior
 Market Segmentation
 Format of stores– super centers or
hypermarkets
 Wal-Mart to adopt a blended model of its
traditional format tweaked to fit the
reality of Indian real estate
Thank You