Wal-mart VS Costco

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					                          Wal-mart
                             VS
                           Whole
                           Foods




    Group 7
Melinda, Melissa, Nutt
Alejandro, Arvind, Liem
Background

   Wal-mart is the biggest retailer in USA

   How can other stores survive while
    competing with Wal-mart?
History

Wal-Mart
   Built in 1962 in Arkansas
   Now is a national retailer with annual sales exceeding $288 billion
   A number one seller in multiple categories of consumer product

Whole Foods
   Founded in 1980 as one small store in Austin, Texas, Whole Foods
    Market is now the world's leading retailer of natural and organic foods
   Mission statement: We're highly selective about what we sell,
    dedicated to stringent Quality Standards, and committed to sustainable
    agriculture.
   Motto : Whole Foods, Whole People, Whole Planet
    Emphasizes that Whole Foods vision reaches far beyond just being a
    food retailer.
Wal-Mart Current
   Wal-Mart is a global company with more than 1.9 million
    associates worldwide and nearly 6,500 stores and wholesale
    clubs across 13 countries.

   The "most admired retailer" according to FORTUNE magazine

   Wal-Mart established a new record with an increase of 9.5
    percent from last year. The company earned almost $11.2
    billion in net income in fiscal 2005.

   Wal-Mart generated more than $312.4 billion in global revenue
    in the fiscal year ended January 31, 2006
Wal-Mart Current (Cont)
   1,478 Wal-Mart discount stores ,1,471 Wal-Mart Super centers,
    538 Sam's Clubs, the number two U.S. warehouse membership
    club chain (trailing Costco Wholesale Corporation); and 64 Wal-
    Mart Neighborhood Markets

   January 2007 :
    Sales                : $348,650.0M
    One year growth      : 10.5%
    Net income           : $11,284.0M
    Income growth        : 0.5%

   Target Market        : Middle Low
    Strategy             : Low Price
Whole Foods Current

   Now more than 265 stores in US, Canada and the
    United Kingdom

   Rewards :
    –   Fast Company's 2005
    –   "Customers First Award"
    –   January 2007, FORTUNE "100 Best Companies to Work
        For" ranking : No. 5

   Low turnover rate for non-executive employees (2
    percent).
Whole Foods Current (Cont)


   Acquisition of Wild Oats Markets to gain market
    share (10%)

   Sept 2007 :
    Sales          : $6,591.8M
    One year growth: 17.6%
    Net income     : $182.7M
    Income growth : (10.3%)
 How Can Whole Foods Survive
from giant retailer like Wal-Mart?

   What makes Whole Foods
   different from Wal-Mart?
Whole Foods Marketing Mix

Target market :
      Middle-High, educated customer
       Affluent, liberal, educated people living in university towns


Distributions :
      Each store should have the freedom to meet the needs of
       its unique customers and team members.
      Decentralizing decision-making
Whole Foods Marketing Mix

Core Values :
   Selling the highest quality natural & organic products
    available
   Supporting Team Member happiness & excellence
   Caring about our communities & our environment
       Educate customers about healthy food through the website
       and offer recipes for healthy eating, about medicine (herbs
       medicine), and alternative therapies like acupuncture,
       reflexology
Whole Foods Marketing Mix

   Satisfying & delighting our customers
        Offer an EXPERIENCE for customers while visiting their store.
         “While a trip to Whole Foods Market is a place to explore”.
        WFM emotionalizes the shopping experience by appealing to the
         five senses.
             Stores are spotless and the merchandising displays are beautiful to
              the eyes.
             Shoppers are encouraged to taste and to touch everything in the store.
             WFM is a muzack-free zone and thus doesn’t sound like a traditional
              grocery store.
             The smell of bread, coffee, smoked meats, and fruits waft throughout
              every WFM.
        Build a friendly, clean and warm atmosphere in their store
        Home delivery
Whole Foods Marketing Mix

Good Ambiance, Private Label
Whole Foods Growth
Whole Foods
Whole Foods Marketing Mix

Continually redefining the marketplace :
     Culture
     Emphasis on perishables
     Private label
     Brand partnerships
     Control brands
     Local products
     Whole Trade
     Animal Compassion
     Recreating the supply chain
     Store design continues to evolve
     Brand continues to gain momentum
Whole Foods Future
Whole Foods Future

   Company expects sales growth of 25% to 30% in
    2008
   The Company expects to open a comparable
    number of new stores in fiscal year 2008 as in fiscal
    year 2007.
   So far this fiscal year, the Company has opened four
    new stores in Cranston, RI; Chandler, AZ; Nashville,
    TN; and Pasadena, CA.
   Expand Region : Europe
Conclusion

Whole Food does not compete directly with
  Wal-mart
They target different markets that cannot be
  served by Wal-mart, different strategies
  about employee, environment, customer and
  main product.
Wal-mart is about Value, but Whole Food is
  more about Values.
Thank you

				
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