Strategic MarketingMarketing Plan of Wal-Mart for Entering in Pakistan

Supervised By: Mr. Arif Vaseer

Group Introduction

Abdul Basit Jamil MB083019

Saba Munawar MB083036

Samar Inderyas MB083085

Sohail Akhter Malik MB083044

Taimoor Jamal MB083014

Project Introduction

Strategy for Geographical Expansion

Customer Analysis

Market SegmentMiddle Class Upper middleLower middle

MotivationsLower prices High quality products Customer servicesQuick innovations in brand

High quality brand and valuable services are the part of their unmet needs

Competitors Analysis

• Utility stores, Metro, Makro and Hyper Star• Product range of strategic group is food items, non food

items and own brands

Competitor Analysis

Strengths of Metro:

Low cost with high quality

Wide range or variety of products

All business solutions under one roof

Covering many areas

Efficient use of place and excellent layout

Sufficient parking and security

Computerized database system

Weaknesses of Metro:

No proper transportation for customers to carry the product away.

Shopping from there is time consuming as the travelling distances are more

Lack of awareness among people all over the country

Weak expansion strategy

Competitor Analysis

•Focus on customer needs and satisfaction

•Innovation in all they do•Low cost strategy•Win-Win partnership with

suppliers•Outsourcing the products•Vertical integration for

very few offerings•First mover strategy

Strategies of Metro

(Cash&Carry)

Market Analysis

• This departmental store market has become attractive because many items are available at one place.

How attractive is the market

• Strong competition among rivals, inflation, Energy crisis, High oil prices Forces Reducing

Profitability in the Market

• Collaborative partnership, strategic alliance, We suggest Wal-Mart to do alliance with Coca-Cola or Pepsi.

Alternative distribution channels

• Buyers’ demand for any brand in the industry, Competitive moves in the industry, Timing of a company in any industry to make move

Industry trends which are significant to strategy

• Customers’ are motivated , business model is attractive, Low cost strategy with the high quality, Quick answers to customers’ demand, Efficient supply change managementKey success factors

Environmental Analysis

Law and order situation..

Political instability leads towards investment shortage..

Cultural differences..

People’s resistance against the brand..

Climate differences..

Competitors..

Price wars..

Threats

People’s curiosity for international brand,

Companies with strong distribution channels,

Acquiring weak players in the market,

Untapped markets.

Opportunities

We have been observing from past few years that the industrial growth is dependent on the competition which eventually relies on the fame of brand and fame of brand is dependent on advertisements.

Market Trends

Internal Analysis

• Basic store infrastructure

• Documentation cost

• Recruitment and selection cost

• Marketing cost

Cost

• Overall low cost with high quality• Localization• One- Stop Shopping • Full Product Line• Private Branding• First Movers• Outsourcing of value chain

activities• Strategic Alliances

Strategy• Performance of

Wal-Mart is good enough to enter in new geographical location like Pakistan

Performance

Internal Analysis

• Efficient Staff• Cost effectiveness• Quick innovations• No compromise on

quality• Cost

Points of Differentiation

• Efficient supply chain management and E-tail’s continued development

• Least cost of packaging ,Strong penetration strategies

• Infrastructure• Low cost

Strength• Late entrant in

international market.• Unable to adapt to

different countries• Were unable to handle

media• Low penetration in

European union

Weaknesses

Internal Analysis

• Protests from small businesses (small stores )

• Pakistan’s poor infrastructure• Poor public image greedy

pricing , unemployment• Pakistan’s diversity • Competition from Pakistani

Retailers including Metro and Hyper-star

Strategic problems

• Open doors for stake holders and potential stake holders

• Same-day service• Appreciating ideas• 10-Foot Rule (if a customer comes at a

distance of 10 feet from you look into the eyes, greet him and ask if he needs any help)

• Teamwork• Cheer and greet customers and employees

Culture

Internal Analysis

Existing Business PortfolioWal-Mart Stores Division

Wal-Mart Discount Stores Wal-Mart Supercenters Wal-Mart Neighborhood Markets

Sam’s ClubsWal-Mart InternationalPrivate Labels (Sam’s Choice , Great Value ,

associate ,Smart Price)

Strategy Development

Value Proposition Low price with high quality Discount Sales promotional activities Availability of all products at one place

Functional Strategies Research department should be active enough to conduct surveys before

entering into new segments or geographical boundaries Sales and marketing departments need to be ready all the time for the

challenges Human resource department’s strategy can be to hire the most efficient

people from the staff of weak player which is acquired by Wal-Mart to enter in Pakistan

Finance department should utilize the funds in accordance with the strategies

Porter’s Five Forces

Value Chain Analysis

Supplier End

• Inbound Logistics• Head Quarter• Supplier’s Payment• Distribution Centers

• Operation

Forward End

• Outbound Logistics• Warehousing• Transportation• Distribution Management

• Marketing and Sales• Services

Supply Chain Management

Promotion

Pena-flexPostures

Conclusion

In the light of above, we can say that Wal-Mart is the global brand performing its operations in many countries and it is well recognized brand all over the world. Moreover, we have seen that how Wal-Mart can enter in Pakistan, what should be their marketing plan, how the strategies can go effective, what are the things to study in external environment, why they should do internal analysis before entering in any geographical region and what will be their value chain when they opt to enter in Pakistan.

References

Retrieved 26th January, 2011

http://wiki.answers.com/Q/How_many_wal_mart_stores_are_out_there

Retrieved 26th January, 2011

http://www.walmart.com/

Retrieved 26th January, 2011

http://www.authorstream.com/Presentation/aSGuest40386-346765-final-wal-mart-Entertainment-ppt-powerpoint/

Retrieved 27th January, 2011

http://www.docstoc.com/docs/17450666/Metro-Cash--Carry

Retrieved 27th January, 2011

http://www.metro.pk/servlet/PB/menu/1145691_l2/index.html