INDEX

Serial No Topics Page No

1. Introduction ------------------------------------------------------------------------------------------- 04
1.1. Walmart (History & Background ------------------------------------------------------------ 04
1.2. Tesco (History & Profile) ------------------------------------------------------------------- 05
2. Products of Retail Stores ---------------------------------------------------------------------------- 05
2.1. Products of Walmart --------------------------------------------------------------------------- 05
2.2. Products of Tesco ------------------------------------------------------------------------------ 05
3. Appropriate Place for Retail Stores ------------------------------------------------------------ 06
3.1. Place (Walmart) ------------------------------------------------------------------------------ 06
3.2. Place (Tesco) ----------------------------------------------------------------------------------- 06
4. Price of Retail Stores --------------------------------------------------------------------------------- 07
4.1. Price (Walmart) -------------------------------------------------------------------------------- 07
4.2. Price (Tesco) ------------------------------------------------------------------------------------ 07
5. Promotions of Retail Stores ------------------------------------------------------------------------ 08
5.1. Promotions (Walmart) ------------------------------------------------------------------------- 08
5.2. Promotions (Tesco) ---------------------------------------------------------------------------- 08
6. Conclusion --------------------------------------------------------------------------------------------- 09
7. References --------------------------------------------------------------------------------------------- 10
March 9, 2017 Comparative Study of Walmart Vs Tesco Through (Marketing Mix)

INTRODUCTION
Before coming to the introduction let me state the reason why I have selected these two retail
stores, as for as our academic task was concerned I have chosen Walmart and Tesco where these
both are grocery and services retail stores their format and design are the same. These two retail
stores are competitors among themselves in the market, where each one of them what to be the
market leader that is why they operate in various market the following is a brief introduction
about these two retail stores
Walmart (History & Background):
Walmart is an American multinational retailing corporation that operates as a chain of
hypermarkets, discount department stores, and grocery stores. Headquartered in Bentonville,
Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31,
1969. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969,
and publicly traded on the New York Stock Exchange in 1972. Wal-Mart, headquartered in
Bentonville, Arkansas, is the largest majority private employer and the largest grocery retailer in
the United States. Walmart was a chain of smaller discount stores, with a range of services, from
groceries to check cashing and gasoline service. The concept was focused on small towns
deemed not able to support a larger store, and large cities where space was at a premium. In
2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business. It also
owns and operates the Sam's Club retail warehouses in North America. Wal-Mart has 8500
stores in 15 countries, with 55 different names.
Tesco (History & profile):
Tesco is a British multinational grocery and general merchandise retailer with headquarters in
Welwyn Garden City, United Kingdom. It is the third largest retailer in the world measured by
profits and fifth-largest retailer in the world measured by revenues. It has stores in 12 countries
across Asia and Europe and is the grocery market leader in the UK where it has a market share of
around 28.4%), Ireland, Hungary, Malaysia and Thailand. Originally a UK grocery retailer,
Tesco has diversified geographically since the early 1990s and into areas such as the retailing of
books, clothing, electronics, furniture, toys, petrol and software; financial services; telecoms and
internet services. The 1990s saw Tesco reposition itself; it moved from being a down-market
high-volume low-cost retailer, to one which appeals across many social groups, by offering
products ranging from its "Tesco Value" items launched 1993 to its "Tesco Finest" range.

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March 9, 2017 Comparative Study of Walmart Vs Tesco Through (Marketing Mix)

PRODUCTS OF RETAIL STORES

Products (Walmart): Walmart is a multinational retailer; in short it has every product or a
brand which a person could see in his day to day life. Walmarts product is its retail service.
In general, retail firms are service businesses. The company attracts customers by providing
convenient and effective service. For example, Walmarts sales personnel are trained to
effectively assist shoppers in finding the goods they need. Convenience is achieved because
the firm offers a wide array of goods in its stores. The product component of the marketing
mix affects Walmart by defining customer experience. The companys sales personnel
directly influence how customers feel when they enter the stores. The broad range of product
categories includes.
Groceries
Entertainment
Health and wellness including pharmacy
Hardliners including stationery, auto spares, and accessories
Hardware
Household appliances
Despite the low prices, Walmart attempts to position its products as quality and this message
is integrated into companys marketing strategy.

Products (Tesco): Tesco offers a comprehensive range of products. Specifically, along with
food and grocery products the following product categories can be purchased from the
supermarket chain, Tesco provides a wide range of products that include.
Groceries
Technology & gaming
Health & beauty
Home electrical
Entertainment & books
Home appliances
The range of product categories sold in Tesco stores depend on the type of store with Express
stores having the least variety of products. Moreover, Tesco Bank offers a range of popular
banking products such as mortgages, credit cards, personal loans and savings.

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March 9, 2017 Comparative Study of Walmart Vs Tesco Through (Marketing Mix)

APPROPRIATE PLACE OF RETAIL STORES

Place (Walmart): With more than 11,000 stores, websites and mobile apps, customers can
access Walmart via multiple channels. During the fiscal year of 2016, Walmart is planned to
expand by approximately 15 to 16 million total net retail square feet, representing between
240 and 270 units. Walmart stores are operated in the following four formats:
Walmart discount stores
Walmart express stores
Walmart super centers
Walmart neighborhood markets
Walmart has launched its dedicated e-commerce websites in 11 countries and the proportion
of online sales compared to the traditional offline sales has been consistently increasing for
the past 10 years.

