WAL * MART

Wal-Mart
Presneted by SYBBI STUDENTS ROLL NO: SUNPREETH 19 VIMLESH 20 IN GUIDENCE OF ANKUR 17 SUDHIR 15 MUSTAK SIR AMIT 11

What is Wal-Mart
Worlds biggest retailer One Hour Photo Studio Pharmacy & Optical Centre Tire & Lube Express Gasoline station Fast Food Outlet Garden Centre Pet Shop Also feature hair and nail salons, a video rental store, a family fun center, a branch of a local bank

Wal-Mart Subsidiaries
Wal-Mart Stores Division US Wal-Mart Discount Store Wal-Mart Super center Wal-Mart Neighborhood Market Sams Club Wal-Mart International

Key Statistics on Wal-Mart

Founder Sam Walson & Family owns 40% of Wal-Mart Headquartered at Bentonville , Arkansas , US Total No. of Stores 6775 Stores Stores in US 4065 Stores in US Outside US 2701 Stores in 14 Countries Total Employees 1.9 Million Total Sales 348.6 billion in 2006 Net Income 11 billion in 2006

Wal-Marts growth in last 25 yrs

Diversified into Food & Grocery , Private Labels and online store. Wal-Mart online is the e-commerce website. Has started selling online Music and Movies.

Some interesting figures

First Store opened at Rogers , AR in 1962 Wal-Mart sells 20% of retail grocery in US and 45% of total Toys sold in US. Its bigger than Europes Carrefour , Tesco & Metro AG combined.

Wal-Mart Corporate Values

Constant Improvement Shared Passion, Vision & Organization Culture Customer Focus Speed Execution Improvements In Basic Operations Community Involvement

What Wal-Mart does to achieve those values

Competitively Reduced Cost (Puts All Gains & Savings Into Reducing Prices) Consumer-centric Sales Localization Co-operated Suppliers Retail-tainment & Shop-ability: Aisles, Lighting & Signs Store-manager Autonomy

What Wal-Mart does to achieve those values.

One- Stop Shopping Keep Customer Shopping: Added Food & Services Full Stock Register Full Product Line Merchandising Ladder Private Branding

Potential Development strategy

Enhancing Product Range: Full-line Deptt Store Differentiation: Price-based - Best Quality At The Charged Price
Merchandising: Max. In-store Merchandise Display

Consumer Global Brand Opportunities: Wal-Mart

Supply chain integration in developing countries

Strength in supply chain

Efficient consumer response Vendor-Managed Inventory

Enterprise resource planning

Customer relationship management Sales force automation

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 annual avg household income of $3000 Demographics 60% of Indian population is in age group of 20-30 & is more inclined towards modern shopping. GDP growing about 6-8%

Oppaortunities in India
Indias retail trade is estimated at $206 billion & growing at 5% annually Only 3% of market organized shopping malls India as fastest growing sourcing market Indias vast market for food retailing

Challenges in India
Protests from small businesses (kirana FDI restrictions.

Indias poor infrastructure

Poor public image predatory pricing , unemployment Indias diversity and heterogeneity

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

Recommendation
Understand Consumer behavior
Market Segmentation Format of stores hypermarkets super centers or

Wal-Mart to adopt a blended model of its traditional format tweaked to fit the reality of Indian real estate