This presentation is a part of assignment under the mentorship of Prof Sameer Mathur, IIM Lucknow.

2. Founded by Sam Walton in 1962
Walton's philosophy was price it low, pile it high, and watch it fly.

3. • The Giant Chain
• $ 400 billion + revenue
• 2.1 million associates

4. Fortune Global 500 (2012):
# 3rd largest public corporation.
# 1st private employer (+2.2M employees).
# 1st retailer in the World. (+10K units)
# 48% stake is owned by Walton family.
# 51% sales from grocery.

5. 1st Store @ Rogers,AR. (1962)
Retail revolution.
The lowest prices. Anytime.Anywhere

6. 1st Store @ Rogers,AR. (1962)
Retail revolution.
The lowest prices. Anytime.Anywhere
First Sam's Clubs & Supercenter
$1 billion in annual sales.
1988

7. Walton’s EDLP strategy
• Competitive pricing
• Low margin and high sales
• Economies of scale

8. Corporate strategy
• Respect for the indiviidual
• Service to our customers
• Striving for excellence

9. Video : Walmart’s logo change over the years

10. When Walmart hit a few bumps in the road!

11. Why did their stock price fell between 2000-2005?
# Hard opposition generating bad reputation, claiming
unethical practices.
# Very bad press
# Executive managers were extremely closed with the
company's information, until 2005.
# Expected China's inflation (80% of products are
Made in China).
# The bigger you are, the harder to grow at a high rate.

12. What did Target do to make Wal-Mart change it’s
strategy? How did Wal-Mart reacted?
# Target aimed to a higher-income customer.
# Better aesthetics and appeal inside stores.
# Wider product portfolio, including important and
desirable brands.
# Focus on apparel (50% of sales).

14. Walmarts new direction
• Initiatives
• Environmental friendly initiatives
• New tagline!

15. Did the company make the right decision to drop
"Always Low Prices. Always." as a tagline?
Yes!
"Save Money. Live Better." Attracts a new type of
costumer without forsaking the usual one. People
more inspired by a 'better life' than a 'lower price',
and likely with higher budgets to spend.

16. Key: Aim to higher-income customers
without leaving the actual customer
base behind.

17. Walmart does very well when the economy turns sour.
How can it protect itself when the economy is on the rise?
# Building a stronger customer loyalty.
# Enhancing their product portfolio.
# Improving the cleanliness and aesthetics in stores
#Adding even more amenities to the stores: banks, fast-
food chain restaurants.
# Diversifying:+Developing a new business unit aimed to a
customer with a higher budget that wants to buy better
products.+Developing an accessible organic (and healthy)
product line

19. What from Chapter 3:
• Good sales information systems
• Marketing intelligence system
• ANALYZING THE MACROENVIRONMENT
-Needs & Trends
-Identifying the major forces
-The demographic environment

20. Summary!

21. Disclaimer
• Created by Tarun Kateja, IIT Madras under the
mentorship of Prof Sameer Mathur, IIM
Luchnow