Place (Tesco): It is headquartered in Chestnut, Hertfordshire, England. Its stores are spread
far and wide in the world. It employs two main channels of distribution for its products and
services online and offline. More than two-thirds of total Tesco sales are made in the UK.
Stores are operated in the following format:
Metro
Express
Extra
Superstore
Online sales channel of the supermarket chain is titled as Tesco Direct and it is based on the
official website of the company www.tesco.com. It is important to note that the popularity of
online sales channel compared to traditional offline sales channel has been consistently
increasing for the last few years.

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March 9, 2017 Comparative Study of Walmart Vs Tesco Through (Marketing Mix)

PRICE OF RETAIL STORES

Price (Walmart): Walmart has based its competitive advantage on cost leadership. Walmart
business model doesnt include manufacturing of any product; it procures products across the
globe in large quantities in order to enjoy benefits of economies of scale. This makes price of
Walmart to offer products at 15% lower price than other retailers. Walmart uses different
pricing concepts to get focus of the customers and compel a purchasing behavior through
discount strategies. Some of those strategies are as follow
Customer Value and Service;
Partnership with its associates;
Community involvement.
Sam Walton coined the term Always lows prices and Everyday low prices; according to
this each product is offered at different discount prices based on the time and demand of the
hour. The consumer electronics are offered at a very low price compared to other retailers.

Price (Tesco): Tesco attempts to maintain as low prices as possible without reducing the
quality of its products or running itself in loss. In order to pass all cost advantages to its
customers and keep them happy, it uses a number of measures which includes the economies
of scale it enjoys. Moreover the following are the pricing strategies implemented by the
Tesco.
Cost plus pricing strategy
Cost based pricing strategy
Tescos strategy of low prices is what has recommended it to customers over the years,
making it possible for Tesco to surpass all expectations and become the leading supermarket
chain in Britain leaving all old brands like Sainsbury behind. Many people expected it to
raise its prices once it became well established and as energy cost kept increasing, it
continued to stymie their expectations by maintaining the lowest costs possible. It primarily
believes in the strategy that every little counts. It thus, has large stores where prices are
further lowered and smaller stores where products cost a little more due to higher overhead
costs.

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March 9, 2017 Comparative Study of Walmart Vs Tesco Through (Marketing Mix)

PROMOTION OF RETAIL STORES

Promotions (Walmart): Walmart has its own in-store promotional activities which includes
sales promotions through product bundling and its pricing strategies. The online store of
Walmart earns major revenues from through customers placing online gifts. The pricing
strategies adopted by Walmart like Everyday low prices, value of the day increases the
sales turnover.
Website of Walmart is very efficiently working and the data base is designed to facilitate the
customers and the contents are very well organized and easily reachable. Basically the
Walmart companies started operating at the discount principle, but still apart from routine
discount seasonal offers and bulk discount offers are also given, and sometimes products
rates are fixed at very low price for a limited period of time.

Promotions (Tesco): Tescos biggest advantage is its low prices. This is what sets it apart
from other supermarket chains. And this is what it uses to enhance its brand image. Its major
objective has always been to improve its brand image by reducing costs and being true to its
words, while maximizing its profit. To this end, it makes use of television advertisements,
offers promotional discounts, sponsors charitable events, and uses point of sale strategies and
so on. All of Tescos advertisements focus on one thing its low prices. It also provides a lot
of attractive offers to its customers all year round. It is very easy for any customer roaming
the lanes of this grocery store to find offers like buy one get one free, half price etc. It
strives to make its customers purchase more, all the while feeling like theyve saved so
much.
Easy accessibility and availability has also helped Tesco acquire more loyal customers. It
online services have been much appreciated and has received excellent responses. The
payment procedures are simple in both the offline and online forums. Its stores have both till
payment and self-service options. Online purchases are generally cheaper than offline ones.

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March 9, 2017 Comparative Study of Walmart Vs Tesco Through (Marketing Mix)

CONCLUSION
Walmarts marketing mix revolves around the nature of the firms retail business. The
companys cost leadership generic strategy also defines the marketing mix. The overall
behavior of Walmart in the global retail market is linked to its marketing mix strategies. With
its continued leadership as the biggest retailer in the world, Walmart expects to use the same
marketing mix as it expands globally. The strategies included in the companys current
marketing mix have already shown considerable success. Thus, it is realistic to continue
using it as is. However, Walmart can improve its current marketing mix, especially in the
place/distribution component.
Tesco is the leading brand of Supermarkets in Britain. It has managed to garner so much
consumer popularity that its stores have crossed the boundaries of the United Kingdom and
reached twelve other countries across Europe and Asia! So what is the main attraction of
Tesco? Why do consumers choose it over the other typically similar grocery stores? The
answer is that Tesco has been designed to first and foremost fulfil consumer needs. It
provides the cheapest prices, it develops with the times and thus, has numerous online stores
and more importantly it maintains a reliable brand image that manages to reap customers
loyalty.

REFERENCES
1. http://www.marketing91.com/marketing-mix-tesco/
2. http://panmore.com/walmart-marketing-mix-4ps-analysis
3. http://marketingmixx.com/marketing-basics/marketing-mix/
4. http://research-methodology.net/tesco-marketing-mix/

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